Wealth Accumulation

What is Wealth Accumulation ? What do you need to do now to achieve you future financial security ?

You have been working hard for money and you should make sure your money works hard for you as well. We have single premium savings plans, and regular premium savings plans designed to give you potentially higher returns upon maturity.  

You may have just started out in your career. You have great ambitions and want to be independent. You dream of owning a house and a car. Let us help you to transform your dreams into a reality. 

Rules of Thumb for Investing    

1. Diversify your investments      

Consider spreading your investments among asset classes (stocks, bonds and cash equivalents) and within each class (different products). Doing so can spread risk over a variety of investments and may minimise the impact of unpredictable market downturns. In other words, don’t “put all your eggs into one basket”!  

2. Asset allocation is key      

Experts say that deciding on asset allocation (how much money to invest among the asset classes of stocks, bonds and cash equivalents) is generally more important than deciding which products to buy. To decide on a suitable asset allocation, you’d need to consider your investment goals, time horizon and risk tolerance.

And always remember, there’s no such thing as a “sure thing” or a “free lunch” in investing. You’d always have to balance the expected return with the risk of making a loss.  

3. Review your investments regularly      

Yes, investing your CPF is for the long-term but it’s also important to keep track of how your investments are faring. Review your portfolio at least once a year, and whenever your personal or financial circumstances change. You may have to rebalance your portfolio to keep pace with your long-term financial plans and your life stage (eg. when you marry, when you have kids, etc).  

4. If you can, invest early      

When investing, it’s generally better to invest earlier than later, though this depends largely on your financial goals and situation (eg. you may not want to invest your CPF because you wish to buy a property).  

A hypothetical example: $100,000 invested now and earning a 10% return will grow to $1.4m in 28 years. If we only invest 10 years later, $260,000 is needed to achieve the same result. This is the effect of “compounding”  

5. Know your real rate of return      

When you invest, you should have an idea of the expected level of returns (you should be thinking "net" returns after expenses, and not look at just gross returns). And remember: Always compare the net investment returns against the guaranteed risk-free interest enjoyed by your savings in your CPF accounts - if the expected returns are lower, you should think carefully before investing your CPF.  

You should also be aware of the effect of inflation. If you earn 8% on an investment, but inflation is 2%, then your real rate of return is actually 6%.  

6. Use time, not timing      

Even experts cannot always predict the market consistently. Yet some investors think they can, by making decisions based on rumours and gut feeling. They tend to buy high and sell low because they "time" their buy-and-sell decisions.  

Success in market investing requires patience and stamina. Most of the market’s gains occur in a few strong, but unpredictable, short-term periods. To maximize returns, you’d have to be invested during those periods.