Retirement Planning

[newowen]

Have been coming across a couple of retirement plans lately. Does anyone know how good they are? Or should money been invested in something else?

 

[Dividends Warrior]

You should DIY

http://forums.hardwarezone.com.sg/stocks-shares-indices-92/good-dividend-shares-3617976.html

Check it out.

 

[Shiny Things]

DW speaks truth.

Doing it yourself instead of signing up with an insurance company can save you 2-4% a year. That might not sound like much, but 2% a year, compounded over 35 years, equals having TWICE as much money at retirement.

 

[Dividends Warrior]

DW speaks truth.

Doing it yourself instead of signing up with an insurance company can save you 2-4% a year. That might not sound like much, but 2% a year, compounded over 35 years, equals having TWICE as much money at retirement.

Thanks Shiny Things!

My reasoning for DIY is why let the insurance agents/ financial planners/ wealth managers earn fees/commissions when you are capable of managing your portfolio yourself?

Remember, nobody cares more about your money than yourself.

Some people might say "I dun have time to manage my finances" or "I feel it is such a drag/chore to be looking at my finances".

Well, if you dun even have time for your own financial health, that's very sad......

 

[WindBoi]

don't think DIY means doing dividends investing. choosing wrong dividend stocks at the wrong valuations kills as well.

for the average folks forming a portfolio with ETFs ,may turn out to be easier to managed.

DW, think you haven't get married yet. If you have you would have know that times get reduced drastically.

 

[Marcusse]

Hi newowen,

I am from the new Great Eastern Financial Advisor Pte Ltd platform.

What Dividends Warrior mentioned is nothing wrong, but my question to you is do you know what you are getting into by yourself?

Can you trust your own expertise and find the time to carefully manage your retirement fund?

Do you have a retirement system (not plan) in place?

There are many more considerations but I have to say that it is unfair and irresponsible of anyone if they were to throw you recommendations without understanding your current financial situation.



Best Regards,
Marcusse

Life is always happy as long as you are contented

 

[Dividends Warrior]

don't think DIY means doing dividends investing. choosing wrong dividend stocks at the wrong valuations kills as well.

for the average folks forming a portfolio with ETFs ,may turn out to be easier to managed.

DW, think you haven't get married yet. If you have you would have know that times get reduced drastically.

Yup. I agree. DIY actually means you take your financial destiny in your own hands. Try not to depend on others. Dividend investing is just one of the many methods out there.

Yes. Choosing the right dividend stocks is critical too. Dun be blinded by high yields. Make sure the payout ratio is sustainable and the business has a wide defensive moat.

Frankly, after marriage, everything is also reduced drastically, not only time!
It is a huge commitment and Singapore has the Women's Chartered laws protecting them. So guys, think carefully before plunging in.

 

[byakuya_23]

Yup. I agree. DIY actually means you take your financial destiny in your own hands. Try not to depend on others. Dividend investing is just one of the many methods out there.

Yes. Choosing the right dividend stocks is critical too. Dun be blinded by high yields. Make sure the payout ratio is sustainable and the business has a wide defensive moat.

Frankly, after marriage, everything is also reduced drastically, not only time!
It is a huge commitment and Singapore has the Women's Chartered laws protecting them. So guys, think carefully before plunging in.

Keen in learning how to invest in dividend stocks. How do i start off?

 

[kebinu]

Keen in learning how to invest in dividend stocks. How do i start off?

Read his blog. Wait you have some cash. Start at right time.

 

[chopra]

Hi newowen,

I am from the new Great Eastern Financial Advisor Pte Ltd platform.

What Dividends Warrior mentioned is nothing wrong, but my question to you is do you know what you are getting into by yourself?

Of course. Buy singtel = singtel.

Unlike insurance ILP products which are often complex and contain huge caveats.

Insurance agents face the dilemma. If they explain every line and word, it will confuse the customer; if they explain in layman terms, they miss the caveats.

 

[chopra]

Keen in learning how to invest in dividend stocks. How do i start off?

1. Wikipedia Time Value of Money. Read 5 times.

2. Next, read investopedia.



DW's blog is too simplistic. You can't learn much.

DW, no offence.

 

[Marcusse]

Hi chopra,

Of course. Buy singtel = singtel.

It is a different context as to the "what" I am referring to, I am referring to considerations.

Unlike insurance ILP products which are often complex and contain huge caveats.

Insurance agents face the dilemma. If they explain every line and word, it will confuse the customer; if they explain in layman terms, they miss the caveats.

Maybe your agent did not explain clear enough for you. ILP is not really that difficult to explain.

