Covid-19 and your Finances

Managing your finances during a crisis in Singapore comes down to a few basics that hold up regardless of what’s making headlines.

The PM speech yesterday is a sobering reminder that the Covid-19 threat, now being a global pandemic, is far from over and we can expect to see a spike in infections and perhaps deaths. While our government can put in all the necessary measures to contain and eradicate the virus, it also boils down to the social responsibility of the individual to exercise personal hygiene and self-isolation if feeling unwell. 

But having said that, life goes on, just with some added precautions.

On the Financial front, what actions should you take in light of the prevailing situation? Well, here are my suggestions:-

1. REFINANCE YOUR HOUSING LOAN
– to address a global slowdown, countries will probably inject liquidity into the system and that’ll drive interest rates lower
– Hence, there’s no better time to seek lower housing loan rates
– we deal with mortgage brokers in this area and they’ll help you secure the most appropriate loan packages for you, hassle-free 

– Do get in touch if you’re keen to explore 

2. INSURANCE PROTECTION
– this is pretty obvious. If you have been procrastinating to insure you and your family, there’s no better time than now to take action. If a pandemic happens in S’pore, insurers may hike premiums and/or tighten their underwriting, so lock-in your relatively low premiums now and secure your coverage in the interest of your family

 – Do get in touch if you’re keen to explore 

3. REDUCE DISCRETIONARY EXPENSES AND BUILD CASH RESERVES
– this is especially true for self-employed or entrepreneurs whose earnings can be affected by the economic slowdown 

4. CONTINUE TO SAVE & INVEST FOR RETIREMENT

– Deploy surplus cash reserves and monthly surplus cashflow to generate higher yield in order to achieve your accumulation goals, whether it’s for wedding, child’s tertiary education or retirement. 

– I’ve been a strong advocate for endowment savings type plans as most clients will benefit better with a hassle-free approach to generate a respectable return of about 4%p.a with capital guaranteed, for their wealth accumulation.

– On investments, you can benefit from our company structured portfolios with regular review and rebalancing provided. To better ride through market volatility, it takes a long term horizon, nerves of steel and a dollar-cost averaging strategy to achieve your accumulation goals.  

– Do get in touch to find out more and to review your investment portfolio  

5. BOTTOM FISH THE MARKET

In the above screenshot, you will observe that major markets have dropped 25-35% within just 1 month. Taking reference from the U.S market, it has wiped out the entire 2019 gain in just 1 month!

 So are there still opportunities to buy? Certainly!

Invest now? To be advised…

Do email me to register your interest so that when the opportunity presents itself, you’ll be among the first to get notified

A. Company managed portfolios 

Minimum investment – S$10k (recommend at least $50k)

Recommended monthly investment – at least S$1k/mth 

B. Tactical Portfolio strategy (only for experienced and responsive investors)
Minimum investment – S$200k Cash only

This is not a time to be passive but rather to take proactive action to secure your long term interest. Look forward to hear from you. 

Meantime stay safe and positive always….

If you know any colleagues, friends, parents or relatives who would like to benefit from the above, your kind introduction will be appreciated and feel free to forward this article.

Get in touch at gilbert@avallis.com