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Retirement Planning for Millennials

Robo Advisor & You!

Digital Wealth Management: Do robo-advisors replace financial advisors?

FPAS Magazine November 2021 Issue

FPAS' Vision FPAS envisions 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 decisions. • 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 Singaporeans.

Financial Planning Association of Singapore UEN: S99SS0008L GST Registration No.: M90005984L 50 Raffles Place #37-00, Singapore 048623 Tel: (65) 6829 7166 Email: admin@fpas.org.sg Website: www.fpas.org.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. AFPCM, AWPCM, ASSOCIATE FINANCIAL PLANNER and ASSOCIATE WEALTH PLANNER are registered certification marks of the Financial Planning Association of Singapore. MCI (P) 013/01/2020

Editorial Board CHAIR Ms. Lisa Lee, CFP®

MEMBERS / CONTRIBUTORS Ms. Yash Mishra, CFP® Ms. Kee Siew Poh, CFP® CHIEF EDITOR Mr. Adrian Tong, CFP® Ms. Yash Mishra, CFP® Ms. Lisa Lee, CFP® Ms. Joanna Leng, CFP® Mr. Ron Miura, CFP® Mr. Tan Hwee Heng, CFP® Mr. Lawrence Chow, CFP® Ms. Irene Yee, CFP®

GUEST WRITERS Ms. Lorna Tan, DBS Bank Ms. Lena Teng, CFP® MoneyOwl Certified Financial Planner Board of Standards (CFP Board) Mr. Ben Marshan, CFP® Financial Planning Association of Australia (FPA) FPAS SECRETARIAT Production of the Magazine. Please email admin@fpas.org.sg for advertisment / article contribution.

Contents 4 President’s Message Chief Editor’s Message

24 How do I balance between my retirement and children’s education needs? 26 Cybersecurity and the Financial Planning Profession: Keeping Data Safe and Protecting Your Clients

6 Retirement Planning for Millennials

35 Project We Care: Adopt-A-Family 36 Events calendar (2021 - 2022)

37 FPAS 5th Annual World Financial Planning Day

8 Robo Advisor & You! 12 Investing in Cryptocurrencies 101 28 A FinTech Snapshot in 2021

14 Dawn of the Digital Era 16 Digital Assets and Your Estate Planning

32 Book Review: Values: Building a Better World for All by Mark Carney 33 FPAS — People’s Association Financial Literacy Talks

20 Digital Wealth Management: Do robo-advisors replace financial advisers?

22 21st Century Financial Advisory in the Post-Covid Era

38 KOLs: the way to go to scale your business

40 Financial Planning Standards Board: Future of Financial Planning Practice Survey

34 CPF & Your Retirement Forum 2021: “The Gig Economy is there hope for Retirement?”

President’s Message by Roseline Fong, CFP® Dear Members, As you might have seen from FPAS’ announcement, a newly appointed Executive Council was formed at FPAS AGM on 27th April 2021. On behalf of the new Exco, I would like to express our appreciation to our Immediate Past President, Mr. Alfred Chia, and past Exco members, Mr. Sim Boon Wah, Ms. Irene Ng, Mr. Chew Hock Beng, and Mr. Jim Koh for their valuable contributions. As we take over this baton of responsibility, the Executive Council remains committed to FPAS’s vision of raising the professional standards of the industry through education and a shared code of ethics. With your continued support and partnership, we hope to add value to society in a greater impact together. Very soon, 2021 will be over. It will go down in history as the year where the battle between the COVID vaccinations vs the COVID variants of Alpha, Beta, Gamma, Delta etc. took center stage while humanity attempts to re-emerge from the pandemic. In fragile times like these where we are trying to make sense of the unpredictability in the present and adapt to the new normal; long-term financial goals such as retirement planning often take a back burner. Retirement planning has been heavily emphasized by the Singapore government over the last few years and it is not surprising given that Singapore is currently one of the most rapidly aging societies in Asia. In another 30 years’ time, the elderly (>65 years old) will be 1 out of every 3 of the population. In alignment with the same message, FPAS participated in the “CPF and Your Retirement Forum 2021” organized by PreceptsGroup International to deep dive into the importance of retirement planning, especially for the self-employed with the development of the gig economy in recent times. We also had four of our CFP members (Mr. Alfred Chia, Mr. Christopher Tan, Ms. Lena Ng, and Mr. Michael Borchert) sharing their expertise as well. Following that, FPAS organized the 5th World Financial Planning Day (WFPD2021) on 6 Oct - an annual global event led by Financial Planning Standards Board Ltd. (FPSB) and supported by 27 CFP territories globally. There were two dynamic fireside chats with panelists from Banking, Insurance, and Financial Advisory sectors. Other than a new normal of vaccinations and variant strains, our world is now also infused with tech lingo such as FinTech, Digitalization, Robo advisors, Blockchain, Cryptocurrencies, DeFi, AI, loT, NFT, etc. How can advisors embrace virtual financial advisory to stay relevant and tap on the opportunities available? Big thank you to all our panelists for their insightful sharing! No worries if you have missed it, you can still watch it on FPAS website.

