The purpose of estate planning is to ensure the clients’ dependents receive the intended monies to assist them in their lively hood until they are financial independent. Second purpose is to ensure liabilities are paid on the demise of a borrower. Third purpose is to leave behind a legacy to the intended beneficiaries and to ensure unintended beneficiaries do not receive it. Finally but most … [Read more...]

Singapore’s tax law is quite straightforward. However, high income earner may not realize that there are attractive tax saving tools to reduce their tax liabilities. These tax saving tools are not automatic but has to be planned ahead. Some of these tools are Supplementary Retirement Scheme (SRS), CPF Minmum Sum Top-up, CPF Voluntary Contribution scheme and donation to Institutions of Public … [Read more...]

Both education planning (short time) and retirement planning (long-term) require some elements of investment planning. However, we treat the clients’ entire wealth (excluding personal use assets and residential home) as a single portfolio. We do not departmentalize into separate and isolated portfolios like “Retirement portfolio” or “Education planning” portfolio. Everything which the client … [Read more...]

If the client has children, this is the section which we plan for the amount required to save for the children’s tertiary education. The education planning  method we use takes into account of time value for money by establishing the lump sum required now. If the lump sum required now is not available, we will recommend a monthly contribution to meet that goal. … [Read more...]

Under this section, a survivor needs analysis is performed to establish the required amount needed in the client’s estate to ensure his dependents are sufficiently provided for.  The amount insurance required for death is established after taking into account of the client’s existing insurance, net asset but excluding personal use assets and residential home. In addition to the above, we will … [Read more...]

The purpose of credit management is to identify affordability of taking up a loan (such as a mortgage) and the amount of downpayment that can be afforded from balance sheet point of view. Moreover, if the clients have numerous debts, we will need to convert all interest rates to effective interest rates and rank them from the highest to the lowest. This is to assist the client in paying off his … [Read more...]

The purpose of establishing the client’s cash flow and balance sheet is to identify sources of income and expenditure. Moreover, minimum liquidity is required to meet unexpected emergency cash outflow. The balance sheet will tell us whether is there sufficient liquidity. If there is a large positive cash flow but the balance sheet do not reflect the high saving rate, we will have to identify where … [Read more...]