The Power of Adding Critical Illness Coverage

The Power of Adding Critical Illness Coverage

by with No Comment Critical IllnessInsuranceMoney ManagementMoney MindsetPersonal Finance
The Power of Adding Critical Illness Coverage
The Power of Adding Critical Illness Coverage

Insurance is an expense, until it is not. Here, I wish to address the power of adding critical illness coverage into your portfolios.

What Is Critical Illness Coverage?

Critical illness coverage is a type of insurance that provides financial protection in the event of a covered critical illness, such as cancer, heart attack, or stroke. Many people think that traditional health insurance is enough to cover all medical expenses, but this is not the case.

5 Reason Why You Need Critical Illness Coverage

  1. High Cost of Critical Illnesses: The cost of treating critical illnesses can be astronomical, even with health insurance. Between co-payments, deductibles, and uncovered expenses, it is common for patients to incur significant out-of-pocket costs when diagnosed with a critical illness. In addition, many people are unable to work during treatment, leading to loss of income and additional financial strain. Critical illness coverage can provide a lump sum payment to help cover these costs, giving your clients peace of mind and financial security.
  2. Limitations of Traditional Health Insurance: Traditional health insurance policies typically have limits on the amount of coverage they provide. If your client requires an extended stay in the hospital or an expensive medical procedure, they may quickly reach their coverage limits, leaving them responsible for the remaining expenses. Critical illness coverage, on the other hand, provides a lump sum payment that can be used to pay for any expenses, including those not covered by traditional health insurance.
  3. Maintaining Quality of Life: A critical illness can have a profound impact on a person’s quality of life. Not only do they have to cope with the physical and emotional toll of the illness, but they also face the financial burden of medical expenses. Critical illness coverage can provide the financial resources necessary to maintain your client’s quality of life, allowing them to focus on recovery instead of worrying about finances.
  4. Protecting Savings and Investments: When a critical illness strikes, the financial impact can be devastating. In addition to medical expenses, there may also be loss of income, which can quickly deplete savings and investments. Critical illness coverage can help protect your client’s financial future by providing a lump sum payment that can be used to cover expenses and maintain their standard of living.
  5. Peace of Mind: Perhaps the most important benefit of critical illness coverage is the peace of mind it provides. Knowing that they are protected against the financial impact of a critical illness can allow your clients to focus on their recovery and not worry about how they will pay for their medical expenses. This peace of mind is invaluable and can greatly improve their overall well-being during a difficult time.

Final Thoughts

In conclusion, critical illness coverage is an essential part of any financial portfolio. The high cost of treating critical illnesses, the limitations of traditional health insurance, and the potential loss of savings and investments can all be mitigated with critical illness coverage.

By providing a lump sum payment to cover expenses and protect your client’s financial future, critical illness coverage can give them the peace of mind they need to focus on their recovery. As a world-class financial planner, it is important to educate your clients on the benefits of critical illness coverage and help them determine the right coverage for their specific needs.

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

11 Classic Movies That Investors Should Watch

11 Classic Movies That Investors Should Watch

by with No Comment Money ManagementMoney MindsetPersonal Finance

Chinese New Year is coming along the corner. This means it is perfect time to catch up on some movies that you always have been wanting to watch. Here are 11 movies that investors should watch that will keep you occupied during the Chinese New Year.

11 Classic Movies That Investors Should Watch
11 Classic Movies That Investors Should Watch

Trading Places (Rated R)

Trading Places is a hit 1983 comedy, directed by John Landis, featuring Eddie Murphy and Dan Aykroyd. Aykroyd is an investment broker while Murphy hustles to make money on the streets. They end up switching places on a bet. In the end, they team up to use their brain power to make a bundle in investments. It’s an enjoyable escape for any movie viewer that might plant seeds of inspiration.

Stream it on Prime Video, Redbox, Apple TV, and more.

