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

Euro / Singapore Dollar Exchange Rate

From 2008 to 2010 we endured a double whammy in investment performance because of poor perfroming markets as well as a rapidly declining USD / GBP base against SGD.  There were few SGD hedged investments at that time because for so long the rates had been heading the opposite direction so nobody wanted to hold SGD.

In 2012 things have stabalised more with USD / GBP against SGD - that is to say both currencies are relatively weak, especially sterling and many investors are now taking a view that they may increase their long exposure to these currencies.

Where we are left floundering is with the Euro.  Many of our investors have a euro base, that they will return to.  Relatively in SGD their investments are looking worse than they might because of the currency decline, falling almost 14% in the last 12 months, so even the best euro investments will have lost money in that time period.

We have researched and established a good portfolio hedge to counter this, and achieve stability in return, and also keeping a Euro base for those clients looking to repatriate in the long term.  Of course every individual will see things differently but we are able to tailor a solution for our clients based on bespoke needs, no matter what size the portfolio.

Mark Paine
Meyado
Singapore
www.meyado.com.sg

Financial Advice in Singapore

Unbelievably there are only 16 weeks now until year end.  Traditionally this is a busy time for Financial Advisers, and 2012 looks like it is going to be even more active than ever.

Meyado undergoes reviews of clients portfolios on a regular basis but clients tend to look at their investments on a quarterly or bi annual basis - with the summer break over many clients are now taking an interest in their positions.

As we have been very much out of equity markets since the end of Q1 lots of investors are asking is now a time to get back in.  Taken on balance with your risk profile and time horizons, that could very well be the case, but in specific markets and even more importantly sectors of those markets.

Mark Paine
Meyado
Singapore
www.meyado.com.sg