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Yuen May Chan

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Stand a chance to win prizes by reading the article below and answering the question within. T&Cs apply.

Education

Investment Myths Debunked, here’s the Truth About Investments

A recent survey found that a startling majority of its respondents were found to be financially unprepared for retirement. And since a Singaporean over the age of 65 would need at least $1,379 a month to sustain a basic standard of living, these findings are concerning for many (Straits Times (May 2019)4.

While most Singaporeans were aware of the basics and practice saving on average 26% of their salary and at least 82% had adequate insurance coverage, all respondents didn’t do as well with investments. nearly one-third of Singaporeans do not currently invest, and view investing as a form of gambling (Straits Times (July 2019)5. Unfortunately, there are a lot of misconceptions when it comes to investing. Here are a few of the most common, and the truth behind them.

You Need a Lot of Money to Invest (Marquit, Miranda (May 2019)3

The most common misconception is that you must have a significant amount of money to begin investing – and that’s absolutely not the case! Many apps and programs have recently rolled out which allow you to start investing with small amounts of money – sometimes it’s pocket change! It’s worth considering a smaller amount during your initial investments and put more in over time as you better understand investing in general.

Investments are Too Risky (Loudenback, Tanza (May 2020)2

While it’s true that investing can be a risky option, there are ways to reduce your overall risk and produce returns. You have control over the fees you pay, the amount of diversification you take on, and you can be more successful in your strategy when you align what you’re willing to risk with what your overall goal is for that investment.

The More You Study the Market, the Better Your Chances (Davidson, Liz (December 2010)1

Yes, understanding what the market is doing at any given time is important for anyone who invests, it’s far more important to study yourself and the companies you’re choosing to invest in rather than just focusing on the overall market trends. Develop a personal investment strategy and study how you make decisions to plan a more informed approach.

Investments Take too Much Time (Marquit, Miranda (May 2019)3

Sure, when you first start investing, you’ll allocate more time to researching and educating yourself about the subject, but on the whole, investing doesn’t take a massive amount of time. Plus, advisors can help you to build an investment portfolio based on long-term goals and how comfortable you are with risks. You will start to see things take shape in no time!

Uncovering the truth about investments is the first step in preparing for future retirement. By leveraging a smart investment plan with the help of an expert, you can begin to let your money work for you. Combine your investments with a smart saving and budgeting plan, and you will be prepared for the future no matter what it might entail.

This article is a part of Answer & Advance, our 8-week contest series where you can win awesome prizes reading the article above and answering a simple question. Answer the question correctly and stand a chance to win from this week’s pool of prizes and join in others to unlock the next tier of goodies! Want to increase your chances of winning? Read more articles and submit your answer to the questions of the participating articles. Sign up to my newsletter! Find out more about the contest here.

Learn more about the importance of understanding Critical Illness, Savings, Investments and Financial Planning with me. Participate, share and unlock up to a total worth of S$20,000 e-vouchers in the 4 different tiers along the way! T&Cs apply. Find out more here.

Week 8

How much would a Singaporean over the age of 65 need to sustain a basic standard of living per month?

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Alternatively, you may contact us at yuenmay.chan@manulife.com.sg.

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The correct answer is

$1,379

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Content Sources
1 - Davidson, Liz (December 2010), The 5 Biggest Investment Myths, retrieved from Forbes
https://www.forbes.com/sites/financialfinesse/2010/12/03/the-5-biggest-investment-myths/#3df7debf673a
2 - Loudenback, Tanza (May 2020), 5 lies to stop telling yourself about investing, retrieved from Business Insider
https://www.businessinsider.com/personal-finance/investing-beginners-myths-keep-you-from-building-wealth-2020-5
3 - Marquit, Miranda (May 2019), Stop Believing These 7 Investing Myths, retrieved from U.S. News
https://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/slideshows/stop-believing-these-7-investing-myths
4 - Sin, Yuen (May 2019), Single elderly Singaporeans need $1,379 a month to meet basic living standard: Study, retrieved from Straits Times
https://www.straitstimes.com/singapore/study-finds-1379-a-month-needed-to-meet-basic-living-standard-for-single-elderly
5 - Straits Times (July 2019), 1 in 3 Singaporeans does not invest, most financially unprepared for retirement, retrieved from Straits Times
https://www.straitstimes.com/business/banking/1-in-3-singaporeans-do-not-invest-most-financially-unprepared-for-retirement-ocbc