FPAS was also invited to celebrate with the Monetary Authority of Singapore (MAS) on their 50th Anniversary. Singapore’s economic and financial developments over the years have been instrumental in her evolving into a vibrant international financial center today, and we are very blessed to be in this part of the world to enjoy this success. A Confucius maxim “修身齐家治国平天下” reminds us that the personal financial decisions that an individual makes not only has an impact on that person’s family, but also the community, which in turn affects a nation. It is for this reason that FPAS has been and will continue collaborating with organizations like CPF Board, NTUC U Associates, People’s Association, and MoneySense to support pro-bono financial literacy workshops for the general public. Our heartfelt appreciation to all our CFP speakers and volunteers who have been faithfully supporting these events. This year, we decided to postpone the 4th Financial Planner Awards to 2022 to give our Secretariat, led by Samantha, a breather. They have been working tirelessly since 2020 to adjust and adapt to the fluid changes caused by COVID while balancing the core responsibilities and operations of FPAS; including improvising ways to increase efficiency. Under Samantha’s leadership, we are proud to announce that there has been an increase in the number of AFPs, AWPs, and CFPs in Singapore. This is consistent with the statistics from the Financial Planning Standards Board Ltd. (FPSB) on the growth of the CFP certification program globally as well. As of the end of 2020, the total number of CFP professionals worldwide reached a high of 192,762, reflecting the growing global demand for qualified and competent financial advisory services. I like to thank Samantha and her team for their valuable support and commitment during this pandemic. Great work! As COVID19 becomes endemic with Singapore opening up its borders and travel becoming permissible again, I hope that more jobs and businesses will gradually be restored. We may be in the same storm, but we are not in the same boat… Let us be mindful of each other’s mental health as well as we go through this challenging experience together and overcome it with empathy, collaboration, and above all, humanity. Last but not least, we like to extend our gratitude to our members for all your support, participation, and contributions. May you be in the best of health in body, mind, soul, and spirit! Happy and safe holidays and wishing you and your family in advance a Blessed Christmas and Fulfilling New Year! PS: Do stay tuned and look out for the re-launch of the Financial Planner Awards in 2022.

Chief Editor’s Message by Yash Mishra, CFP® As we draw closer to the end of 2021, we are learning to ‘Live with Covid-19 as endemic’. We have emerged stronger as a community. Singapore’s economy has shown resilient growth with +6.5% and that has led to the central bank tightening its policy in a surprise move and growth is anticipated to likely remain above trend in the quarters ahead. The expectation of core inflation – which excludes accommodation and private transport – is set to rise between 1% to 2% next year in the medium term. Apart from a rapid resurgence of the virus globally or a setback in the pace of the economic reopening, the output should return to its potential in 2022. Re-opening the economy has been facilitated in many sectors by the adoption of rapid digitalization, and the finance industry has been continuously transforming itself to keep pace with the rise of FinTech, RegTech, digital banks, and digital payment gateways including digital currencies. In this edition of the e-magazine, we continue to shine the spotlight on various aspects of your personal finances that will need to adapt to the march of digitization. We discuss estate planning and the impact on digital assets, explore the difference between Central Bank Digital Currencies (CBDCs) and Cryptocurrencies. We get the viewpoints of Digital FinTech platforms that allow both consumers and practitioners to map out their life goals and manage their investment portfolios all using technology interfaces. Building resilience flows through to the framework that we discuss in the retirement planning article. As the pandemic has reset our focus, sustainability and climate continue to get the most world’s attention from policymakers, scientists, and central bankers. We review in our book section Mark Carney’s book – “Value (S): Building a Better World for All“ as policy makers and companies need to rethink the economic growth model that needs to consider the ESG impact beyond mere profits. It needs to be profits with a good purpose. As we slowly open up to international travel and exploration again, we need to remind ourselves that “Knowledge is treasure, but practice is the key to it”

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Retirement Planning for Millennials by Lorna Tan, Head of Financial Planning Literacy Consumer Banking Group, DBS Bank

Retirement may seem very distant and daunting for millennials in their late 20s and 30s who typically have more pressing goals like annual vacations, getting married, and buying their first home. But ask any retiree how prepared they are for their golden years, and most would likely wish that they could give their younger selves financial advice to plan simultaneously for their long-term goals alongside their shortand medium-term objectives. Don’t blame the coffee and avocado sandwiches

cumulative effect on your nest egg.

Much has been said about cutting back on coffeedrinking and avocado toast-eating habits. The idea is to reduce discretionary spending so as to build savings and investments, to achieve a comfortable retirement.

For instance, your home is likely a big-ticket item that requires a huge financial outlay. So, opting for a smaller affordable home can mean that you can contribute more savings to your war chest to invest for the future.

However, focusing on your $7-lattes might divert muchneeded attention away from the bigger decisions. This is because the smaller transactions would only improve your financial situation marginally and would not secure your retirement on their own. Other small financial decisions include reducing the incidence of fine-dining or doing selfcare instead of buying a spa package.

Statistics indicate that in Singapore, the average homeowner aged 50 & above has about 60% of their wealth locked in their property. So, avoid the undesirable situation of spending so much on your home that you are too stretched to fund other lifestyle expenses and your golden years.

So, while small expenses do add up over time, success in financial planning usually comes from making suitable big financial decisions compared with focusing solely on small decisions. This is because bigger expenses impact your savings efforts more and they will have a more significant

Having a holistic financial plan (you can set up one with the digital tool DBS NAV Planner) will give greater clarity on the inter-relatedness in your decision-making so you can take advantage of big and small transactions to fulfill your objectives. You can still have your avocado toast with a latte and eat it!

