Supporting Parents Who Do Not Have A Retirement Plan

It is not unheard of for Singaporean children to take care of their aging parents. This is partly due to our unwavering Asian culture of familial unity. We even have a legislation for it! Protected by the Maintenance of Parents Act, senior citizens who are unable to sustain their lifestyle can apply to the court in order for their children to provide a monthly allowance.

More than just a social obligation, there are four steps to begin a retirement plan for your parents.

#1: ANALYZE THEIR CURRENT FINANCIAL SITUATION

You must understand the overall financial circumstance that your parents are in. Are your parents’ CPF balances enough to sustain them for the years to come? Know whether they have a maturing savings account or an efficient estate plan. Compare these assets to their outstanding debts and other liabilities.

What led to the poor management of their golden nest? This means that you have to figure out their financial mistakes and help them to avoid these in the future. I have to admit that some setbacks are due to factors that are beyond their control (e.g., layoffs due to recession).
An open discussion is necessary.

Take all these into careful consideration while deciding how much support they will need from you to retire comfortably.

#2: DETERMINE THE EXACT TIMELINE

Determine when your parents intend to retire. Retiring at 50 sounds pleasant, but can your parents sustain their desired lifestyle for the next 30 years or so? You have to be realistic!

Some Singaporeans prefer to work on a full-time or a part-time basis as they go beyond the retirement age (i.e., aged 62 is the minimum according to the Retirement and Re-employment Act). Knowing exactly when the income stream will cease will provide you a rough idea of how much time you have to grow your wealth.

#3: PREPARE YOUR FINANCES

Preparing your finances goes hand in hand with the second bullet. It is a cooperative effort between you and your parents. You must highlight that they have to play an active part in the entire journey.

As long as you can afford to do so, you can set up their endowment plan. This is a prudent decision that will allow you to reap a beneficial compound interest in a span of a decade. This amount may supplement their CPF balances.

Moreover, preparation shall not be limited to the financial wealth. You can also focus on your parents’ wellbeing. Improving their physical health can reduce the risk of serious diseases. Enroll your parents to dietary programs, studio memberships, or wellness facility.

For instance, NTUC Health’s SilverCOVE at Marsiling Heights allows its members to enjoy an integrated senior wellness facility. SilverCOVE fuses social activities with lifelong learning initiatives with their gym facilities, TCM services, and more. The price for two people is about S$480 per year.

#4: DIVIDE THE RESPONSIBILITY

Raising a child is hard work, but taking care of your aging parents is no walk in the park either. Divide this responsibility between your siblings. Doing so will not only maintain fairness, but it will also reduce the financial risks of your parents. Say you are the sole provider of your family…picture what will happen to your parents if you suddenly lose your job. It is a gloomy sight!

For your younger brother who recently transitioned to the working scene, he can take on the weekly utility bills. For your sister who has a higher position in the company, she can help out with a portion of the mortgage repayments. Come into a mutual agreement during your discussion.

Image Credits: pixabay.com

Image Credits: pixabay.com

The best time to help your parents is now. Consider speaking to a financial adviser to ensure that your parents can retire comfortably and peacefully.

Sources:1 & 2

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How To Start Investing In Singapore

As Kemmy Nola once said: “The beginning is always the hardest”. So, do not immediately quit on your dreams of becoming an investor. Consider these tips:

BUILD YOUR SAVINGS

Maintaining a robust savings pod is the initial step that you have to take before plunging into the world of investments. Your savings account will act as a cushion to help you handle unforeseen market shifts (e.g., fall of the Lehman Brothers). You do not want to lose all your retirement fund just because of a wrong investment move! Moreover, you cannot afford to risk your primary source of income due to your poor decisions as a newbie investor.

Commit to setting aside at least three to six months’ worth of your salary.

DO YOUR RESEARCH

The best way to fish in an unfamiliar territory is to widen your knowledge about it. Know the basics in investing by visiting your the nearby public library to borrow appropriate books. A few examples of the books you may find are “The Resilient Investor”, “Trading Options for Dummies”, and “7 Simple Strategies of Highly Effective Traders”.

You will realize that there are different types of investments to suit one’s preferences (i.e., preferences include risk tolerance). Read more about these and the firms that offer them. Do your homework beforehand to know where your money will go.

Image Credits: pixabay.com

Image Credits: pixabay.com

ATTEND INFORMATIVE SEMINARS

Attending informative seminars will help you to absorb the theories and experiences of the experts who are way ahead of you in this field. Not many Singaporeans are aware that the Singapore Exchange (SGX) hosts several investment seminars. While some seminars cost over a thousand dollars, there are a number of free lessons available to the public. A good example is the upcoming talk entitled “Make Trading Your Source of Income”. For inquiries and reservation, please go to sgxacademy.com.