The Wolf of Wall Street (Rated R)

If you’re looking for a true story that is also a cautionary tale, catch The Wolf of Wall Street. Leonardo DiCaprio plays real-life stockbroker Jordan Belfort in this 2013 film directed by Martin Scorsese. It follows his triumphs on Wall Street before his fall into corruption. Beware of where greed can take you when watching this movie that is.

**This is a wealthdojo’s favorite.

11 Classic Movies That Investors Should Watch Wolf Of Wall Street
11 Classic Movies That Investors Should Watch Wolf Of Wall Street

Stream The Wolf of Wall Street on Amazon Prime, DIRECTV STREAM, Showtime, and more.

American Psycho (Rated R)

Christian Bale is best known for his portrayal of the superhero, Batman. However, go back to the year 2000 to catch him in American Psycho, directed by Mary Harron. In this film, Bale is an investment banker by day. At night, he’s secretly a serial killer wreaking havoc on the city. The movie gives viewers a peek at what life is like for people who wheel and deal in investments where the stakes are high.

Stream it on DIRECTV STREAM, HBO Max, and more.

Rogue Trader (Rated R)

Rogue Trader, directed by James Dearden, follows Ewan McGregor on a journey as he portrays Singapore trader, Nick Leeson. He balanced on a tight wire of risk management. In the end, he caused the collapse of Barings Bank, a stellar merchant bank that ranked at the top on a global level.

Watch this 1999 film on Amazon Prime.

Wall Street (Rated R)

When you think about the stock market, you can’t help but relate it to Wall Street in New York City. This has been the heart of the financial district for the United States. The stock exchange dates back to 1792. The 1987 movie Wall Street focuses on the ambitious stockbroker played by Charlie Sheen. Directed by Oliver Stone, it’s educational for anyone who wants an inside look at analysts, brokers, and traders.

Check it out on Hulu + Live TV, Apple TV, Amazon Prime, and more.

The Wizard of Lies (Rated TV-MA)

The Wizard of Lies stars Robert DeNiro as the infamous Bernie Madoff, a businessman who turned out to be a fraud. Director Barry Levinson exposes Madoff for his criminal activity on Wall Street as he took money from investors to increase his own wealth. He ended up going to prison.

Catch this 2017 film on HBO Max, Amazon Prime, Vudu, and more.

Margin Call (Rated R)

If you’re wondering what happens behind the scenes in investment banks on Wall Street, watch Margin Call. Directed by J.C. Chandor and starring Zachary Quinto, it will give you a chance to watch 24 hours on the edge of your seat as a bank approaches the disaster of the financial crisis that struck in 2008.

Stream Margin Call on Netflix, Prime Video, and more.

The Big Short (Rated R)

The Big Short, directed by Adam McKay and starring Ryan Gosling follows a group of investors in the middle of the 2000s who wagered on the housing market before it was ready to crash.

**This is another wealthdojo’s favorite.

11 Classic Movies That Investors Should Watch The Big Short
11 Classic Movies That Investors Should Watch The Big Short

Watch it on Amazon Prime, Disney Plus, and more.

Quicksilver (Rated PG)

Quicksilver is an 80s film starring Kevin Bacon. Directed by Thomas Michael Donnelly, it follows Bacon who is a stock trader who loses it all. He starts over as a bike courier, gets mixed up in frightening intrigue, and makes his way back to the market. It’s a great tale for anyone who needs to have a new beginning.

Watch it on Tubi, Vudu, Apple TV, and more.

Working Girl (Rated R)

Working Girl, directed by Mike Nichols and starring Melanie Griffith, is a film that follows one woman’s journey from secretary to the top of the business ladder. Griffith has a brilliant idea stolen by boss, Sigourney Weaver. Griffith trades places with her for a while and launches her own career. Learn how anyone can succeed in the business world when you watch this flick.

Catch on Apple TV, Amazon Prime, and more.

Glengarry Glen Ross (Rated R)

If you want to see what’s really going on in the real estate world, catch greats like Al Pacino, Jack Lemmon, and Alec Baldwin in Glengarry Glen Ross. This film directed by James Foley paints a picture of corruption.