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Here are 5 retirement planning tips for millennials. 1. Pay yourself first Your income (from working) is a very important component. The higher it is, the faster you can save to build emergency cash of at least 3 to 6 months, before investing your surplus cash flows to make your money work harder for you. The ‘pay yourself first’ approach helps you save a predetermined amount once your monthly paycheck comes before you start spending it. A related strategy is to set up a realistic budget with spending targets to curb unnecessary spending to grow your savings. Another form of forced savings is your Central Provident Fund (CPF) accounts, as a certain portion of your pay is contributed there. Understanding how to maximize CPF schemes and leverage the interest rates go a long way in retirement planning, for example by making the maximum contribution through topups.

as by apportioning part of the proceeds to be paid out in a lump sum upon retirement with the balance as regular income payouts. The flexibility means that millennials can start with smaller amounts and increase the premiums as their financial situation improves over time. By doing so, it helps to address the “fear” of committing to saving for the “stranger” of their future selves. 5. Commitment to long-term investing It is never too early to set up a retirement plan. The earlier you start, the longer the time horizon is for your funds to compound and grow. It helps to give you a long-term investing perspective and a better understanding of your risk profile and needs, while you are working towards short and mid-term goals like settling down and finding the children’s education. At all times, do not lose sight of your long-term financial needs. In addition, knowing that you have time in the market increases your confidence that you should be able to ride out the volatility in the investing environment. You can ignore the noise in the market and minimize adverse knee-jerk reactions.

2. Protection Having adequate insurance cover when you are younger ensures insurability, affordability of premiums and helps to cushion the cost of treatment without having to dig into your savings. While you do not need to have insurance for everything, it is prudent to figure out the things that could set back your financial situation or derail your financial goals. To help you decide what insurance you need, make a list of the risks or events that concern you. Assess the likelihood of the event happening and the financial loss you may suffer if so. Consider how you would cover the financial loss. For example, large hospital bills or a loss of income due to the inability to work while recuperating from a critical illness could set back your retirement goals if you don’t have savings or insurance to cover them. 3. Building passive income flows When you retire, the focus shifts from accumulating wealth to that of decumulation, which is the conversion of your assets to income streams to fund your expenses. Yet, most people do not know how to do this optimally. As such, it is important to consider having a sound decumulation plan and start building passive income flows to fund your future retirement needs and wants. Examples of these income sources include CPF LIFE pay-outs, Supplementary Retirement Scheme withdrawals, bond coupon payments, rental, insurance, stock dividends, investments, and so on. 4. Retirement income insurance One decumulation solution is receiving pay-outs from a retirement income insurance plan. According to the Life Insurance Association, this solution has grown in popularity among Singaporeans as an avenue to supplement their retirement income. It typically offers a combination of fixed and variable pay-outs over a specified time or for life. The premium payment may be paid in one lump sum or over a limited period. With Singaporeans living longer, some insurers are offering policyholders increasing flexibility in their retirement income insurance policies (such as Manulife RetireSavvy – a fully digital retirement plan). This includes the flexibility to do premium top-ups, defer the retirement age, adjust the income pay-out period, and customize their retirement pay-out allocation such

Lorna Tan is Head of Financial Planning Literacy at DBS Bank and author of Money Smart-Own Your Financial Destiny.

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Robo Advisor & You! by Tan Hwee Heng, CFP®

As fintech becomes a buzzword, a new concept has developed and is creating a strong presence in Singapore. We have been seeing several Robo Advisor platform advertisements on our social media, on physical advertisements, and hearing them on the radio. In this article, we highlight the point of view of two disruptive technology platforms Endowus and Syfe who provide their vision and motivation for scaling successful technology start-ups that help provide a rapidly scaling to the consumer and practitioners alike. Endowus is Singapore-based and is a fee-only wealth platform and digital advisor providing solutions for cash, CPF, and SRS and was awarded Fintech Innovation in Asset Management Singapore 2021. Syfe is a Singapore-based CMS licensed fully managed quant algorithm-driven portfolio service with no minimum entry using diversified ETFs. As we explore the digitization of the financial planning landscape, we interviewed these award-winning fintech companies to share their views.

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Guest Interviewees:

Mr. Samuel Rhee (Sam) Chairman and Chief Investment Officer of Endowus

(Hwee Heng) HH: Good morning, everyone! What are the differences between a Robo Advisor experience vs a pure self-help investment platform that has been prevailing since dot-com times? (Ritesh) R: In a pure self-help platform, you would have to make decisions on your own on what and when to buy and would have to manage your portfolio yourself. This requires time, effort as well as a considerable amount of experience and knowledge about investing, which further increases the barrier to investing. (Samuel) S: A Robo Advisor, or a digital wealth platform, as we prefer to call ourselves, is all about making investing easier and more seamless for people who lead busy lives. But it has to be a platform that they can trust and deliver on their promises. Robo Advisor platforms can help clients by advising on their investment portfolios online and providing automatic rebalancing to optimize returns. For example, we curate and manage a risk-appropriate portfolio for our clients. This helps the clients outsource the most complex and time-consuming part of financial planning so they can focus on their daily life and their vocations. R: What truly differentiates Syfe is that we combine the best of technology to make it easy, seamless, affordable, with a team of wealth experts who are there to guide you about your wealth management journey because we know that the human touch is what our users need. And that is, despite the common name of a Robo Advisor, a very different offering to just being a ‘robot’ platform. S: Indeed, let’s compare traditional self-help investment platforms where there is no advice, there is not enough choice, or sometimes too much choice. Individuals have to choose, manage, track their investments themselves. In this way, the effort can make it more costly to do it yourself, as Ritesh mentioned. HH: Is a Robo Advisor then just a “lower fees” value proposition? S: Certainly, lower fees are a key value proposition, however, it is one of many. For example, if you are just cheap but have bad performance then consumers would leave your platform very quickly.

