In view of the increased interest rates for Central Provident Fund (CPF) Special and Medisave accounts, should one move funds to their Special Account (SA) to benefit from the higher rates? Jamie Lee, Endowus head of financial planning and editorial, advised that while the increase in SA rates to 4.01% is attractive, the transfer process is irreversible. CPF members should carefully consider the limitations of transferring their monies from their Ordinary Accounts as these funds can also be used for other purposes such as mortgage servicing and paying for education loans.

Samuel Rhee, Chairman and CIO at Endowus, and Sunny Leung, Head of ETF, Indexing & Smart Beta at Amundi went live to share more about Amundi’s new low-cost index funds, exclusively available on CPFIS through Endowus. With TERs starting from 0.05%, these are the lowest-cost index funds available in Singapore; more cost-efficient than even ETFs. Passively-managed index funds also save CPFIS members the hassle of tracking market performance, so they can live their lives to the fullest while allowing them to accumulate greater wealth over the long term.

This Mother’s Day, So Sin Ting, Endowus Chief Client Officer, shares how working children can gift their mothers financial wellness. They can make voluntary top-ups to their mother’s CPF accounts or encourage their mothers to invest their CPF funds to enjoy higher returns in line with their risk appetite. Stay-at-home mothers can also consider an income-focused investment portfolio to generate a stable source of funds to maintain purchasing power and achieve long-term wealth goals.

As inflationary pressures persist, Singaporeans are reassessing their investing goals, according to Endowus’ Wealth Insights 2023 report. Inflation remains the biggest financial concern for the majority of Singaporeans (86%). As a result, one in three respondents, particularly the millennials, are looking to invest more to build their retirement nest egg. However, new and inexperienced investors tend to invest only when they ‘feel the time is right’, which puts investors at greater risk. Endowus CEO, Gregory Van, emphasises the need for a passive, evidence-based investment approach.

More than half of Singaporeans are investing only when they feel “the time is right”, according to the Endowus Wealth Insights Report 2023. This is worrying as emotions can derail our investments when we try to time the market, leading to increased risk and volatility. Gregory Van, CEO of Endowus, highlights the importance of financial literacy and advises investors to create diversified portfolios built in alignment with specific goals and risk appetites.

The Endowus Wealth Insights Report found that inflation and the increase in the cost of goods and services remain the biggest financial concern in 2023 among respondents in Singapore and Hong Kong. As such, people are driven to try and save more money (69%) or explore new passive income opportunities (56%). Other data reported include respondents’ varying risk appetites across demographics, and their preferred sources of financial advice.

As generational wealth is shifting, Steffanie Yuen, Endowus’ Head of Hong Kong, discussed how wealth managers should cater to HNW and UNHW families by expanding their multi-generational offerings. The growing needs of the next generation of wealth have evolved beyond digital services into omnichannel experiences. Industry players must consider providing more value to end-to-end user engagements, while ensuring full transparency of their services to build trust among their clients.

Should Accredited Investors consider alternatives and private market assets? Samuel Rhee, Chairman & CIO at Endowus, highlights why balance is key. While institutions’ allocations in private assets may be as high as 25%, individual investors are encouraged to allocate lesser, between 5 - 15%, in accordance to their wealth and risk appetite. AIs should also take the necessary measures to effectively manage their liquidity. While closed-end private funds do not require capital upfront, money needs to be available when the fund is investing.

Joyce Liu, Endowus Senior Client Advisor, shared tips for young working adults and how they should approach investing and financial planning. Young individuals who leave cash in saving accounts are not effectively growing their funds amid an inflationary environment. For those with short-term goals, cash management funds would be a good solution. Instead of timing the market and chasing trends, young adults should also do the necessary research and start investing early to enjoy the benefits of compounding.

Endowus’ Wealth Insights 2023 report has shown that inflation worries continue to persist among investors in Singapore, which may prompt emotionally-led decisions about money, impeding investors’ efforts to achieve their wealth goals. Jamie Lee, Endowus’ Head of Financial Planning and Editorial, discussed how consumers can overcome the fear of inflation, diversify their investments and information sources, while keeping their emotions in check through automating the investment process on a regular cadence.

So Sin Ting, Chief Client Officer at Endowus, shared financial tips and lessons for women based on their various life stages. As they shift through different phases of life while bearing multiple responsibilities, women need to start thinking about how they want to use their money for themselves and others. This means moving money away from low-interest banks accounts to longer term investment needs. Sin Ting also encourages mothers to impart financial literacy to children from a young age by modelling positive money management behaviour.

How can one successfully balance spending and savings with their income? Joyce Liu, Endowus Senior Client Advisor, encourages young working adults to set aside emergency funds for a rainy day. They should also avoid overspending and beware of lifestyle creep. Thereafter, invest any remaining savings in low-risk investment instruments such as cash management solutions which allows you to maximise your short-term savings.