Hi,
I'm a final year under-grad who is finishing up with her studies and is planning to start on her career.
I am interested to start investing for retirement and is also keen to purchase an insurance policy. Is there any advice for a young person starting out?
REPLY
Please read this FAQ on Financial Planning for the Young. Wish you all the best in your career.
As a young person and just starting out you should have medical insurance like an H&S and critical illness plan. If you don't have dependants you don't need other insurance. Distinquish between NEEDS and WANTS.
ReplyDeleteIf you have a CPF medisave account apply for Incomeshield Basic plan to start with. For critical illness buy a term living with coverage between 70K to 100K and review the coverage as you move on .
For retirement, invest regularly in high risk, well diversified equity fund because you have at least a time frame of 35 years. Look for plans with low charges. There are regular saving plans which charge only 3% upfront on whatever you save. Avoid regular ILPs like ID2 from Income and regular ILPs from other insurance companies.Never use
insurance plans like endowment or wholelife as saving plans.
Distinquish protection from saving.
Apply the concept of "buy term and invest the rest" and you will be on your way to a better financial future.
Your journey in life begins with a goal in mind before the first step is taken and you won't go wrong because you have a direction.
Another first step to take is to engage a QUALIFIED CERTIFIED FINANCIAL PLANNER. This is to ensure you get good advice from the start and not from any run of the mill insurance agent.