Mr. Ritesh Ganeriwal (Ritesh) Head of Investment Advisory, Syfe

Digital wealth platforms propagate investment and financial advice in a cost-efficient manner. The ability to deliver a convenient and improved user experience online or on a mobile app is another key strength as well. A digital platform allows clients to invest at their convenience and comfort. R: With digital wealth management platforms, we are completely upending the status quo by introducing highquality, institutional-level investing solutions, and making them accessible and affordable for everyone. It’s not just about fees. We believe in an investing journey that is effortless, optimized, and personalized. By effortless, we mean that investing should be easy and at your fingertips. We allow for full customization of portfolios to one’s personal life stage and goals. Such a level of customization was previously only available to high-net-worth clients and through technology, we are making it available to anyone. S: We work with fund managers to bring in SGD-hedged, institutional share class fund products that require a minimum investment of a million dollars in the private banks. This democratization of access to investment products can lead to better outcomes for our clients. S & R: Value Proposition of Robo Advisors (Digital Wealth Platforms)

✔ Lower Fees ✔ Financial advice in cost efficient manner ✔ Improved user experience online ✔ High quality, institutional level investing solutions ✔ Personalized Investing Journey ✔

• Customization of personal portfolios based on life stage and goals Democratization of access to institutional share class fund products

HH: In Singapore, like many Asian societies, Real Estate is still the first love. How can Robo Advisor platforms help to diversify the asset classes of Singaporeans? S: There is a massive home bias with investments in Singapore assets including real estate being heavily concentrated in Singapore and not well diversified. Digital wealth platforms like Endowus allow access to globally diversified portfolios across geography, asset class, and currency, at small denominations to help diversify portfolios.

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What Singaporeans need is a way for them to build up their investment portfolios, so they can have less concentration risk in real estate as an asset class and also in particular Singapore as a geographic exposure. R: Indeed, with the high ownership rates of 87.9% (2020) in Singapore, buying a home is an essential rite of passage or life goal for many people in Singapore. We believe we can build on that experience by introducing REITs products. This is why we have established a special partnership with SGX to develop our REIT+ product. Because the investment into a REIT+ portfolio doesn’t require a high upfront investment like physical property, this also means that investors can use the rest of their money to truly diversify into other investment assets without committing a large amount of the capital into property alone. HH: The government provides a strong safety net of at least 2.5% to 6% in CPF monies, when should a person consider investing through a Robo Advisor platform? R: At Syfe, we are of the view that the CPF is a safe place to keep your money and we would think of it as the “bond component” of your overall asset allocation strategy. We think that a more serious problem with investors in Singapore lies with the amount of idle cash and savings that is sitting in the bank, which is currently experiencing a negative real interest rate. As such, we would recommend that you first invest your cash to make it work harder for you, before investing your CPF money. S: While the government provides an attractive riskfree 4-6% for Special accounts, the Ordinary Account at 2.5% is good if you are older and nearing or even past retirement. When you are younger you must do much better than 2.5%, which is barely above inflation and will never really help you to build wealth. In 2020, 35.4% of eligible CPF members fell short of the CPF FRS, placing them at higher risk of retirement inadequacy. For employed CPF members, they should look at longer-term financial planning with their CPF and consider investing their CPF OA monies. HH: Among the four challenges I would suggest here, how would you rank the biggest challenge that a Robo Advisor platform has with Singaporean investors? Biggest Challenge Ritesh

Samuel 1) Lack of Financial Literacy 2) Love for Real Estate

1) Lack of positive experience with investing in liquid assets

3) Lack of positive experience with investing in liquid assets

2) Lack of Financial Literacy

4) Crypto currencies

3) Love for Real Estate

Least Challenge

HH: Do you encounter any other challenges? R: Right now, the preferred mode for many investors is to leave their savings in the bank and do nothing with it. Therefore, the biggest challenge is to be able to convince users of the importance of making their money work harder for them and to seize the opportunities available to them when it comes to investing. S: I think the lack of transparency and alignment to the best interest of the client is sorely lacking from many players and that includes not only incumbent financial institutions like banks, brokers, and insurance companies. Even the term Robo Advisor in some ways is very misleading, as many retail investors think there is a robot that automatically does the investing, and it will beat the market performance. HH: What do you think an investor should consider when choosing a Robo Advisor platform? S: The investment approach of the Robo Advisor and the type of investment instruments that they use are important. The client should consider whether they are passive & strategic investors or active & tactical. Many Robo Advisors are actively managing their clients’ monies, frequently changing their investment allocations based on their algorithm and views. Research has shown that this form of tactical allocation of investment often underperforms over the long term. R: Another point to add is one should use exchangetraded funds as the base securities to formulate their portfolios. They are a cost-effective and efficient investment because they passively track the index - low management fees, and studies have shown that actively managed funds almost always underperform passive investments in the long run. S: On this, investors need to also take into consideration the use of US-domiciled ETFs for their investment portfolio. While these funds are liquid and low-cost, the estate tax and dividend withholding tax implications may lead to significant tax losses as well as result in larger than expected FX conversion costs. R: Although US-domiciled ETFs may have a higher tax implication, the higher TER (total expense ratio) and other trading costs associated with unit trusts outweigh any potential tax savings. Another point to note is that the impact of divided withholding tax very much depends on the dividend yield of the investment. Most investors invest in US-listed assets for capital gains not dividends. Notably, Singaporeans are not taxed on US capital gains. (HH’s post-interview note:

✔ Asset Allocation refers to the percentage of different classes of assets within a portfolio. ✔ ETFs are instruments used to hold such assets. Mutual Funds or Unit Trusts are the other types of instruments that can be used to hold the assets.)

HH: Are Robo Advisor platforms only suitable for small or retail portfolios? Will the HNW and UHNW find such a platform useful when they have many investment professionals servicing them?

