Insurance or stock market: Where should you invest?

Posted by admin
on December 14, 2017

Insurance or stock market: Where should you invest 

KEYWORD PHRASES – invest in insurance or stock market 

Financial freedom is everyone’s dream. Who wouldn’t like being a millionaire and have the money that can help in any unfortunate event or serve the needs of generations to come. People seek financial security for themselves as well as their family. Although savings help, can they alone drive you toward achieving the financial security that can alleviate adverse consequences?  

insurance
insurance

The Breakdown

Savings do help, but they may not be enough to face a financial crisis or get you the needed freedom. However, if these savings are invested, it can help you achieve the financial security you seek. Investment is the only way to enhance and earn great returns on your savings. When we talk about investments, the stock market comes to our mind. Stock markets or shares and securities have long served as the ultimate investment option. Since long, insurance has also been a lucrative investment option for many people. Certain insurance policies not only provide you with life cover but also offer investment options.  

With choice comes confusion. People often fail to decide whether to invest in insurance or stock market. Both options come with their own sets of benefits and risks. Let’s explore each option to help you figure out a solution. 

 

Insurance Investment 

Life insurance is an important component of your personal financial management. When considering life insurance, chances are your agent must have spoken to you about Investment-Linked Policies or ILPs. As the name suggests, these policies are a combination of investment and insurance. Many people prefer going for investment-linked insurance policies because they offer a great amount of exposure to insurance as compared to other life insurance cum investment products. ILPs are of two types –  

Single Premium ILPs 

In this type of ILP, you pay a lump sum premium to buy units in the sub-fund of your choice. Typically, single premium based ILPs offer less insurance coverage as compared to regular premium ILPs.  

Regular Premium ILPs 

If you hold a regular premium ILP, you are required to pay premiums in regular or monthly installments. This type of investment-linked policy offers you the advantage of adjusting your insurance protection as per your need.  

Since investment-linked policies play a dual role, they may sound apt. And, they may be. But, these policies come with various risks along with the benefits they offer.  

The Benefits and Risks Associated with ILPs 

ILP’s have several risks and benefits associated with them. These advantages and disadvantages relate to various aspects like the choice of sub-funds, returns, associated fees, and the use of premiums. Also, many people think that these policies are same as whole life plans. But, in reality, they are different.  

Unlike a whole life policy, ILPs offer you a wide range of sub-funds to choose from. Most insurers also provide fund switching options with a limited number of free switches and a fee on additional ones. While this freedom of choice allows you to put your money where you want, you are also incurring fees or are restricted to switch to better funds. Plus, ILPs do not offer guaranteed cash value. This is because the policy value built up depends on the performance of the sub-funds.  

The major disadvantage of the policy comes in the way your premium is used. By paying for these policies, you not only pay for the returns and coverage but also for the agent’s commission, fund management and administrative costs, any additional fee and charges, and the maintenance fees. Considering this, for the initial few years, you may not have any cash value attached to your policy.  

Stock Market Investment 

Singaporean Context 

Singapore has always been a high yielding market. But, the trends from 2013 to 2016 were not so great. 2016 had been a disappointing year at the stock market. Investors were showered with one shock after the other. The trends last year signified investors to adopt a cautious approach with stock markets in 2017. This was mainly because of the economic and political scenarios around the globe that was expected to bring in more volatility to the market. Current trends show the market slowly recovering. While nothing definite can be said, investors may be able to hope for a better future.  

 

Stock Markets – Risks, Benefits, and Solutions  

While the Singaporean stock markets may not give you positive signs as of November 2017, they may show high profitability in the future. That’s how stock markets are – volatile and unpredictable. Investing in stock markets has been a preferred choice for many investors. Yes, they come with risks. But, these risks have allowed investors to enjoy great returns. The biggest disadvantage that comes with this investment type is losing every penny you invested. But, if you are well versed and plan well, these investments can give you great returns.  

Financial planning and good portfolio management is the key to reap the high returns offered by stock markets. Keeping track with inflation, having the right mix of investments, keeping your financial goals in mind when investing, etc., are ways you can gain good returns. Whether you want to achieve financial freedom or gain good returns on investment to finance your child’s education or marriage, having a diverse portfolio can be beneficial. Using a dollar cost averaging strategy can be helpful in mitigating the risks arising from these investments. Dollar cost averaging is nothing but starting by investing small amounts of money at intervals to reduce the effects of violent price shifts. Good financial planning can take you a long way with stock investments.  

Conclusion

Whether you invest in insurance or stock markets, you will have to face the risks that come with them. While investing in insurance offers you life coverage and savings, there is no guarantee about the cash value you gain. Plus, the benefits are highly dependent on the performance of the funds. Stocks don’t get you insurance, but if done right, they have the potential for bringing you financial freedom. Everything boils down to your preferences and goals. Maybe balancing both investment options in consideration with your goals can be fruitful.  

 


Quick Credit Pte Ltd

Quick Credit Pte Ltd is the best money lender you will be able to find in Singapore. If you currently need help in anyway, do not be shy and let us know. Anything cash related, we will be able to help you. Our well train loan consultants will be able to come up with a good loan package to help you clear off all your outstanding bills or debts. In doing so, you will help you keep better track of all your expenses and money. We have been a licensed money lender since 2002.

We have the skills, knowledge and people to assist you through the entire loan process while providing you with excellent advice.

In addition, we have one of the highest positive moneylender reviews among money lenders in Singapore. Furthermore, Quick Credit is also one of the few moneylender open on Sunday!

Interested in knowing more about how you can get a loan from us? You can drop us an email at enquiry@quickcredit.com.sg. Our manager will get back to you as soon as possible. Or you can drop us a message here and our manager will get back to you soon.

