Funny Encounter with Jeane

Recently, my youngest daughter, Jeane, learnt that babies come out from mummies' tummies from the new storybooks I bought her. Book such as 'Where do I come from?'.

As my brother's baby is staying together with her now, she also wants me to give her a new baby to accompany her. She told me she really wants to have another baby to play with her, so she kept asking me: "Mummy, when are you going to have a baby?" Then I told her definitely not so soon.

Thereafter, everyday, she will randomly touch my tummy, put her ear on my stomach and ask:" Mummy, do you have a baby in your stomach? When is your tummy going to grow bigger?" Whenever I heard such questions, I will realise kids are so innocent and adorable. No wonder parents always have their kids' interest in mind and do not mind spending so much on their kids nowadays. I can imagine how much love is showered on a child if he/she is the only child in a family.

Llast week, I went to KKH to buy her medication for the next three months. Then she called and I answered. She asked me where am I. I told her I'm in the hospital  buying her medicine. Suddenly, beside me, a baby boy burst out crying. Then Jeane asked me:" Mummy, is your baby coming out now?" And I laughed out loud with a duh "-____-" face.

Are you saving enough? The Rising Costs of an Overseas Education

TYPE in "college costs" on Google and get suggested search options like: "college costs too much" and "college costs out of control". If you are planning to send your children to further their studies overseas in future, this article would help you gauge if you are really saving enough.

Universities now face rising costs, and it's politically easier to charge international students more instead of making local students pay. Singapore has done the same, sharpening the distinctions between citizens, permanent residents and foreigners. Singapore parents who want to send their kids abroad will have to deal with ever-increasing fees and higher cost of living, especially in big cities like New York or London. The decision to opt for overseas education depends on financial ability, their children's own capabilities, and the course they are studying. It is not a light one to to make. 

Parents need to have sufficient resources and factor in generous estimates of how much the education would cost. Financially speaking, unexpected fee increases, exchange rate fluctuations, and other unpredictable circumstances such as parents becoming unemployed or falling ill can combine to make costs unaffordable for many families. You would have to make the smart decision on whether a local or an overseas education would be better for you and your child.

More information can be found in The Business Times

Lifetime claims limit might be removed in MediShield Life

Medishield Life, a new solution to assist Singaporeans for an affordable health care.

Everyone can be Financially savvy

Changing the way you  pay for your expenses can add up to extra savings. Get more out of your every dollar.

While Singapore’s year-on-year inflation eased to 1.5 per cent in December, many people still worry about the cost of living. Moderate inflation is considered to be a sign that a country’s economy is healthy, as this means that there is a steady demand for goods and services. This does, however, mean that household expenditure —  which includes items such as housing costs, food, recreational activities, transportation and healthcare — has increased over the years. The most recent report on the Household Expenditure Survey, published by the Ministry of Trade and Industry’s Department of Statistics in 2009, showed that Singaporean households spent a monthly average of S$3,764. This is estimated to be about S$4,358 today based on an average inflation rate of about 3.1 per cent per year from 2009 to 2013, also according to figures released by the Department of Statistics.

PLAN EARLY, PLAN AHEAD

Keeping these increasing costs in mind, it is important to start saving early. Most financial experts suggest putting aside at least 10 per cent of your gross monthly income.  

At the same time, your total debt re-payments, which include personal, education, car and housing loans, should not be more than 35 per cent of your monthly salary, according to MoneySENSE. While it may sound tough, saving money does not have to be a painful task. 

One way you can stretch your dollar is to cut down on unnecessary expenses like frequent restaurant meals or splurging on expensive items.

This is the 14th story in a 19-part collaboration between TODAY and POSB

Singapore expected to be No. 2 on ultra-rich list by 2023

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SINGAPORE is tipped to have the second-highest number of ultra-rich people among the world's cities by 2023, a new report says.

London would be in the top spot, according to the Wealth Report released by property consultancy Knight Frank yesterday.

Singapore would also be the Asian city with the most people with at least US$30 million (S$38 million) in net assets in 2023, beating Tokyo to the top spot.

"Singapore is growing in prominence (in the) wealth management sector and as a key regional financial hub," Ms Alice Tan, research head at Knight Frank, said at a briefing. "Over the medium term when (the ultra wealthy) want to look at other factors to invest or base themselves, they look at quality of life, education system, cultural similarity in other regions in Asia. So they start to see Singapore as one key bright spot."

She added that a conducive business environment and tax regime, political stability as well as the Republic's rising status as an important financial hub have underpinned Singapore's popularity with the ultra wealthy.

