retirement Archives | Page 6 of 9

4 Money Decisions That Will Bring Future Satisfaction

1. BUILDING AN EMERGENCY FUND NOW

What happens next if your ridiculously expensive car needs an engine replacement? If you are like countless people in the world, you will opt for using your credit card or taking loans. This will only build piles of debt.

Instead, you must commit to building an emergency fund to use during the “rainy days”. Financial professionals recommend to save money that can cover at least 6 months’ worth of your living expenses.

2. SAVING MORE FOR RETIREMENT

If you envision a life of comfort after you leave the working scene, you will not regret your decision to maximize your contributions to your CPF account or to your retirement plan.

Remember that the amount of money you need to save depends on what type of lifestyle you want to achieve during your retirement. You will need more savings if you plan to purchase a rest house, travel the world, keep your cable TV subscription, and other luxuries. Building your retirement plan while young can bring huge advantages to your financial future because of the power of compound interest. So start boosting your retirement savings as soon as possible!

3. EVALUATING THE RISKS BEFORE INVESTING

Before you lose some or all of your savings, it is important to understand the risks of the investments. Investment hazards include credit, liquidity, market, concentration, inflation, and devaluation risks. Taking a higher risk can potentially give you higher returns. But you have consult a financial adviser first.

As you make informed choices for your wealth, you will appreciate the day that you evaluated the risks before investing.

4. AVOIDING DEBTS

The debt that you accumulate in your 20s (e.g., student or car loans) can haunt you for the rest of your life. So before you take one more responsibilities such as getting married, starting a family, and buying a flat…you must avoid and eliminate your debts first.

Start by paying off the debts with high interest such as quickly as circumstance permits. Then, avoid accumulating debt by purchasing items that you can actually afford.

Image Credits: pixabay.com (License: CC0 Public Domain)

Sources: 1 & 2

Financial Tips For People Dating In Retirement

Dating later in life can be a challenge not only because of your limited income resource but also because of the ever-so-changing dating landscape. In the era of Tinder and online dating sites, dating is entirely different from your first time. However, I believe that if your health permits (i.e.,you have no chronic illnesses or serious health concerns), it is never too late to fall in love again!

Despite its challenges, persevere with these 4 Financial Tips For People Dating In Retirement:

1. REKINDLE THE OLD FLAMES

Use modern technology to your advantage by embracing the power of social networking. Free sites such as Facebook and Twitter, allow you to look up your old friends whom you lost touch with. Do not be afraid to reconnect with your previous secondary school, university, and workmates by instant messaging or even e-mailing them. This way, you are expanding your social circle and increasing your chances of finding a date.

2. CONSIDER ONLINE DATING

If rekindling did not work for you, another inexpensive yet tricky strategy is to consider online dating. For many dating sites, you need not spend a cent as they offer free memberships. But you must proceed with caution as there may be scammers and imposters.

The leading online dating sites in Singapore include SingaporeCupid.com and
SingaporeLoveLinks.com. SingaporeCupid.com offers their services to more than 14,000 members. It has a rather retro design that may seem messy at first but you will soon get a hang of it. With its practical options, you can search for matches based on ages, locations, and other keywords. Members can either be free or deluxe. Deluxe members pay about S$16.95 for 1-month membership.

While SingaporeLoveLinks.com is operated by one of the largest niche dating networks in the world – Cupid Media. What is special about this site is that they bring together the singles of different nationalities. Also, they offer useful functions such as video exchange and instant messaging to its paid members. Members can either be gold or platinum. Gold members pay about S$29.98 for 1-month membership and platinum members pay about S$39.99 for the same time.

3. KNOW EACH OTHER’S MONETARY VALUES

Once you meet someone new, it is important to understand and know each other’s values about money. No need to talk about the specific numbers at first but you need to get an idea of how your date likes to save and spend.

Learn to put yourself in your date’s situation (i.e., spender or saver) by recognizing his or her financial strengths. For example, if your date is a saver then, he or she may view money as an important currency that shall not be wasted.

4. SET CLEAR EXPECTATIONS

After several dates, solidify your bond by maintaining good communication with your date. You must set clear expectations about who pays for what as this notion changes over time.

Time has led to both genders being relatively equals. In fact, a poll by Cosmopolitan showed that less than 25% of women believe that their partners should always pay for the bill and about 40% of women think that couples shall always split the bill.

Image Credits: pixabay.com (License: CC0 Public Domain)

Gone are the days when men pay for all the bills!

Sources: 1, 2, & 3

Making Your Will In Singapore: Are Lawyers Non-Compulsory?

Whether we like it or not, death is inescapable. This is why it is important to prepare a “Will”, especially if you are retiring soon. The essence of making a Will is not only to prepare for the event of death but also to make sure that others understand your parting wishes.

In Singapore, the surviving spouse is usually entitled to one half while the other half is divided among the children. But if there is no Will, there are higher chances that no one would be held responsible to sort out the estates or to take care of the orphaned children. Without a Will, your assets may be distributed to people whom you do not intend to give anything to. Certainly, it is simpler, more responsible, and more convenient to consider making your own Will.

Clueless about the entire process? Start here:

DEFINITION

An individual makes a legal declaration or a Will to provide the administration and distribution of what he or she owns among his or her beneficiaries at death. The person who made the will is called the “testator” while the people who will inherit the assets are called “beneficiaries”. The Wills Act governs all the Wills in Singapore.

A WILL’S FORMALITIES

1. The testator must be at least 21 years old.

2. The testator must sign the Will accordingly. If he or she is unable to do so, a trusted person may sign in his or her presence.