Watch it on Hulu, Amazon Prime, and more.

Final Thoughts

Let’s brighten the mood this Chinese new year!

These are tough times for financial markets. Everyone has had to tighten their belts and look for ways to spare their wallets. Inflation keeps going up with no end in sight. There’s no better moment to focus on investing to give yourself some peace of mind. If you know how to sock money away or make your current savings grow, it will help you to weather any storm.

Pop some popcorn, pour yourself a drink, and give yourself a day to line up your pick of films that show you what investing is all about. They will either inspire you or tell you what not to do when investing.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

2022 Financial Recaps That Will Affect You In 2023

Financial recaps that will affect you in 2023

by with No Comment General EconomyMoney ManagementPersonal FinanceProperty InvestmentReflection

Give yourself a pat in the back as 2022 haven’t been an easy year for everybody. I know some who pass away because of COVID. I know some who are retrenched. I definitely know more than one person who had a mental breakdown. I would like to say that you have already done well. Your best will look different everyday.

Your Best Will Look Different Every Day
Your Best Will Look Different Every Day

While 2022 is ending, there are some financial news that are still impacting our lives. I will be updating the 4 most impactful financial recaps that happened in 2022 and will continue to impact us in 2023.

2022 Financial Recaps That Will Affect You In 2023
2022 Financial Recaps That Will Affect You In 2023

#1: Increase in CPF Top Up Tax Reliefs

In 3 Key Changes To CPF Policies From 2022 (if you haven’t read, this is my top article of 2022), I wrote about the change in rules for tax reliefs for Retirement Sum Top Ups (RSTU).

In a nutshell, the amount of tax reliefs structure have been streamlined to be up to $8,000 (instead of $7,000). and this cap will now be shared between Special Account (SA), Retirement Account (RA) and the MediSave Account (MA).

If you are planning to RSTU in 2023, the new limit will be $8,000.

#2: Interest Rates Increasing

I believe the era of low interest rates will be ending and we are moving to a more “reasonable” interest rate ranges. This increase in interest rates have sent some shockwaves to the property market. On the flipside, this means that the interest in your bank account will finally increase.

Frequent readers of my blog will know that I share about the power of the R.E.V. strategy to increase cashflow from your bank accounts. However, as the rules of the banks keep changing, I have refocus my attention on getting more consistent returns elsewhere.

I check if there are changes among the bank multiplier accounts and will only change if the changes are drastic. Best High Interest Saving Account Singapore 2022 will give you a glimpse of what’s available now. I’m willing to bet that there might have already been some new changes already.

In any case, keep things simple and consistent.

#3: Property Rules

Higher interest rates will affect the property market and the local government have already lay down new rules for this. 3 Effects of Property Cooling Measure Singapore.

Loans will have a higher stress test. This will mean that you will get a lower loan amount if you plan to buy a house. If you are purchasing HDB, the loan to value have dropped from 85% to 80%, this mean that you have to increase cash payment by 5%

The one that got the most concern is of the 15 months waiting period for switching from private to HDB. While this has spooked the market. I believe there will be an increase in smaller condo units as a result.

#4: We Are Still in a Bear Market

I will share some statistic to give equity investors a glimpse of hope.

The average length of a bear market for the S&P500 is 289 days. The market begin it’s slide on 3rd January 2022.  This will mean that the bear market will end (on average) on 19 October 2022.

While we have obviously passed that date, this mean that we may be due for a recovery soon. (Disclaimer: this isn’t financial advice and just statistics).

I have written a guide on Bear Market Survival Tips and The Pros And Cons Of Dollar Cost Averaging. This guide has been written as I receive many enquiry on what they should do during this bear market. Please take some time to read them.

 

Final Thoughts

The financial planning industry will evolve every year. While the rules of the game might change, it is vital to keep moving towards your end goal.

You are not alone in this. I suggest that you can consider to work with a trusted financial advisor that evolves with the economy. Otherwise, take time to read and understand the changes so that you can move towards your intended goal.

