How to Start Investing In Your 20s & 30s For Retirement (Part 2/2)
ฝัง
- เผยแพร่เมื่อ 14 มิ.ย. 2024
- More millennials in Singapore jumped on the investment bandwagon in 2020 to take advantage of the incredible stock market rally. But do they know about the risks they're taking with their money? With a longer runway to retirement, what mistakes do they need to avoid for a better chance at reaching their retirement goals?
Heidhar, a single 29-year-old engineer, and Gwen, a young mother who's taking a break from work to care for her family, share their investment challenges.
Financial experts Christopher Tan from Providend and Jolene Ong from the Institute for Financial Literacy weigh in on what Heidhar and Gwen are doing right, and wrong, with their money.
Produced in partnership with MoneySense.
(HEIDHAR)
00:00 Introduction
00:59 What his budget looks like
01:50 The 20/30/50 Budget Rule
02:37 How much money to set aside for emergencies
03:04 Whole life plan or term insurance plan?
04:26 Fundamental principles of investment
05:53 Should you top up your CPF accounts?
06:54 Rule of 72: How long it takes for your investment to double
07:51 His retirement strategy & the risks
08:32 What you can learn from Heidhar
(GWEN)
09:01 Introduction
10:19 Double income household to single income: Challenges
10:44 A creative way to use your credit card
11:23 How much emergency fund does one need?
11:46 Saving with goals in mind
12:06 How couples should manage their finances
13:23 Should you invest in cryptocurrencies?
15:10 When to start planning for retirement?
15:48 Is our CPF money ours?
16:33 Investing in endowment plans vs topping up CPF Special Account
17:22 Advice for Gwen
18:17 How much savings should you have by age 35?
WATCH Part 1: How to Budget And Save In Your 20s & 30s • How to Budget and Save...
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I’m not good doing it alone but getting into the market has been my best decision so far in my road to financial independence as it turned out lucrative for me.
Great stuff. I watch several youtube videos on how to trade in the stock market but haven't made any headstart because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands.
The best strategy to use in trading stock is to trade with a professional who understands the market quite well
kathy genelle britton
Kathy Genelle Britton is one of the trader I have ever worked with in the past few years, she knows how best to deal with whatever market situation.
Thanks for sharing, but have you made any profit whatsoever?
Really appreciate Mr Tan encouragement/advice to Gwen fr18:20. A successful life need not be define as loads of money in the bank at retirement.
Very great I’m trying so hard to be minimalist
Don't understand, school need to include investments as a subject.
Economics should really be part of the education system, unfortunately we are still forced to learn things that most of us will barely use in life.
CPF FRS 186,000 is 2021 rate. Is this rate still valid for Gwendolin Mah , who is only 33 yo at 2021 + SG ruling party ever changing policieis on minimum sum ?
I find it quite staggering to know not a lot of Singaporeans own stocks, capital gains are not taxed here. Everyone should put in a bit of effort to learn the basics of investments.
not having capital gains tax is super Overpowered. As a singaporean myself, its super awesome
Yes here is a rich man haven. No tax from capital gain, from dividends, from legacy
No joke, no taxation for capital gains and dividend income is a super advantage so many Singaporeans which not know. A lot of people just want to flip properties causing prices to rise. Seriously stock investment is so much better.
FFS, the pay here is pittance compared to actual 1st world countries. Coupled with long working hours, we will be dropping flat on our beds the moment we reached home.
As I'm not sure how to do stock investing, I just top up CPF in SA.. Not OA. Bought a house and reliance on OA is minimal. Hope I'm on the right track.
Heihdar is correct in getting into term insurance , much cheaper premium n invest the difference of the premium. He is also smart in putting more money outside of CPF due to liquidity, buy a 5 or 10 years tiered GIC n rolls the interest earned. He will meet his financial goal by 50.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@AustinWalker67 Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. Alice Marie Coraggio, a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
@AustinWalker67 Alice Marie Coraggio
Lookup with her name on the webpage
A lot of people think you can get rich from investment. That's wrong. Investment help you keep your rich. Only teaching investment will make you rich.
Emm you might not wrong
i disagree. Warren Buffet will tell you why.
