I’m really happy to announce that I have started a new podcast on Spotify! I noticed that talking about money, especially as a woman, is still seen as a bit of a taboo subject. I’m here to empower and impart my knowledge for other expats in Singapore, on how to successfully navigate personal finances.
Click on the link below to listen- I release new episodes every Monday so be sure to tune in!
“People don’t turn down money! It’s what separates us from the animals.” – Jerry
Seinfeld is one of my all-time-favourite TV shows. Most people were into F.R.I.E.N.D.S (not that there’s anything wrong with that), but I much preferred the self-deprecating jokes of Jerry, George (especially George), Elaine, Kramer, and even Newman (hello, Newman). If you’re unaware of the plot of the show, it’s a show about nothing- four friends living in New York, navigating their tragic love and work lives. But what I never understood is how Jerry, an a comedian working the club circuit, and Kramer, who is perpetually unemployed, could afford to live in Manhattan. Like my Sex & The City and Homer Simpson article, let’s explore that here.
“Who goes on vacation without a job? What do you need a break from getting up at eleven?” – Jerry
Let’s start by talking about Jerry. Whist Seinfeld in real life is a mega multi-millionaire, that’s not the case in the show. In the show, Jerry is a lesser known comedian- and in the 90s comedians couldn’t supplement their income as much as they do now with social media posts and advertising. The New York Times did a study and found that the income range for comedians varied from about $30,000 per year, up to $200,000 a year. Jerry would have been on the lower end of this spectrum, earning about $35,000 per year, Market Watch estimates. This is fairly low, considering that Jerry’s apartment, 129 West 81st Street, is very close to Central Park, and is thus a prime location. Right now, a one-bedroom apartment in that area costs $3,000 a month. If we work backwards inflation-wise, back in the 90s that would have been about $1,200 a month. This would mean that, after tax, deductions and rent, Jerry would have $14,271 surplus income annually.
“Jerry, just remember, it’s not a lie if you believe it.” – George
If you watch the show, Jerry’s lifestyle is not that frivolous, unlike Carrie Bradshaw. And we know that Jerry has the ability to save as in one episode he buys his dad a Cadillac, which back then would have been more than $30,000. Speaking of cars, Jerry also had his own car, which, considering he lived in central New York, is a big expense. He could have just used public transport like the Subway, as parking in NY is expensive. Jerry drove a BMW, which would have cost about $40,000 back then. So how did he manage to pay for two cars amounting to about $75,000 in total with only a $1,189.25 monthly budget?!
“I’m disturbed, I’m depressed, I’m inadequate. I’ve got it all!” – George
So, Jerry’s lifestyle is not too difficult to comprehend; most of his money goes on rent and his car and he doesn’t do too much else. He mostly eats at home or at that very cheap café and is generally a good saver. But what does baffle me is Kramer- Cosmo is either unemployed, is in the process of suing someone, or is running one of his various get-rich-quick schemes. He is Jerry’s neighbour, so how could he afford it?!
“Do you have any idea how much time I waste in this apartment?” – Kramer
Kramer has almost had as many random jobs as Homer Simpson; Santa at a department store (which he got fired from for being a communist), a coffee table book author, a guy in police line-ups, the list goes on! All of these seem to not pay that much in terms of salary, and he turns down a lot of pay-outs from his lawsuits in exchange for things like free coffee or a billboard in Times Square. Why would Kramer pass up on so much cash if he has no stable income? This leads me to think…does he come from generational wealth?
“I’m speechless. I’m without speech.” – Elaine
I think the only valid conclusion I can come to is that Kramer’s father or his side of the family has left Kramer a lot of money. His mom works in a restaurant, so it’s probably not coming from her, but we don’t really hear anything about Kramer’s dad. Therefore, the only suitable answer I have is that Kramer’s dad is so rich that Kramer doesn’t care about money and can afford a decent apartment in central Manhattan and doesn’t need a job.
