Archive for July, 2009

Especially for people born between 1947 to 1964 (BEWARE: You are one out of nearly a million)

If you are born between 1947-1964, you are one of those baby boomers in Singapore.  The baby-boomers will form the largest aged population Singapore has ever experienced.

There is a strong emphasis in society to plan and save money for retirement but the bigger questions are: ‘What am I saving for?’ and, ‘What do I really want to do when I retire?’

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Individual members of the baby boom should:

o    Consider increasing their saving rates because of the uncertainty

o    Hold their wealth in a diversified manner

Some studies have indicated that individuals who manage their own retirement plans are too conservative in their investing. Investing in Treasury bills, guaranteed investment contracts and money market instruments is “probably too conservative for people investing for retirement purposes”. Treasury bonds are not safe when you think of inflation so look out for other financial tools, which have, better interest rate.

If you really want to diversify, you ought to have some international investments as well as domestic investments.

So if you are one of those who feel that placing money in fixed deposit in banks, think again. You are definitely losing out because of the inflation rate. You can still place some of your hard earned cash in fixed deposits but placing everything is not really a wise thing to do.

Another issue for you baby boomers is HEALTHCARE. This topic has always been a talk by the government. We are well aware that costs of living have been on the rise so is medical costs. Many Singaporeans have inadequate healthcare insurance coverage and many who are insured have healthcare plans that do not provide adequate protection from medical costs.

Thus the number of policies you have is not important (for all you know, all you have are all endowment policies!) rather the type of coverage that you have is more crucial.

Ponder about the issues discussed above but do not take a long time otherwise…

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Waste no more time… Take action!