If that return amount makes you feel frustrated ?, you won’t be happy to know that these are the existing returns mentioned on a local bank’s website. This is worrying many banking clients, especially with Singapore’s inflation hitting 3.2% in October 2021; the highest rate in more than eight years!
My client, KC similarly felt this frustration as he felt that with such low returns, he was unable to save up for his retirement and fund his children’s future. He was not too sure about where to invest his money as he had a low-risk propensity and was worried about losing money in the investment.
With this in mind, I met up with KC to understand his needs; taking the necessary baby steps towards investing his money properly, starting with Unit Trust, and gradually moving into stocks.
These are the lessons learned from the session with KC:
? By putting your money in the bank, you will potentially be getting a -3.15% return, taking inflation into account. Is this truly the best and safest investment to be made?
? As KC is a more conservative investor, we have tailored a solution specifically for him; one that can allow him to sleep peacefully at night without worrying about the choppy market. By doing this, we managed to deliver a 15% return over three years.
? I have heard that many investors were buying DBS near its lowest in 2020 and selling when it became $21. By doing so, they have missed out on a much higher return. During this time, KC also asked me many times if he should be selling, but I am glad he trusted my advice and held on to his investment.
If you’re looking at the interest rates from your local bank and worried about the low returns that may be insufficient for you to fulfill your retirement dreams, feel free to DM me for a portfolio review. I’ll be more than happy to help in any way I can.
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Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
I am a former Army Officer and I started planning for my own retirement when I am in my twenties.
As a Civil Servant, I was drawing a comfortable salary and most of us will agree that a career in the Civil Service is an iron rice bowl ?
As time goes by, I noticed my peers who are working in the private sector are doing better than me financially even though I had a head-start. ? It sets me thinking that while a career in the Civil Service provides me with financial stability, it does not guarantee me a passive income and financial freedom if I do not acquire the financial knowledge to invest and manage my wealth.
As I went on a journey to achieve financial freedom, I fell in love with investment planning, retirement planning, and wealth management. I decided to embark on a career as a financial advisor after I realized that I am in the position to help many of my peers who started to ask me for advice with their finances.
Today, I am blessed with a clientele that includes teachers, tertiary lecturers, senior civil servants, busy professionals, and even an investment director of a private equity company. I am also the current Vice Chairman of the Investment Committee for Kwong Wai Siew Peck San Theng (碧山亭)
