SeaPRwire

540,000 CPF members to pay less for home protection insurance

aseanpr
2 minutes

SINGAPORE - More than 540,000 Housing Board (HDB) flat owners will, on average, pay 10 per cent less in premiums for a Central Provident Fund (CPF) home insurance scheme from July 1. The CPF Board on Thursday (June 24) said it is reducing premiums for the Home Protection Scheme (HPS) "due to better-than-expected investment returns and claims experience". The scheme protects CPF members and their families from the risk of losing their HDB flats in the event of death, terminal illness, or total permanent disability before their housing loans are paid up. Last year, $83.8 million was paid out in claims to home owners insured under HPS. The last time a reduction in premiums for the scheme was made was in 2018. Periodic reviews are conducted by the CPF Board to ensure that HPS premiums remain affordable, while maintaining the long-term sustainability of the HPS fund, said the CPF. The new rates will kick in for members who join the scheme on or after July 1, while existing members will pay the lower prices when they pay their annual premium or adjust their coverage on or after July 1. For example, a male member aged 36 with a $200,000 housing loan from HDB for 30 years will pay a reduce...

SeaPRwire

4 tips to get your finances right

elean
6 minutes

(NYTIMES) - The pandemic swept many people into uncharted financial territory. Whether your bank account bulged or dwindled during the long months of lockdown, now is the time to take stock of your financial situation and decide your next steps. "We've been getting a lot of clients who say, 'I really need to think about this now,' " said Ms Pam Capalad, a certified financial planner based in New York City. "Either the pandemic was a wake-up call and it really turned their finances upside down, or people got through it okay and now they're saying, 'I need to figure out what is next for me.' " Depending on your financial situation and priorities, what you do now will vary. But there are several ways to put yourself in a better position financially for whatever comes next. Here's how to get started. First, don't rush it The trauma of the past year has been extraordinary, and for many people, their initial impulse may be to plunge in and make travel plans and purchases to make up for lost time. "People feel like life was stolen from them, and an increase in spending often comes along with that," said Mr Brian O'Leary, a private wealth adviser. But if there was ever a time to re-evaluat...

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More channelling more cash into CPF amid Covid-19 uncertainties

elean
4 minutes

SINGAPORE - More people sought to tap the benefits of the Central Provident Fund (CPF) last year to stretch their savings amid the pandemic's uncertainties. The number of members who topped up their own or their loved ones' CPF retirement savings was nearly 40 per cent higher last year, compared with 2019. At the same time, people who made voluntary housing refunds nearly tripled over the same period, according to the latest CPF Board figures. Also slightly up is the proportion of members who died last year and had specified a recipient for their CPF savings. It is no surprise that more people are channelling more cash into CPF accounts, observers told The Straits Times, since they are now realising the benefits of using the scheme to save. Last year, some 141,130 CPF members made top-ups under the Retirement Sum Topping-Up Scheme, contributing a total of $2.97 billion. In 2019, only 103,800 members grew their CPF funds under the scheme. Total top-ups in 2019 were also lower at $2.14 billion. Meanwhile, about 14,980 members made voluntary housing refunds last year, putting in a total of $1.48 billion. This involves members who had used CPF savings to pay for their property choosing...

SeaPRwire

Inflation tail risks worth hedging against

elean
1 minute

SINGAPORE - It is said that nothing is certain in life except death and taxes. For all of us, an invisible tax on our savings that is everywhere and always present is the rate of inflation in our economy. This is because as the prices of goods and services rise, the purchasing power of our savings falls. Please subscribe or log in to continue reading the full article. Get unlimited access to all stories at $0.99/month Latest headlines and exclusive stories In-depth analyses and award-winning multimedia content Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months* Subscribe now *Terms and conditions apply.

SeaPRwire

Don’t invest your emergency fund

elean
1 minute

A couple of years ago, the high-yield savings market was hot - at least to millennials. Internet-only banks entered the market and drove up annual percentage yields to above 2 per cent at their peak. This could help you grow your money far faster than the typical 0.01 per cent of most banks' savings products. Please subscribe or log in to continue reading the full article. Get unlimited access to all stories at $0.99/month Latest headlines and exclusive stories In-depth analyses and award-winning multimedia content Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months* Subscribe now *Terms and conditions apply.

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Covid-19 situation pushed fresh grad onto entrepreneurship path

elean
2 minutes

A one-year stint in Stockholm where he worked for medical technology firm Meloq and was exposed to budding entrepreneurs inspired Mr Yap Jun Yi to strike out on his own - a decision which he says was made easier with the coronavirus pandemic. The 25-year-old is one of five co-founders of personal finance company Taby Technologies, and the only one working full-time at the start-up. His co-founders, aged 24 to 29, are either studying or have other full-time jobs. The Covid-19 situation gave him "more assurance" to start his own business, said Mr Yap. "I'm going to give myself a year, till probably the end of next year, to see where this business is going to take me, and whether I want to continue with it or not," he said. "I think the current situation gave me the assurance to pursue my entrepreneurship passion." Many of his friends are on traineeships, and most of his peers would prefer the stability and security of a full-time job, instead of making it on their own fresh out of university. "But when I asked myself whether I would regret not pursuing this opportunity five years from now, I think I would," he said. The start-up received a capital grant of $30,000 from Startup SG Fou...

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Why some millennials can’t manage their money

elean
5 minutes

BLOOMBERG - In 2008, Jackie and I started our Wall Street investment banking jobs. Fresh out of college, we were now among the top earners in our peer group. Twenty hours plus daily, most days of the week, working hard on pitchbooks, models and deals. We were both millennials, defined as those born between 1981 and 1996. There were a couple of big differences. One was that she thought about savings and investing her earnings. I was more basic, just thinking about spending less than I made. The day Jackie set up her Charles Schwab account, I barely understood what she was doing. She had fliers and talked about Pacific Investment Management, or Pimco, bond funds. I was bemused. While I could go through companies' financial statements and run accretion-dilution and discounted cash flow models, I could just about keep track of my personal income. I was basically financially illiterate when it came to my own accounts. Some of this comes down to cultural investing priorities. In Asia, property and gold - hard assets - have always taken precedence over speculative stocks and bonds. Capital markets haven't been deep enough for previous generations to participate with confidence. Nor were r...