The report, based on a survey of 23,000 respondents each worth US$68 million on average, predicted Singapore will have 4,878 of these wealthy people in 10 years, up 55 per cent from last year.

New York would topple Hong Kong to take third place in 2023.

Although the report noted that Singapore is now in third place as the city that mattered most to these wealthy individuals, Hong Kong will leapfrog Singapore to take its place in 2024 because of its role as a gateway city to China.

"The main battleground is Asia, where a handful of locations are slugging it out in the hope of establishing a clear lead as the region's alpha urban hub," said Mr Nicholas Holt, Asia-Pacific research head at Knight Frank.

Asia was also tipped to be home to 58,588 people with more than US$30 million in net assets in the next decade, overtaking North America, while the number of billionaires in Asia will also surpass Europe's.

Separately, Singaporeans with more than US$30 million in net assets chose their home country as the most popular place to buy an investment property. This was despite seven rounds of cooling measures, and stricter financing rules.

- We have to start saving now and take charge of our wealth as well, regardless of how small an amount we have or start with. When we reach our retirement age, we don't desire to be the richest, to be among the private banking group, but we should strive to stay in the middle group wherever possible, and be part of the mass affluence group.
More information can be found in Straits Times Money

Singapore now the world’s most expensive city: Economist

SINGAPORE — Singapore has topped the Economist Intelligence Unit (EIU) list of the world’s most expensive cities to live in, according to the 2014 list released yesterday (this morning, March 4, Singapore time).

Singapore jumped five places from No 6 last year to top this year’s list after rising in the list in recent years. The city was ranked No 18 a decade ago in the EIU's Worldwide Cost of Living Survey.

The Republic’s strong currency, which has appreciated about 40 per cent over the past decade, combined with soaring utility bills and the high cost of car ownership contributed to Singapore’s rise in the list, according to the EIU. Singapore is also the most expensive place in the world to buy clothes.

Paris, Oslo, Zurich and Sydney also made the top five of the EIU list. Tokyo, the most expensive city to live in for 2013, fell to joint sixth place alongside Caracas, Geneva and Melbourne. At No 10 is Copenhagen.

“Improving sentiment in structurally expensive European cities combined with the continued rise of Asian hubs means that these two regions continue to supply most of the world’s most expensive cities,” said Mr Jon Copestake, the editor of the EIU report.

“But Asian cities also continue to make up many of the world’s cheapest, especially in the Indian subcontinent.”

Predominantly higher costs of groceries has been singled out as a reason for most Asian cities figuring highly in this year’s list, with Tokyo still at the top of the list for everyday food items.

The EIU’s Worldwide Cost of Living Survey, which is published twice a year, compares more than 400 individual prices across 160 products and services including food, clothing, household supplies, home rentals, transport and utility prices. All cities are compared against New York City as a base.

According to the EIU statement, the survey is meant to let human resource line managers and expatriate executives compare the cost of living in 140 cities in 93 countries, which would allow hiring companies to calculate a fair remuneration package for relocating employees.

Now, we really do need to start saving so that we will have enough money to afford the higher cost of living in Singapore when we get old.

More information can be found in TODAY online

CPF contribution rates for older workers, aged above 50 to 55, raised by between 1 and 2 percentage points

Mr Heng said any increase in employees' CPF contribution rates should go into the Ordinary Account, which many Singaporeans use to pay their housing mortgages.

In the long term, the labour movement wants to see a review of CPF contribution rates and ceiling.

This could be in the area of adequacy - looking at just how much a worker needs to save for retirement.

Another area is to look at greater parity in contribution rates, between employer and employees, across all age bands.

The last time CPF rates were reviewed was more than 10 years ago, in 2003. Since then, contribution rates have either met or surpassed the targets set, across all age bands.

For example, the target set in 2003 was between 30 and 36 per cent for workers aged 50 and below. Today, it's at 36 per cent.

For workers between 51 and 55 years or age, the target was between 24 and 30 per cent. That has since risen to 32.5 per cent.

The employer's contribution rates have also remained below that of employees, with the widest gap also seen in the above 50 to 55 age group.

Mr Heng added: "We will have to continue to look at the new reality, what constitutes adequacy in this new reality and also the business considerations of competitiveness.

"We note that in the past, subject to those considerations, one-to-one contributions by employers and employees was possible in certain periods... but not always.

"So again we would want to discuss whether or not it's possible to contribute on par, where the considerations allow for it."

The last time employer and employee CPF contribution rates were equal, at 20 per cent each, was in 1997/98.

To lessen the burden on businesses, employer contributions were reduced, following the Asian financial crisis. 

More information can be found in CNA online