“You got a question? You ask the 8-ball.”- David Puddy
I will continue to review these shows that defy the laws of finance and budgeting, like Seinfeld, Sex and the City, and The Simpsons, but let’s not forget that the writers are very clever in smoothing out these questions by writing in things such as a rental cap, random relative’s inheritance or someone lending them money. But I do think it is funny how most of these shows are in the 90s and in New York, it almost makes me think, “Was it cheap to live in New York back then? Was the 90s just a wealthy time?” I guess until I invent a time machine, I will never know…
Technology has become so integrated in our day to day lives, I believe it has totally changed the way I do business. Not only this, but it has also helped my clients in gaining more knowledge and confidence in what they are investing in. This in turn, has helped me in my business, as I believe that knowledge is key to success. I am a Personal Wealth Manager who specialises in bespoke financial planning for clients in Singapore, blending personal and professional financial advice with all-important tax planning. I wanted to share with everyone that platforms and tools I currently use to help my clients, plus some tools that the everyday investor can use to successfully plan, visualise and research your investments and finances.
FE Analytics
This online platform is a complete game-changer for me. FE Analytics is more worthwhile for financial planners, investment analysts and others in the finance space, because the subscription fee is quite substantial, but it is an invaluable tool. I use it to create portfolios for clients, review and project investments and compare their current portfolios with bespoke ones I have created for them. What I love about this platform is that it will gather global data, from companies like Bloomberg, Yahoo Finance and others of the sort, to compare key investment data points, such as performance vs. benchmark, volatility, risk and even ESG rating. Volatility and risk are an excellent thing to show to clients, as they can clearly see how erratic their investments are in comparison to their performance. In today’s ever-changing world, many of my clients are become more conscientious and circular economy-focused, so being able to show an ESG rating adds value to them.
Even though an average investor may not have access to this platform, it is important to know that every legitimate investment will have a code, which can and should be easily found on websites, such as Yahoo Finance, so that you can clearly see the funds performance, fees and charges, and have full transparency in information of the investment. If you cannot find this number, or there is no information online about your investment, this could be a red flag.
OPAL Fintech
OPAL is one digital business account for your business and financial needs. I really enjoy using this platform because it is a perfect visualisation of a person’s goals, dreams, aspirations and current situation. All I have to do is input a client’s cash flow, assets, debt, and then discuss with them their financial goals. This may be plans for retirement, saving for a property, planning for a child’s education, or even leaving a lumpsum for their family when they pass on. The OPAL algorithm will assess their current situation, factor is real-life data, such as inflation, and project how likely it is for that goal to happen. Then, it can be tweaked and adjusted, showing multiple scenarios depending on how much the client is setting aside into investments. I often feel like, because financial planning is very numbers-heavy, people can find it difficult to visualise their goals clearly. I don’t have that issue with OPAL, because the graphics and projections perfectly paint the picture for the client.
Budgeting Platforms
But what if you do not have access to these paid platforms? I would first off recommend tracking your cashflow on a monthly basis and being conscious of your assets vs. debts. There are loads of budgeting apps that you can use. For example, DBS Online Banking has an interface that illustrates your monthly inflowing cash and outgoings. If you’d like something a bit more in depth, so that you can go through these figures with a find-toothed comb, I would recommend apps like Zenmoney, Monny or Spendee; all of these (and ones similar) are free and user-friendly for the consumer. Some will consolidate your spending habits into presentable data and graphics, others will incorporate some gamification in order to encourage you to hit your spending and saving goals. There are many on the market in Singapore, and you just have to play around and find whatever works for you. I prefer to use the DBS NAV Planner paired with an Excel spreadsheet, but others may prefer the other apps mentioned here.
Stock Screener
If you are investing in individual stocks, or if your portfolio comprises of equities, you can always use stock screeners to check key analytics like the market cap, yield and sector. You can also delve further into the figures and statistics, like viewing the past 5 years performance and other metrics. You can also check company announcements and financial statements, which is perfect for those investors that like to research in depth. For Singapore stock exchange, you can use https://investors.sgx.com/stock-screener.
General Learning & Boosting Your Knowledge
As I mentioned at the start of my article, knowledge is power. If you don’t have a basic level of knowledge, this is quite often the blockade that is stopping you from investing, which means that your money is being eroded by inflation. You may be concerned of misinformation out there, but don’t worry, there are many great, informative platforms you can use to educate yourself. The first is Investopedia, which is essentially a Wikipedia for all things money and investing. Here you can find simple to understand financial concepts, investment terms and even information on past historical events in the finance world. The Balance is a great website that hosts a wide range of information, from which loans give the best rates, what stock market apps are easy to use, to how to discuss finances with your children. This is really a font of knowledge and a go-to for anyone who just wants to get more clued up on finance. I would of course recommend keeping yourself up-to-date with news by checking out The Financial Times, Bloomberg and CNBC, as well as other credible finance media outlets.