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S: The HNW and UHNW often face the same challenges of misaligned advice, having to pay high sales charges and fees for their portfolios. Digital wealth platforms can offer effective investment products and services, at a lower cost to them than the private banks, but only a few Robo Advisor platforms have the level of sophistication and a team with a wealth of experience in the financial industry to be able to match the type of investment options and a full suite of services that a private bank can offer, so it’s important to always seek out the ones that have broad and diverse offerings of services like a private bank. R: We have a growing pool of HNW, UHNW, and family offices coming to us for their investment needs. The value of being able to access institutional-grade investment solutions at a fraction of the cost of traditional platforms is compelling to them. Robo Advisor platforms, like ours, can have a world-class advisory team, backed by a team of experts with decades of experience in managing private banking, family office, and other institutional relationships. HH: Thank you both for your precious time! It is indeed an insightful session.

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Investing in Cryptocurrencies101 by Adrian Tong, CFP®

As Cryptocurrencies get wider acceptance with the US regulator Securities Exchange Commission (SEC) set to approve the first Bitcoin ETF, we look at the basics of Digital Cryptocurrencies. Today, let us take a look at how we can invest in these currencies, and what are the pros and cons of different methods.

Central Bank Digital Currencies As the name suggests those will be e-currencies developed by the respective central bank and will be regulated no differently than the current paper version or coins. The circulation is regulated by the central banks in line with M1, M2, and M3 of the money supply so that the fiscal and monetary policies are managed. They are currently under development and in the sandbox phase with China being ahead of all central banks and have trialed about 300m yuan through controlled release for circulation in the JD.com IPO. There is no way to invest in them yet because most of them are still in the development stage, the few who have been released are tied to the normal fiat currencies. From an investment perspective, for intention and purpose, CBDC is of no different to the current version of fiat currency i.e. SGD, USD, GBP, or any other nation-state fiat currency. Cryptocurrency: Routes to market This can be done by firstly choosing which currency you want to invest in, going to get the digital wallet that supports said currency, and buying it. The benefits of such an investment are that it is simple, and if you choose the right digital wallet, you can invest in multiple different currencies. The problem of direct investments in currencies mainly lies in the fact that choosing the right currencies and the right times to go in or out might be a challenge. Crypto Mining: While the different currencies are mined differently, most of them now require you to purchase high end equipment that might be costly, the most popular ones like Bitcoin, Litecoin and Ethereum mainly require powerful GPUs, while some new ones like Chia require big SSD Drives, although Chia like to call their system farming and not mining. This is usually done by either institution, investors, or those more technologically inclined. The reason why people chose to do this is that it has the potential of becoming a passive income, as once you purchase the GPUs or SSDs, you can just let the computer do the job of getting more coins. However, the disadvantages mainly lie in the fact that mining costs electricity, and its profitability relies on how much the cost per watt of power in your country is. Also, mining greatly reduced the lifespan of the equipment they used, and that itself is a cost, in the long run, since there is always some luck involved in obtaining new coins, due to the way the mining process works, the money you spend in equipment and electrical bills might not justify the value of the coins earned. The greatest risk of becoming a miner is that such practices also cause shortages, and drive-up prices of GPUs and SSDs, and if you make your identity as a miner known, gamers might be inclined to commit random acts of violence against you. I am not joking, many gamers’ forums online are blaming the increased price and lack of stock of GPUs on Bitcoin miners and SSDs on Chia farmers, most of them wishing the worst fate possible for all miners. But you do you.

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However, be in Direct Investment or Mining, their common issue lies in the fact that they are unregulated. This means you are entirely on your own when it comes to dealing with the currencies, if you encounter any unexpected technical issues, or get scammed, you might not find any venue of seeking help. What are some other Crypto related financial instruments? The first is using Cryptocurrency ETP (Exchanged Traded Products). While they can be labeled as Trusts, Notes, or ETFs, the underlying concept is, they are financial products that are usually traded over an Exchange. The advantage of using such instruments is that investors don’t have to bother with the security procedures associated with holding cryptocurrencies, there is also no need to deal with cryptocurrency exchanges in the process as investors can just buy and sell the ETPs through traditional exchanges and markets. They also have the benefits of being more transparent and have the benefit of shorting if one thinks the price of any digital currency will drop instead of rising. However, the problem with this is that it is not easy to find such products, as firms looking to launch bitcoin ETFs have run into problems with regulatory agencies, as many financial regulators felt that such currencies are traded on largely unregulated exchanges, leaving them susceptible to fraud and manipulation. Closely related to Cryptocurrency ETPs would be Cryptocurrency Index Funds, these products are linked to a basket of various major Cryptocurrencies. While they might not have as high a potential return of single currency ETPs, they have the advantage of lower risk, as the rise and fall of any one individual currency will not affect the entire fund. The biggest problem with Crypto Index Funds would be that they are even harder to find compared to single currency ETPs. For both ETPs and Crypto Index Funds, one should consult their local Securities Dealers to know more about the availability of such products.

such as Financial Institutions that are involved in the management of ETPs. Or in GPU and SSD makers such as AMD, Nvidia, Imation, SanDisk, and TSMC. Since the rise of Crypto Currencies might lead to miners buying more of their products, and thus increasing their profit. However, for most of them, Cryptocurrency is just a small part of their business and might not have as big a correlation as direct investments. At the end of the day, when one wants to invest in Cryptocurrencies, regardless of which instruments they want to use, one must be aware of the risk factor of such products. Unlike equities and bonds, they are not linked to a profit-making company, and unlike precious metals and other commodities, they have no real physical uses. Such products are virtual assets which value lies totally on the perceptions of people who are trading them. While Bitcoin is commonly referred to as “digital gold”, it is more like a “digital limited edition trading card”, due to the fact that it has only perceived value and no intrinsic value, it is a high-risk investment that can rise 100% but just as well drops 50% in a matter of minutes. And which fair value is hard to determine, one should always look at the market and make responsible decisions, it would be unwise to put one’s entire life savings into these investments, one should consult a CFP on what is a reasonable allocation into such virtual asset, based on one’s risk appetite and lose adversely.

