How do I start investing and much would I need to invest? $10,000? More? Less? When’s the right time to start? How do I approach financial planning? If these are some questions you’re asking yourself, here are a couple of firms who can provide advice.
MAX KEELING, Head of Expat Advisory at Providend Ltd, says that you can begin investing with only a small amount of money, though he does suggest considering a few factors before you start
When should I start investing?
“To invest or not” isn’t a binary decision. Just as there’s risk in investing, there’s risk in not investing. It’s more prudent to invest a portion of your cash holdings, one that allows you to sleep soundly while mitigating short-term market risks, into a portfolio that fits your need, ability and willingness to take risks.
How do I start investing?
You can begin investing with as little as $100 on certain platforms and add more money as you earn and save. Having said that, you should really only consider investing after setting aside an emergency fund of cash reserves that can sustain three to six months’ expenses, and getting basic life and health insurance.
Before you start, there are a few factors to consider, including your preferred investment style, how you want your money to be used and for what purpose, and your risk tolerance.
What should I have in my portfolio?
Keep it simple, with a globally diversified equity fund that will be the main driver of long-term gains and a globally diversified bond fund to provide stability. The allocation between these two should be determined by your willingness and need to take risks.
How does a financial advisor help with investment planning?
You should consider working with a financial advisor if:
- you need help in developing a single view of your global portfolio;
- you’re seeking clarity on whether consolidating your various assets and tracking current cash flow and resources keeps you on track to achieving your goals; and,
- you require advice in structuring your wealth so that it can be passed down in a sensible manner
About the company
Established in 2001, Providend is a feeonly wealth advisory firm and licensed fund management company with the Monetary Authority of Singapore. Its advisors work out a wealth plan with clients before they start investing, to guide them to make wise investment decisions to achieve their life goals. These advisors journey with the clients throughout market volatility and regular reviews of life circumstances to ensure the investment plan aligns with their life goals.
Established in 2005 and registered with the Monetary Authority of Singapore, Chartwell works with expats who are working and living in Singapore, permanent residents and Singapore citizens on ongoing investment and tax advice. It has a team of experienced financial advisors who hold all the relevant professional qualifications and who will focus on your own goals and objectives so you can achieve what you want.
Here are three ways they can help.
One of the areas in which Chartwell provides financial advice is savings and investments as an expat living in Singapore. If you’re new to investing, the advisors will take you through the range of available products that you can consider, including offshore investment options. Besides that, they’ll also walk you through the jurisdictions and tax obligations of investing from here.
Another service provided by the company is planning for small businesses or partnerships. Whether it’s corporate tax requirements, business protection, employee benefit schemes or shareholders’ agreement, the team can provide insights into the type of agreements that you should have in place to ensure business continuity.
If you’re an expat with kids, you’ll be faced with decisions around when and where to send your children to school in Singapore as well as for college and university education in the future. Chartwell will work with you on planning education fees well in advance, while taking into consideration your current financial situation as well as life goals. Education fee planning can help you avoid any unnecessary interruption to your child’s school or social life, and have you prepared for any future challenges in this area.
The team also provides planning and advice for insurance, retirement, wills estate planning and UK pension transfers. Their advisors will determine the most effective and affordable solution tailored for your needs.
This article first appeared in the July 2021 edition of Expat Living. You can purchase the latest issue or subscribe, so you never miss a copy!