Singapore has been ranked the world’s most expensive city for expatriates yet again, according to the Worldwide Cost of Living for 2017 survey by the Economist Intelligence Unit (EIU). But as most parents would agree, Singapore is an expensive city for Singaporeans raising a family as well.
Besides paying off the loan for renovation of our HDB flat and instalments for our 2-year old SUV, the bulk of my family’s monthly expenses goes to tuition and enrichment classes for our 11-year old son. Down the road, I foresee we’ll need even more financial resources to fund his higher education – especially if he plans to future his Masters/Doctorate degree overseas – as costs continue to rise.
That is why I need to constantly grow our savings to meet our family’s financial goals. But with bank interest rates meager these days, leaving my money in the bank just doesn’t cut it because inflation will erode the money’s value over time.
Therefore, I need a plan that offers higher growth potential. But where can I find one? Here are some considerations that went through my mind as I was sourcing around for a wealth-accumulation solution.
#1 I have no time to make direct investments.
Eager to earn some pocket money many years ago during my university days, I had followed my financially savvy classmates to dabble in investments, mainly by trading in stocks. Later when I entered the workforce and subsequently started a family, I was warier about taking risks so my frequency on the stock market dwindled. Okay, I admit I had kind of lost that gung-ho spirit that came with youth. Anyway, my current busy lifestyle doesn’t afford me the time and effort to research and monitor stocks or make timely adjustments whenever the market changes.
#2 I don’t rule out investment but it needs to be hassle-free.
Someone recommended me the ‘Buy Term and Invest the Difference (BTID)’ route, which is to get a Term Insurance with lower premium and then take what I’d have saved on premiums to invest. But like direct investment, BTID still requires me to personally research and monitor my investments very frequently in order to maximise my returns – something I don’t want to spend the time and effort to do. I would much prefer if someone could do the research work for me, provide expert guidance and I just make adjustments along the way.
#3 I need a safety net for retirement and other unforeseen circumstances.
Much as my wife and I spare no effort and resource in supporting our son, the last thing we want is to exhaust all our savings by the time we put him through to college. We still want to be able to have spare funds for other life pursuits and most importantly, to retire comfortably.
I don’t want to be tied down with some investment plan that leaves me stranded on a rainy day, and I want assurance that my family will be protected in the event that anything untoward happens to me. Say if I were to make a direct investment, my family will only get back the value of the stock at the point of sale and that might mean a loss of value especially during a downturn.
AIA Pro Achiever takes care of the heavy-lifting, making investment simple
For fellow parents with hectic lifestyles and similar financial goals as me, a savings with investment plan may be a suitable option to consider. One such product on the market, AIA Pro Achiever, allows you to work around the increased financial commitments so you can grow your wealth and enjoy insurance protection at the same time for as low as $6.60/day. Moreover, investing may not be as complex as you may think!
Why AIA Pro Achiever works for busy parents:
Promise of easier investment with expert guidance If investing sounds complicated for you, you can now invest with ease knowing that your investment portfolio is backed by professional research and knowledge from Mercer, a leading global investment consultant. With expert guidance, you can also avoid the pitfalls of emotional investing and timing the markets.
Flexible choice of investment portfolios
Not sure where or what to invest? Choose from 3 investment portfolios – Adventurous, Balanced or Cautious – which are customised to suit varying risk appetites, investment horizons and targeted returns.
For example, you can choose a higher risk investment portfolio to grow your savings now and then switch to a lower risk portfolio when you are nearing retirement. Additionally, you have the option to cash out or opt to take a break from paying premium should a need arise.
Better returns and cost savings With 100% of your premium invested right from the start, you can potentially enjoy higher returns if your investment portfolio performs well. To help you get even more out of every dollar invested, investment cost is lower with no sales charge or bid-offer spread, i.e. the difference between the share’s buy and sell price. In addition, you get to enjoy a guaranteed 5% extra units for free, up to age 100. Best of all, you can be assured that your family will be protected in the event that anything untoward happens to you, enabling you to fulfill your promise to take care of them.