In this world of technology, finance and investing have become accessible to the masses; what once seemed only for the super-savvy or wealthy, is now at the click of a button to almost everyone who owns a computer or smartphone. This readily available information is not something we should shy away from; these are wonderful tools we can use to do our own due diligence and ensure that we are planning our finances and investments correctly. Technology has pushed for a need for transparency in the finance sector, so what a better time to start investing! You have all the knowledge, resources and tools to do so responsibly, and with some level of understanding. However, for those that are not as savvy, or for those that have a full schedule, you may not have the time to commit to constant research. I don’t blame you- if it wasn’t my full-time job I probably wouldn’t either! This is when you can lean on the advice of a professional, who will have all these tools at their disposal, with the added expertise and wisdom to help you navigate investing effectively in accordance with your risk tolerance and unique circumstances.
(Remember that if you are struggling to find information available online of an investment, to tread lightly, as a lack of transparency may also mean a lack of legitimacy.)
It’s the F1 in Singapore this weekend! It’s an exciting time full of hype, hustle and bustle, and loads of things to do! I thought I would write a short post on all the great stuff happening over the F1 weekend- along with some important things to take note.
The F1 starts this Friday 15th September, and finishes on Sunday 17th, at the Marina Bay Street Circuit. The official race is on Sunday from 8pm onwards, with the Friday & Saturday sessions being the practice and qualifying sessions, respectively. If you’re looking for tickets, you may still be able to purchase them on the events official website, or from official 3rd party sellers. If not, I’ve seen loads of dedicated posts and threads on the various Singapore Facebook groups. Just use your own due diligence and beware of scams. Also, do note that you can’t book just for the race, or just for the concert, it’s an all-in sort of thing, so just make sure you’re buying the correct day.
For me, the most exciting part of F1 is the concert- Formula 1 get some really amazing live bands and acts to perform over the weekend. On Friday we have Jackson Wang; on Saturday the acts will be: Post Malone, Kings of Leon, Culture Club and The Kooks; and on Sunday we have King of Leon again, Groove Armada, Madness and Robbie Williams. This is a massive year for UK artists, with a lot of throwbacks I’m sure us Brits will appreciate!
Don’t forget that places like Marquee and Zouk normally do afterparty events, too, it’s bound to be packed!
The main F1 race is scheduled to end by 10pm on September 17th, so be ready for a spectacular firework display shortly after. If you’re not attending the F1, but just want to watch the fireworks, I would suggest getting there well in advance to grab a spot- the Marina Bay area is normally packed during the F1 weekend, so be sure to get a good spot if you want to see the pyrotechnics.
Not only that, there will be road closures during the F1 weekend. Affected areas are usually town and the CBD, across areas including but not limited to Bayfront Avenue, Esplanade Drive, Raffles Avenue, and Temasek Boulevard and Suntec. Be sure to plan your routes accordingly.
Are you excited or attending the F1 this weekend?!
For someone whose job revolves around finances, it’s very easy for me to think about money on a daily basis. But for those who have other areas of expertise; are in the creative field; have a tonne of other priorities to think about; or are just not knowledgeable in this subject, planning finances can seem like an incredibly difficult feat.
How do we know that we are planning correctly? How do we check that we are on track? Do we need to change our financial planning? I’m going to give you a couple of tips on how to self-reflect when it comes to money and, if needs be, do a financial reset.
This is one of the building blocks of financial planning; you must know what goals you hope to achieve and plan accordingly. Aim for mid- to long-term goals, as this will be easier to plan out using savings & investment instruments. Not only that, you should ensure than whatever planning you do takes into account which country you will be moving to or retiring. Different countries have different tax laws and jurisdictions, so you need to be aware of these if you want to plan your money successfully.
2. ‘Am I prepared for the unexpected?’
While this may be very bleak to think of, it is very important; life doesn’t always go as smoothly as we have planned. Any number of events can happen that can negatively effect your finances, such as a death in the family, a divorce, unexpected illness or even something as small as the fridge breaking. That’s why it’s crucial to have several safety nets in place to cushion the blow of these things impacting you and your family. You should make sure that you have an emergency fund of at least 3-6 months of spending. Not only that, you should ensure that your assets are protected with sufficient insurance, and you and your family should have a will in place for every country that you have assets.
