Editor's note: "Singapore Eye" readers have popularized the basic financial planning guide launched by the Monetary Authority of Singapore, and shared their understanding of the insurance they have bought in Singapore and financial investment.
Whether you're working or studying, the first thing you need to do when you come to Singapore is to buy insurance. The Monetary Authority of Singapore (MAS) has partnered with the industry to launch a basic financial planning guide that encourages people to plan for retirement in a simpler, more unified way, from the four aspects of emergency funding, insurance, investment and estate planning. 1. Insurance: Life, 9 times annual income, 4 times annual income for critical illness. Up to 15% of your income will be insured. 2. Investment: At least 10% of the income should be invested to prepare for retirement 3. Inheritance: Set up a will and provident fund nominee
According to the Basic Financial Planning Guidelines, individuals should set aside at least three to six months of expenses for emergency funds in case of emergency. In addition, the HKMA encourages individuals to take out insurance products, including death and total permanent disability insurance for nine times the annual income, and critical illness insurance for four times the annual income. However, the HKMA also recommends that a maximum of 15% of income be spent on insurance. In addition, the guidelines suggest that individuals can invest at least 10% of their income to pave the way for retirement or other financial goals. In terms of estate planning, making a will and setting up a nominee for the provident fund can appoint a trusted person to make an advance care plan. This is the first time that the HKMA has jointly launched a basic financial planning guide with a number of organisations, including the Association of Banks in Singapore, the Life Insurance Association of Singapore and the Institute of Financial Advisers, and launched it at the Ready for Life Festival, with the Minister of Health, Ong Ye Kung as the guest of honour. "We want to send a consistent message between the public and private sectors so that Singaporeans can take very simple and actionable steps to take control of their finances and maintain their personal financial health," said Lim Tuan Lei, Assistant Director for Capital Markets of the HKMA. ”
How to choose Singapore insurance?
I personally recommend giving priority to the basic security type, first protecting yourself and then your family
The Big Three of Singapore's Insurance:
- AIA – AIA
- Prudential – 保诚保险
- Great Eastern – 大东方保险
Medical Association Announces Ranking of Insurance Companies Offering Private Integrated Shield Plans:
Parents' insurance
- From China, it is preferential to buy overseas travel, such as Allianz on Alipay
- In case you don't buy it, you can add 1 accident insurance in Singapore
Investment Options: Singapore Savings Bonds vs Short-Term Treasury Bills vs Money Market Funds
新加坡储蓄债券 Singapore Savings Bond
Singapore Savings Bond (SSB): It is a bond issued by the Singapore government and is a low-risk investment vehicle. This bond is only available to persons aged 18 or above.
The minimum subscription amount for Singapore Savings Bonds is S$500 and the cap is S$200,000. This means that you can invest up to S$200,000 in Singapore Savings Bonds. With an investment period of up to 10 years, the interest earned will increase over time, and the longer you save, the higher the return. You can redeem the full principal amount within one month and receive accrued interest without penalty.
Since this savings bond is issued by the Singapore government, it is a safer investment for those who are afraid of risk and want to have long-term returns. The interest rate may also be higher than the one offered by the bank.
Also, it is important to note that if the Singapore Savings Bond is oversubscribed, investors may not receive the full amount they applied for.
短期国库券 Treasury Bill
Treasury Bills (T-bills): Short-term bonds that mature within one year from the date of issuance. The number of days due is divided into six months or one year. Since it is issued by the Singapore government and has a AAA credit rating, it is generally considered to be a risk-free bond.
Unlike Singapore savings bonds, Treasury bills do not pay dividends and are sold at a discount. For example, if an investor buys a $100 Treasury bill with a face value of $95 and receives $100 at the end of the term, the investor can earn a $5 difference.
In addition, as mentioned above, there is a limit of $200,000 for individuals to hold Singapore Savings Bonds, but there is no personal investment limit for short-term Treasury Bonds. In addition, the minimum investment amount for the purchase of short-term Treasury bills is S$1,000. If you can set aside funds for a year, consider investing in one-year Treasury bills. It has a longer maturity than semi-annual Treasury bills, resulting in a higher rate of return.
货币市场基金 Money Market Fund
Money market funds (MMF): Refers to a type of fund that invests in the money market in the short term (less than one year, with an average maturity of 120 days), usually investing in short-term government treasury bills and agency bonds. There is no stock component in the asset allocation, so the volatility will not be too large, and there is no chance of losing money, and the return performance is stable.
Unlike the previous two, money market funds are not issued by the Singapore government, while giving you the flexibility to redeem your funds at any time without penalty, usually within 1 or 2 business days. Unlike T-bills, which are sold before maturity, which carries investment risks, SSB can be redeemed at any time, but the funds can only be received on the second business day of the month following the redemption request.
Therefore, money market funds may be more suitable for veteran investors waiting for an opportunity to enter the bear market.
In Singapore, you can invest in money market funds through moomoo Cash Plus to generate potential returns on your "idle" cash. Interest is calculated on a daily basis, and investors receive interest income every day. Although Moomoo Cash Plus does not have capital protection, the investment targets are very stable, such as the Fulton Singapore Dollar Money Market Fund, which is currently the largest Singapore dollar money market fund, and has never had a negative monthly return since its inception in 2009. Of course, everything depends on your personal risk appetite.
SSB vs T-bill vs MMF 主要的差异
Singapore Savings Bonds (SSB), Short-Term Treasury Bills (T-bill), Money Market Fund (MMF), minimum amount requirement: S$500, S$1000S, 0.01 maximum investment amount, S$200,000, no cap, no cap, 10 years, 6 months or 12 months, illiquid (can funds be redeemed in advance?), can be redeemed at any time, but funds can only be received on the second working day of the next month after the redemption is requested, and selling before maturity will bring investment risks, and the funds can be redeemed at any time flexibly.
Usually 1 or 2 working days will arrive in the account, the principal is guaranteed by the Singapore government, and the Singapore government guarantees that there is no principal guarantee, but the funds are invested in financial instruments with very low risk income fixed income, and the interest will vary with the longer the savings, the higher the return is fixed income, and the return of 1-year Treasury bills is higher than that of semi-annual Treasury bills, and the yield is not fixed, and changes with market interest rates.
谁适合SSB vs T-bill vs MMF？
There are a few main groups of people who are suitable for these tools, which I categorize as follows:
Investors who are just entering the society and have started saving are conservatives who are looking for safe investment / almost risk-free options, investors who are looking for financial tools backed by the Singapore government, and investors who are looking to invest for the long term
Investors who are not satisfied with the current return on their savings, conservatives who are looking for safe investment/almost risk-free options, and who are looking for a Singaporean government-backed financial vehicle that will not need the funds in the next 6 to 12 months
HQ丨Editor
hello dog丨来源
Wang Ao丨Author
1. The copyright of all works on this website that indicates the type of article as "original" belongs to Kannanyang and Singapore Eye. When reprinting and using by other media, websites or individuals, they must indicate: "Article source: Singapore Eye".
2. All works indicated on this website as "reprinted" and "compiled" are reprinted or compiled from other media, for the purpose of delivering more valuable information, and it does not mean that this official account agrees with its views and is responsible for its authenticity.