Another no-cost seminar that you can attend is Terence Tan’s “Get Rich Slowly, The Income Investing Way”. Terence Tan is the creator of the first Income Investing Programme in Asia-Pacific. This 2-hour workshop gives you a glimpse into the mind of some investors such as the renowned Warren Edward Buffett, to uncover the principles of income investing, and to determine the right stocks in 15 minutes or less. Furthermore, he will introduce you to his own methodology called Income Mastery Programme (IMP). Reserve a slot for the March 21st talk by visiting eventbrite.sg.

CHOOSE A BROKERAGE 

A brokerage is a financial institution, which is authorized to trade securities for sellers and buyers. A budding investor has an array of options when choosing a firm to work with. Here are some of the local firms:

a. DBS Vickers Securities
b. Citibank Brokerage
c. OCBC Securities

These firms will help you to set up your first trading account. A trading account allows you to purchase shares from the companies in the stock market. Worry not about the account maintenance fees as they are generally non-existent.

Image Credits: pixabay.com

Image Credits: pixabay.com

Sources: 1 & 2

[DISCLAIMER: THIS ARTICLE DOES NOT TAKE PART IN ANY OFFER OR RECOMMENDATION, OR HAVE ANY REGARD TO THE INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR NEEDS OF ANY SPECIFIC PERSON OR FIRM. BEFORE COMMITTING TO AN INVESTMENT, PLEASE SEEK ADVICE FROM A FINANCIAL OR OTHER PROFESSIONAL ADVISER.]

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5 Foolproof Ways To Save Money As A Student

If you cannot ask for a boost in your school allowance, you need to get creative to stretch your dollar!

TAKE ADVANTAGE OF FREE COMMUNICATION

I recently savored a blissful lunch with my long-term friend. Our conversation took an interesting turn as we shared our childhood stories. When she was a teen, she made countless overseas calls to the Philippines. Her father was immensely surprised that her bill amounted to S$400. A plane ticket would have been cheaper!

Many students are fueled by social interactions. This explains your attachment to social media. Rather than flushing hundreds of dollars down the drain, use the free services provided by WhatsApp and other similar apps.

BE YOUR OWN BEAUTY EXPERT

As a female student, you may perceive spa packages and beauty treatments as luxurious expenses. Imagine the financial impact that these treatments can cause on a regular basis. It will certainly get out of hand! Fortunately for you, you can maintain a beauty regimen with a tight budget. Simply do the treatments by yourself.

Let us start with nails. Purchase an inexpensive manicure kit to revamp your look in the comfort of your own home. I recommend Sephora’s manicure kit as it includes several essential tools – nail file, cuticle stick, nail clippers, and a classic red polish. Get all these for only S$17!

Afterwards, you can have flawless skin with coffee grounds. Dip a wet cloth into your leftover coffee grounds. Massage it from your neck down to your body to wash off the dead skin.

BUY AND SELL USED TEXTBOOKS

Textbooks or reference books tailored to tertiary students can cost as low as S$50 each. It is a hefty price to pay for books that you will use for merely 120 days. There are three different strategies to save money on these said books.

Image Credits: pixabay.com

Image Credits: pixabay.com

Firstly, consider purchasing a second-hand book at carousell.com. Secondly, you may rent the book for free at the National Library. Lastly, you may sell your old books to purchase a new one. The premium time to sell your used books is right after you finished your modules. Waiting too long can harm your chances of pawning your books to the next batch of students.

EMBRACE THE BENEFITS OF WALKING

Play a significant part for Mother Earth by opting to walk to school. When I was a university student, I spared 40 minutes of my day for travelling. I walked to school every morning with music in my ears. I can either feel the breeze or focus on my thoughts. Walking, a form of physical activity, was healthy for my body and my wallet. Do the same thing if you are going to travel short distances.

As a friendly reminder, stay safe by having someone accompany you while walking to isolated areas. Let a family member or a friend know about your whereabouts at all times.

REAP THE STUDENT DISCOUNTS

One thing that I miss most about being a student is the discounts that come along with it. Use the Internet to locate the great offers on restaurants, cinemas, museums, clothing shops, and more. Take advantage of your special privileges while you still can!

If you adore the movie theater as much as I do, you would be glad to know about Golden Village’s student promotion. It extends to various types of films. Kindly note that this promotion is valid until December 29, 2017.

Image Credits: gv.com.sg

Image Credits: gv.com.sg

Throwing all your school allowance on new clothes from trendy online shops or on drinks from the clubs at Clarke Quay is tempting for youths. However, it will make your life easier if you focus your youthful zeal on saving money. Employing the strategies mentioned above and earning extra cash can help you build a brighter future ahead.

Sources:  1,  2, & 3

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How To Generate Cash Using An Instagram Account

Social media has infiltrated our lives in ways that our ancestors cannot imagine. Let us focus on one platform – the trendy Instagram (IG). Instagram offers you the opportunity to widen your income or to receive free products by posting photographs. Contrary to popular belief, earning money thru this venue is not limited to becoming an influencer.