3. ‘Do I know what I spend daily? Am I in control?’
We cannot deny, life is getting more expensive. Inflation is high, the cost of living has increased, you may feel it is more difficult to save each month. Take this time to reflect and be conscious about your spending. If this means putting all your cashflow into a spreadsheet, do so. If you need to use an app to track this, there are plenty of free ones you can use. Remember that what you are spending now will only increase over time (inflation, again!) so ask yourself, ‘Could I live like this comfortably in my retirement? Is this monthly income going to be enough?’. If the answer is no, start making tweaks to your retirement planning.
4. ‘Have I taken steps to plan for later life?’
This final point leads on from my previous one- no one wants to think about getting old but unfortunately, it is a fact of life. With old age comes extra challenges, like will your savings be enough to allow you to retire? Where and when will you retire, and is that even achievable? Not only that, who will you pass your estate on to when you leave, and have you sorted out inheritance tax? As mentioned, no one wants to think about these things, but it is good to ask yourself these tough questions every once in a while.
If you feel like all of this is too much, or you have reflected and now don’t know what to do, reach out to an advisor or a professional to help you mitigate these challenges.
I often get asked the question, “Why should I involve a professional with my investing, when I can do it myself?”. To me, the answer is very simple, but there are lots of reasons why. The analogy I like to use is this; if you are unwell, you go and see a doctor. Especially if it’s serious, like an operation, you will go and see a surgeon. Same with a suit, if you want a suit made, very few people will sew it themselves; they will get a tailor to do it. This same logic should apply to finances and investments. Unless you are an expert, like a fund manager, financial analyst, etc, having the input of a professional is always going to be beneficial. Here are five key ways financial advice is better than DIY.
Back in 2021, I wrote an article on ‘How to Spot An Investment Scam’ (you can check it out here:
https://danielleteboul.com/2021/12/03/how-to-spot-an-investment-scam/: Why Financial Advice is Better than DIYInvestment scams are still on the rise, with many ‘investments’ offering huge returns over a short period of time. These may either be Ponzi schemes, or just a way to con you out of a lump sum of money. A professional will be able to spot an investment scam, understand the rules and regulations of the country they provide advice in, and could potentially help you save losing a lot of money.
2. Confidence in Investing
If you’re unsure how to even start planning your finances, a professional will guide you with your financial goals and objectives, and put forward an investment plan that will achieve these goals, whilst still being within your means and circumstances. They can provide you with confidence during your investment journey, supplementing their advice with knowledge and data. For example, I know many people that think they are a risk-taker and an adventurous investor. But, as soon as there is an economic downturn, such as Covid or the Russian invasion of Ukraine, they panic, and are concerned that their investment value has dropped. An advisor would be able to provide that person with the perspective they need to ignore short-term fluctuations and to take the emotion out of investing. For my article on this topic, click below:
https://danielleteboul.com/2021/05/27/how-to-take-emotion-out-of-investing/: Why Financial Advice is Better than DIY3. Reminding You to Invest Long-Term
This links back to my first two points; normally if an investment offers amazing returns over the short-term, it’s too good to be true. Not only that, if you check on your investment every day for fluctuations, you may lose faith in your planning. Investment should be for the long-term. A lot of my clients plan for retirement; a long-term goal that is inevitable (we all have to stop working one day!). But even if you have mid- to long-term goals, your money is bound to go further than if you expect returns in one or two years. This is because investing long-term can withstand short-term fluctuations or drops in the market. Overall, the stock market has risen over the years; even with crashes like the Lehman Brothers, Covid, The Dot Com Bubble, and even The Great Depression. Your advisor will know this and encourage you to diversify and hold long-term, so that you benefit and achieve your financial goals.
4. Providing Something Tax Beneficial
Wealth and tax go hand-in-hand, and a lot of expats will require tax advice or need a tax-efficient investment. If you think about it, it’s pointless in doing an investment that eventually you will have to pay a hefty sum of tax on, and navigating tax is often confusing, time-consuming and possibly costly. Instead of trying to do it yourself, wasting time and possibly money, a professional can offer tax-efficient solutions, advise you on tax reliefs you are eligible for, and connect you with experts for more tricky tax situations. All of this means that you are saving time and also your investment is growing in the most tax-efficient way possible.
