Comparison Of Early and Multi-pay Critical Illness Plan Premiums

Comparison between different critical illness plan premiums

Critical illness plans help you cope with recovery and expenses when you are out of a job in the event of a critical illness. Initially, there was only regular critical illness plans that give a payout after late stage disease diagnosis. After that, came early critical illness plans that pay out after early to intermediate stage diagnoses. While useful, this is a separate plan that you had to get. Multi-pay plans emerged in recent years, and is innovative for providing multiple payouts without immediate policy termination, unlike the early and normal critical illness plans. This implies that there is a difference between the three types of critical illness plan premiums.

We here at fundMyLife are understanding, and we understand that a lot of people have one thing in their minds – money. More specifically, the cost of their insurance plans. That also explains why comparison sites are so popular. In this article, we compare the early and multi-pay critical illness plan premiums from various insurance companies. Disclaimer: take this article as a rough guide of the difference between plans from the insurance companies. As such, you should always confirm with a qualified financial adviser.

Approach

We compare seven early and multi-pay critical illness plan premiums. However, we’re afraid we do not have data on some critical illness products, such as Great Eastern Critical Care Advantage (review) and Prudential Crisis Cover (review). For those, you’d have to find a qualified professional to advise you. As for the products that we are covering, we have even written product reviews on several of them! These are:

  1. Tokio Marine Early Cover
  2. Aviva My Early Critical Illness Plan
  3. Manulife ReadyCompleteCare [Review]
  4. Aviva My MultiPay Critical Illness Plan III [Review]
  5. Tokio Marine Multicare [Review]
  6. AIA Triple Critical Cover [Review]
  7. AXA Early Stage CritiCare [Review]

Here, we used a combination of profiles of a typical consumer:

  1. Sex: male/female
  2. Sum assured: $50,000/$100,000
  3. Non-smoker
  4. Until age 75

Assume that smokers have to pay way more than what you see in the following graphs. In addition, we used age 75 because some plans are until the age of 75 and no longer, such as AXA Early Stage CritiCare. 75 is also a good age, statistically speaking. After a certain age you’d want to focus your resources on health insurance anyways.

Male

Critical illness plan premiums for males across two amounts of sum assured
Comparison of premiums for the plans. Top one is for $50,000 sum assured, whereas the bottom on is $100,000 sum assured.

Female

Critical illness premiums for females across two sum assured amounts
Comparison of premiums for the plans. Top one is for $50,000 sum assured, whereas the bottom on is $100,000 sum assured.

Observations

General trends

Unsurprisingly, men pay more premiums compared to women. This is because men are at higher risk of contracting critical illnesses, such as coronary heart problems. Men also live shorter than women. Also unsurprisingly, is that both men and women pay more in their premiums when their sum assured is $100,000 compared to $50,000.

Here’s where it gets interesting. In general, The annual critical illness plan premiums plateau at first, but increases exponentially after ages 35-40 and beyond for all of the plans. Based on the graphs, it’s a good idea to start considering critical illness plans before you reach 40 years old. This is because the annual premiums are still manageable before 40, and then they become too expensive as the premiums scale exponentially after.

Product trends

For early critical illness plans, Tokio Marine Early Cover and Aviva My Early Critical Illness are competitive with each other. This is true for both males and females, and across both sum assured.

For men, under multi-pay critical illness plans, Aviva MyMultiPay Plan III is the cheapest in terms of premiums. It remains relatively low over time. AIA Triple Critical Cover comes second. For women, AIA Triple Critical Cover is the cheapest in terms of premiums for a multi-pay plan. This is followed by Manulife ReadyCompleteCare.

AXA Early Stage CritiCare is the most expensive critical illness plan among all the other plans. The premiums shoots right up after 50 years old and becomes way more expensive after that so if you’re considering this plan, best do it early.

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We hope that this comparison of early and multi-pay critical illness plan premiums are useful as an overview on what to expect. Once again, we must emphasize that early critical illness plans and multi-pay plans are different altogether, so we do recognize that this is somewhat an apple and orange comparison to a certain extent. Again, remember, cheapest may not be the most suitable. Only a qualified financial adviser can advise properly.

What’s that? Haven’t found a good financial adviser? Worry not – fundMyLife got you bro. You can connect with our panel of experienced and awesome financial advisers, curated by us. Head on over to fundMyLife and ask our awesome financial advisers questions. Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

Follow us on our fundMyLife Facebook page to get exciting updates and your dose of finance knowledge! Alternatively, the Insurance Discussion SG Facebook group is a good place to discuss insurance-related topics with fellow Singaporeans.

Single-Pay Vs Multi-Pay Critical Illness Plans – What’s The Difference?

The differences between single-pay and multi-pay critical illness plans

Critical illness plans are plans that pay a lump sum of money whenever you’re critically ill. The payout is supposed to help you cope during the recovery period that you cannot work. Apart from the basic and early critical illness plans, insurance companies recently introduced multi-pay critical illness plans. What are they, and how are they different? In this article, fundMyLife examines the differences between single-pay and multi-pay critical illness plans.

#1 Number of times you get payouts

Let’s get the most obvious difference out of the way – the number of times you get payouts.

Typically, the usual critical illness plans provide a single payout when you contract one of the 37 diseases, in a relatively late stage. For example, you’re only eligible for the payout when you contract stage III or stage IV lung cancer. It also means that if you’re diagnosed at stage I, you do not get any payouts.

To cover that gap, early critical illness plans provide the payout if the doctor diagnoses you with diseases in the earlier stages. For example, a stage I and stage II cancer qualifies you for a payout. If you wanted protection for all stages, you would have to purchase both plans. The disadvantage is that once you get your payout, the plan terminates and that’s the end. On top of that, it will be very hard to purchase (almost impossible) a new critical illness plan since you have pre-existing conditions. This is disadvantageous because some diseases do reoccur during the course of one’s life, e.g., cancer.

In response to the demand for total coverage for critical illnesses and the possibility of recurring critical illnesses in a different stage, insurance companies are providing a multi-pay plan, a plan that covers the functions of both regular and early critical illness plans. Under multi-pay plans, in general you can get payouts when you contract critical illnesses, without a plan termination.

