Jonathan Chua

Globally, the financial services industry leads the world in terms of earnings and equity market capitalization. Large conglomerates dominate this sector but it also includes a diverse range of smaller companies. Commercial banking services form the foundation of the financial services group. The operations of a commercial bank include the safekeeping of deposits, issuance of credit and debit cards, and the lending of money. An investment bank typically only works with deal makers and high-net-worth clients, not the general public. These banks underwrite deals, secure access to capital markets, offer wealth management and tax advice, advise companies on mergers and acquisitions, and facilitate the buying and selling of stocks and bonds. Financial advisers and discount brokerages also occupy this niche. Hedge funds, mutual funds and investment partnerships invest money in the financial markets and collect management fees in the process. These organizations require custody services f...

Retirement is one of the key financial goals for many people.  Saving early and often is important.  So is taking advantage of products and accounts designed specifically for retirement. Tax advantages are a key feature of annuities, IRAs and employer sponsored retirement savings plans, such as 401(k), 403(b) and 457(b) plans.  Any earnings growth in these products is generally tax-deferred until you make withdrawals, generally when you are retired and may well be in a lower tax bracket. What's more, your contributions to IRAs and employer retirement plans may be made pretax or may be tax deductible, helping reduce your current tax bill. Annuities An annuity is long-term retirement product that can help protect you against the risk of outliving your assets. It is a contract between you and an insurance company: you receive future income in return for your contributions. Any earnings on contributions are tax-deferred until they are withdrawn, usually at retirement...

Insurers to combat fraudulent claims A group of insurance professionals is forming a working group to find ways to combat fraud, especially exaggerated and inflated motor claims. The group, which will be formed in the coming months, will be made up of representatives from the General Insurance Association of Singapore (GIA) and its members, and aims to tackle the problem in a structured and systematic way. GIA president Derek Teo said in an interview with The Straits Times that although the industry has made progress in fighting certain aspects of insurance fraud, there are still loopholes to be closed. read more

What is Term Life Insurance? A term life insurance plan is one with a limited coverage period. When purchasing this type of plan, a policyholder typically chooses a set period of time (or term) that they want to be covered for and commits to paying a premium for that period. If you decide to purchase a 10-year term life insurance plan, you will be given the choice to renew your coverage at the end of 10 years, or you can let the coverage end. This is the most basic type of life insurance and is often the preferred option as it is low-cost and easy for most people to understand. The most important thing to remember about this policy is that it has no additional cash value, and will only be paid out upon the policyholder’s death. If the policyholder dies before the end of the term, there is a payout under term life insurance, but if they die after, their beneficiaries get nothing at all. Because of this trait, it is life insurance in its purest form – it only exists to insure peopl...

Yields have failed to rise in line with expectations, but bonds remain a crucial asset class for any investor building a yield-generating portfolio. As the chart below shows, the approximate level and direction of change of bond yields over time is related to long-term economic growth rates, which go a long way to explaining why bond yields remain low today. The improved macro trend of the last year or so suggests a bottoming out in the rate of nominal GDP growth and the consequent bottoming of bond yields. However, Chris Iggo, AXA Investment Management’s chief investment officer for global fixed income, warns against expectations of a massive rise in bond yields. ‘The consensus view is that yields are “too” low and that the tendency should be for them to rise, but by how much and driven by what? Sure, short-term considerations about synchronised global growth, the potential for fiscal stimulus in the US, the Fed’s tightening plans and higher headline inflation all point to high...