Positive cash flow and emergency funds

Contents 3 President's Message

Chief Editor's Message 4 CFP 50th Anniversary 5 FPSB Growth 2019 6 Having A Robust Financial Plan 8 What Are Cryptocurrencies And Why It Matters 10 Does Gold Have A Place In Your Clients’ Financial Portfolio? 12 Sustainable Investing - The New Lens 14 The Importance of Systematic Asset Allocation and Diversification 18 Singapore Budget 2020: How does it impact financial planning 23 Book Review : Poor Economics by Abhijit Banerjee & Esther Duflo 24 Who will pay my medical bills 26 Estate Planning For The Singapore Property Owner 28 Turning Irregular Payment Sums To Something Regular-How I Keep My Sanity 30 Millennial Financial Planning 32 Lo Hei Luncheon 2020 33 中国大陆 – 新加坡跨境认真考试顺利结束!

Code Of Ethics Workshop For Ngee Ann Poly 34 Upcoming Events 35 Financial Planner Awards 2020 (FPA 2020)

Judging Panel Finalists (Aspiring Category) Finalists (Experience Category) Mentor Award & Student Category Finalists 36 37 38 39 EDITORIAL BOARD

CHAIR

Ms Lisa Lee, CFP®

CHIEF EDITOR

Ms Yash Mishra, CFP®

MEMBERS / CONTRIBUTORS

Ms Yash Mishra, CFP® Mr Alfred Chia, CFP® Ms Kee Siew Poh, CFP® Mr John Sim, CFP® Mr Lawrence Chow, CFP® Mr Adrian Tong, CFP®

GUEST WRITER

Ms Lorna Tan Head of Financial Planning Consumer Banking Group DBS Bank

FPAS SECRETARIAT

Production of the Magazine. Please email admin@fpas.org.sg for advertisment / article contribution. FPAS' VISION FPAS envision that all Singaporeans have access to responsible and appropriate financial planning advice by raising the professionalism in the industry through education and shared code of ethics. FPAS also provides a range of services to consumers including: • Educate and inform the public of the need for objective professional advice in making secure financial decision. • Ensure sufficient professional and ethical standards to maintain the confidence and trust of consumers. • Provide education, training and information to our members to enhance their skills in providing holistic and objective financial advice. • Develop and maintain high ethical standards within the CFP professionals. • Represents the industry and CFP professionals to continue to raise the professionalism of the industry and to provide high quality financial advice to Singaporean. Ms Joanna Leng, CFP® Mr Ron Miura, CFP® Ms Irene Yee, CFP® Mr Tan Hwee Heng, CFP® Mr Calvin Bok, CFP®

Financial Planning Association of Singapore (UEN: S99SS0008L)

112 Robinson Road #07-02, Sinagpore 068902 Tel: (65) 6372 1030 Fax: (65) 6372 0121 Email: admin@fpas.org.sg Website: www.fpas.org.sg | www.FPA.sg

CFP®, CERTIFIED FINANCIAL PLANNER™ and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Financial Planning Association of Singapore is the marks licensing authority for the CFP marks in Singapore, through agreement with FPSB. AFP , AWP , ASSOCIATE FINANCIAL PLANNER and ASSOCIATE WEALTH PLANNER are registered certification marks of the Financial Planning Association of Singapore. MCI (P) 013/01/2020 CM CM

President’s Message Alfred Chia, CFP®

This is going to be an unforgettable year for many due to the outbreak of Covid-19.

It had created fear, panic, serious financial disruption and even death. The disease doesn’t discriminate nationality as it spread globally and wreaking havoc. In times of economic crisis, many businesses will be affected which will lead to job loss. Many people will be struggling with financial crisis. We are privileged where NTUC partner with us to run complimentary financial planning workshops for union members. We valued such opportunities to contribute back to the society in such uncertain time. I hope more of our members will step forward and join us to support such good cause.

Financial Planning Standards Board Ltd. (FPSB) reported another year of growth for the global CFP certification program in 2019, as the total number of CFP professionals worldwide rose to 188,104. This reflect the growing demand of quality and professional financial advisory services as a global trend.

This is also our 3rd year in organizing Financial Planner Awards 2020. Such Awards encourage and recognize Financial Practitioners to produce quality financial planning reports. We have received more entries than previous year with higher standards. They are from the Banking, Insurance, Financial Advisory firms and tertiary students.

Congratulations to all the finalists! On behalf of FPAS, I would like to extendour gratitude to the esteemed panel of judges who have contributed their precious timesand tirelessly reviewed the submissions and interviewsthe finalists! I also like to commend the efforts of the Secretariat led by Samantha in organizing FPA2020! In view of the COVID-19 situation, the awards recognition had been postponed to 21st August 2020.

Tough times don’t last but Tough People Do! In fact, tough times also bring out thegreatest of humanity, love, compassion, and care for each other. The dedication offrontline personnel from cleaners to healthcare professionals win over the respect and gratitude of a Nation! The spirit of SGUnited will truly make this an unforgettable year!

Chief Editor’s Message Yash Mishra, CFP®

Work, Wellbeing, Wealth in the backdrop of a Global Pandemic – Covid 19 and financial market turbulence - the sangfroid mantra of the 21st century seems currently on halt and is rapidly being recalibrated. Technology helps tremendously to set up remote work locations. Given the rapidly evolving contagion of Covid – 19 global pandemic.

The ageing of populations worldwide has had national governments rethink their economic policies to stave of economic decline. The underlying principles are sound – extend the working life of the healthier and long lived individuals, exercise prudence and reduce the burden on fiscal and social support systems. There is also the challenge of rising a medical costs. Rising longevity brings with it the challenge of getting good medical care in your golden years. We address this in the article – who will pay your medical bills”.

Singapore faces challenges on each of these fronts – economic growth can be limited by a small population size and talent pool. It needs to find ways to care for an increasing pool of low income elderly. This year’s budget takes a look at all the measures taken in "Singapore Budget 2020".

The fundamental issues we need to address as practitioners and help clients understand are what causes over consumption and hinders people from saving? Beyond the policy makers, we as individuals need to take responsibility for retirement financing. To help you understand the issues we take a longterm view with the need for a “Robust Financial Plan". We give you an insight into the estate planning aspect of Singapore property.

Creating robust investment portfolios in extremely volatile markets requires understanding and we discuss that in the article “Systematic Asset Allocation and Diversification “into what are some of the essential and common characteristics of investment portfolios. We also give insights into how “How Gold has been traditionally used as hedge in investment portfolios in “Gold & its place in investment portfolios’. As a global trend there is increasing focus on climate, responsible consumption, environment, food security, inclusion and other Sustainable development goals as laid out by United Nations. We try and understand the trend in the article “Sustainable Investing — The New Lens”

Our Book Review Section, picks on the Nobel prize winner for Economics 2019, Dr Abhijit Banerjee & Esther Duflo title “Poor Economics” that raises our awareness of the economic models for the bottom of the pyramid as income inequality rises. Meanwhile, don’t succumb to panic, stay informed on the global pandemic and financial market turbulence and as the coordinated containment and monetary and fiscal measures work their way through the system, this storm shall pass.