#2 Terms and conditions

On the surface, it seems simple. For single-pay critical illness plan, you get paid once in a lump sum, and that’s it. For multi-pay critical illness plan however, you get paid several times over the course of your life. The former is simple, as it involves only getting sick with one of the 37 critical illnesses once. However, for you to enjoy the multiple payments under the multi-pay plan, you’d have to go through the terms and conditions closer.

In general, the critical illnesses are lumped into categories, called layers. For example, the table below shows the layers defined by Aviva My Multipay Critical Illness Plan.

Aviva My MultiPay Critical Illness Plan benefit summary, one of the many multi-pay critical illness plans out there
Aviva My MultiPay Critical Illness Plan. and the different buckets of critical illnesses. Source: Aviva.

For Aviva, within Layer 1, there are three groups of diseases. For that, there’s no waiting period for claims between early critical illnesse in different groups of diseases. However, it might not be the case for multi-pay critical illness plans from other companies. Disclaimer: we’re using Aviva as an example for illustration purposes, not because we think it’s better or anything (that’s a story for another time).

To reemphasize, when you choose to take these multi-pay critical illness plans up, you MUST look up the terms and conditions to know what you can and cannot claim for after you contract a critical illness. Make sure you and your financial adviser are 100% sure of the terms and conditions for the plan to work in your favor.

You do not want to be in a situation where you have multiple critical illnesses but are unable to claim for some of them because you did not take the fine print into account.

#3 Premiums

According to our research, multi-pay critical illness plans are slightly more expensive than combining both standalone critical illness and early critical illness plans. The main reason, we speculate, is due to the fact that multi-pay critical illness plans have multiple payouts.

For the more price-conscious folks out there, there are alternatives to consider. Instead of forking out more on standalone critical illness plans, be it single-pay or multi-pay, you can consider taking on critical illness riders on your existing plans as well.

Want to know the specifics? Our pool of curated advisers can give you a better rundown on what you need. Or you can ask your own financial adviser. No pressure.

Connect with fundMyLife financial advisers today!

No matter the differences between these two types of critical illness plan, it’s definitely a good idea to have critical illness protection. With increasing lifespan over the years, it is all the more important we have things to fall back on in the case of critical illnesses. Best speak to your financial adviser about it.

Haven’t found a good financial adviser? Worry not – fundMyLife has your back. You can connect with our panel of experienced and awesome financial advisers, curated by us. If you want to engage more financial advisers, or if you haven’t found the right one, why not consider advisers of fundMyLife? You can head on over to fundMyLife and ask our awesome financial advisers questions. Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

Follow us on our fundMyLife Facebook page to get exciting updates and your dose of finance knowledge! Alternatively, the Insurance Discussion SG Facebook group is a good place to discuss insurance-related topics with fellow Singaporeans.

6 Avoidable Mistakes When Saving Money

Here are some common mistakes when saving money

There’s a saying that goes like this, “save your money today and it will save you tomorrow”. It sounds easy right? Just two simple steps: 1) put money somewhere, like an account, 2) repeat step 1. While simple in theory, saving effectively is monumentally hard. More so when there are so many things to pay for, like bills, leisure, travel, etc. In this article, fundMyLife shares avoidable mistakes when saving money, and how you can avoid them.

#1 Not having a goal and a plan

One of the most common mistakes when saving money is you do it without a goal and a plan. It’s one thing to know that you must save, but it’s another to know what you are saving for.

The goal is a destination, whereas the plan will help you to get there. For example, you want a car that costs $100,000 in 10 years. We know it’s not that cheap, but bear with us. Not counting inflation, you will need to save $10,000/year, and $833.33/month. To put it simply, the goal is getting the car, getting it there by saving $833.33 is your plan. By the way, this is for illustration’s sake – typically you’d take a loan for your car anyways.

Without a goal to work towards to, you’ll eventually question why you’re saving in the first place. Without that motivation, you will soon fritter away that money. Saving towards retirement is a good goal, as is saving towards a possession that you wish to have. The important thing is to have a goal to work towards to, and a plan to help you get there.

As Friedrich Nietzche would say, “he who has a why to live can bear almost any how”.

#2 Lacking the discipline to save

Now that you have a goal to work towards to, it’s time to put it into action. If you don’t summon the discipline to start, you will never get anywhere despite the best of plans. In addition, if you don’t summon the discipline to regularly save after starting, it is hard to maintain it over a long period of time.

Make it a habit to save regularly. Habits can be a powerful thing – as the saying goes, “we first make our habits, and then our habits make us.

#3 Not tracking your expenditure

Tangential, but equally important. To have enough to save every month, you’d need to be aware of what you’re spending on. Imagine, if your spending is uncontrolled, you’d be unable to have enough at the end for savings.

There are apps available to help you track your expenses so that you have enough for savings. We highly recommend the Seedly app – it’s been around for a while, together with strong community support online on their website.

#4 You spend as soon as you see a pile of money

After a while, you’ll soon see a pool of money in your account. Delighted, you think it’s okay just to take a little bit for some expenditure. Say, a vacation to reward yourself for that good job accumulating your money. While we advocate living life well, being able to take a little means you are also able to take a lot out of the account. Soon, you might find yourself in square one.

There are two ways people save in general. Firstly, spend first then save. Secondly, save first then spend. The former allows you to get your expenses settled, whereas the latter way lets you meet your saving goals first. To avoid finding yourself in square one, regardless of how your save, make sure you split your money further into different pots. Instead of just two pots, i.e. expenses and savings, you can split your savings category further into travel, retirement, etc. That way, you keep your savings pots separate and do not risk overspending.

#5 …or you are just really terrible at saving

What if, despite all of the methods described above to avoid the mistakes when saving money, you still have trouble with it? When you’re terrible at saving money, it’s time to consider savings plan, or an endowment. The tenure period of an endowment fund means you won’t be able to touch any of the money that you put. However, it’s important to not lock up ALL your money in there, lest you need the money for unforeseen emergencies in the future. This requires the help of a good financial adviser.

Alternatively, you can consider a fixed deposit – the fixed deposit usually has a decent interest rate, depending on how long you decide to lock up your money. In addition, the account penalizes you for prematurely taking the money out by removing the interest rate. This forces you to think long and hard before withdrawing from your fixed deposit.

