Key Insights To Your Personal Finance Journey - Seedly Personal Finance Festival 2024

The word “finance” can be very daunting for a lot of us. It was for me, too, when I first started out on my personal finance journey!

But since then, thanks to events such as the Seedly Personal Finance Festival, things are much easier to understand now and I have gained lots of insights from attending the various talks.

This year’s Seedly Personal Finance Festival was no exception with a treasure trove of insights from thought leaders at CIMB, Singlife, CMC Markets and more!

But if you didn’t manage to catch all the good stuff, fret not!

We’ll be covering all the key insights gleaned from three amazing panel discussions: “Better Wealth Management for High Net Worth Individuals (HNWI)”, “The Psychology Of Great Investors” and “Navigating Singapore’s Ageing Population: Insurance Solutions for Health and Longevity”.

TL;DR: Key Insights To Your Personal Finance Journey – Seedly Personal Finance Festival 2024

In This Article

• Better Wealth Management for High Net Worth Individuals (HNWI)
• The Psychology Of Great Investors
• Navigating Singapore’s Ageing Population: Insurance Solutions for Health and Longevity

Better Wealth Management for High Net Worth Individuals (HNWI)

Drawing from a wealth of experience, the panellists dove into strategies tailored to HNWIs, emphasizing the importance of aligning investment goals with personal risk tolerance and the benefits of independent financial advice.

Dr. Wei Dai, Head of Investment Research & Vice President (VP) at Dimensional Fund Advisors, advocated for an investment philosophy grounded in financial science and free from the influence of market predictions. She highlighted the pitfalls of chasing recent high-performing investments and encouraged a disciplined, long-term approach.

Gerald, Founder & CEO of Beansprout, reiterated the significance of understanding a broader range of investment products available to HNWIs, such as private equity and private credit. He stressed the importance of comprehending how these instruments fit within one’s larger portfolio.

Raymond, Head of Wealth Management & Preferred Banking at CIMB Bank, pointed out that investing principles should remain consistent regardless of net worth. He urged investors to stay diversified and disciplined, even during market volatility.

The conversation also turned towards integrating environmental, social, and governance (ESG) values into investment strategies. The panellists agreed that it is necessary to align investment choices with personal values without compromising on investment principles, highlighting that ESG considerations are becoming increasingly important to investors.

Lastly, the panel addressed concerns about asset protection and liquidity management for HNIs. They discussed the merits of daily liquidity funds and the role of diversified portfolios in meeting investors’ liquidity needs.

All in all, the panel underscored the need for HNIs to maintain a disciplined investment strategy, consider the full spectrum of available products, and align their portfolios with their values and long-term goals.

The Psychology Of Great Investors

Moderated by yours truly, this panel was unique in that it focused not on the science of investing but on the art of it.

During the panel, Christopher Forbes, Head of CMC Invest (Singapore), shed light on the disciplined processes that underpin great investing. He discussed the importance of having a structured methodology, which includes the use of stop losses to enforce a rigorous approach to risk management and help investors stick to their plans even in volatile markets.

But perhaps the most interesting insight I gleaned personally from Christopher was this:

I don’t know if any of you like movies, but if you watch, there’s a Bradley Cooper movie called American Sniper. The difference between a sniper and someone with a machine gun is the difference between investing and trading.

In this film, Bradley Cooper lays still for like a week, and he’s studying the landscape; that’s doing your own research. He’s calibrating his gun. ;that’s making a few small trades to get a feel for the market.

He talks very silently. He doesn’t tell anyone anything, and then he takes a single shot. The best investors in the world run deeply concentrated single-shot portfolios. They do not take a machine gun and tell everyone. This is the fundamental difference, so I think that’s one key distinction between the really great investors. They have a process, and psychologically, they’re taking single shots.

Apart from having a steadfast approach to investing, James Ooi, Chief Market Strategist at Tiger Brokers Singapore highlighted the perils of emotional decision-making. He pointed out that while the fear of missing out (FOMO) can drive investors to buy without enough research, it’s crucial to build personal conviction rather than blindly following market trends.

The panellists agreed that common psychological traps like anchoring and herd mentality can be mitigated through comprehensive research and a deep understanding of the underlying investments. They emphasized that even seasoned investors can struggle with the emotional challenge of cutting losses but utilizing stop losses is a vital strategy for preserving capital.

Navigating Singapore’s Ageing Population: Insurance Solutions for Health and Longevity

With a projection that one in four Singaporeans will be 65 or older by 2030, the panel highlighted innovative insurance solutions to cater to this demographic shift.

Helen Shen, Group Head of Health, Singlife, made some very good points about retirement and insurance. While many of us think about a million-dollar retirement plan, we often forget to consider healthcare costs. What is even more forgotten is that a lot of these healthcare episodes are not just physical, they could be mental as well.

Today, anybody more than 60 years old, one in 10 of them could have dementia, could have Alzheimer’s. So the question to ask yourself is, are you adequately prepared beyond just what is the cash and what is the investment in your bank account? At Insurance World, we believe a lot of it goes beyond the product. A lot of it is about education, a lot of it is about engagement, and following the customer along every part of their journey. So we believe it’s not a case where you buy insurance, 30 years later, hopefully maybe you can claim an insurance. It’s about working with you along that process.

Goh Theng Kiat, Chief Customer Officer, Prudential Assurance Company Singapore, emphasized customer-centric solutions and pointed out that early adoption of insurance coverage is key to securing more affordable rates.

Lastly, Chan Wai Kit, Executive Director, Life Insurance Association (LIA) Singapore, provided insights into the collaborative efforts between the government and insurers to manage healthcare costs effectively, including initiatives like the cancer drug list. The panellists collectively emphasized the importance of consumers playing an active role in making informed medical and financial decisions.

With the certainty of rising premiums and limits due to healthcare inflation, the panellists agreed that professional financial advice is more crucial than ever in navigating the evolving landscape of insurance plans. They advocated for proactive planning, thorough research, and expert consultation to ensure comprehensive protection throughout one’s life.

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