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Clients regularly wish to get ahead and put a plan into place to be in a better position, financially, when they return home. Many people have started families in Singapore and it is a desired outcome to set them up for future success.
Building foundations
We help ensure clients are protected from unexpected situations to help lay a solid foundation which allows for better wealth accumulation. For example:
- Establish a cash buffer: Generally, three to six months of household expenses to meet any unexpected expenses. This is so important today as leaving Singapore is not a cheap exercise
- Health insurance: A comprehensive international medical plan to cover any accidents, but also if you repatriate, you can have continued cover with no new waiting periods, exclusions, or loadings
- Financial education: The old proverb, ‘Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime’ is even more true for children. Learning about budgeting is a key life skill that you and your children will benefit from in the years to come
- Family protection: Protect your family’s biggest asset – YOU. Your income is the biggest family asset and if something happens it could lead to financial hardship
Wealth accumulation
Once you have a solid foundation, it’s time to put your money to good use. It’s important to match saving with your key financial objectives. These can cover a variety of goals, big or small, but it’s important that the savings vehicles you use are flexible, and internationally portable. Consider the following:
- Net of tax performance: Tax can impact the overall performance of an investment. In Singapore, there is no Capital Gains Tax on investment, however if you were to move back home, what would the tax be in that jurisdiction? Structure your investments in ways that are tax efficient when back home, too
- Reducing household debt: Paying off a family home will leave you with financial freedom, and a sense of gratification. Start with highest interest first (credit cards)
- Compound interest: As Einstein said: “Compound interest is the eighth wonder of the world”. The important thing is to start saving and investing as early as possible. The more you can save and the more time these funds are invested, the more opportunity you have to benefit from compounding returns
- Impact of fees on performance: It’s obvious, but ensure you understand the total costs of investments as these do impact net performance
Succession planning
Family trusts, legal guardians and multi-jurisdictional wills can be morbid topics. However, it’s important that your assets are passed on in accordance to your wishes and your children are well looked after through the correct distribution of your wealth.
These are only a few key issues when it comes to family planning. Please contact us for more information or to review your arrangements.
This article is purely for informational purposes. It should not be relied upon as financial advice and does not constitute a recommendation, an offer or solicitation.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested.
Advice relating to a will, guardians and/or trust involve(s) the referral to a service that is separate and distinct to those offered by St. James’s Place.
Contact Jamie on jamie.burgmann@sjpp.asia or +65 9167 9634 to arrange a consultation and discuss your planning needs for your family’s financial future.
The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives. Members of the St. James’s Place Partnership in Singapore represent St. James’s Place (Singapore) Private Limited, which is part of the St. James’s Place Wealth Management Group, and it is regulated by the Monetary Authority of Singapore and is a member of the Investment Management Association of Singapore and Association of Financial Advisers (Singapore). Company Registration No. 200406398R. Capital Markets Services Licence No. CMS100851. St. James’s Place Wealth Management Group Ltd Registered Office: St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom. Registered in England Number 02627518.