#6 Forgetting that inflation exists

Last but not least of the many mistakes when saving money, people often forget that inflation exists. In fact, it is one of the deadliest mistakes when saving money. At best, if the interest rate of your savings account is the same as the inflation rate, you’re just keeping up and not growing your money. On the other hand, if you happen to pick a low interest rate savings account, the real value of your money will decrease over time. Imagine saving up money that decreases in value over time due to the difference in interest rate and inflation.

To avoid this, you will need to save additional money just to adjust for inflation. Alternatively, you’ll have no choice but to invest a portion of your money so that it grows.

Connect with fundMyLife financial advisers today!

Hopefully, you are more acquainted with the most common mistakes when saving money. A lot of these problems can be avoided if you have a good financial adviser. He/she can serve as a sounding board and a friend as you travel in your journey to achieve sound finances.

Haven’t found a good financial adviser? Worry not – fundMyLife has your back. You can connect with our panel of experienced and awesome financial advisers, curated by us. If you want to engage more financial advisers, or if you haven’t found the right one, why not consider advisers of fundMyLife? You can head on over to fundMyLife and ask our awesome financial advisers questions. Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

Follow us on our fundMyLife Facebook page to get exciting updates and your dose of finance knowledge! Alternatively, the Insurance Discussion SG Facebook group is a good place to discuss insurance-related topics with fellow Singaporeans.

4 Things To Consider During Your Financial Review With Your Adviser

Think of these when doing your financial review

To ensure that you’re in the pink of health, you pay a visit to the doctor for a body checkup. The doctor makes a few notes, asks a few questions, and makes recommendations based on his/her observation. Analogously, a financial health checkup involves going to your financial adviser for a financial review. Financial reviews often get a bad rep for being an opportunity for financial advisers to sell more products. How would you know if you’re in the pink of financial health if you don’t do a checkup? In this article, fundMyLife proposes things to consider when you are doing your financial review with your financial adviser. Having these things in mind will help you maximize your session with your financial adviser.

#1 Updating your adviser on any short-term/long-term life changes

As cliched as it sounds, your financial needs do change over time. Typically, entering new life stages require a financial review because of cash-flow changes. For example, if you got into a relationship and are considering marriage, you will need to work with your adviser to come up with a plan for it. Another example is that you might want to start a business, which means your personal cash-flow will change. In short, as you proceed in life your goals will change as well. You are not the you from the year before – you’re wiser, smarter, and have more perspective than before.

It’s better to inform your financial adviser early, than to wait until it’s too late before informing him/her that you’re in financial trouble.

#2 What else do I need to watch out for/How can I do better?

Experienced financial advisers typically have clients who may experience the same life stage as you. As such, they are in the best position to prescribe not just financial advice, but life advice in general.

If you find yourself in want of more cash, a financial adviser can also sit down with you and examine how you’ve been spending. Furthermore, an outsider’s pair of eyes into your finances provides fresh perspective on how you’re spending your money. It’s hard to figure out where your money went, if you did not track it properly. You might also want to see if you’re on track to saving your emergency fund, for rainy days.

#3 How are my investments coming along?

If you’re a hands-off kind of person, it is all the more important that you ask about your investments when you are doing your financial review. Doing a regular financial review helps you keep a bird’s-eye view on whether your money is doing what it is supposed to be doing. If your returns are unsatisfactory, it’s a good time to get advice on where to allocate your money to next.

Note: for those who purchased investment-linked products, it is useful to look at your current sub-fund returns. If it’s performing well, all is good. However, if it isn’t, it might be time to choose another sub-fund. Another thing is to balance out your investment and protection components, since the protection component increases in cost over time. The worst thing about ILP is that sometimes you notice the signs too late and your returns have already disappeared.

#4 Am I on track to retirement?

In our previous article on retirement planning, we mentioned that the journey to retirement is fraught with many roadblocks. As such, it is important to identify existing roadblocks and anticipate future ones early. During your financial review, you should ask your financial adviser if you’re on track to retirement. You will probably need to review your current debts, e.g., credit card debts, loans, mortgage, etc, to identify any possible signs of danger.

Connect with fundMyLife financial advisers today!

We hope this article helped in setting a level of expectation when it comes to reviewing your finances with your financial adviser. And if all goes well, congratulations! Time to carry on for another year, and maintain your financial discipline.

What’s this? You don’t have a financial adviser yet?

Gosh, it’s time to connect with one! Worry not – fundMyLife has your back. You can connect with our panel of experienced and awesome financial advisers, curated by us. If you want to engage more financial advisers, or if you haven’t found the right one, why not consider advisers of fundMyLife? You can head on over to fundMyLife and ask our awesome financial advisers questions. Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

Follow us on our fundMyLife Facebook page to get exciting updates and your dose of finance knowledge! Alternatively, the Insurance Discussion SG Facebook group is a good place to discuss insurance-related topics with fellow Singaporeans.

5 Expensive Mistakes People Make When Choosing A Financial Adviser

Mistakes people make when choosing a financial adviser

George is a kind man, who had many friends over the course of his life. Sometimes, they reappear suddenly to reconnect. And also enlighten him on the importance of financial planning. George, being the kind man that he is, supported them by purchasing products from these people, even though he didn’t need them. Over time, he realized he bought too many policies because each time he had a hard time saying no. Worse still, most of them eventually left the industry but he maintained his policies as he had spent a considerable sum on already. Those individuals are friends no longer, as George has come to resent them (but mostly himself). If this story sounds typical, it is. Engaging the right adviser is hard, and on the other hand engaging the wrong one is easy. In this article, fundMyLife reveals expensive mistakes people make when choosing a financial adviser.

#1 Choosing friends and family

One of the users of fundMyLife we spoke to admitted that he had bought over 5 insurance products to help a close relative to meet her targets. It’s quite a common phenomenon, to see someone purchase a plan just to help friends and/or family. While the intention to support them is understandable, bear in mind that these products that you purchase are long-term commitments. Sometimes, these commitments last longer than your relationship with these people. You should also purchase these products if and only if they benefit you in the long run, not the other way round.

On the flip side, because these people are your friends and family, you’re at a greater liberty to ask them really tough questions that you should be asking a potential adviser. For example, you are at a greater liberty to ask them what the commissions are, their plans to stay in this career, etc. We wrote a list of questions that you can ask your potential adviser. Choosing friends and family as an adviser because they are friends and family is one of the most common mistakes people make when choosing a financial adviser – do avoid that!