There are many methods to capitalize on your IG presence. Here are just of them:

METHOD #1: POST REGULARLY ON INSTAGRAM

To make decent amount of money on the side while feeding your Instagram addiction, you can consider becoming an influencer. Start by treating your feed as a C.V. (Curriculum Vitae). Strategically curate your account to invite as many brands as possible. The wider your feed or portfolio is, the better.

Maintain your Instagram presence by using consistent posting schedules, pristine images, and witty captions. Andrea Chong’s account is an example of a strong local influencer. Remember that you attract the brands that match the content of your feed. For instance, you may be hired as a brand influencer for a detox tea if you exude enthusiasm toward fitness.

METHOD #2: SELL YOUR WORK

You have a knack for photography. If you have numerous quality images that companies and individuals may want to pay for, you can display it on renowned websites such as Shutterstock. Another (relatively uncommon) option is to upload your portfolio on Instagram.

Make sure to add a watermark and a detailed caption to each of your image. This will not only protect your rights, but it will also clearly direct your potential clients.

METHOD #3: TAKE ADVANTAGE OF THE SLIDESHOWS

Do you own a budding small business? Well, you better listen up! This method allows you to establish the diverse angles of your brand using a single post. You do not have to pay for an upgrade.

Instagram has solidified its status as an efficient platform for sharing singular square-shaped photographs. Instagram did its best to sway with the dance of modern technology. It has since expanded to adding videos and time lapses. Furthermore, the Facebook-owned company introduced the slideshow feature. Users can post up to 10 pictures that will appear in one post. This move seeks to help advertisers (like you) to tell sequenced stories. Ensure that your photos follow a unified theme or filter.

METHOD #4: EMPLOY AFFILIATE MARKETING

Various websites display their partners with sidebar banners. This type of publicity is called affiliate marketing. The same principle applies when you are rolling out your affiliates over to Instagram. Affiliate marketing will enable you to receive commission for the products or services that you will promote. Use catchy hashtags and high-resolution images to drive more traffic to the affiliate code or URL.

Step up your game by mentioning the brand on your Instagram stories. Simply edit the text and type “@” followed by the brand’s username. A notification will be automatically sent to the brand’s inbox right away.

Image Credits: pixabay.com

Image Credits: pixabay.com

BONUS TIP: You can promote “flash sales” by posting on your 24-hour Instagram stories!

Sources: 1,  2, & 3

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Wise Hacks To Save Money On Your Next Cruise Booking

As the popular song goes: “Cruising is made for love.” The appeal of boarding a cruise echoes to the hearts of many Singaporeans. Before booking your next Royal Caribbean International or Princess Cruises trip, consider these tips to knock a few bucks off your total spending.

SPOT A GOOD DEAL

Sales and promotions are prolific in the cruise industry. Short-term deals leading up to the sail dates can help you save a decent amount of money. However, you must be cautious about the eye-catching deals that offer up to 50% off and beyond. These attractive savings may be due to the sudden bump in the ticket prices just before the sale.

The savviest way to spot a good deal is by tracking the prices for several weeks. When a sale comes up, you will know how it fares compared to the average prices. Find deals by subscribing to a cruise line’s or a travel agency’s electronic newsletters.

DO NOT SKIP YOUR FITNESS REGIMEN

Being on a vacation is not an excuse to skip your fitness regimen. Skip the overpriced classes offered by luxurious gyms in Singapore and opt for the complimentary sessions held on the deck. Picture yourself taking the hottest Zumba craze as you float above the serene seas. Alternatively, you may bring your own yoga mat and watch a free tutorial from your laptop.

DETERMINE ALL THE INCLUSION

Much like the type of boarding pass you carry on air, the boarding pass on sea constitutes to certain inclusions. Understand the terms and conditions of your pass before booking anything. Who knows? You might save more money by letting go of some unnecessary add-ons.

TAKE ADVANTAGE OF THE FREEBIES

If the ship is hosting an art auction for all the guests, you can drop by to appreciate art while sipping free booze. Relax and enjoy. You are not obliged to purchase an artwork, nor are you obliged to pay for the flowing champagne.

DO IT YOURSELF

If you are planning a quick getaway for a period spanning to 5 days, consider washing your own clothes. Cruise lines will gladly was your clothes for about S$3.50 per item. This number can quickly add up! Use the self-service launderettes or wash your clothes in the bathroom sink instead.

Simply pack your own detergent and hang your clothes in the shower. Only wash the items that you are going to reuse and wash the rest when you get home.

EMBRACE THE SELFIES

In a world where we are practically glued to social media, posting photos while on a cruise is a must! Many ships have their resident photographers that are willing to charge you about S$30 per frame. Rather than splurging on the “official cruise photos”, take turns in playing a photojournalist.

Image Credits: pixabay.com

Image Credits: pixabay.com

Doing so will help you save more money without missing an Instagrammable moment.

Sources: 1,  2, &  3

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