CJH Financial Planning

  "It never rains but it pours" This idiom perfectly describes the COVID-19 situation which hit the world badly at the beginning of the year. Fast forward the months, and we are now in December, a year from the initial outbreak of the novel coronavirus. In March 2020, the World Health Organisation announced COVID-19 as a pandemic, leading to many countries locking down their economies, barring their citizens from leaving their homes other than for essential services, and grinding international travel to a halt. Singapore, the tiny city-state, was not spared. With a tiny domestic market and an economy that is highly dependent on import and export, Singapore’s Ministry of Trade and Industry (MTI) projects that the economy will be shrinking between 6% to 6.5% this year. Drawing from Past Reserves It is reasonable to say that the economic impact would probably have been much worse, if not for the 4 sets of stimulus packages (“Budgets”) to help businesses and individuals w...

In case you haven't heard of the F.I.R.E movement 🔥 🔥 🔥 , it is spreading like wildfire worldwide right now. For the uninitiated, F.I.R.E stands for Financial Independence, Retire Early . Many have dreamt of retiring early and enjoying the rest of their lives sipping a cocktail on the Bahamas. But dreaming alone isn't going to make it happen - you need to TAKE ACTION! It's hard, but life will be so sweet once you get there. Here are 8 tips to help you get fired up (pun intended 😆 ). #1 - Start saving aggressively I have seen F.I.R.E. advocates saving between 30% to 60% of their income. The more you save, the more you can invest and grow your wealth! #2 - Cut unnecessary spending Live like a minimalist (check out The Minimalists ). Practise delayed gratification - do you really need that Apple Watch now? A dollar that you don't spend is an extra dollar that can be invested to make more money. #3 - Have multiple sources of income Don't depend solely on your salar...

Today a business friend asked me if there is any way to insure her parents, who are in their late 70s, against medical costs. I told her that unfortunately the policies at my disposal have a maximum entry age of 75, and therefore I’m not able to provide cover for them. However I advised her on a viable alternative, that is “self-insurance”. I asked if she has any other siblings and she replied yes. I then went on to suggest that from now on, she and her siblings should start contributing some money into a medical fund for their parents, and this pool of money becomes an “insurance fund” for them. Coupled with Medishield Life as well as their Medisave funds, this approach should help to alleviate most of the medical costs. Suddenly I can see an imaginary light bulb lit up in her mind — an “a-ha” moment! She said that if each sibling contribute $200 monthly, it seems like this is a do-able strategy. Financial planning isn’t always about buying more insurance policies. Sometimes...

As I approach my tenth year in the life insurance and financial advisory business, it has come to a point in my career where I am embarking on a new challenge, that is to groom and train young people into successful financial consultants. As such, I have been away from writing articles for a while, busy juggling both client consulting and mentoring responsibilities. All newly minted financial consultants have to undergo intensive product training, mastering one product at a time, until they reach a level of proficiency and experience where they can flap their wings and fly on their own. While I was training the new blood of our industry, it is inevitable that that the new consultants ask which products do our clients like the most. Although financial planning is a highly customised affair, and no two persons' financial needs are exactly the same, some products are indeed in higher demand than the rest. This may be due to a greater awareness for certain types of policies. And du...

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.

I fondly remembered my primary school days when my mother would give me a dollar a day for pocket money. It seems like very little now, but those days it was enough to get through lunch and still have money left for some tidbits after class. And then there was this $2 note which was perpetually hidden in a little-used compartment of my nylon-and-Velcro wallet. This was my 'spare money'. Money to be used when my pocket money runs out, and I need buy something urgently. I couldn't just spend the money as I wish though. To top up the spare money, I would need to account to my mother what I spent on and whether it was necessary. She is probably the most frugal person in the world and getting past that inquiry wasn't exactly easy. The money was hardly used though, simply because it was so hidden that I often forgot it was there. But it was always there, always ready to save me in times of emergency. I am grateful that since young I have been inculcated this habit o...

This is a wonderful article which I came upon and I thought of sharing with everyone.  Original article at:  http://www.investopedia.com/financial-edge/0612/Investopedia-Staffs-Fatherly-Financial-Advice.aspx#axzz1y4PLPi11      - CJH Since Father's Day is quickly approaching, we here at Investopedia wanted to honor our dads by sharing some stories about the best financial lessons our fathers taught us. We cover everything from budgeting to employment advice, and we will hopefully show you that your dad's advice - though it may have seemed curmudgeonly at the time - can help you out throughout your entire life. Feel free to share your own stories in the comments section. Each of these stories has been shared by an individual from the Investopedia Staff. Happy Father's Day!

This post is written to help some of my clients who is in a dilemma of whether they should start their savings as soon as they can, or to wait till they are married and settled down before starting. The answer is obviously to start early. We have heard it so many times but why is starting early so important, and what are the pitfalls if we start late? TIME VALUE OF MONEY (TVM) A dollar today is not worth the same dollar in 10 years' time. This is because of opportunity cost lost through the interest that was not earned, and time is really money. Let's use a story to illustrate the point of 'Time Value of Money'. Mary and John are both 25 years old and are unmarried, and they intend to save and invest $500 per month and to use the savings for to fulfill their financial goals (pay for their children's tertiary education, fund their retirement, start a business, etc) in 30 years' time. Mary starts saving from now , and saves for 15 years, and stops saving...

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...