Savings for retirement

[Beebot]

What can ordinary, salaried folks like me save enough for retirement? After Lehman Brothers and reading in the papers that financial managers earn big fat commissions from our insurance policies, I wonder where else can ordinary folks like me park my hard earned cash? And do not earn enough to invest in private properties for investment (only for self stay). And do not wish to play the stock market either.

I have been pestering my spouse not to invest any more of his hard earned money into investment linked products, endowment policies and what not but he seems to disagree. He said I'm too conservative.

Any thoughts?

[indomie]

Buy some gold

[ikan bilis]

1. Buy BTO
2. Buy New EC...

low chances of losing $$....
but if you are already staying in pte condo then no chance liow...

[sh]

errr... this is a condo forum... people here are passionate about property... likely advise you're getting here is property related....

Not the right forum is you want balanced opinion.

[roly8]

not wise to invest in property now..

[teddybear]

My personal opinion: You are right to stop your spouse from "investing" into investment linked products (ILP) and endowment policies. These type of things I think don't even fit to use the word "investment"! It is no different from "investing" in unit trusts, where your return get sucked dry by all the sales charges, management fees, etc. If you or your spouse are not investment savvy, then the best investment I would recommend is global index funds. Do dollar cost averaging in. Force yourself to save and invest. Obviously I am also passionate about properties, but unless you have sufficient buffer, not advisable to throw all money in properties.

Oh yes, I believe your spouse is thinking that ILP also provides you insurance protection, the answer is yes and no. Yes because got insurance protection, but no because the insurance coverage are just too little. Find out more about "buy term and invest the rest", such strategy is better. Before you talk about investment, please ensure you have enough insurance protection to protect your income stream for your love ones:
- Life & TPD insurance
- disability income insurance
- Hospitalization (medishield) insurance
- critical illness insurance

But hor, never under-insure but also never over-insure.

What can ordinary, salaried folks like me save enough for retirement? After Lehman Brothers and reading in the papers that financial managers earn big fat commissions from our insurance policies, I wonder where else can ordinary folks like me park my hard earned cash? And do not earn enough to invest in private properties for investment (only for self stay). And do not wish to play the stock market either.

I have been pestering my spouse not to invest any more of his hard earned money into investment linked products, endowment policies and what not but he seems to disagree. He said I'm too conservative.

Any thoughts?

[teddybear]

I am surprised that your spouse treat ILPs (Investment Linked products) and Endowment policies as "investments". Was he advised by some Financial Advisors (FAs)? You may want to read the BT article below. I never believe in all these FAs. Always do your own homework is the best advise I can give. Say when you buy something of $100 you spend 3 minutes to consider, then when you try to invest $100,000, you better spend 3,000 minutes to think first.

What can ordinary, salaried folks like me save enough for retirement? After Lehman Brothers and reading in the papers that financial managers earn big fat commissions from our insurance policies, I wonder where else can ordinary folks like me park my hard earned cash? And do not earn enough to invest in private properties for investment (only for self stay). And do not wish to play the stock market either.

I have been pestering my spouse not to invest any more of his hard earned money into investment linked products, endowment policies and what not but he seems to disagree. He said I'm too conservative.

Any thoughts?

Business Times - 03 Apr 2012
Mystery shopping survey: One-third of proposals 'unsuitable'
MAS also announces members of the panel of the Financial Advisory Industry Review
By NISHA RAMCHANDANI
(SINGAPORE) Up to one-third of recommendations by financial advisory (FA) representatives in a recent mystery shopping exercise were 'clearly unsuitable', according to preliminary findings.
Representatives were also not transparent in the disclosure of fees and charges, said the Monetary Authority of Singapore (MAS), which commissioned the exercise.
The last mystery shopping survey on practices in the financial advisory industry was conducted in 2006, covering 100 representatives from 30 licensed and exempt financial advisory firms from the banking, insurance and capital markets sectors. The 2006 survey had also shown gaps in the quality of disclosure and manner in which the reasons for recommendations are documented.
MAS also announced yesterday the members of the Review Panel for the Financial Advisory Industry Review (Fair), which will be chaired by MAS's assistant managing director for capital markets, Lee Chuan Teck.
Last week, MAS managing director Ravi Menon announced that the regulator is embarking on an official review of the advisory industry - the biggest in the last 10 years - to further 'protect and benefit the consumer'.
'The primary focus of Fair must be for the benefit of customers. Through Fair, we seek to bring about higher quality financial advisory services and better outcomes for consumers,' Mr Lee highlighted. 'At the same time, we appreciate that some of the proposals may impact businesses and representatives and the review panel will consider how to manage the impact and ease the transition for firms and representatives affected by the changes. Ultimately, a higher level of professionalism should be good for the industry.'
Other panel members include Securities Investors Association (Singapore) president David Gerald, Association of Banks in Singapore chairman Piyush Gupta, National Trades Union Congress deputy secretary-general Ong Ye Kung and Life Insurance Association Singapore president Tan Hak Leh.
'I think the Fair review has been a long time coming. The standards of advice at large are generally pretty poor,' said Genevieve Cua, a member of the panel and wealth editor at The Business Times. 'All investors have a right to good advice, even if the advisory fee is actually embedded in the product commission. They also have a right to know how the adviser is being paid and whether that structure is skewing advice in any way.'
The major areas that Fair will be focusing on include raising the competence of FA representatives, raising the quality of FA firms, making FA a dedicated service, lowering distribution costs as well as promoting a culture of fair dealing.
According to panel member Seah Seng Choon, executive director of the Consumers Association of Singapore, there is also a need to review conflicts of interest, such as financial advisers who double as a money lenders or property agents.
'With the rapid development of financial markets and products and more discerning consumers, it is imperative that financial advisers be focused on keeping up with developments and serving consumer needs,' added Mr Gerald.
In his speech last week, Mr Menon also highlighted that Fair would review the commission-based remuneration and distribution structure to address some of the inefficiencies so as to lower costs.
Fair will cover all firms in the FA business - including banks, insurers, stockbrokers and FA firms - and their representatives, as well as investment products regulated by MAS.
There are about 33,000 financial advisory representatives across the industry today.
Meanwhile, MAS is inviting consumers and industry practitioners to contribute feedback as well as provide suggestions via a questionnaire, which can be filled out on the MAS website (www.mas.gov.sg/fair) until May 1. There is no deadline for general feedback.
The panel's recommendations are expected to be released in the fourth quarter of this year.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