It is tough, but you must say no if the reasons for taking up a plan with them are not well-justified.

#2 Buying from a complete stranger

On the other spectrum of relationships, one of the common mistakes people make when choosing a financial adviser is engaging a stranger straightaway. Bear in mind, we’re not saying that buying from a complete stranger is bad. We’re saying buying from a complete stranger whom you do not have any information on is bad.

There are three usual ways to encounter a complete stranger that wants to sell you a financial product. Firstly, you may encounter one from roadshows in shopping malls and MRTs. Another way is to get messaged online randomly, be it via Facebook and Instagram. If you attend networking sessions often, you will also encounter advisers on the prowl to know more people/potential leads.

When you buy from a complete stranger, you will need time to ascertain whether the adviser is credible or otherwise. Ask this complete stranger for strong client referrals, or even better – the client’s contact. If he/she is doing a good job, the clients are more than willing to vouch for him/her.

Does it mean all strangers that you meet are bad? Not at all. We’ve seen amazing advisers opting for roadshows, as personal preference. It only means you should ask more questions when if you want to engage this particular adviser.

#3 Focusing too much on products

Products are but one half of the equation. Every company has its fair share of suitable and unsuitable products. As such, you should not be too fixated with getting a product over choosing a good adviser. Neither should any advisers that you engage. Be careful of advisers who are more interested to talk about their company’s products and features than understanding your finances, needs, and future goals.

Good advisers are knowledgeable about competing products, and can advise you accordingly based on your needs. The best ones may even recommend their friends in other companies, if you’re adamant about getting another company’s products.

#4 Letting their image of success blind you

One of the mistakes people make when choosing a financial adviser is choosing it based on their image of success
Standard starter pack for those who choose to flaunt their success on social media. Source: SGAG.

Scroll your social media, and you might see what the starter pack above is describing. Some advisers flaunt their success on social media in order to portray that they are successful. The idea behind that is that potential clients view an adviser’s success as a reflection of their expertise.

Chances are that an adviser you met talked about how he/she got into the Million Dollar Round Table (MDRT). Getting into the MDRT is a prestigious thing, but it only reflects the sales volume of him/her for the company. It does not indicate whether the adviser is good or otherwise for you. What you should be looking out for are industry certifications, such as Certified Financial Planner (CFP), estate planning certification, etc.

[HOT TIP] You might also want to ask about a different but often overlooked metric – persistency ratio. It’s a metric used to measure the performance of an adviser. It shows the total number of policies that an adviser retains during a period without the policies sold lapsing or losing the premium to other insurance companies. Good advisers have high persistency ratio (think >95%) because it means no clients cancel their policies, reflecting the quality of the advice that the adviser gives.

#5 Falling for sales tactics

Another one of the most common mistakes people make when choosing a financial adviser involves sales tactics. Giving free gifts to get a yes is an age-old tactic, where the adviser tries to get you to agree by dangling a carrot in front of you. It can be a voucher or a physical object. It is not worth saying yes to a product just because you’ll get a free gift from it. The mistake will cost way more than the voucher or gift you receive, in more ways than one.

Another tactic is the bait-and-switch tactic. The adviser piques your interest with a small, low-cost product at first. However, the conversation later switches to a different product altogether, one which is potentially more lucrative for him/her. Last tactic is one that involves talking repeatedly for a long period of time. Long talks will wear you down mentally and eventually you’d say yes when your willpower is low.

Financial planning begins with uncovering your needs, financial situation, and goals. Only with a clear understanding of where you are, and where you want to be in the future do products come into the picture, so falling for sales tactics is one of the worst mistakes you can make.

Connect with fundMyLife financial advisers today!

We hope this list of mistakes people make when choosing a financial adviser will help you avoid make the same mistakes again. It’s serious business, choosing the right financial advisers. You two are in it together for the long haul and as such it’s important to find the right adviser.

Where to find them? Worry not – fundMyLife has your back. You can connect with our panel of experienced and awesome financial advisers, curated by us. If you want to engage more financial advisers, or if you haven’t found the right one, why not consider advisers of fundMyLife? You can head on over to fundMyLife and ask our awesome financial advisers questions. Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

Follow us on our fundMyLife Facebook page to get exciting updates and your dose of finance knowledge! Alternatively, the Insurance Discussion SG Facebook group is a good place to discuss insurance-related topics with fellow Singaporeans.

What Is A Retirement Plan (And What Can Derail Them)?

What is a retirement plan and what are the risks

Retirement – you hear it often and everywhere. In short, retirement is a period in your life where you stop working and withdraw from the workforce. In Singapore, that minimum retirement age is 62. You also want to maintain the same standards of living as you did while you’re working. To achieve this, you’d have to save up a sum of money during your working years, following a thing called a retirement plan.

According to a survey conducted by NTUC Income, slightly over half of young adults aged between 25-35 have started working towards retirement, and 84% are worried about their retirement. What exactly is a retirement plan and what does it entail? In this article, fundMyLife describes what a retirement plan is, and lists the various risks that threaten to derail it.

What is a retirement plan?

In Singapore, chances are that you have your CPF as your most basic safety net during your retirement years. Political discussions aside, it is a nifty instrument that provides you a monthly amount upon reaching retirement age. This money comes from deductions from your salary in addition to employer contributions during your working years. On a related note, we wrote an article about CPF not too long ago. However, there is only so much that CPF can provide, especially if you have been leading a particular lifestyle and would not want a change. You still need a proper retirement plan to last from your retirement age till your death. And not before, of course.

The anatomy of a retirement plan

When you engage a financial adviser, one of the first things he or she will run through with you is a retirement plan. At the risk of sounding like a Captain Obvious, a retirement plan is a plan you make to prepare for retirement and the years beyond. While it sounds simple at first, it answers a few deep questions:

  1. How much do I want to have by retirement age?
  2. How much do I want to live on during retirement?
  3. Will the money last me enough to do what I want, e.g., travel, start a retirement business, etc?
  4. How long do I want the money to last?
  5. How flexible can I be in the face of unexpected events?