No matter, ILP is something I will avoid myself and for my clients; there are many more cost effective alternatives to ILPs.

 

[chopra]

Hi chopra,



It is a different context as to the "what" I am referring to, I am referring to considerations.




Maybe your agent did not explain clear enough for you. ILP is not really that difficult to explain.

No matter, ILP is something I will avoid myself and for my clients; there are many more cost effective alternatives to ILPs.

Hi.
1. So what are the considerations?
2. Your initial question was "do you know what you are getting into by yourself". So let me throw this question back at you. Do you know what you are selling? Have you read all the prospectus and financial statement of every company or bond invested by LIFE OR INVESTMENT LINKED PRODUCTS.

I have reported you to the moderator anyway. Quote from you again: There is no free lunch in this world. If you cant contribute free information in the forum arena and resort to promoting for FREE down here in hope of getting clients, then off you go.

 

[elusia]

but sometimes it's not that easy to manage your own investments. Not everyone is trained to do that. There were some courses in school which taught me Finance related stuff but I can't remember much of it.

Seeing all those numbers, returns, interest rates, etc gives me a headache.

But does planning for my own investments really pay me up to double in the long run?????? What about those savings / endowment plans offered by the insurance companies?

 

[Shiny Things]

but sometimes it's not that easy to manage your own investments. Not everyone is trained to do that. There were some courses in school which taught me Finance related stuff but I can't remember much of it.

Seeing all those numbers, returns, interest rates, etc gives me a headache.

But does planning for my own investments really pay me up to double in the long run?????? What about those savings / endowment plans offered by the insurance companies?

It's NOT THAT HARD, seriously.

Everyone thinks investing for retirement is hard, and scary, and ooooh I'd better hand it over to an insurance company. It's not!

Planning your own investments absolutely will save you a sh!tload of money over your working life. It can be as simple as "60% in stocks - the STI ETF - and 40% in bonds - the ABF bond ETF" and you'll be fine! And if you do that, you'll get great returns and pay a tiny amount of your hard-earned retirement money in fees.

 

[elusia]

It's NOT THAT HARD, seriously.

Everyone thinks investing for retirement is hard, and scary, and ooooh I'd better hand it over to an insurance company. It's not!

Planning your own investments absolutely will save you a sh!tload of money over your working life. It can be as simple as "60% in stocks - the STI ETF - and 40% in bonds - the ABF bond ETF" and you'll be fine! And if you do that, you'll get great returns and pay a tiny amount of your hard-earned retirement money in fees.

any courses or guides available online? i heard a lot from friends about investing my CPF, etc as well. But never really got down to reading up about it. there's some online trading sites too right? but are those risky?

what about those endowment plans by insurance companies? or retirement plans by the banks? i heard there's this new retirement plan by posb or aviva. saw the ads on the train last week.

 

[Shiny Things]

any courses or guides available online? i heard a lot from friends about investing my CPF, etc as well. But never really got down to reading up about it. there's some online trading sites too right? but are those risky?

It's hard to find any good guides for the Singaporean market, but you can find plenty by plowing through the archives on here.

And "those online trading sites" aren't risky as long as you don't do anything silly. Using DBS Vickers to buy a few big, boring blue-chip stocks and bond funds is eminently sensible, and it's far cheaper than handing over your money to Aviva or someone like that.

what about those endowment plans by insurance companies? or retirement plans by the banks? i heard there's this new retirement plan by posb or aviva. saw the ads on the train last week.

The problem with an endowment plan is that the fees are high and the yields are terrible. If your horizon's more than ten years, you're far better off in stocks. (And the reason they have enough money to advertise on the train is that the fees are extortionate.)

 

[WindBoi]

ETF investing. Do dollar cost average. I wonder if we have a lifecycle portfolio investing topic.

 

[ochazuke]

It's NOT THAT HARD, seriously.

Everyone thinks investing for retirement is hard, and scary, and ooooh I'd better hand it over to an insurance company. It's not!

Planning your own investments absolutely will save you a sh!tload of money over your working life. It can be as simple as "60% in stocks - the STI ETF - and 40% in bonds - the ABF bond ETF" and you'll be fine! And if you do that, you'll get great returns and pay a tiny amount of your hard-earned retirement money in fees.

Agree with this too. Also must remember to rebalance the portfolio once in a while.

 

[mummy1234]

For me, I invest in property for my retirement. Can leverage in property unlike shares and also safer than shares. Passive income from rental can help me retire in Malaysia where costs of living is much lower. Also benefit from the strong exchange rate and capital appreciation of property is better than shares. Tenants also help to pay off your loan....