For my article on what tax relief you may be eligible for in Singapore, check out this link:
https://danielleteboul.com/2022/04/04/tax-relief-for-foreigners/: Why Financial Advice is Better than DIY5. Tailoring and Reviewing
Going back to my initial analogy, when you get a suit made, a tailor will do it for you. If you need alterations, a tailor will also help you with this. This is the same with a financial professional; they will tailor a bespoke financial plan for you. Investing is not one-size-fits-all. Just because your friend is doing a certain investment, doesn’t mean it is the right thing for you. A professional will match your goals, lifestyle and personality with a suitable investment plan, and will tweak and make adjustments along the way. Financial planning is a process, one that may change throughout your life, so a financial professional will review regularly to make sure that you are on track.
Half the year has already gone and it’ll be December before you know it. Therefore, I think now is a good time to start tax planning and looking into topping up your SRS account. In this article, I will be giving a brief overview of SRS, and why I believe it is an effective retirement and tax planning tool for expats in Singapore.
What is an SRS?
SRS stands for ‘Supplementary Retirement Scheme’, which you can think of as similar to CPF, with added benefits. This voluntary scheme is open to foreigners and locals, whereby anything inside this account is eligible for tax relief. In my opinion, not only is this a great way for saving for retirement, but it’s also one of the most effective ways to enjoy tax relief. There are a few other ways that expats can claim on their tax each year, such as life insurance relief, dependants relief and charitable donations. However, none seem to make a dent into tax savings as much as SRS.
You can open an SRS account with one of these three banks: DBS, UOB & OCBC. Opening the account itself is very simple and can be done via internet banking. In just five minutes, you can set up an account and deposit a maximum of $15,300 per year. However, this cap of $15,300 is just for PRs and citizens. If you want to increase your limit to the foreigner’s limit of $35,700, make an appointment at your bank and complete the relevant tax declaration form; you will then be able to add up to $37,500 into your SRS each year (provided you declare at the bank every subsequent year).
As of now, you can make penalty-free withdrawals from age 63, over a ten year period. But, take note, this number does change, so the longer you take to open your SRS account, the higher the retirement age may be. This account is for retirement, hence the long lock-in. However, not to worry, if you do wish to withdraw some money early, you may do so, it will just be taxable and a 5% penalty fee will apply. One thing that is good if you’re a foreigner and need to leave the country, is that you can withdraw in full penalty free, so long as your SRS account has been open for ten years.
Why is it good for foreigners?
One of the main benefits of SRS is the tax relief. Any monies that you deposit into this account is eligible for tax relief. You can check how much the savings are for someone of your income, you can download the tax calculator from the IRAS website. For those in the higher tax brackets, moving the maximum amount into SRS each year can knock a substantial amount off their tax bill, sometimes in the thousands.
Not only that, any withdrawal at or after the retirement age (over a ten year period) is only 50% taxable. This may not seem good, but remember that spreading out your withdrawals, instead of withdrawing lumpsum, will maximise your tax savings. Moreover, income of $20,000 or below is not taxable in Singapore; meaning that if you withdraw $40,000 a year from your SRS account, only 50% of that is taxable, which means that $20,000 would be taxable and the tax payable would be nil. Remembering key information like this will make your tax planning more robust.
Do remember that keeping your money in an SRS bank account only has an interest rate of about 0.05%, and we know that this is not going to keep up with inflation and may render your long-term savings useless. So what you can do is move your SRS money into approved investment vehicles. This means that you can still enjoy your yearly tax relief, the 50% taxable withdrawals, all while having your money grow better than bank rates, achieving you even higher returns with less tax!
We all know that investment is important, especially during times of high interest rate and inflation. The only way we are going to be able to survive retirement is if we plan and invest properly, instead of leaving it all in a bank account. SRS allows you to do that, whilst enjoying tax relief, now and in the future. And with the ability of opening an account with just $1, what’s stopping you?
A couple of weeks ago I turned 30 years old. Initially, the thought of being in my third decade was incredibly daunting; I was ignoring the fact that it was happening, avoiding making plans and just the overall fear and dread of hitting the big 3-0 loomed over me as the date approached. But now I’m a couple of weeks in, it doesn’t feel so bad, I have almost found a new confidence turning 30. So, I thought I would write a post listing all the stuff I stressed about that I am no longer losing any sleep over.