Once you answer those questions, your financial adviser can then draft a plan for you to achieve those goals.

Retirement planning methods

#1 Savings/endowment plan

Endowment plans is a plan that has both savings and insurance components. Insurance companies promote them as forced savings, typically requiring you to pay a monthly sum over a period of time, usually between 20-30 years or so. During that period, the insurance company invests your money in a fund. At the end of the fixed period, you get your money back in a lump sum. This payout typically has a guaranteed and non-guaranteed sum. The former is the minimum amount that you will get. The non-guaranteed sum depends on how well the fund performed over the period of time.

Bear in mind, a retirement plan is different from a retirement policy, one of the many ways you can build your existing wealth. As such, make sure you clarify with whoever financial adviser you’re speaking to. He or she might think you’re interested in the latter but you should be more concerned about the former.

#2 CPF

Surprise surprise, there are several things you can do with your CPF. Channeling the money from your Ordinary Account (OA) to your Special Account (SA) is one such way. While OA is typically used for non-retirement uses such as housing, insurance, and investments, SA is used for retirement and retirement-related investments. As of the time of writing, OA has a lower interest rate compared to SA, up to 3.5% for the former and up to 5.0% for the latter. Generally, both accounts’ interest rates are higher than the average inflation rate in Singapore. The interest rates are reviewed quarterly so be sure to check regularly.

A second way you can use your CPF to prepare for retirement is using CPF Investment Scheme (CPFIS). This scheme gives you an option to invest the money in your OA and SA accounts in a variety of investments, such as unit trusts, bonds, shares, and even insurance products. If you’re interested, you must take the CPFIS Investment Scheme self-awareness questionnaire just to gauge your knowledge of investing. It’s compulsory to take if you want to give CPFIS a try. You can still invest if you fail the questionnaire, no problem.

#3 Investments

There are several ways you can invest your money, such as stocks, managed funds, and most of the time – index funds. Picking your own stocks will take time and knowledge. Managed funds involve fund managers who try to beat the market who active reallocate the assets in a fund to get you returns that are higher than the market average. An index fund buys shares in companies in proportions that match a market index such as the Straits Times Index (STI). Index funds are cheaper since they are passively managed unlike managed funds.

Great thing about investing is that you can go in or pull out at any moment, providing great liquidity.

If you want to invest in the stock market, here’s a great step-by-step guide from DollarsAndSense on stock investing in Singapore.

#4 Selling your place

There is the option of selling your place when you’re older. Besides, with an empty nest, you don’t need that much space eventually anyways. While the assumption is that your place will appreciate in value over time, there’s no 100% guarantee that it will happen.

Tread with caution with this one.

#5 Fixed deposit/Savings account

If you are truly risk averse, and do not want to park your money elsewhere, you can consider putting it in a bank. Fixed deposits, as its name suggests, is an account that holds a sum of money over a fixed period of time. Fixed deposits are good to have if you have a sum of money (above $10,000) and want to grow it a bit. The downside is that your money is locked up for a period of time, usually with a minimum of 12 months. You’ll be penalized with lower interest rates for withdrawing money from the account.

Recently, banks are getting competitive with novel kinds of savings account. Savings accounts such as DBS Multiplier Account and OCBC 360 Account nowadays have tiered interest rates, with the maximum rates quite comparable to other investment products. These interest rates are added on top of the base rates if you credit your salary to the account, purchase investment and insurance products, etc. The whole idea of these accounts is to influence you to stick to that one account for all financial matters. That’s the downside. The upside is that you can draw as much as you want/need without penalty unlike fixed deposit accounts.

Non-exhaustive list of risks to your retirement plan

A common misconception about retirement plan is that it’s a one-stop destination. While the figures on the retirement calculator looks sensible and solid, retirement is  not an exact science. It requires a lot of assumptions as well, which may However, along the way there are stumbling blocks that slow you down. This section highlights several risks that are very real and will happen to us at some point in our lives.

#1 Loss of a job

Contribution to your retirement plan requires constant flow of funds. This sustained contribution assumes continuous employment as well. A common stumbling block to your retirement plan is when you lose a job, be it due to retrenchment or health issues. In addition, as you age, you will face less employment options. This is an unfortunate fact in the workforce. To mitigate this risk, you may want to consider part time jobs to increase your savings while you are still able to work. Plus, better to work towards retirement than spending hours binging on TV shows.

#2 Living longer than before

This is one of the rare disadvantages of living longer than the previous generation. Advances in medical healthcare means people are living increasingly longer than ever. Longevity, while desired in general, is a risk for retirement planning. Living longer means you might run out of money past your retirement age. On top of that, there is an increased chance of contracting more diseases as you age.

#3 Healthcare costs

On top of increasing longevity, healthcare costs rise every year and are expected to increase indefinitely. With increased longevity, it also means you’ll be spending more on yourself over time.

#4 Market risks

There’s a risk that a market downturn can wreck havoc on your investments, be it stocks or an endowment fund. Market risks also affect you more drastically after retirement, when you’re utilizing money from your retirement fund.

To illustrate this in a simple manner, imagine if you had $100 in your investment portfolio one day, consisting only of one stock. Consider these two separate scenarios:

  1. The next day there was a 50% market drop, causing you to have only $50. You’re still working, so you don’t have to depend on money from this portfolio. The next day, the market bounced back by 50%, which means you now have $75.
  2. The next day there was a 50% market drop, causing you to have only $50. You’re retired, and you need the money so you draw $10 which leaves you with $40. The next day, the market bounced back by 50%, which means you know have $60.

Such a big difference, if you needed the money from your portfolio. As such, it’s important to account for market risks by diversifying your portfolio and not keep all your eggs in a single basket.

#5 Relationship risks

When you set a retirement plan, your financial adviser takes your partner and his/her into financial information in account. However, relationships sometimes go awry, necessitating separation and/or divorce. Under such situations, you two might have to divide your assets and other things like maintenance and child support comes into the picture. These unexpected things will throw a wrench into your plans.

#6 Financial adviser risks

This is a risk not many people discuss about – the financial adviser him/herself being a risk factor. If the financial adviser is bad at what he/she does, you’re stuck with an equally sub-par retirement plan. Imagine when you’re reaching retirement age, and you realize the plan that you purchased did not serve its need and was meant to be a high-commission product for the adviser.

