Rules of Thumb for Savers

Some basics for savers - we get asked these all the time so you may find some useful;

Q.  How much cash should I keep by?
A.  3 times your monthly expenditure in an instant access account if you are in a stable job and have been there for some time, double that if you are self employed or worried about job stability.

Q.  How much should I be saving?
A.  Rule of thumb is half your age as a percentage of your monthly income after tax.  So a 40 year old should be saving 20% of his income. 

Q.  How much money do I need to retire?
A.  20 times your annual income retirement.  So if you want 50,000 a year you need a million invested.

I'll post up more as I think of them!

Mark Paine
Meyado
Singapore
www.meyado.com.sg

Long term saving is boring

In my 20 year career as a financial adviser I've come across two types of people when it comes to money management; those who spend what they have, and often more than they have, and those frugal folks who always seem to be able to squirrel something away at the end of each month.

A very typical scenario is the corporate expat - housing, schooling, insurance, business class trips back home, car and more all covered. Fat, low tax salaries should mean these are my wealthiest clients, but more often than not they aren't. Wow, these guys can spend it. I usually highlight to these guys that whilst it is great to have a brilliant photo album at the end of their overseas experience an empty bank account is not so alluring.

My wealthiest clients are without fail those who experience capital evens. The sale of a house (eg in Dubai in 2007 one client realized £2m on the sale of a Palm Island property), or the sale of a business.

Next on the list though are not all big earners, they are frugal spenders and good savers.

Boring some might say, but that tends to be the big spenders. The ones that start to have a problem at 55 when they realize they have no pension, can't afford inflated insurance costs and still won't change their ways.

Perhaps a balance in life is the way forward, live in the moment but keep an eye on the future.

Mark Paine
Meyado
www. Meyado.com.sg

Life Insurance and Critical Illness Insurance

For the uninitiated insurance can be a complete minefield.  The vast majority of our clients work for multi nationals and have 'In Service' benefits which are usually in the range of three times annual salary paid out on death.  They usually feel that they are adequately covered, but this could be a mistake.

There are a number of problems with this cover however.  Very often there are exclusions which could be as extreme as cancelling insurance in the instance of a long term illness.  Should you leave your employer your insurance will cease, either immediately on departure, or shortly after. 

In an ideal world we would all take out insurance at a young age and pay very low premiums, and eventually receive no benefit at all from the insurance - i.e. we live a long life!  In reality the average age of client we talk to about increased insurance cover is 42.  At this age insurance is still affordable, but will be a more significant amount to pay. 

It is often advisable to add in 'riders' to provide accelerated benefits.  These are conditions whereby on the occurrence of an event - such as diagnosis of a critical illness, or an accident or disease leading to disability - will result in a lump sum payment.

This payment could make a huge difference to your quality of life at a very difficult time.  Ordinarily these payments are an acceleration of your life benefits and will reduce the eventual payment your estate will receive.

This is of course by no means an exhaustive explanation of life insurance, but will hopefully make you aware enough of critical illness cover to speak with your adviser.

For more information contact me

Mark Paine
Meyado
Singapore
www.meyado.com.sg

A Meeting of Minds

Yesterday I attended an all day conference for owners and managers of private banks and wealth management firms from Singapore and Hong Kong.

The event had three main focuses; presentations, work groups and networking.

The FAIR principles were a peeve land topic of discussion and representatives from the Financial Planning Association were present and available to discuss potential implications.

As with most conferences of this type hot agenda topics were fair treatment of clients, sustainable business models and the future of the industry.

There is a follow up breakfast in January I am very much looking forward to.

Mark Paine
Meyado
Singapore
Www. Meyado.com.sg

Asset Allocations for Zurich International Life

The new asset allocation recommendation for Zurich savings plans will be available at the end of this week  - these will be relevant for Q4

If you do not receive this directly you will be able to retrieve this from our Member web site www.meyado.com , or by contacting admin@meyado.com

Mark Paine
Meyado

Positions Vacant at Meyado Singapore

Current positions available at Meyado Private Wealth Management Singapore Pte Limited;

Senior Adviser

Advisers with 3 years plus regulated experience
Salary available dependent upon AUM
Purchase of existing book of business also available

Adviser
Graduate
Up to 3 years experience as a financial adviser / banker / accountant / tax adviser
Advance on commissions available plus set up allowance

Business Development Manager
Assistant to a senior adviser
Assist in preparation of recommendations, marketing and appointing new clients
Salary available dependent upon experience
Must be a graduate or Singapore citizen or PR

Benefits for all positions include training, marketing support, subsidised health insurance and full admin support.

For full details of all positions please visit our website;

www.meyado.com.sg
or contact us with your resume by email at singapore@meyado.com.sg