Getting Started
Tips and reminders for a sound financial
plan
Set aside an emergency fund of three to six times
your monthly expenses to take care of any unforeseen
circumstances and act as a contingency fund if you
or your spouse is out of work.
Make sure at least 15% of your net worth consists
of liquid cash assets.
Commit around 50% of your net worth to capital
accumulation, and make sure this figure increases
as you move closer to retirement.
Consider refinancing your outstanding property
mortgage at a lower interest rate, then channel
the savings towards future goals or debt payments.
Implement investment plans for education funding
and retirement according to your personal strategy,
and stick to your plan.
Test your insurance coverage to see what would
happen in different situations. Don’t limit
your thinking to hospitalisation and surgery costs
– what about critical illnesses and income
protection, not to mention providing for family
members in the unfortunate event of a premature
death?
By taking out whole-life critical illness policies
for your children you can secure insurability and
give them the head start of low premiums and potentially
higher returns. But always bear in mind that insurance
coverage for the breadwinners is the priority if
resources are scarce.
Write a will. Singapore’s estate laws may
not be all that complicated, but not having a written
will is likely to prove very inconvenient and costly
when it comes to administering your estate. Arrange
a meeting with a lawyer who has plenty of estate-planning
experience, and do not forget to update both you
and your spouse’s CPF nomination.
ARTICLE REPRODUCED WITH THE KIND PERMISSION OF SMART
INVESTOR.
Personal Finance Matters 