[hyenergix]

Buy some gold

Must wait for $15xx or below then buy, or take chance and wait until GST no longer applies towards the end of this year.

[hyenergix]

What can ordinary, salaried folks like me save enough for retirement? After Lehman Brothers and reading in the papers that financial managers earn big fat commissions from our insurance policies, I wonder where else can ordinary folks like me park my hard earned cash? And do not earn enough to invest in private properties for investment (only for self stay). And do not wish to play the stock market either.

I have been pestering my spouse not to invest any more of his hard earned money into investment linked products, endowment policies and what not but he seems to disagree. He said I'm too conservative.

Any thoughts?

Investment in property is overhyped now. Some advices...

1. Don't spend so much.

2. Usually insurance gives slightly above average interest rates, so it is good to get a savings type of insurance if you have excess cash but not enough to get a property.

3. Exercise to stay healthy and eat nutritious food.

4. Invest in a bit of time and effort to learn some new skills.

[price]

Investment in property is overhyped now. Some advices...

1. Don't spend so much.

2. Usually insurance gives slightly above average interest rates, so it is good to get a savings type of insurance if you have excess cash but not enough to get a property.

3. Exercise to stay healthy and eat nutritious food.

4. Invest in a bit of time and effort to learn some new skills.

Wow good advise

[chiaberry]

I have been pestering my spouse not to invest any more of his hard earned money into investment linked products, endowment policies and what not but he seems to disagree. He said I'm too conservative.

Any thoughts?

In the past the yield for long term investment in endowment policies beat the FD rate (and I think it still does). However you lock up your money for the term of the policy and cannot get it out without penalty if you need it early.

If you don't "invest", you will never have enough money for retirement as inflation will eat away at your hard-earned cash. I used to have the same attitude as you many years ago (I dare not say how many or it will -ahem- give away my age). But my spouse's policy to "invest" has proven correct over the long term. As the other forum member suggested, if you don't have much knowledge of shares, you can consider buying the Index trackers (follows the STI index). Or selected blue chips in a variety of companies (different sectors). You will make money on some and lose money on some. But overall in the long term it will still be better than keeping money in the fixed deposit. The local banks convertible preference shares are also suitable for a decent yield and lesser risk although the capital gains are limited.

Most of all, you have to educate yourself. Go and buy or borrow books on investments, buying shares etc etc to understand what it is all about.

[DC33_2008]

What kind of return are you looking for? What kind of quantum of investment are you looking at? Risk appetite?

What can ordinary, salaried folks like me save enough for retirement? After Lehman Brothers and reading in the papers that financial managers earn big fat commissions from our insurance policies, I wonder where else can ordinary folks like me park my hard earned cash? And do not earn enough to invest in private properties for investment (only for self stay). And do not wish to play the stock market either.

I have been pestering my spouse not to invest any more of his hard earned money into investment linked products, endowment policies and what not but he seems to disagree. He said I'm too conservative.

Any thoughts?

[amk]

I have been pestering my spouse not to invest any more of his hard earned money into investment linked products, endowment policies

You are absolutely right.
These 2 products should be banned.

Harsh reality: there is NO free lunch. Ordinary salary earners , the best deal is actually CPF special account! If you have 200k in SA by the time you retire, CPF Life can give u something like 2k a month.

oh BTO is also a free cheque given by the gov. get it at least once. earn your citizen's bonus.

[Beebot]

Investment in property is overhyped now. Some advices...