Naturally, both Crypto ETPs and Crypto Index funds have fund managers managing the products, and thus will have a layer of management fee cost on top of the underlying digital currencies, which will likely lower returns. There are also Crypto Derivatives such as Bitcoin futures, which allows using leverage to invest in the currency of their choice, however, this is adding even more risk to an already high-risk product, one needs to ask themselves if they really understand the risk involved, as well as the volatility nature of the products. The market for such derivatives is also smaller compared to that of the equity market, and thus one might not be able to trade the derivatives at their desired price or time. Another more indirect solution would be to invest in the shares of companies involved in Cryptocurrencies,

As with any investment and more so in an emerging digital technology that has the characteristics of payment gateways and the ability to mimic currency features there is a real case for understanding and building out knowledge around it before investing - caveat emptor i.e. Buyer beware applies to all asset classes and more so for emerging technology.

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Dawn of the Digital Era by Joanna Leng, CFP®

In our current world with technology, distances get shorter, things move quicker. With a conscious effort, many of our old school documents are now replaced digitally. With Covid happening, many financial services evolved as well, moving from wet signature to digital signature. Consumers are also now spoilt for choices with many online platforms to analyze their finances from the lowest mortgage interest rate of the month to your retirement projections, investment choices from a unit trust, stocks to alternatives. Even insurance claims can with some companies are beginning to move digitally as well. While information is accessible and security is always enhancing, there are still people falling for online scams. Thus, we also need to be mindful of doing our own due diligence. Here, I list down some of the ways you can incorporate digitalization in your personal financial planning. If you are shopping for the lowest rate, online websites like Moneysmart and Seedly can be good resources. While leaving information aside, which sometimes can be quite overwhelming, let us focus on the numbers. Some websites have their own online loan calculator, to give you a better idea of the max loan quantum you can get based on your income.

ARTICLE The simplicity it brings also means omitting out the important details, like expenses and other obligations. Instead of typing in your salary to get the max quantum, you may say you want to look at a property where your current CPF-OA can cover the monthly payments. Tweak the income column till the installment works out to be the same as your contribution, and you will know the price and tenor of the property that is within your budget. The needed down payment could come from cash or your balances in your CPF-OA.

cash to top up your investment when the time comes. Have a list, yes! As traditional, it seems, even in a digital world, a list is also essential. Why? Using myself as an example, I like to DIY things during my free time, and that would mean me subscribing to online magazines, software designing tools, stock images, etc. I have a list that is password protected where I keep track of the software I own, their license key, and login credentials. This way it helps me in 2 ways; one is I do not lose my credentials, and secondly, I will not pay for another similar service that I already have. There is also a “Finance List”, and that includes the information of my online trading accounts or virtual wallets, and not forgetting to include online shopping wallets where I tend to top up cash into the platform’s e-wallet and spend them later. The “Finance List” is used as an added document with my Will, as an annex, therefore my executor will be able to consolidate my accounts for me that can form part of my estate. Else, the idea of investing in these online platforms will be futile if it was left unknown to anyone. In the list, I will only be putting down the sites that I have those accounts, but not the credentials, which I will explain next. Electronic statements are more common now, and often I do not log in and read them as they would be things like insurance renewal letters, bank statements, card statements, loan statements, and the list does on… So how do we keep track of all these? One good practice is to download a copy of the important documents, like your full insurance document, the set where you sign that includes all the policy details. I will also set up a cloud account to store all the important documents with the “Finance List” mentioned previously and include the login credentials in the list to be accessed upon my demise. As passwords change all the time, it is not realistic to keep updating the hardcopy list, hence the passwords will be done on the online list. Precious family photos could also be stored in the cloud account if you want your family to have them. As an additional note. avoid using the same password for every online platform. You do not want an angry ex or a hacker to be able to have access to all your online platforms should they manage to get into one.

Online investment platforms are everywhere and my strongest advice to you is to stick to a platform that has been around for a while. Not some new start-up or one that gives you a high cash kickback of some sort. While promotions and discounts are great, your investment capital is of utmost importance. Your hard-earned money deserves to be invested with a reputable firm, and no number of discounts or kickbacks is worth risking. The good thing about such an online investment platform is, it makes it accessible to everyone. The pros are many: some have zero paperwork, are accessible 24/7, have low fees, and are entry-level. The cons are they do not come with advice, and that is okay when I am not investing 100% of my available funds.

While we keep up with the ever-evolving world and enjoy the benefits it brings, we also need to keep our knowledge and habits up to speed, by understanding our assets are no longer physical assets but also virtual ones, by learning to have the habit of keeping your digital data safe and balance it out with being accessible and made known upon our demise. We learn and grow together with the world, and so should our own personal practices.