How to discern whether the adviser is good or otherwise? Make sure you get strong referrals from your friends and family, or browse through a site that contains amazing advisers – coughfundMyLifecough.

Connect with fundMyLife financial advisers today!

Oh boy, that is a lot of different risks. It is not as depressing as it sounds. We hope this article did not scare you, but rather inspire you to plan for your future retirement plan ahead. You should have started saving towards your retirement 5 years ago, but the next best time is today.

Who to consult on such matters though? Worry not – fundMyLife has your back. We can’t help you mitigate all the risks above, but we can make sure that the last risk – financial adviser risk – is eliminated. You can connect with our panel of experienced and awesome financial advisers, curated by us. If you want to engage more financial advisers, or if you haven’t found the right one, why not consider advisers of fundMyLife? You can head on over to fundMyLife and ask our awesome financial advisers questions. Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

Follow us on our fundMyLife Facebook page to get exciting updates and your dose of finance knowledge! Alternatively, the Insurance Discussion SG Facebook group is a good place to discuss insurance-related topics with fellow Singaporeans.

Is Being In Debt Always A Bad Thing?

Is being in debt always bad?

Debt is an amount of money borrowed by one party from another party. While it sounds neutral at first glance, the concept of debt suffers from popular culture painting it in a bad light. When the word debt comes to mind, images of loan sharks pouring red paint all over your door appear. Of course, being in debt can be a terrifying thing. However, is it always bad? It’s possible to live a life free of debt, but that puts you at a disadvantage. In this article, fundMyLife tells the difference between good and bad debt, and how being in good debt isn’t always bad.

Disclaimer: we may be named fundMyLife, but we can’t help you financially if you happen to be in debt. Sorry.

The Good

Student loans

The best example of a good debt would be a student loan. Taking out a loan for your studies is generally a good kind of debt because income potential and employability are correlated with the amount of education a person has. As such, a student loan allows you to gain access to education that you would not have otherwise. The returns of student loan comes when your income increases due to an increase in education. Speaking of student loans, we wrote something on clearing your student loans.

However, having more education does not guarantee an increase in income. Not all kinds of education guarantees the same increase in pay after the graduation. As such, make sure you do your homework to ensure that you choose the right education to meet your salary expectation in the future.

Real estate

In general, property value will appreciate over time. The only question is when and by how much. The simplest strategy is to own a home, live in it for a few decades and then sell it at (hopefully) a profit. Another way to approach real estate is to rent it and use the rent to offset the mortgage.

That said, if you happen to choose a bad property to purchase, it’s unlikely that its value will increase over time. In addition, price appreciation for property is no longer a 100% guarantee as well. Of course, it’s not that simple – real estate is constantly a hot topic in Singapore, and our friends over at DollarsAndSense wrote several pieces on real estate investment.

[Bonus info] Bonds

Companies and financial institutions raise money by issuing debt called bonds. These entities are borrowing money from those who purchase their bonds, with the promise of paying the interest and the principal once the bond matures. You might want to take note of this financial instrument. It is a good form of debt after all as companies get to raise money and you get to invest in a relatively low risk manner (depending on the bonds’ credit rating of course). FYI, we wrote something on why bonds are not a bad idea.

The Bad

Bad debts are debts that you incur to purchase depreciating assets. In other words, it is a situation where you borrow money to buy an asset that loses its value over time. Bad debts are also debts that incur a large interest over time. Rule of thumb: if what you earn can only cover the interest rate and not the principal, you’re better off not borrowing.

Credit cards

Credit card debt ranks as one of the worst debts to have. It sounds amazing to charge your purchases onto a card, only needing to pay the amount at the end of the month. Without proper planning, strategy, and discipline, consumers often fall short of paying the full amount. In fact, consumers often pay a minimum on their credit card, causing the owed amount to snowball after a while. Keeping a balance on a credit card is a bad idea due to relatively high interest rates. On top of snowballing debt, missing payments on time results in poor credit rating which affects your loan applications in the future.

Expensive vacations/wedding

For those who are inclined to documenting their lives on social media, there is a pressure to ensure that their curated lives look as good as possible. Amongst this group, there are those to take it to the extremes by borrowing money to fund their vacations or weddings. In short, living beyond their means so that they can look good to others. While the vacation or wedding might be a dream, what awaits you when you come back to reality is a nightmare. For example, one couple spent $110,000 on their wedding which took four years to repay.

Vehicle

Another common example of a bad debt is a vehicle. As opposed to real estate, a vehicle’s value will decrease over time due to wear and tear. Being in debt over luxury cars like BMW is not worth it. Furthermore, if you lost the ability to service the loan, you’d end up selling the car anyways. If you have to get a new car, sleep over it and assess objectively if you really NEED it.

On the other hand, it’s a special case where the vehicle is a rare antique/collector’s item. Classic and vintage vehicle investing is an alternative form of investment…which is unfortunately still inaccessible to most people who want to invest in. So no, don’t get yourself too deeply in debt over a vehicle.

Gambling

The mixture of adrenaline and chance makes gambling a compelling and addictive activity. In this case, the addition is literal and is a disease, according to Institute of Mental Health. While the occasional gamble is fun and best enjoyed with relatives during Chinese New Year, constant gambling often leads to financial ruin. Worse still is if you borrow money from unlicensed money lenders and loan sharks who charge very high interest rates. This keeps you perpetually chained to your gambling debt.

What if you find yourself in debt?

Being in debt is not so scary if you think about taking on debt as an opportunity to grow. If you find yourself in good debt, then the challenge is to organize your finances properly so that you can pay them on time and in full amount. Engaging a financial adviser to guide you along is a good idea.

However, what if you find yourself in bad debts? For unmanageable credit card debts, you can turn to Credit Counselling Singapore, a charity that provides credit counselling for those in debt, along with moral support and resources to be debt-free. On top of that, you can also consolidate all of your different debts into one single account. The lowered interest rate and structured repayment plan will hopefully help you manage your credit card debts better.

Ask fundMyLife financial questions today!

With this article, we hope that you have a peace of mind that being in debt is not always a bad thing. Owing an institution money can sometimes bring you further in your journey that not. That said, it is a calculated risk and sometimes you just need the right financial plan in your life. In this case, who better to bring you through it as a third part than a good financial adviser?

