Find out how to assess your assets, choose the right insurance, diversify your investments, and plan your estate.
Start by conducting a comprehensive assessment of your assets. Identify and categorize them, including real estate, investments, and valuable possessions. Understanding the full scope of your wealth forms the foundation for effective protection.
Insurance plays a crucial role in wealth protection. Explore various insurance options, such as life, health, and property insurance, to mitigate risks associated with unforeseen events. Adequate coverage can act as a financial safety net, providing peace of mind for you and your loved ones.
Diversifying investments is another key strategy. A well-balanced portfolio spread across different asset classes can help minimize the impact of market fluctuations. Regularly review and adjust your investment strategy to align with your financial goals and changing market conditions.
Estate planning is essential for preserving wealth for future generations. Drafting a will, establishing trusts, and designating beneficiaries are crucial steps in ensuring a smooth and equitable distribution of assets.
Stay informed about legal and regulatory changes that may impact your wealth. Consulting with financial advisors and legal professionals can provide valuable insights into optimizing your wealth protection strategy.
In conclusion, proactive wealth protection involves a combination of prudent financial planning, insurance coverage, diversified investments, and comprehensive estate planning. By taking these steps, you can fortify your financial position and navigate the uncertainties of life with confidence, ensuring a legacy that lasts for generations.
Focus on resilient portfolios through diversification and risk management, emphasise asset spread, risk awareness, and regular rebalancing.
In the dynamic landscape of financial markets, building a balanced portfolio that can weather various market conditions is paramount for long-term success. At AWM, we understand the importance of diversification and risk management in achieving financial goals. Here's a guide on how to construct a well-rounded portfolio that stands resilient in any market environment.
Diversification is the cornerstone of a robust investment strategy. By spreading investments across different asset classes, such as stocks, bonds, real estate, and commodities, investors can reduce the impact of poor performance in any single asset on the overall portfolio. Each asset class responds differently to market conditions, ensuring that your portfolio remains well-positioned to capture opportunities and mitigate risks.
A balanced portfolio also involves considering the risk tolerance and investment horizon of each individual. Younger investors with a longer time horizon may allocate a higher percentage to equities, capitalising on their growth potential. Conversely, those nearing retirement might prefer a more conservative approach with a higher allocation to fixed-income securities, aiming for capital preservation.
Effective risk management involves not only diversifying across asset classes but also within them. For example, within the equity portion, consider diversifying across sectors and geographic regions. This approach helps reduce the impact of a downturn in a specific sector or region on the overall portfolio.
Regularly rebalancing your portfolio is another crucial aspect of maintaining balance. Market fluctuations can lead to shifts in asset class weights, deviating from the initially planned allocation. Periodically reassess and rebalance your portfolio to ensure it aligns with your financial goals and risk tolerance.
In 2025, the CFP Special Accounts of members aged 55 and above will be closed and all monies there will be transferred to their OA which earns only 2.5%
Since you have already fulfilled the Full Retirement Sum, in 2025 all monies in your CPF SA will be transferred to your CPF OA and no money from your CPF SA will be transferred to your CPF RA.
In 2025, you will not be able to do CPF Shielding because your CPFSA will be closed and the Full Retirement Sum of $213K will be transferred from your SA and the balance will be transferred to your CPFOA.
You can still proceed with CPF SA Shielding because you still will be able to enjoy the 4.08% in your CPF SA for 2024. In 2025, you can consider the below options on deploying your CPF SA effectively to meet your retirement needs.
Options to use your CPF for retirement after 2025 :
Clients who choose this option do not like to take risk and would like the principal to be guaranteed with high liquidity. They also like to leave the principal for their spouse or children.
Monthly or yearly coupons payout are between 3.2% to 4% (of principal invested) and clients can cash put the guaranteed principal anytime from the policy year the coupons start paying put.
Clients who take this option do not mind that the value of top-up will be zero when they pass on and nothing will be left behind for their spouse or children.
After you pass away, your beneficiaries will receive your CPF LIFE premium balance, which is the total initial CPF LIFE premium that you have paid minus the total payouts you have received.
Alternative :
They can invest the $213K in our Dividend Portfolio or Phillip Next Gen Tech Portfolio (PNGT) for potentially higher dividends payouts or yearly profit withdrawals.
Investors can also WILL these portfolios to their spouse or children after they pass on.
Please feel free to contact me if you have any questions or would like a discussion about how to optimize your CPF balances to meet your specific goals.
Best Regards,
Jason Tan | Mobile : 96369839| Private Portfolio Manager