3. Two or more witnesses are required and they must sign the will too, in the presence of the testator.

4. The two witnesses cannot be beneficiaries of the will (e.g., spouse of the testator) but the third witness can be a beneficiary.

MAKING A WILL IN SINGAPORE

Interestingly, you do not need a lawyer to make a Will!

A 21-year-old individual of sound mind can make his or her own Will and change it any time in the course of one’s life. But if you have insufficient legal knowledge on the subject, your “homemade Will” may be at risk of being ineffective or invalid. So, it is still best to seek legal advice. After writing one, you must keep a copy in a secured place and let your family members know of its existence.

Image Credits: pixabay.com (License: CC0 Public Domain)

To ease the process, you must approach the Wills Registry to deposit the document’s information. Expect a fee for it.

Sources: 1, 2,& 3

Important Things You Must Know About Women And Money

The spending and money management patterns of Singaporean men and women are intuitively different. But, if you surveyed people around on your own, you would realize that there are distinct differences between how these genders approach money. With that in mind, here are the common money mistakes women make and the essential financial steps they must take:

COMMON MONEY MISTAKES

1. OVERSPENDING ON CLOTHES AND MORE

According to a study by Boston Consulting Group, women take control of about 73% of the household spending. The control the wives have over the budget can lead to overspending. Overspending can occur in shopping for clothes, cleaning supplies, home decorations, bags, and more. This is why knowing when to save and when to splurge is an important distinction for financial security. Overspend only on products that are useful and long-lasting.

2. BEING FINANCIALLY DEPENDENT

Although more and more women are breadwinners nowadays, there are still a good number of women who are totally reliant on their husband’s income. This is bad because unforeseen events such as unemployment, divorce, and death can happen to anyone. Which is why women need to create and secure a financial future for themselves by having a career or skill they can depend on.

3. NOT PREPARING FOR LONGER RETIREMENT

Let us face the facts. Women outlive men on average and often remarry. This is why women should prepare for their additional years and long-term elderly care. It is always a good idea to be prepared.

Image Credits: pixabay.com (License: CC0 Public Domain)

ESSENTIAL STEPS TO TAKE

1. USE ONLINE MONEY-MANAGEMENT TOOLS

To prevent overspending, women shall use online tools that are interactive and time-saving. There are a lot of free help available on the Internet such as budgeting software called Money Dance or Mint as well as retirement resources called Vanguard Retirement Insights or Central Provident Fund Retirement Calculator.

2. TALK MORE ABOUT MONEY

Financial independence starts by talking about finances comfortably. This will create a community of friend who can turn to each other for advice on money issues and investments. Also, getting comfortable in the S$ topics should be applied when you are talking to your financial advisor.

3. UNDERSTAND YOUR INVESTMENTS

Prepare for your retirement and emergency fund by prioritizing your investments. Save money on near term needs such as the emergency fund first then, move on to the long-term investments such as retirement fund. Since most women tend to be risk-averse, the more you are comfortable with talking about money, the more you will be able to take calculated risks.

Original investments for the next 10 years

Image Credits: Ars Electronica via Flickr

Sources: 1,2 & 3

5 Helpful Steps To Talk To Your Elderly Parents About Money

Money gives people, of all ages, the decision-making opportunities they need. Unfortunately for elderly parents, research has shown that financial decision-making ability declines after age 53. This maybe attributed to the 2013 survey done by National Endowment for Financial Education which found that 7 out of 10 adults have difficulty discussing to their families about who will make the financial decisions on behalf of their elderly family member.

Talking about the aging parents’ finances is a good idea but that does not mean people actually do it. Some people avoid the subject because it raises uneasy situations (e.g., quarreling over the estates or feeling “extra” sensitive toward the elderly). Resolving this negative mindset will help your aging parents to organize their financial life. And, that is the most important thing right now.

So, here are 5 Helpful Steps To Talk To Your Elderly Parents About Money…

1. DO YOUR RESEARCH

You have one goal – to organize your elderly parents’ financial life. Know what issues or topics to discuss that will aid this goal. Due to the declines in someone’s body as they age, topping the list is healthcare. Also, you must consider their life insurance, medical insurance, or long-term care coverage policies. Then, talk about estate and other assets. Having a last will and testament ready is a crucial thing.

2. GATHER DATA

After researching the topics to discuss, you must prepare the documents needed. These documents are the banking statements, credit card bills, tax records, insurance policies, and so on. Put these documents in one safe place such as a relatively small safe deposit box at home. Grant access only to the people who are really trusted (e.g., the lawyer or immediate family member).

3. CONVERSE TO THEM STRATEGICALLY

Before talking to your parents, build a strategy that will work for your family dynamics. For instance, some families are more comfortable with having everyone around while other feel that they are being ganged up by their children. Another tip is to talk to them as if you are talking to your adult peers with objectivity and compassion. Do not make them feel that you are treating them as young children.

4. START THE DISCUSSION

All your homework led you to this moment. Emphasize on the benefits of the talk and speak with love. Delaying the talk will only be more expensive because as health declines, premium prices increase. Ease the flow of the conversation by adding real-life experiences as examples.

Image Credits: pixabay.com (License: CC0 Public Domain)

5. LEARN FROM THE EXPERIENCE

Traditional financial advisors suggest that parents save for their own retirement first before saving for tertiary education. This is because you only have one shot at retirement while there are many ways to get student loans. With this experience, you must realize that it is necessary to save as much as you can for retirement during your peak years (i.e., aged 20-35) in order to age gracefully.

Sources: 1 & 2

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