If you want to engage more financial advisers, or if you haven’t found the right one, why not consider advisers of fundMyLife? You can head on over to fundMyLife and ask our awesome financial advisers questions. Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

Follow us on our fundMyLife Facebook page to get exciting updates and your dose of finance knowledge! Alternatively, the Insurance Discussion SG Facebook group is a good place to discuss insurance-related topics with fellow Singaporeans.

5 Ways To Recover Financially After A Divorce

How to recover financially after a divorce

We previously wrote about what you need to do when you get married. However, life does not always go your way and you might find yourself needing to divorce. Divorce is an emotionally and mentally draining process that involves many parties. More importantly, what happens after is a big financial change in your life. In this article, fundMyLife shares tips on how you recover financially after a divorce.

#1 Step up

If you were the one handling the household expenditure and finances, you should have less trouble managing your finances post-divorce. However, if you’ve always let your now ex-partner handle things, you’ll have to step up to take charge of your own finances again.

The difficulty depends on how dependent you were on the other partner for keeping track of finances. Fret not, there are plenty of tools out there. It ranges from simple things like an Excel spreadsheet, to finance tracking apps like Seedly. You’ll also need to read up on personal finance from media sites like DollarsAndSense, SG Budget Babe, and even our own blog posts.

#2 Review your expenditure

As mentioned, make sure you keep track of your expenses so that you know where and what you’re spending on. If you track your expenses, you can make better plans for where your money go. Then again, this is a generally good habit to have when it comes to personal finances for everyone.

#3 Set up a budget

Since there is the possible transition from a double-income household to single-household one, you will have to redo your budget to reflect this change. You’ll have to cut back on luxuries and set a realistic budget.

Also, expect your expenses to increase slightly. In the past, you might have purchased groceries in bulk for family use. Now, you purchase things only for yourself. However, some expenses don’t end after a divorce. If you have a child, you still need to pay child support. Similarly, if you two shared a pet and you decided to take custody of the pet, you’d be responsible for keeping it and its upkeep.

#4 (Re)gain financial independence

If both of you and your ex-partner were working before the divorce, you’re less vulnerable since you’re financially independent. However, if you quit the workforce to be the homemaker, going back to the workforce may be tough. This is more so if you haven’t been working for a while.

To address this, reskilling is an option to equip yourself with employable skills. For example, you can use your SkillsFuture to learn a new trade. If you still have trouble finding a job, you can book an appointment with an employability coach from the Employment and Employability Institute (e2i) for career guidance and coaching. It is hard to recover financially after a divorce if you cannot feed yourself – make sure you’re as independent as possible.

#5 Speak to your financial adviser

Just as how marriage counts as a life event that requires a financial portfolio review with your financial adviser, a divorce is also a life event that demands a similar treatment. As such, it is important to speak to your financial adviser to readjust your portfolio to take your new and old expenditures into account.

For example, in the past if your beneficiary of your life insurance was your ex-partner, you would need to change the beneficiary to someone else. Another example is that you no longer need to service your mortgage insurance after selling your HDB.  And you might have to strike out your ex-partner from your will.

Ask fundMyLife financial questions today!

We hope this article is useful to you if you’re going through a divorce, or if you’re considering it. It’s a huge change to your finances after splitting with your partner, but it is definitely possible to recover financially after a divorce.

If you want to engage more financial advisers, or if you haven’t found the right one, why not consider advisers of fundMyLife? You can head on over to fundMyLife and ask our awesome financial advisers questions. Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

There is life after a divorce. You got this.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

Follow us on our fundMyLife Facebook page to get exciting updates and your dose of finance knowledge! Alternatively, the Insurance Discussion SG Facebook group is a good place to discuss insurance-related topics with fellow Singaporeans.

Have Financial Disputes With Your Adviser? Here Are 5 Ways You Can Settle Them

Fight your financial disputes out with these 5 ways

You might have been sold something wrongly by an adviser. It sounded right at first and the numbers were alluring. To your horror, you discovered it too late. By then, the 14-day free look period is over. You can’t cancel your plan anymore. You don’t want to/can’t meet the adviser again, and just want to get your policy problems settled. Where do you go to?  Fortunately, there are several places where you can look for resolution of your financial disputes. In this article, fundMyLife shows you the places you can go to if you have financial disputes.

#1 Financial institution

The first place to go to, before going anywhere else, is going to the financial institution that the adviser belongs to. For example, you’d reach out to insurance companies or banks depending on who and where you bought your policy from. You should speak to the staff that you brought the policy from first, but given how scary and confrontational it may be, you can opt to speak to the company’s customer service hotline instead.

The financial institution will dispatch a staff member to record your statements and investigate the incident thoroughly. Make sure you disclose as much information and as accurately as you can. At this point, if all went well with the investigation, you will get your money back.

#2 Financial Disputes Resolution Center (FIDReC)

If you did not arrive at a satisfying conclusion via the first channel above, it’s time to step it up by going to FIDReC. As its name suggests, it is the place to go to when you have financial disputes. There, FIDReC mediates between you and the financial institution to come to an amicable conclusion. You can only come to FIDReC only after you have gone to financial institutions.

Between July 1 2016 and June 30 2017, FIDReC handled 396 complaints against banks and finances companies and 289 complaints against life insurers. That’s almost two complaints per day in a year.

Below is a flowchart from the FIDReC website.

A diagram from FIDReC website on the dispute resolution process for financial disputes.
A diagram from FIDReC website on the dispute resolution process.

Upon lodging a complaint at FIDReC, a case manager checks if your complaint falls under FIDReC’s jurisdiction. If it does, FIDReC arranges for mediation. If successful, the dispute is settled. However, if the dispute is not settled, you can refer the dispute to an adjudicator for adjudication. The panel of adjudicators contains retired judges, senior counsel, lawyers, and retired industry professionals. This panel has the power to order financial institutions to follow their judgement. If the adjudication is in your favor, the maximum sum you receive from an insurance company is $100,000. On the other other hand, the maximum you receive from disputes with banks and capital markets is $50,000.

Financial institutions have to follow their judgement since the judgement is binding, but not for you. If you are still not happy with the judgement, you can still go on to different bodies to resolve your financial disputes.