I wish you all the best. Take care!

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

 

Save on Cable Bills by Streaming Your Favorite Channels

Save on Cable Bills by Streaming Your Favorite Channels Singapore

by with No Comment Money ManagementPersonal Finance

Are you burnt out or bored with Singtel or StarHub?

Do you wish you had a broader variety of things to watch without paying for extraneous channels?

Are you frustrated with MediaCorp TV?

Do you miss the days of variety from satellite dish entertainment?

If you answered ‘yes’ to any of these questions, you will be well-rewarded for reading the rest of this article. Provided below is a guide to getting digital entertainment for discerning Singaporeans who want to cut the cable (Read More: Purge Your Money Burdens) but still access media on their own schedule and at more negotiable prices.

Save on Cable Bills by Streaming Your Favorite Channels
Save on Cable Bills by Streaming Your Favorite Channels

Determine the Right Video Streaming Service and Plan

Because there are many streaming services out there, you need to understand what each platform offers. While it is best to do your own research, we can assist by providing an overview of the major providers, their pricing and even highlighting which ones have free trials.

Netflix

While the platform that allowed streaming to rise to its current prominence has recently taken several hits, Netflix is still a solid streaming service for original programming. It also features a decent catalog of television and films that is constantly being subjected to updates.

Pricing Structure: Netflix offers three subscription tiers.

  • Basic (S$12.98/month) – This option has a single-screen limit and only offers standard-definition content. Downloads are limited to one device.
  • Standard (S$17.48/month) – This option has a two-screen limit and offers Full HD content. Downloads are limited to two devices.
  • Premium (S$21.98/month) – This option has a four-screen limit and adds Ultra HD to content options. Downloads are limited to four devices.

Free trial – 30 days

Disney+

If you love anything Disney-related or its many subsidiary properties, then this is the streaming service for you.

Pricing Structure: Disney+ subscriptions come in a few plans.

  • Monthly – S$11.98/month
  • Yearly – S$119.98 upfront
  • StarHub Bundles – StarHub features several bundles that include Disney+.

Free trial – Not available

Amazon Prime Video

Prime Video (check review) is full of original series and films, as well as a respectable library of third-party content.

Pricing Structure: Anyone interested in a Prime Video subscription can pay S$2.99 a month. It includes access to Amazon Prime.

Free trial – 30 days

Apple TV+

If you are a fan of all things Apple or curious about shows like “Ted Lasso”, you might consider giving this platform a shot.

Pricing Structure: S$6.98/month.

Free trials – 7 days

HBO GO

HBO GO is an exhaustive compilation of Hollywood films, blockbusters and original series from the various brands of HBO and Cinemax.

Pricing Structure: Anyone interested in an HBO GO subscription without using another service provider can pay either S$13.98/month or S$29.98/three months.

Hayu

Over 200 reality programs are available the same day that Americans see them.

Pricing Structure: S$4.99/month.

Free trial – 7 days

iQiyi

If you love your pan-Asian media, this streaming service is for you. They even offer several original programs.

Pricing Structure: Anyone interested in subscribing to iQiyi has two options:

  • Standard – S$8.98/month with a two-screen limit.
  • Premium – S$12.98/month with a four-screen limit.

Viu

Nicknamed ‘Korean Netflix’, this streaming platform is a reliable spot for binge-worthy Korean dramas.

Pricing Structure: Anyone interested in subscribing to Viu has three options with special pricing available for student subscribers:

  • Basic – This is the ad-supported free tier but comes with only limited access to standard definition programming. Users can access content 72 hours after it becomes available to Premium users and may download one show at a time.
  • Premium – Users have unlimited, ad-free access to Viu’s catalog and are free to download as often as they wish. New shows become available 8 hours after the telecast. While this tier is available for S$7.98/month, that cost is reduced for lengthier subscriptions: 90 days, 180 days or a full year (S$7.58/month, S$7.19/month and S$6.39/month, respectively).
  • Premium (Student) – Students who present a school ID can receive a discounted subscription to Viu Premium that only costs S$3.98 per month.

