Jonathan Chua

Emerging markets shine for yield seekers Contrary to popular belief, emerging markets are returning to favour as investors seek yield away from mature and often expensive financial markets in the developed world. While many retail investors are yet to realise the opportunities presented by emerging markets, professional investors are increasingly tapping into the potential for these markets to deliver a level of yield that is no longer possible from many developed economies, notably the US and parts of Europe. Emerging market bonds in particular have gained traction in recent months, with the JP Morgan EMBI Global Core Index, a benchmark index of US dollar-denominated emerging market government bonds, achieving total returns of 10.2% in 2016. read more

It may be an integral part of the modern world but many find the ins and outs of insurance relatively confusing. One is often left to draw necessary information from sales agents in the field, a group notoriously and justifiably known for harbouring vested interest in keeping their KPIs and sales targets healthy. One area of the industry that is touted as a necessary add-on to the likes of basic health cover is life insurance. As of May 2016, Singaporeans collectively possess 13.1 million life insurance policies with overall insurance accounting for 9.3% of the country’s households’ net worth. We explore the basics of this sub-sector as well as the reasons why it may not always be the best option for everyone. Life Insurance Explained The industry is equipped with more plans than one can keep up with. This article will concentrate on two popular life insurance covers – term life insurance and universal life insurance. The term life insurance variant is basically what comes t...

Single people with no children often don't need life insurance because no one is relying on their income. But there are some reasons why you might need life insurance if you're single. If you died, who would pay for your funeral? Even a simple ceremony could be costly. If you don't have life insurance, someone else (e.g., your relatives) may have to foot these bills. Even if you have only a small policy, the death benefits could be used to cover these expenses. Do you have debts in excess of your assets, or do you owe money together with someone else? Perhaps you're a joint debtor with your sister on her mortgage. If you died, she'd be responsible for the entire debt. Would she be able to make the monthly payments on her own? A life insurance policy naming her as your beneficiary could give her enough funds to cover your share of the mortgage, or perhaps to pay off the entire debt. Finally, is it possible that your health will deteriorate? Maybe you have a fam...

Whatever your insurance needs, focus on your desired financial outcomes "no matter what happens," not on the specific routes to those outcomes. Insurance companies and their salespeople are very effective at tugging on your heartstrings, but does it actually matter whether you cannot work (and cannot generate an income to support yourself and your dependents) because a bus ran you over or because you suffer from dementia? No, it doesn't, yet insurance policies vary in whether they will cover "all risks" or not. (By the way, dementia is a much more statistically common risk than accidents.) Read the policy documents very carefully to understand what is included and what is not. Then buy only the insurance you need in your personal circumstances. Term life insurance Payout in the event of death (or "total and permanent disability," narrowly defined) within a specified period, for example before age 65. Life insurance is intended to support the lifesty...

The simple answer is as much as you can. Everyone makes a different amount each month. They also have different financial obligations each month. It is important to realize that one set dollar amount is not going to work for everyone. Here are some basic guidelines you should follow when determining how much you should save each month. Start With 10 percent of Your Income The standard that many experts set is at least 10 percent of your income . This is a good starting point, to save 10 percent of your salary. It is an easy way to start because it is a set amount of money each month. It should not be that difficult to save 10 percent of your income, but you may want to increase this amount over time . Eventually, you can work up to 20 or even 30 percent to increase your savings and plan for your future. Save Beyond Retirement Savings It is important that you are saving in addition to the money you are putting in your retirement savings account. If you do not, you will never sa...