#3 Consumer dispute resolution centers

Besides FIDReC, there are several other places you can go to settle your financial disputes. Firstly, you can go to the Consumer Association of Singapore (CASE). CASE is a non-profit, non-governmental organization that offers mediation through its mediators. However, the meditation process requires both parties to agree to it…which means it’s tough luck if the financial institution refuses to come.

You can also go to Singapore Mediation Center (SMC). As its name suggests, the center has mediators to resolve disputes between parties. Similarly, the financial institution has to agree to the meeting as well as SMC has no legal power to enforce attendance.

Finally, you can also go to the Small Claims Tribunal (SCT). SCT is a part of the State Courts of Singapore. According to the State Courts website, the Tribunals handle claims not more than $10,000. This limit can be raised to $20,000 if both parties agree to it. In addition, the claims must be filed 1 year from the incident. The Registrar from SCT will first assess whether the claims fall under the Tribunals’ jurisdiction and give both parties a chance to resolve the matter before going into the Hearing process. During Hearing, both sides will present their cases to the Referee, who will then make a decision based on the evidence and according to the law.

#4 Social media

After trying all the above steps, there is still no satisfying conclusion. The frustration is mounting, but there’s still a way. There’s the option to turn to social media, where you share your plight with members of the public.

It is surprising how viral posts about bad experiences with finance can get. It may be airing dirty laundry in the public, but you just have to do it if it resolves things. Companies don’t want bad reputation after all, no matter how big or small they are. They may finally contact you to solve the matter quietly and privately, and in exchange you remove all incriminating posts.

#5 Legal action

If all else fails, it’s time to bring out the big guns. However, it’s not recommended that you take it to court. Legal action takes a long time and it is very expensive. Against financial institutions with significantly larger coffers, it is an uphill battle to settle your financial disputes. Hopefully, you never have to come to this point.

Ask fundMyLife financial questions today!

For those who have financial disputes, we hope this article can clarify some doubts and provide guidance. For those who haven’t engaged any advisers yet, we understand you. Want to avoid such situations in the first place?

We got you. Head on over to fundMyLife and ask our awesome financial advisers questions. Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

Follow us on our fundMyLife Facebook page to get exciting updates and your dose of finance knowledge! Alternatively, the Insurance Discussion SG Facebook group is a good place to discuss insurance-related topics with fellow Singaporeans.

Want To Pick The Right Financial Adviser? Ask These 5 Questions (And A Bonus Tip)!

How to pick the right financial adviser?

If you had to pick someone to handle your finances, how would you assess whoever who comes your way? It’s tough, isn’t it? After all, you’d have to be sure this person is both competent and is in this for the long haul together with you. In this article, fundMyLife shares several questions that you can ask a potential adviser, to pick the right financial adviser. While it may not be 100% fool-proof, these questions will give you better insight into the potential adviser.

#1 “How Long Have You Been In The Business?”

The financial planning industry is notoriously competitive, and the turnover rate is high. As such, it’s important to determine whether the adviser you’re engaging intends to stay in the long run. The worst thing that can happen is when you want to file for insurance claims but your original adviser is nowhere to be found – leaving you in the dark. Does it mean all young advisers will quit on you? We’re not saying that, but an adviser of many years’ experience is definitely a better bet than someone who just finished his/her training and wants you to give him/her a chance to do your finances.

There are advantages and disadvantages of engaging a financial adviser who has been in the business for long. For one, an experienced adviser who is in the industry for a long time is not likely to quit any time soon. On top of that, an experienced adviser has probably met plenty of people with a profile similar to yours, making it easier to advise. On the other hand, there’s the age gap to consider and if the age gap is too large you two won’t “click”, or connect on an emotional level. Of course, if you don’t care about that then you can keep it strictly business-like and not discuss shared interests.

#2 “Can you tell me why you recommended this to me?”

On top of advising you on how you should do your finances, your potential financial adviser should also be educating you on his/her recommendations. This is so that you, the client, will have complete understanding of what you’re spending your money on monthly. Communication should be clear and transparent, and you should be confident that you know what you’re getting into.

Chances are the inexperienced advisers will regurgitate whatever they learned, and do not know any better than what they were taught.

#3 “Do you have referrals to your existing clients?”

There are various ways to assess whether the financial adviser you encounter is good. Firstly, the best way to assess is to ask someone else who engaged this adviser in the past. Secondly, financial advisers sometimes have their own Facebook pages or websites where you can get more information about them. You should look out for detailed reviews of how this adviser helped the reviewers. The good thing about Facebook is that if you’re bold enough, you can message these clients of the adviser to get more information.

#4 “What’s your experience in this area?”

Make sure he or she has the right experience and/or qualification to advise. For example, you’d want someone who is experienced in doing his/her own investments to advise you on investments. It will be good to engage someone who has advised other clients with similar profiles as yourself. If the adviser says he or she achieved a sales volume-based awards like the MDRT (Million Dollar Round Table) award, ask for other awards since sales volume is not an indication of expertise and experience.

#5 “Can I trust you?”

This is something you should ask yourself. Your inner voice is one of the most powerful forces. The financial adviser you engage will hopefully be with you for a long time. You would want someone whom you can trust along the way. You can also ask your potential adviser this question to see what he/she says. The good ones will be convincing. Whereas the untrustworthy ones may just stumble over themselves trying to convince you that they’re trustworthy.

Bonus: #6 “Are you doing anything else besides advising?”

At the risk of ruffling feathers of advisers who have side hustles, you should ask your potential advisers this. They should be 100% committed to helping you with your finances. And any other side hustles that they have serve to divide their attention from what matters the most – their clients and their relationships.

Ask fundMyLife financial questions today!

We hope this article is useful to you if you’re wondering what you can ask to pick the right financial advisers. If you don’t know who to ask or where to find amazing financial advisers, we got you.

If you want to engage more financial advisers, or if you haven’t found the right one, why not consider advisers of fundMyLife? You can head on over to fundMyLife and ask our awesome financial advisers questions. Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

Follow us on our fundMyLife Facebook page to get exciting updates and your dose of finance knowledge! Alternatively, the Insurance Discussion SG Facebook group is a good place to discuss insurance-related topics with fellow Singaporeans.