CJH Financial Planning

You may have already heard  about the upcoming launch of MediShield Life. I have received many enquiries about how it would affect policyowners of private Shield plans. In this article, I’ll share with you what industry practitioners know about MediShield Life so far, and its impact on you. To understand the situation better, we have to first understand how MediShield Life, and its predecessor MediShield works.

Unit Trusts (UTs) or mutual funds seem like investment vehicles for the layperson with little or no investing experience. So how do they fit into a savvy investor's portfolio? Firstly, let's examine the unique characteristics of UT investing: - UTs pool together investors' money to buy assets such as shares and bonds. This allows investors with small capital (even $100) to start investing. - There are thousands of UTs in the market, covering a variety of asset classes, geographical regions, sectors, and industries. - UTs are professionally managed by a Fund Manager, and relieve the investors of the active monitoring and trading of their investments. - UTs charge annual management fees, usually about 1 to 2 percent of the asset under management (AUM). This fee is taken out from the AUM, which cause the Net Asset Value (NAV) of the fund to go down. Most funds are priced based on their NAV, and therefore annual management fees indirectly causes the value of an inve...

Getting married involves financial commitments, so get them right to ensure a harmonious life journey together. Here are some findings from a survey conducted by the American Institute of CPAs. More than half of couples argue over unexpected expenses More than one-third of couples fight over insufficient savings Couples aged 45 to 54 argue an average of 4 times a month about finances As you can see, money worries can be a strain on a relationship. Hence, sound financial planning and good money management is integral to a successful and harmonious marriage.

Here's an update on the upcoming changes to the CPF system, effective 1 July 2011. CPF Minimum Sum From 1 July 2011, the prevailing MS will be revised to $131,000, up from $123,000. Members who can set aside the MS fully in cash can apply to commence their monthly payouts of $1,170 when they reach their draw down age. Medisave Minimum Sum The Medisave Minimum Sum (MMS) will be raised to $36,000 from $34,500. Members will be able to withdraw their Medisave savings in excess of the MMS at or after age 55.

MEMBERS of Parliament yesterday pressed Manpower Minister Gan Kim Yong in Parliament on the adequacy of the Central Provident Fund (CPF) for old age.

Source: The Straits Times, Lorna Tan Funds held in the Central Provident Fund Investment Scheme (CPFIS) achieved average gains of 6.8 per cent in the three months ended in September, thanks to rallying global equity markets.

(News article extracted from MyPaper, 23 Aug 2010) SINGAPOREANS are not savvy enough when it comes to planning their long-term finances and are, thus, generally unprepared for retirement, a study by HSBC has revealed. The HSBC Future of Retirement (FoR) survey, which polled 15,000 respondents across 15 markets and about 1,000 Singaporeans aged 30-70, found that a staggering 91 per cent of locals do not have any idea what their retirement income will look like.

Once a CPF member has turned 55 and fulfilled the Minimum Sum requirement (currently at $123,000), any excess can be withdrawn in cash. What happens to the excess amount if he/she do not intend to withdraw this money? Let's take a look. If the CPF member decides not to withdraw at that point of time, the money left there will earn interest same as the account that is is from (i.e. if it is from the Ordinary Account, it will earn 2.5% interest). Therefore this is a better option than withdrawing all the money and leaving it in a bank account, which is paying interest of a fraction of a percent.

Hi all, how's it going? I came across this from the Straits Times Forum: ------ ST Forum HOME  >  ST FORUM  > ONLINE STORY Jan 30, 2010 Housing prices: Worry over impact  on retirement savings WITH prices of new three- and four-room flats reaching between $250,000 and $330,000 in some areas, I wonder how much a buyer will have in his CPF retirement account after paying for the flat in 20 to 30 years. I took a loan of $80,000 some 20 years back and the interest came up to $70,000  when I had finished paying for my flat. The Government should look into this or Singapore may end up with many  retirees with little in their CPF account, assuming an average household income of $3,000 to $4,000. Since HDB flat buyers may use 30 per cent of household income, they may be able to service their loans, but little is left for retirement. Besides, along the way, husband or wife may lose their jobs. Buyers are allowed to take up to a 30-ye...