Jonathan Chua

Like the rest of the world, Singapore’s economy has faced significant negative impact, due to the COVID-19 pandemic. Employers were, and continue to be, left with little choice in respect of cost cutting. Unfortunately, these costs include staffing and recruitment, which means that over and above health, well-being, and safety concerns, Singaporeans are also anxious about being retrenched. Facts speak louder than words; in 2020 alone, Singapore recorded one of the highest retrenchment periods our country has faced in the last decade, with approximately 26.1 thousand workers being let go1. The declining job market has led to Singaporeans feeling not as optimistic about finding new jobs. Some of their biggest worries2 include unemployment rates, difficulties in job searches, and losing their jobs. The possibility of being retrenched haunts many across the island nation, not just from an emotional or psychological standpoint, but also a financial one. Most people are stressed about the fi...

The average cost of a house on the market in Singapore is roughly SGD2 million1. If you get a government subsidised (HDB) flat, you are looking at an average of a little over SGD530,0002. Either way, it is a costly endeavour, especially if you are still establishing your career and planning to raise a family at the same time. Typically, people aim to become financially responsible by their 40s. This includes ‘living within their means’, in other words, budgeting for expenses and financial outflow in accordance to one’s income, while accounting for the ownership of assets, such as a home. As life evolves, so do one’s financial priorities. With time, expenses tend to increase, and one needs to begin budgeting for a family, retirement, exigencies, health, and a host of other needs. How then is it possible to allocate funds towards a huge financial commitment such as home ownership, while earmarking for monthly expenditures on a fixed or variable income? In spite of the Singapore governmen...

Everyone suffers from some form of cognitive bias — a kind of shortcut thinking. Some studies suggest that a person can be subject to over 1751 cognitive biases in their day-to-day decision-making. When it comes to financial planning and investments, cognitive biases can result in some costly blind spots or avoidable losses. To check if you are guilty of autopiloting your thinking, start by asking yourself how you go about making important decisions. Do you: Do your own research? Make a pros and cons list? Consult a friend, or an expert? Our brain tends to have certain cognitive biases, or ‘flaws in our reasoning’, which influence our judgment in terms of the information we focus on, how we remember decisions made in the past, or even the sources we rely upon for our research. A cognitive bias often leads to people deriving conclusions inaccurately, generally due to the misinterpretation of information. How do these findings affect the average person planning financial or investment go...

“The best time to start planning and taking action for your retirement was 20 years ago. The next best time is now.” – Kenny Tey When we are young and busy with life, growing old isn’t something we make time to think about. In fact, if you ask Singaporeans about their future financial plans, 1 in 3 are concerned about not having saved enough to enjoy a comfortable retirement, and as high as 45% haven’t even begun to create a retirement fund1. Retirement preparedness has become a growing concern among Singaporeans. Ideally, a good retirement plan involves earning and saving today, to live a comfortable tomorrow. If preparing for your golden years is on your mind, here are 8 top mistakes to avoid in your retirement planning: Lack of a Financial Plan Starting To Save Too Late Counting too much on CPF No Plan for Emergencies Not Factoring Inflation Investing based on Hearsay Limiting Financial Planning to Retirement Burdened by Debt source

COVID-19 has impacted each one of us in different ways with the social distancing orders, safe management measures, and a changed pace of life. On the upside, the pandemic has led us to rethink our priorities and expectations, especially in the financial sense. Some important questions have begun bubbling to the surface: Are my loved ones protected? What if something were to happen to me tomorrow? Should I have a plan in place for the future? Estate planning is one area that has received a lot of attention, specifically because of the uncertainty associated with the COVID-19 crisis, which has turned many lives upside down. Now, more than ever, it’s the best time to prepare for the unexpected, and what better way than to create an estate plan which is regularly reviewed to ensure it aligns with your goals: What is Estate Planning? In my opinion, as much as no person is comfortable thinking about death, it’s important to plan your financial future in a way that helps keep your loved ones...