How I incorporate both traditional and digital is, I have my cash flow statement done by, and after setting aside a fixed monthly amount, I am sometimes left with spare cash at the end of the month. The amount is too insignificant to diversify into a portfolio and irregular to form part of my monthly set aside. I then diversify into things like stocks or mutual funds using these ad-hoc amounts and the overall experience has been great if you do it sensibly. I invest in something riskier than I normally would, yet it is only using the spare cash I have left every month, I am not too worried about the overall performance when it is in the red, alternatively, you can also invest in something safer and use it as a “bank account” to build up another lump sum of

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Digital Assets and Your Estate Planning by Irene Yee, CFP®

Life can be unpredictable. It is therefore important for us to plan and prepare for untoward life events such as incapacities and death. Estate planning is not just the distribution of one’s assets when one passes on. It is also about planning for untoward mental incapacities such as dementia, Alzheimer’s, and coma. In Singapore, advanced planning for mental incapacity is possible with the LPA. For specific instructions involving the management of digital assets on one’s mental incapacity, the LPA Form 2 is the relevant document. What are Digital Assets? A digital asset is any electronic device, account, or password-protected website. It can include your mobile phone, especially the photos and text messages inside it. Other common digital assets are email accounts, payment accounts (e.g., GrabPay), financial accounts (e.g., bank and brokerage accounts) and cryptocurrencies. Digital assets can also include email accounts and accounts related to your interests, such as iTunes. Various social media accounts are also digital assets. These include Instagram entries and photos. Any website or blog created using a third party’s services and hosting facilities is a digital asset. Your personal computer, if it is password-protected, is also a digital asset.

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Why have an estate plan that includes Digital Assets? It is essential to ensure someone manages your physical assets after you are not around or unable to do so; this is also true for your digital assets. You need to include digital assets in your estate plan to be sure someone can access and manage them after you are unable or not around to do so. If your estate plan doesn’t correctly account for digital assets, your Will or Trust beneficiaries may not be gain access to them. You may lose your family videos forever; your social media accounts may stay online long after you have passed, and your heirs may not receive all the money that you would have liked to leave them. When you include digital assets in your estate planning, you not only make it easier for your executor and loved ones to manage your estate, but you will also protect your privacy, even after death. It is therefore vital to plan for your digital assets the same way you would any other valuable tangible asset.

Do this, instead of placing the information in the Will, since certain digital assets are potentially sensitive and personal. Once you pass on, your Will becomes a public document. When you keep such information in a sealed letter, together with your Will, you will maintain more privacy. Conclusion Digital asset ownership has increased significantly as more people spend more of their lives online and acquire digital assets. Yet many people are unaware of this change and impact on their own estate plans and have not considered in their estate planning. But you have now taken the step to learn and then plan how to better manage your digital assets during your mental incapacity and death. Including digital assets in your estate planning will minimise any potential mess or confusion regarding your digital assets if you have mental incapacity and when you pass on.

What are some of these estate planning strategies? Some possible ways to plan for digital assets in your estate planning 1) Create an inventory: a) Prepare a list of all your digital accounts, assets, automatic payment plans, and subscriptions The list should include the name, digital address, or another way to access it, and the access information such as username, password, and security questions. b) Include digital liabilities Examples include automatic payment plans, renewal programs, and other arrangements under which your bank account or credit card is automatically charged regularly. c) The inventory is essential Without the inventory, your executor and heirs will have a challenging time. Your executor may have to hire computer experts to crack passwords to computers and accounts. Or worse, your executor may not even know that your digital assets. 2) Decide what you want to get done and who should do it: a) If you want a family member (instead of the executor) to access your email accounts, specify this in your Will. You may wish only family members to handle social media accounts, such as LinkedIn. Note that the major digital providers have adopted policies that allow heirs some access to digital accounts. Although such guidelines are in place for Google, for example, your expressed intention in an estate document will override limitations in a provider’s service agreement. b) State your decisions in your Will or your Trust document. Instructions in your Will or living trust control who has access to your digital assets Note that some digital accounts are not assets. For example, when you purchase and download an e-book from Amazon’s Kindle service, you have only a personal-use license under its service agreement. You do not own the asset to be able to give it to someone. The rights are supposed to end with your passing. c) Keep details of digital assets in a sealed letter stored with your Will

GoalsMapper GoalsMapper is a financial planning software that allows the user to map their financial goals over the timeline and is a financial practitioner tool that can help you simulate the longer-term capital longevity modelling for a goals based approach to financial planning. Want to ride the fintech wave to success? Here’s what you need to know. There is no doubt that leveraging on fintech is crucial to success for your financial advisory practice in this day and age. But how do you sift through all the digital tools in the market to determine which ones best suit your needs?

From GoalsMapper’s pre-appointment Digital Fact Finder to help you save over 20 minutes in each appointment by gathering your clients’ information in advance to GM Planner with interactive charts and goals and scenarios projections for collaborative needs discovery to GM Brand to build your personal brand offline and online, with in-built financial widgets, to GM Connect for your customer relationship management platform, with portfoliobased segmentation, GoalsMapper is a one-stop solution to your fintech needs. This enables you to truly elevate your financial advisory practice with maximum efficiency through a consolidated platform.

Is it specially designed for the financial advisory industry?

Does it cater to different needs - whether an individual financial adviser or a whole financial advisory firm?

Financial advisers should focus on the highest value-add in their service - providing financial advice. Everything else that is administrative and, thus, not of high value, should be eliminated, outsourced, or made efficient with technology.

Being digitally enabled is no longer a “nice-tohave”. Increasingly, the consumers of today are digital natives used to the latest technology and apps. Hence, pen and paper or even sophisticated excel spreadsheets may no longer cut it.

There are plenty of digital tools available in the market. But are they tailored for financial advisory? For example, when it comes to CRM, there are CRM tools that can assist you when it comes to customer relationship management. But what sets GoalsMapper’s CRM solution GM Connect apart is that it is tailored for financial advisers.

