Desmond Ng

Remember when we were young, we used to be given names like “Ah Boy”, “Ah Girl” etc… after which we were given nicknames in our school days or army days?

Do you still remember what you were called?

Just a week ago, I attended a talk where the speaker, an insurance agent, said he was called “Professional Begger” by a relative of hers. It may mean nothing to you or may even sound funny, but it hurts. But she was really quick-witted and gave one of the best response that I ever heard, “That is a very interesting term to call us, but that is kind of true. We have to beg people like you so your lovely wife and son over there can have a better future and not suffer should anything happen to you. I am begging on behalf of your wife and son. That is what my job is… isn’t it noble? I beg for other people and not myself. Let me check if I got your number, because I am going to come beg you soon, for the sake of your family.”

How good can that answer be?!

Singapore is not an easy place to be doing insurance & investments because of the relatively higher skeptism ratio.  Do you know that in other countries, financial advisors are looked upon very professionally? In Singapore, it is either “Read my Palm” or “Slam my door at your face”. Funniest thing is people know they have to get it someday, but ignores the importance until something happens.

So be nicer to the professional beggers next time! Unless they are really just doing product pushing, then do what you like~

“Inflation is a rise in the general level of prices over time. It may also refer to a rise in the prices of a specific set of goods or services.”

Inflation affects your purchasing power and your long-term financial goals. If you underestimate the amount that you need to set aside to save or invest in order to achieve your desired standard of living upon retirement.

For eg.

In 20 years, $10,000 would be reduced to $6,676 at 2% inflation rate - 33% Loss

In 20 years, $10,000 would be reduced to $3,585 at 5% inflation rate - 64% Loss

Hence, we need to start countering Inflation now!

Here are the 8 ways…

1. Cut Down spending, live within your means

LV, Gucci, Prada, Coach etc… time to tone down a bit of these luxurious expenses.

2. Try to save 20% of your pay or more

This is especially useful for people that just started their careers as you have less liabilities. This disciplined savings will help you in building your long term investments.

3. Do not be overly conservative

Invest your money instead of leaving all of it in saving deposits or fixed deposits.

4. Don’t rely solely on guaranteed products

Bonds and guaranteed products will only provide a marginal protection against inflation over the long term.

5. Save regularly via an investment platform

The earlier you start, the quicker it will grow to in the later years. Start saving regularly into an investment savings plan. This will help your savings to work harder for you and prevent timing of the market.

6. Take on sensible level of investment risk

Include defensive and growth assets in your portfolio depending on your financial goals & time horizon.

7. Understand the power of compounding

Apply the rule of 72. To work out how long it will take for your investment to double in value, divide 72 by the percentage return. With a return of 9% would mean you need 8 years to double your money.

8. Limit exposure to depreciating assets

Assets like Car that depreciates in value should be limited.

*taken with reference from TheSundayTimes