If you’ve missed out on our recent online panel discussion on May 13th on “Maximising Your Money During Covid-19” – don’t fret, we’ve got you covered.
Attended by over 100 participants, the webinar addressed key money issues to guide you through this undesirable time. Some of the key talking points included?
- Budgeting & Financial Planning During A Crisis
- Investing During A Down Market
- Finding The Pot of Gold In The Midst of Chaos
- Maintaining A Semblance of Your Lifestyle In Tough Times
- Looking Ahead Beyond Covid-19: What’s Next?
Moderated by our very own Head Honcho, Qiuyan Tian, she was joined by a panel of financial experts:
- Charles Wong, CEO, Prive Technologies
- Jay See, Alliance and Partnership Manager, OFX
- Kelvin Goh, Head of Wealth Advisory Team, OCBC
- Matthew Chew, Executive Director, Advisors Alliance Group, AIAFA
The discussion unraveled financial concerns, lifestyle changes, trends, investment opportunities, managing finances during a recession, and how to prepare ourselves financially post Covid-19.
Key Takeaway 1: Build Up Cash Reserve
The Covid-19 situation clearly showed that all planning and emergency advice that financial advisors give is valid. It is important to be able to take care of day-to-day expenses and build up the cash reserves for these expenses before thinking of growing wealth and making new investments.
Kelvin Goh urged the need to have “cash reserves at the back of your mind or in cash balances as it is going to be helpful in terms of certainty if something happens”.
Take the 50/30/20 method as a rule of thumb – 50% of our income should be dedicated to necessities, 30% to luxuries, and 20% for financial goals.
The biggest concern right now is that people are forced to take leave, unpaid leave and this results in a “range of crunches” according to Matthew Chew.
Since the 50% cannot be touched, compromise with the 20% for financial goals that are needed to be made with a pay cut.
Key Takeaway 2: Talk To Your Advisors
Charles Wong expressed: “This pandemic is quite extraordinary because you have something here that not only impacts your wealth but health”.
“A sudden loss of wealth causes stress – if this stress increases, it decreases longevity. Talk to your advisors about your situation. Start conversations,” he continued.
"Be your own doctor, the best prescription is to take action, take control of your finances”.
- Charles Wong, CEO, Prive Technologies
Key Takeaway 3: Stay Informed
“Covid has brought us into pretty much a shock”, said Jay See. It has affected us on an economic and social level.
However, Jay See advised clients to mitigate risks by understanding the type of risks they face. Another way to be more prepared is to be informed.
The more you know, the better you are to be able to navigate these choppy waters.
On the topic of new openings, Matthew Chew said: “finding opportunities in this pandemic is about perspective”.
“Ultimately, the perspective is to do what we think is a fair value and a good discount”.
On that note, Kelvin Goh added that the “the best time to invest is any day, any time” as long as you have fulfilled basic obligations in terms of protection per se.