Alternatively you can call us at +65 6899 6188. Or visit our office at 2 Jurong East Street 21 #04-01A IMM Building Singapore 609601. The nearest MRT station to us will be Jurong East Station.

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Steps to Prepare Financially for a Newborn (2017 Update)

Posted by admin
on December 5, 2017

Steps to Prepare Financially for a Newborn 

It’s always a delight to have a new member of the family or knowing that you are going to be a parent shortly. However, for lots of people, the financial uncertainty of bringing a child into this world can be a source of stress. That said; in this piece of information, we are going to enlighten you on several tips that will assist you to bring a child into the world devoid of worrying about your financial situation.  

newborn
newborn

Ensure Your Emergency Fund Intact 

There is nothing that is so convenient such as having an emergency fund in place. It might sound hard or an attainable to have sufficient emergency fund, but that will only remain unseen if you haven’t taken the first step. You can always save a piece of your month to month paycheck into your emergency reserve fund. That said, you have to note that, babies are very delicate being and they are only going to enhance the chances of emergencies. Therefore, if you don’t have an emergency reserve in place, it is high time to create a plan to contribute to an adequate rainy day fund.  

Plan for Increased Expenses 

With additional people in the family comes extra expenditure. If you already have a budget, you need to sit and think about on how it will look once you have a new member of the family (baby). If you lack the idea of the amount the newborn will need on a monthly basis, ask friends who have had baby lately or make a simple calculation. Once you have the real picture of what the newborn baby will need monthly; you have to start thinking about what expenses you will have to cut to accommodate the cost of him/her. Never forget factoring in the cost of health insurance.    

Evaluate Your Health Insurance Options 

Health Insurance option has never been a better option for many individuals. However, in a situation such as giving birth, health insurance has been one of the best tools in ensuring that women get the best maternity attention all over the work. Luckily, there are several health insurances to choose from, and the only thing you need to do is select a plan that will offer more coverage for the newborn-related expenses. As you make your choice, you also have t check how much more it will cost you to add the baby to mom’s or dad’s health insurance plan. Having a child qualifies as a qualifying life event which will provide you with a chance to improve your health insurance by work or the healthcare exchange outside of the yearly open enrollment time.

Finally, it makes lots of sense to switch from one plan to another relying on the increased cost of adding up dependents. 

Plan for Paid/Unpaid Leave 

You and your better half discussed how much time you are planning to take off? If not, this is the right now to do so. Leave are usually very critical to the mother, father and the newborn during this time. That said, as a family, you also need cash to be able to cater to the need for the newly born child and now here comes the situation of paid leave.  

As an employee of any company ensure that you have information as to whether your firm proffers paid, unpaid or partly paid leave and more importantly, how long the benefits last. If you are planning to take unpaid leave or partially paid expenses, it is essential to have money set apart to pay for the expenditure whereas you are on the payroll.    

Think About Estate Planning 

It might appear a bit off the hook, however, having an estate planning document in place early enough might be a good idea because anything might happen for instance death and so forth. You have to start thinking about whom you what your property left to when you die and whom you would wish as a guardian for your child. You can write all these intentions in your estate planning documents. It is also the best time to reassess your life insurance needs, factoring the newborn. 

Start Thinking About College 

When a baby is born, you all concentrate on the immediate things. Like clothing the baby, feeding the baby and so forth. However, it is relatively essential to have a long-term plan for securing your future and your child’s future. With that in mind, you need to begin discussing the percentage of college cost you would like to save. Make a plan to save enough cash to achieve your college funding goals. Just like retirement, beginning early is one of the most vital things. You can do so to save enough to achieve your goals. Once you have a saving plan in place, work with an expert and see which kind of plan works better for you. 

Preparing financially for a baby might assist you to plan for the unanticipated and protect you from the unexpected. If you still do not know where to go from here. Look for an expert who can assist you or educate you; however, you need to make sure that he/she is a certified personnel. 

Open a baby-fund for diverse baby plus mommy expenditure 

Besides getting health and life insurance, you can as well open an account for the newborn. And start saving for him/her for the unexpected eventuality. The many you are saving in the baby account might be of great importance in different ways. For instance, buying clothes, medical care as well as any other extra cost that comes your way. Financial preparation will assist in dealing with stress-related with unforeseen issues.  

Discuss and explore daycare 

Before you get a baby, you need to discuss. If you or your better half has the plan to stay in the house with the child. Or if you’ll use a daycare. All the options can affect your financial ability dramatically. Before doing anything, you need to discuss options to give yourselves a chance. To prepare for a financial change which will assist both of you to deal with stress effectively. 

 


Quick Credit Pte Ltd

Quick Credit Pte Ltd is the best money lender you will be able to find in Singapore. If you currently need help in anyway, do not be shy and let us know. Anything cash related, we will be able to help you. Our well train loan consultants will be able to come up with a good loan package to help you clear off all your outstanding bills or debts. In doing so, you will help you keep better track of all your expenses and money. We have been a licensed money lender since 2002.

We have the skills, knowledge and people to assist you through the entire loan process while providing you with excellent advice.

In addition, we have one of the highest positive moneylender reviews among money lenders in Singapore. Furthermore, Quick Credit is also one of the few moneylender open on Sunday!

Interested in knowing more about how you can get a loan from us? You can drop us an email at enquiry@quickcredit.com.sg. Our manager will get back to you as soon as possible. Or you can drop us a message here and our manager will get back to you soon.

Alternatively you can call us at +65 6899 6188. Or visit our office at 2 Jurong East Street 21 #04-01A IMM Building Singapore 609601. The nearest MRT station to us will be Jurong East Station.

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