Wealth Management

Tailored solutions for Mass Affluent and High Net Worth individuals
 
In Singapore, as long as your annual income exceeds S$120,000 or your net worth is above S$2.5 million and you are within reasonable health conditions, you qualify for High Net Worth Insurance.
 
A High Net Worth Insurance is a special type of insurance which is designed exclusively to meet the sophisticated needs of High Net Worth Individuals. Given the significant potential of their investments, wealth management is crucial for high income and affluent individuals.
 
A properly designed strategy will take into account your overall goals, and will include the necessary risk management tools such as insurance and finance strategies to safeguard family wealth and to ensure the effective transfer of wealth to future generations.		 Affluent Asia

  • According to the Inland Revenue Authority of Singapore’s latest annual report 2008/09, there were 3,838 people who earned more than $1 million in 2007.
  • According to the most recent World Wealth Report by Capgemini and Merrill Lynch, there were an estimated 2.4 million people in Asia-Pacific with more than US$1 million in cash and other liquid assets at the end of 2008.

What life insurers can do for you

There are life insurers that specifically address the demands of high net worth individuals seeking solutions for wealth management. They have the expertise to provide advice in areas such as asset preservation, retirement, tax and estate planning.

They are able to provide tailored solutions to meet your varying needs and financial objectives no matter where you may be located or relocated at different times of your life. With networks covering key global financial markets, they can design a portfolio of different investment types and asset classes found in any part of the world. Their offerings include off-shore savings products and a range of investment solutions.

Estate Planning

In the unfortunate event of your death, the burden of paying off estate duties will fall on the shoulders of your heir/s. Estate duties depend on several factors, including your country of residence, the location of your assets and the size of your estate. In Asia, many countries impose high estate duties. This gives rise to an immense need for liquidity upon the death of wealthy individuals.

Heirs who do not have money to pay estate duties are often forced to sell assets they have inherited, including family homes. As they are usually required to pay estate duties within a specified period following the death of the benefactor, heirs sometimes have to accept fire sales prices or worse, are unable to find a buyer.

Others have to apply for bank loans to cover the estate duties until they turn liquid assets into cash. In the meantime, they are responsible for interest on their bank loans.

The proceeds from your High Net Worth Insurance plans can help protect your family from having to take such desperate measures to pay for estate duties.

Key factors you should consider before purchasing an investment plan

  • Risk Profile

    • How much fluctuation and risk can you tolerate in your investments should the market conditions change?
     
    You will need to know how much funds you have to invest after setting aside funds for your daily and medical needs and for any outstanding financial commitments you have.
     
    Next, ask yourself how much you are prepared to lose. The less spare cash you have, the less risk you should take in investing.

Common Mistakes Made by Investors
  1. Blindly betting on ‘Hot Favorites’
  2. Not diversifying: investing all your money in a single asset.
  3. Falling prey to aggressive sales tactics / sweet-talk
  4. Haphazard investing: not setting up an overall game plan
  5. Not being aware of fees and charges.
  • Investment Objective

    • Ask yourself what you are investing for. Are you investing to earn a regular income? Are you investing to preserve your capital sum? Or are you investing to grow your capital?

  • Time Horizon

    • Your investment time horizon is the number of years that you have available to invest to achieve your financial goals. For example, if you are a 35-year old planning to retire at 60 years of age with a goal of saving for your retirement, your investment time horizon is (60 - 35 =) 25 years.
     
    The more time you have, the more flexibility you have. Your time horizon would influence how much your savings can grow, what assets you can invest in and how much risks you can take. If you need your money within a short timeframe, you cannot take chances with your capital. You should invest in assets that do not put your capital at risk during this period. If your time horizon is longer, you can consider investing in more risky assets that offer potentially higher returns, such as stocks. This is because you have time to recover from the periodic losses sustained by investing in the stock market and to benefit from any possible long-term upward trend.
     
    The longer your time horizon, the more compounding works in your favour.