Free trial – 7 days.

Buy a Video Streaming Device

Once you know which streaming services you like, your next step is acquiring a device to stream those services. In the simplest of terms, this is like a set-top box that connects directly to a TV and allows you to watch your favorite films and shows through that TV; think of it as a replacement for a cable box. While there are dozens of brands on the market, the major names include Amazon Fire TV, Apple TV, Chromecast and Roku.

Final Thoughts

Now that you have a better idea of your options, you now know which services can best suit your tastes in media. You will need a streaming device to enjoy them on a screen bigger than your phone, tablet or monitor (Read More: How To Save On Big Ticket Purchases). You can safely cut that cord and still find plenty of entertainment to consume with friends and family.

(Read more: The Ultimate 4 Quadrants Shopping Guide Especially If You Are 28 and Older)

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

Retirement Calculator Singapore

Retirement Calculator Singapore: How Much You Need To Plan For

by with One Comment Investment AccumulationMoney ManagementPersonal FinanceRetirement

In 2022, I having more conversations with my clients whether they should increase their retirement sums due to inflation. I begin to realize that it is not easy for them to project their future needs when they don’t know the perimeters needed.

Hence, I have build up a quick calculator for them to calculate in less than 1 minute how much they need and how much they have to invest NOW to achieve their retirement goals.

Retirement Calculator Singapore
Retirement Calculator Singapore

The Assumptions

Behind every model requires a few assumption. I will go through the ones that require more thought process.

  • Replacement Ratio

This is the percentage of income to maintain lifestyle. Most studies suggest aiming for a target of between 70 and 85 percent of pre-retirement income. Typically, most of us spends a certain portion of our income to maintain our lifestyle. Some of us will spend more, some of us will spend less. To most of us, our spending habits will stay with us for a long period of time.

For Example: Peter earns $6K monthly and spends $4K every month on household needs etc. This means his replacement ratio is roughly 67%.

  • Inflation Rate

Though this is well defined, it is not easy to determine a meaningful figure especially when inflation has been going up in the last few months. From the graph below, you can see that we have spikes in inflation previously. However, it has been maintained at a certain level for prolong periods of time.

While, MAS does not have an explicit inflation target. The MAS has concluded that, on average, a core inflation rate of just under 2%, which is close to its historical mean.

I would think to err on the side of planning, we can use a inflation rate of 3%.


source: tradingeconomics.com

  • Expected Investment Rate

This is the rate that you want your investment to grow yearly to reach your goals. For this to be effective, it would be easier to attribute it to your risk profile which will then lead you to the appropriate investment instrument you will find suitable.

If you are someone who is risk adverse, you might consider fixed deposits which typically gives around 1% per annum. For Singapore bonds investment, the yield typically is around 2% to 3% depending on the tenure of the bond.

For those that are more adventurous, the SPDR Gold Trust (SGX: O87) annualized 10 Years Performance is 1.29%. Straits Times Index (SGX: ES3) annualized 10 Years Performance is 4.4%. SPDR S&P 500 (SGX: S27) annualized 10 Years Performance is 12.96%. Average yields are a reference point and can be used as a pinch of salt.

Taking a pause here, all forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone. With an additional disclaimer, the above doesn’t represent a buy/sell/hold recommendation.

The Retirement Calculator

 

Final Thoughts

I think planning beyond 2022 will be an interesting discussion as we are in midst of existing developments (Russian-Ukraine, China-Taiwan, Monkeypox, COVID19). However, we should let it stop us to plan consistently for the future.

If realised you have a retirement shortfall, congratulations! It is time to do something about it. There are various instruments available and I will be glad to have an open conversation with you on how to do that with you.

If you feel like something needs to be done, the next place you need to go to is here (to read more) or simply contact me using the information below.

I wish you all the best! Take care.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.