Looking and feeling ‘old’
This first one may seem so stupid, but I’m sure it’s something people get a lot when they turned 30. I was starting to feel like my face looked dull, and that I definitely looked my age (which in my head was old!). I felt like none of my clothes would suit me anymore, people would make comments about not dressing my age and I would have to transition in to more sensible, frumpy attire. This wasn’t the case at all; I didn’t wake up on 10th July 2023 all of a sudden being an old woman. It didn’t feel any different to being 29, or actually not even 28. I got up and went about my day as per normal and it wasn’t as scary as I thought. There were no looming thoughts of aging, my body clock ticking…any of this! The past few weeks I’ve actually being getting dolled up more, wearing heels more, and feeling overall more confident in myself.
I feel that, women especially, put a lot of pressure on ourselves to look and behave a certain way in accordance to our age. We shouldn’t waste so much of our energy thinking about it. We should feel empowered wearing, looking and acting how we want! Age really is just a number after all.
Not being ‘where I want in life’
I think this leads on from the previous point. For some reason 30 seems to be a huge milestone whereby I measured my life accomplishments. Anything not checked off the list by 30 seemed like a life failure to me and what followed by a wave of disappointment. In my head, I was approaching 30 not a homeowner, unhappy with my current job and feeling like my friends around me had achieved so much more. Whilst some of those things may be true, as I’m very lucky to have strong and successful friends, the rest wasn’t to be taken so seriously; I’m not a homeowner, not because of my own doing, but because of my circumstances being a foreigner in Singapore, it’s not that much of a big deal. And yes, I was unhappy at work, so I decided to make a change; a wealth management firm had offered me a prestigious role, which I decided to accept! I already feel so much better entering my 30s in a role that seems more dynamic, more professional and makes me happier.
My advice would be, to not let the little things get to you…but if there’s something big getting to you- change it! There’s no point sitting around miserable when you can actually make a change about these things.
Having to slow down
There seems to be this stereotype that women in their 30s need to slow down, not go out so much, not socialise so much, not focus all their energy on work and focus more on home life. I will not be doing that. If anything, being constantly busy with work gives me the adrenaline I need to keep me going throughout the week, it motivates me to strive to be better.
Priorities
Following on from that, I will be shifting slight priorities into my 30s. I will be focusing more on my close friendships, instead of trying to be mates with everyone. I will not be going out late into the night as much, as I will be waking up earlier and meeting more of my clients during the day. I will be spending the occasional weekday night at home, to meal prep and spend time with my husband, to ensure that the rest of the week goes smoothly. I will be enjoying my weekends doing what I want. And most importantly, I will not be worrying about what other people think.
Turning 30 doesn’t have to mark the beginning of the end, for me, it marks the beginning of a new chapter- new job, new apartment, new beginnings and opportunities! If I’ve learnt anything, it’s to not let external pressures get to me- I was too wrapped up in what I thought other people would think, or how I thought turning 30 is supposed to be, that I forgot how to enjoy myself and be grateful for all the things I have achieved and accomplished. Watch this space for more great things to come!
Back in January, MAS increased Singapore’s gold reserves by 30%, another 6.8 tonnes of gold, seeing a significant increase in our overall reserves to 205 tonnes. But why are they doing this? What is the reason?
Central banks are continuing to buy gold, instead of holding USD. Belief is that, now, we are a multi-currency world, so gold is a safer asset to hold than American Dollars. Although USD won’t lose its currency reserve status anytime soon, central banks want to diversify away from the dollar.
The trend of diversifying away from the US Dollar gained momentum when Western nations began putting sanctions on Russia because of the war in Ukraine; Russia was kicked out of the SWIFT system and many other sanctions caused Russia’s economy to plummet.
Not only that, the US Dollar’s recent rise has caused massive inflation problems worldwide, especially for emerging markets. This has obviously worried banks, causing a shift to gold; gold is a good hedge against inflation, and is separate from currency, so does not suffer from exchange rate risks.
During times of political and economic uncertainty, gold is a safe reserve. Gold is able to retain value much better than other forms of currency, because it is limited and cannot be diluted. So to me, it is clear that Singapore is increasing its gold reserves due to the current economic climate; Singapore will be able to whether the financial storm we are facing right now.
