Tips on Financial Planning

My daughter asked me to give three important tips for financial planning to her. Here is my reply:

Tip 1. Save 10% to 20% of your regular earnings. This is in addition to CPF.

Tip 2. Invest in an investment-linked policy (ILP). It allows you to adjust your regular savings. Choose an ILP with low distribution charges.

Tip 3. Invest in global equities or Singapore equities. They are likely to give a better return than bonds. You can get a better return. Risk is an advantage.

After listening to my explanation, she became quite convinced. It makes a lot of sense.