Singapore got way too much CPF, seriously cannot have so much ordinary acct money flooding the property market and jacking prices
Heidhar is single and he does the 20,30,50 rule. i am married with 2 kids but i save more than 70 percent of my take home pay. I dont earn alot, just a little abit higher than the median income. But my wife is working as well and she saves 70 percent of her take home pay. We have a maid too but i pay my maid's salary from my liquid cash savings that i have..so dont really touch our existing monthly salaries. I do the cooking most of the time so we dont necessary waste money dining out. I do have alot of cash savings in high yield accounts but didnt touch investing as i have zero clue. For now this works for me still.
With zero investing knowledge, which is a low risk investment tool that can almost guarantee ( i know its not guaranteed) at least 3 percent?
CNA as a Singaporean Media channel, places so much emphasis on the importance of CPF. Well, its sponsored by the Singaporean government after all hahah.
Doing some simple homework and investing in an ETF like the S&P 500 / SPY beats the 4% returns by a long shot.
Staywoke Salaryman
Actually I can tell u based on experience... I am a financial advisor and I actually tell many of my clients that are in the middle class to invest in S&P 500... just buy the ETF.. even though I can sell UT and actually make money.. I know for sure S&P 500 ETF for passive investing makes the most sense for people that dont know investing..
And I can tell u... hardly anyone listens and actually wanna do anything. To many people.. CPF is save and they will just do it.. So not wrong for CNA to show case that too..
4% is very low. Typical target for 72 rule should take 8 to 12 years.
Staywoke Salaryman !
@@theintha 4% is peanuts, according to PAP this is the amt we deserved.
This two even worst than the last two advisors. Everything also CPF. Never cover inflation. Never cover market returns, everything also rely on budgeting.
I dont know whether this is advice for 20-30 or 40-50. If 20-30 cannot take high risk then who can?
I am a Portfolio / Fund Manager. Forget about all these fake pros. The safest investment is to purchase an Index like S&P500. No single or professional fund manager has ever been able to beat the indices consistently over the long term like 50 years.
Not many fund managers have a track record of 50 years in the first place but Buffet certainly beats the indices over 50 years. Notable Investors like Munger, Lynch, Soros, Druckenmiller and Dalio have track records beating the indices across a long period of time. And you can't purchase the S&P index directly, you can only purchase an ETF like ticker: SPY/VOO/IVV that tracks the S&P. Most fund managers can't beat indices even in shorter terms like 5-10 years, that is because they don't have to, due to hedging (e.g maintaining liquid for clients), fund structure and pressure from fund investors on short term volatility. Well, for most people buying ETFs is fine as you are suggesting.
The first dude is really responsible.
thank you
A lot of Singaporean millennials haven't thought about retirement. My parents taught me to work hard first and enjoy life later. I hustled (still hustling) hard after university and I'm glad I heeded their advice. Achieved financial freedom in my 20's through real estate and stocks but retirement is too early. Invest in U.S. stocks for higher returns. SG is pretty slow unless there's s recession like last march.
At 20+ I don't understand any terms they used. Oh all I learnt from school is animal cells do not have cell wall
Sorry I actually don't get how Heidhar allocates his salary, saving 20%, 20% goes to his parents and 50% for investment, and 155$ for his insurance premium... correct me if I'm wrong: assuming 40k is his annual net income, that means on average he has around 3k plus income per month from his job alone.. if there's only 10% left for his necessities isn't that only around 300$.. I'm not Singaporean so I don't get it and wonder how is it possible to live on with that amount of money, and although his living with his parents? Is the parental allowance for the parents to do whatever with it or to pay for the household needs... appreciate if people can help me make sense of Heidhar's
Hello Rayz, thank you for your interest on Heidhar. Well, first of all, he has stopped saving because he has maxed out his Savings requirement (6 month worth of his basic salary). He gives his parents $500 (17.8%) every month, he pays $155(5.5%) for his Insurance, and $1000 - $1,400 for his investments, depending on whether or not he bought $tsla stock that month. So after all that, he is left with $750 (25%) for his expenses, including his bike, food, and basic necessities. He doesnt shop much, he does not drink either. Matter of fact, $750 is more than enough for him. Sometimes, he use some of his $750 to swing trade in crypto, to which he donates the profits to the charity. Hope this helps!