Gold can be a good investment option right now, as it’s a good way to hedge against inflation and recession. If you hold cash, your money can be eaten away due to the poor interest rates vs inflation. And finally, while to US Dollar is likely to be the reserve currency for a while, we do not know what will happen in future. Will you be investing in gold, like Singapore?
When I first moved to Singapore, I didn’t really know much about the landscape here in terms of living and working. I had only visited the country via transit, so Changi airport was all I knew! Of course, the reason I chose to move to Singapore was because the pay was a lot higher than what I can get in the UK. However, I wish I did understand things before I moved here so I could make more of an informed decision. So, I’ve come up with this list, hopefully I can help some newbies who are considering to move here.
Of course, if a company is willing to relocate you over here, then they should try and cover some of the moving costs. When I first accepted my job offer, my company did in fact offer to reimburse my flight ticket. However, this was not enough to cover the full flight cost. If I remember correctly, I had to book with a budget airline direct from London; there are no direct flights from Birmingham, so that was an extra hassle for me to try and travel down there. We all know they’re a lot more expensive than they were pre-Covid, so look out and make sure that your company’s reimbursement is sufficient to cover these inflated flight costs!
2. Housing Costs
I’ve written a few articles now regarding how expensive housing has gotten in Singapore. In fact, a couple of days after I broke my last article, the government raised the additional stamp duty for foreigners from 30% to 60%! Not only that, rental has skyrocketed over the past year or so; so even though your salary might be higher here than your home country, your outgoings might be a lot more too. If you are offered a package that covers some or all of your rental costs, then I think that is ideal! Rental costs are the bulk of my outgoing expenditures each month.
3. Insurance
I know I always go on about this, but it’s very important! I spend a lot of my personal insurance each month. When I first arrived in Singapore, my previous company gave me an allowance of $200 annually to cover insurance…let me tell you now, this is not enough. This only covered a fraction of the very basic hospital & accident insurance I purchased, let alone the additional life & critical illness insurance I later purchased. If a company offers an allowance to purchase insurance, make sure it’s at least in the thousand dollar range. But ideally, a company should provide you with a corporate insurance plan, that way you may have an opportunity to be covered for GP, specialist and dental, coverage that is normally not claimable on a personal insurance plan. Also, it’s good to know that it is mandatory for companies to provide foreigners on work permits and S passes with insurance coverage.
4. Annual Leave
I didn’t factor in how important this was when I accepted a job offer. In my previous company, when I was an English teacher, I enjoyed a lot of days off, because of school holidays et cetera. The tuition centre simply refused to open, meaning that we were unable to work. However, these days off went over our 14 days annual leave, meaning that we actually had to pay back the company the days that we did not work! This basically ate away into our bonuses. I wish I’d have found a better offer that didn’t absorb our days off in lieu this way!
5. Shares & Taxes
A lot of companies offer shares as part of their incentive. I think this is a great idea, as you basically have access to stocks (maybe even blue chips) that you wouldn’t normally have access to. However, a word of caution- and this has happened a few times with my clients; IRAS will tax you on these shares even if you haven’t cashed them out. Quite often, you are taxed when the shares are doing well and price high, then, the shares may plummet, especially during this economic uncertainty. So, you may be taxed on assets that are actually a lot higher than their current value! This could push you into different tax brackets altogether, meaning that your tax for that year will be quite costly!
6. Education Costs
As a foreigner, it is often incredibly difficult to get your child into a local school, they have to take several exams on a syllabus that they probably are not familiar with. So, for most expats in Singapore, their kids have to go to international schools. The fees for these schools can be very pricey, easily $50,000 or even more a year for some! So, factor this in before you make the move. Ideally, you can find a package that will cover some of these educational costs for you.
7. Dependent’s Pass
A lot of foreigners here are in fact trailing spouses, following their husband or wife for work. In the past, this was not so much of an issue, but over Covid, the government made it a rule that those on a dependent pass could not get a letter of consent to work. This means that if you are on a dependent pass, you may have to work remotely for your previous company overseas, or simply not at all. I do know some who have set up their own company to bypass this, but then another problem arises in having to hire a local and pay their CPF, regardless of how well your business is doing.
Some argue that Singapore is becoming less attractive for foreigners to live and work. I don’t necessarily agree with this statement, however, I think it’s key that you know all of these things to look out for and make an informed decision.
Investing for Singapore Expats 