A well-thought-out investment plan can assist you in achieving financial goals such as purchasing your first home or preparing for retirement. It can also help you plan for the market’s typical ups and downs and capitalise on chances as they emerge.
There are five steps to Start an investment plan.
1. Make a list of specific and attainable objectives.
Instead of stating that you wish to be able to retire comfortably, consider how much money you’ll require. You can establish a particular goal of having $500,000 set away for retirement by the age of 65.
Divide your goals into short and long term categories if you have more than one. This will assist you in selecting the appropriate financial items to match your objectives.
2. Determine how much money you’ll need to save each month.
How much will you need to contribute each month to your retirement fund if you need $500,000 by the time you’re 65? Determine whether it is a reasonable amount to set aside each month. If not, you may require assistance.
It’s possible that you’ll need to change your objectives of your investment plans.
3. Pick an investment strategy.
Know your personal risk tolerance and time horizon for investing.
You might choose more aggressive, higher-risk investments if you’re saving for a long-term objective. If your objectives are short-term, you may choose to stick with low-risk, conservative investments. Alternatively, you may take a more balanced approach.
4. Work with your adviser to create an investment policy statement.
A declaration of investing policy can assist you in making investment decisions. If you work with an adviser, your investment policy statement will spell out the guidelines you want them to follow when managing your portfolio.
Your investment plan statement should include the following:
- Specify your investment aims and goals.
- Describe the tactics that will assist you in achieving your goals.
- Describe your return expectations as well as your time frame.
- Include specific details about the level of risk you’re willing to assume.
- Include recommendations for the types of investments that should be included in your portfolio, as well as how easily your money should be accessed.
- Determine how and when your portfolio will be monitored, as well as when and why it should be rebalanced.
5. Review your strategy on a regular basis.
As your life circumstances vary, so will your investment approach, risk tolerance, and goals. Once a year, take a look at your investing strategy to make sure you’re on track.
Re-evaluating your risk tolerance, checking your financial goals, and making changes to your portfolio are all possible outcomes of your review.
Remember these 6 steps to investing:
- Set your goals
- Know your investing personality
- Create your plan
- Choose your asset mix
- Choose your investments
- Track your progress
Start an investment plan. What is CareShield Life?
CareShield Life is a long-term care insurance policy that offers Singaporeans financial protection against long-term care expenditures in the case of a serious disability. CareShield Life will give you improved protection and assurance for your fundamental long-term care needs by providing:
- Lifetime cash distributions for the duration of the insured’s a severe disability;
- Increasing monthly benefits, beginning in 2020 at $600 per month and increasing yearly until age 67 or until a successful claim is submitted, whichever comes first.
- Subsidies from the government to make it cheap, with no one losing coverage if they are unable to pay premiums;
- MediSave can cover the whole cost of premiums.
If you are a Singapore Citizen or Permanent Resident born in 1980 or later, you will be automatically covered on 1 October 2020 or when you reach the age of 30, regardless of whether you have any pre-existing ailments or are seriously disabled.
Why is it necessary to begin CareShield Life at the age of 30?
Starting CareShield Life around the age of 30 enables premium payments to be spread out over a longer period of time. A longer period of premium payment allows insureds to stretch premium payments over a greater number of years, reducing yearly premiums payable. As a result, insureds will benefit from additional years of coverage beginning at the age of 30.
Most Singaporeans would have started working by the age of 30, and many would have worked for a few years. It is also a good time to start thinking about their long-term care requirements. They would have begun contributing to their MediSave and should be able to meet their CareShield Life premiums without incurring any out-of-pocket costs.
Your CareShield Life premium is due once a year. Within one month of your policy anniversary, the premium payable will be automatically withdrawn from your or your premium payer’s MediSave. You can check the My Policy e-Service to see whether you have any outstanding premiums.
We hope this article on how to start an investment plan was helpful.