1. Don't spend so much.

2. Usually insurance gives slightly above average interest rates, so it is good to get a savings type of insurance if you have excess cash but not enough to get a property.

3. Exercise to stay healthy and eat nutritious food.

4. Invest in a bit of time and effort to learn some new skills.

Thanks for the sound advice. We have done most of what you mentioned.

[Beebot]

In the past the yield for long term investment in endowment policies beat the FD rate (and I think it still does). However you lock up your money for the term of the policy and cannot get it out without penalty if you need it early.

If you don't "invest", you will never have enough money for retirement as inflation will eat away at your hard-earned cash. I used to have the same attitude as you many years ago (I dare not say how many or it will -ahem- give away my age). But my spouse's policy to "invest" has proven correct over the long term. As the other forum member suggested, if you don't have much knowledge of shares, you can consider buying the Index trackers (follows the STI index). Or selected blue chips in a variety of companies (different sectors). You will make money on some and lose money on some. But overall in the long term it will still be better than keeping money in the fixed deposit. The local banks convertible preference shares are also suitable for a decent yield and lesser risk although the capital gains are limited.

Most of all, you have to educate yourself. Go and buy or borrow books on investments, buying shares etc etc to understand what it is all about.

The last point is good advice and we are working on it. Thanks.

[limfc]

seriously seriously seriously think about a 2nd property investment, I am referring to the type which you can collect rental from tenant...

when my ex-colleague first shared with me excitedly about property investment in 2007, my first impression was I do not have enough $$$ and it seems too complex to understand... furthermore, my circle of family, relatives and friends do not really invest in property and they are doing okay... in fact, I kept finding reasons not to invest in property...

subsequently, during 2007-2010, I played with shares, studied insurance and even tried to run OMO (one-man-operations) business... also hor, I looked into all kinds of funny short-cuts-to-get-rich ideas (I'm just not cut-out for option trading, day trading, etc)....

then, finally in 2010, I "woke up" and my *personal* final conclusion is that *long term* property investment (a 2nd property which is rented out) is probably one of the easiest retirement options... by *long term* it means that I am prepared to see through the whole loan mortgage in the next 30+ years... after that, the rental becomes my retirement income lo....

once i decided on that, I actually managed to find the $$$ somehow by pooling resources and in fact, managed to overcome all the other earlier "reasons" not to invest and I even paid quite some $$$ and spent a lot of time to attend seminars and read up on materials, especially this forum....

from this experience, i find that i cannot really trust my my brain that much... i'm really not sure, when i'm blinded by what i already concluded... in fact, I highly suspect my brains is not very good with processing what it "sees"... dun believe? you try this one out... hee...
http://www.youtube.com/watch?feature...&v=vJG698U2Mvo

if you already know the answer to the first video, try this updated one!
http://www.youtube.com/watch?feature...&v=IGQmdoK_ZfY


i'm sure there are many experts out here who will share even more knowledge...

[Komo]

I'm no expert ... but just pick any under valued REIT it's better then those policy and investment linked products.

[hyenergix]

seriously seriously seriously think about a 2nd property investment, I am referring to the type which you can collect rental from tenant...

when my ex-colleague first shared with me excitedly about property investment in 2007, my first impression was I do not have enough $$$ and it seems too complex to understand... furthermore, my circle of family, relatives and friends do not really invest in property and they are doing okay... in fact, I kept finding reasons not to invest in property...

subsequently, during 2007-2010, I played with shares, studied insurance and even tried to run OMO (one-man-operations) business... also hor, I looked into all kinds of funny short-cuts-to-get-rich ideas (I'm just not cut-out for option trading, day trading, etc)....

then, finally in 2010, I "woke up" and my *personal* final conclusion is that *long term* property investment (a 2nd property which is rented out) is probably one of the easiest retirement options... by *long term* it means that I am prepared to see through the whole loan mortgage in the next 30+ years... after that, the rental becomes my retirement income lo....

once i decided on that, I actually managed to find the $$$ somehow by pooling resources and in fact, managed to overcome all the other earlier "reasons" not to invest and I even paid quite some $$$ and spent a lot of time to attend seminars and read up on materials, especially this forum....

from this experience, i find that i cannot really trust my my brain that much... i'm really not sure, when i'm blinded by what i already concluded... in fact, I highly suspect my brains is not very good with processing what it "sees"... dun believe? you try this one out... hee...
http://www.youtube.com/watch?feature...&v=vJG698U2Mvo

if you already know the answer to the first video, try this updated one!
http://www.youtube.com/watch?feature...&v=IGQmdoK_ZfY


i'm sure there are many experts out here who will share even more knowledge...

You didn't think our govt would have mis-calculated e demand for housing by so much. It never happened before, only in 2005-2010.

[teddybear]

REITs are no difference from those ILPs, all try to charge management fees and expenses etc for many no-brainer things..... You might as well be the landlord and collect rental yourself without having to pay these REIT managers so much!

I'm no expert ... but just pick any under valued REIT it's better then those policy and investment linked products.