Is investing really better than saving?
Before diving straight into the importance of investing (which many financial blogs have already written about), Seedly would like to take a step back and provide our opinion on which is more important.
If we were to be politically correct, BOTH are as important. But to ensure that you are on the right track, we would like to request that you spend some time understanding your current situation in life.
Here are the pros and cons of both savings and investing:
| Details | Savings | Investing |
|---|---|---|
| Goals | Short Term | Long Term |
| Cash funds for unplanned or planned expenses | Beat inflation and grow your passive income |
|
| Pros | Liquidity for urgent uses | Beat 2-3% per year inflation rate |
| Freedom of choice to spend | Can be easy if you do passive investing |
|
| Cons | Lose out to inflation 2-3% | More returns most likely comes with more risk |
| Savings account will not grow | Best for long term | |
| - | Less liquidity for urgent uses in short term |
|
| Types | Savings account with any local bank | Passive investing tools |
| Under your pillow (in your Safe etc.) | Exchange Traded Funds (ETFs) |
|
| - | Blue chip stocks, Funds, Unit Trusts |
Investing is the idea of deploying your capital into the market and letting your money work for you. One should only start their investing journey when they have met these criteria:
- Debt-free
- Saved up enough rainy-day fund
- Have enough investing knowledge to know what they are investing
Why is investing important?
A simple illustration will be the power of compounding interest.
- Investor A invests at age 30 and Investor B at age 40 respectively.
- They both invest S$100 from their monthly salary
- They both hope to withdraw everything at age 50.
- Assume a 6% annualised return on their portfolio, inclusive of dividends.
That being said, this compounding effect can erode your savings should your interest rate is unable to beat inflation.
Who should attend:
- Fresh graduates who wish to learn the ropes of investing
- Working adults who have saved up their rainy day fund and are now looking to kick-start their investing journey.
- Season investors who are keen to explore more on investment opportunities in the Asian equities market.
“Risk comes from not knowing what you are doing” – Warren Buffett
The topics and line up:
Event Keynote:
Attendees will start off with these 2 keynote speeches before heading for their respective “Novice” or “Investor” talks.
- 2018: The Outlook of Asian Equities
(by Phillip Yeo, International Head of Product Development and Management, Nikko Asset Management) - Ways to Generate Returns from the Stock Market through Booms and Bust, Good Economies and Bad
(by Teh Hooi Ling, Portfolio Manager, Inclusif Value Fund)
Novice
- Understanding CFDs, leverage and risk management
(by Margaret Yang, Market Analyst, CMC Markets)
Investor
- How asset allocation can help you meet your investment goals?
(by Frank Troise, Head of Consumer Investment Solutions & Business Development, Asia, Aviva) - Stock Picks for 2018 using Top 30 volumes
(by Ronald K, SMMG Pte Ltd)
All attendees will then end off with a Market Outlook 2018 Panel Discussion: Uncovering Opportunities Amidst Uncertainties
27 January 2018 (Saturday) – 9.30am to 5.45pm
NTUC Auditorium, Level 7
Regular price: S$88 (early bird price at S$48 till 19th December 2017)
*Or try to win tickets below!
Seedly Community Special: Win tickets to the conference
To help Singaporeans make better financial decisions, we have decided to work with ShareInvestor as an event partner to let 10 lucky winners go for free!
Simply follow the steps below to win:
- Be in Seedly Personal Finance Community & Like ShareInvestor on Facebook
- Share this post on Facebook.
Winner to be announced on 13 December 2017. Cheers!
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