One of the important investment principles we need to uphold is "It is time in the markets and not timing the markets that matters." However I have come to realize over the course of my career as an investment consultant (19 years and counting) is it is so much more easier to say it than to practice it.
Below are some of the common reasons I have come across that I would like to share:
- Markets will drop more we should invest later at a more attractive entry point
- Sell now markets will drop more then we invest again at a much lower price
- Invest later since markets are dropping so can invest(purchase) more at a lower price
Having been in wealth management for the last 19 years, I realized many investors come to regret their decision to try to time the markets.
As the old adage goes, "No one knows what the market is going to do tomorrow, next week or next year." So trying to time the movement of the markets is impossible to do.
As long as our investment objectives/goals have not changed or deviated, stay on your investment journey and do not react based on personal emotions.
This is my first contribution and I will be covering topics I find closest to my heart and likely be relevant to my readers too. It may range from subjects covering protection to personal investments to everyday issues facing everyone. Enjoy reading them and feel free to share with me your thoughts and comments.
It is well known death and taxes are the two certainties in life. I would go further and add a third which is retirement. It is an unavoidable event and in the course of my conversations with people from all walks of life, I am surprised that many are unprepared for this from a financial standpoint.
Many reasons have been cited but below are the main ones:
- Too caught up with the day to day living
- Lack of financial resources
- Do not know how to plan for it
I always ask them do they realize they are already saving 37% of their income every month and most of them are surprised they are doing it already. We tend to overlook this but are contributing 37% (20% employee, 17% employer) of our monthly income into our 3 CPF accounts: CPFOA, CPFSA, Medisave.
When we reach the age of 55, a CPF Retirement Account is created and the Full Retirement Sum is set aside in this account. This is to ensure that we can receive our CPF Life payout on a monthly basis when we reach age 65.
One of the retirement courses I attended enables me to calculate the below based on your current CPF balances:
- how much you receive in CPF Life payout when you reach age 65
- how much you can withdraw from your CPF accounts in excess of FRS when you reach age 55
- is your CPF life payout able to fund your desired retirement lifestyle
If you interested to find out more about this service I’m providing, do get in touch with me.
Dickson Pek
+65 8422 3226
dicksonpek@phillip.com.sg
Phillip Wealth Advisory
2 Stamford Rd, #06-01
Singapore 178882
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