@@hyderembi3366 hey buddy thanks so much for the explanation, if that's the case then it makes better sense to live around with such amount...do you suggest 750$ at disposal an amount that could get a decent quality lifestyle in Singapore? I still have a little doubt that 750 could do much there...my knowledge about SG is pretty limited to what I observed from TH-cam and some news reading, I know that things are not cheap there so I'm still left with a lot of questions as to how to live a decent life in SG (because I like SG as a country though) and how much is needed at bare minimum to get through things there..you did a good job though so thank you
Yeah one good thing I noticed that many Singaporeans despite income level have this very attitude of giving back to parents..very commendable and I believe the society would continue to prosper if everyone behaves this way 👍👍👍
@@rayiscoolandawesome I wished I could give you a direct number to your question, but in your case, it might be slightly different, I guess? You intend to rent a room/apartment here? Otherwise, a decent expenses, I would say $750 should suffice the basic expenses here.
@@hyderembi3366 yeah just factor out the accommodation and all others i.e. investment, parents allowance..just for personal daily needs like food, public transports, some entertainment... thanks man
The only one way to fix financial problem is to make sales cash flow everyday....... end of story....
Bitcoin to the moon bro
*I* *just* *made* *my* *first* *$20,000* *in* *cryptocurrency* *I'm* *so* *glad* *I'm* *gonna* *have* *a* *successful* *retirement.*
congratulations, I'm still mining bitcoin on my bitcoin cloud.
@@kkk-ew2lm bitcoin cloud isn't the best, mining bitcoin isn't as easy as it seems... it takes much strategies and analysis.
the $20,000 I just made isn't from my professionalism. I trade with a prof. Mr. Felix Hartmann, I've been trading with him for half a year now.
@@scottkarl2514 Great!! please can I start trading with him from los Angeles? He is quite famous, I've been hearing about him at work, for a while now, with many recommendations.
*Most* *people* *think....* *Investing* *in* *crypto* *is* *all* *about* *buying* *coins* *and* *holding,* *till* *it* *rises,* 🙅 *come* *on* *it* *takes* *much* *analysis* *to* *be* *a* *successful* *crypto* *trader.*
It's funny how people keep mocking cryptocurrency as an asset class - yes, it's volatile, but it isn't only about speculation. They can keep mocking crypto as they had for the past decade, but I'll keep making money off of it in both the bull and bear markets. Glad to be financially independent before I even start working - no thanks to CPF
I agree with you
I would say crypto is very luck base unless there is a track record
cpf 2.5% per annum? lol wait till they find out about anchor 20% per annum on usd
This crypto comment didn't age well. Luna and UST crashed to nothingness in just a few days. Lol
Once you've realised that money is a social construct. And there is no inherent value. You'll switch to crypto
Never get crypto investment advice from people that doesn't understand crypto 😂🌈
Yes, instead you should get advise from reddit and TH-cam experts
Crypto 🚀
Crypto has me given me returns which I have never dreamt of. LOLS
Most young men or women will get scam before they become adults. 😂
Can, return our CPF after 55 as originally intended. Gov babi mouthpiece
Old people don't know how to make from crypto but it's the fastest way to generate wealth
lol jolene...
That the Government keeps pushing forward the retirement age tells us they already knew retirement is just a dream and an unattainable goal for most people. Ok, just listen to the Government when they tell you some people just love to work and will work until they drop dead.
Lol cryptocurrencies are highly speculative.You are NGMI.Boomer thinking...
diversification is for someone who doesn't know what they're investing in.
I disagree
or for people without much time to do research. at least it's a much better approach than blindly follow and buy unknown stocks lol
I agree to this to a certain extend. I just need 2/3 growth stocks, 1 Index Fund and 1 Hedge instrument. I wouldnt need to diversify more afterwards because Indices are pretty diversified.
Boomer's financial advice to millenials...
Yeap, boomers tend to be more conservative in their portfolio. Cant blame them because they have 1. less Time horizon to take in more risks, 2. went through 2008 Market Crash. hahaha. must give them chance bro :D