In the past, the lack of investments in technology may be excused due to the high upfront costs and the lack of scale for some financial advisory firms, as well as the lack of options in the market. But in this day and age, collaboration and speed are key ingredients to get ahead. Hence, not everything needs to be built in-house.

GM Connect not only helps to transform customer relationship management processes through omni-channels and automates time-consuming workflows, but financial advisors can also segment their clients according to financial advisory specific criteria such as products currently owned, net worth and life stages.

While some fintech firms focus exclusively on either individuals or corporations, GoalsMapper’s users range from individual financial advisers looking for a more advanced platform to supercharge their financial advisory practice to financial advisory firms and MNCs working with us to design and white-label our platform to better equip their distributors.

Can you get what you need through one solution provider? If you have multiple platforms and digital tools for your financial advisory practice, do you really save time with greater efficiency? Or is your time wasted in data entry and updating the information on the different platforms.

At the end of the day, technology is not the be-alland-end-all. An algorithm or digital tool cannot replicate the most important financial planning outcomes for your clients. Often, it is when trust has been established, in your deeper conversations with clients on their life, goals, dreams, fears or health you get to the really central issues of the planning process.

While many start-ups and firms out there solve one piece of the puzzle in your financial advisory But for everything else, ride the fintech wave to practice, GoalsMapper’s ecosystem and suite of your success. solutions aim to empower you in your clients’ endto-end financial planning journey with you.

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Digital Wealth Management: Do robo-advisors replace financial advisers? by Ron Miura Ryutaro, CFP®

The pandemic has caused business disruptions while digital advancement emerged. During the lockdown period, face-to-face meetings are not allowed to be conducted. Instead of face-to-face meetings, we have no choice but to adapt to new ways of conducting business as well as to create new business models. In the financial sector, clients have started to expect seamless, personalized, and consistent service via digital wealth management platforms i.e. robo-advisors. What can robo-advisors do for clients? Robo-advisors can offer algorithmbased financial advice without human interaction. Robo- advisors can allow us to execute investment portfolio planning, asset allocation planning and investment portfolio rebalancing. Robo-advisors’ assets under management are approximately $3 trillion in 2020 and it will soon be over $16 trillion in 2025. It is apparent that the rising power of digital wealth management has squeezed many financial advisers’ revenues and even livelihood. On the other hand, some financial advisers are still skeptical that the wealth management business will not be replaced by fintech soon. As they think that human financial advisers are smarter than robo-advisors. Let us examine the pros and cons of human financial advisers and fintech robo-advisors.

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The Pros of fintech robo-advisors: robo-advisors can offer algorithmic and efficient, and low-costs financial service. Indeed, some high-net-worth individual clients are open to big tech firms like Google and Amazon serving financial services. That is because big tech firms can take advantage of data and technology to reach clients’ needs and expectations. Indeed, “data is the new world natural resource”. After obtaining all necessary data, roboadvisors can analyze a client’s investment risk profile, financial goals, and investment time horizon to construct the appropriate investment portfolio. The portfolio can be diversified mainly based on unit trusts, ExchangeTraded-Fund (ETF) and other financial instruments. Robo-advisors allow us to have easy access to broader professional fund managers and easier tracking to consolidated views of investment portfolios. The Cons of fintech robo-advisors: Although clients can open the robo-advisors account, clients cannot get customized investment advisory service directly from qualified advisers. In the past few years, there was the shortest bear stock market in 2020 and rebounded strongly within one year. If another bear stock market hits in the near future, there is no recession- proof yet of how robo-advisors can handle market volatility as well as clients’ urgent expectations. It is not clear how roboadvisors can offer tailor-made advice and flexible requests to understand clients’ emotions and communication nuances. Although the rising popularity of digital wealth management platforms has been evident in the past few years, this does not always mean human financial advisers are no longer relevant to clients. The Pros of Human financial advisors: They have real working experiences and a down-to-earth approach to find a holistic solution. Even though robo-advisors are getting popular and influential among investors, human financial advisers can free up more time to focus on higher value-added services. This means it’s now the time to change the business model from product-focused sales pitch to becoming financial coaches with a holistic approach and solutions. There may be some young investors who have no clue about financial planning and investing knowledge as school and parents do not teach financial literacy. DIY investing does not guarantee higher returns on investment so it may be hard for them to take the first move. As a new model, human financial advisers can complement digital wealth management tools while understanding and addressing clients’ situations and financial goals.

profitability and enhance overall customers’ experiences. It seems to be obvious that human financial advisorybased business especially under the mass market category might be eroded by rising power of roboadvisors if they don’t take action to change their present business model. In conclusion, qualified and customer focused financial advisers will still be in demand despite digital wealth management platforms becoming the new norm. Onesize-fit-all sales approach like product-focused sales pitch will no longer meet client’s emerging demands and higher expectations due to the regulatory requirements and emerging fintech competitors. To manage clients’ expectations and enhance customers’ experiences in the new post-pandemic era, wealth management firms need to be a facilitator to multiple channels, such as tax planning, trust planning, international migration planning and legal services. Moreover, human financial advisors need to reskill and upskill the level of their professional competence to stay relevant. They need to focus on the tasks that robo-advisors cannot do effectively, such as strategic financial planning, cross-border estate planning and intergenerational succession planning. These three areas are complicated, and clients still need to have a customized advice. Bear in mind ‘’holistic approach’’ is the key for a new model of financial advisors. Although digital wealth management platforms are emerging and disrupting some financial advisor’s livelihood, it is advisable for financial advisors to supplement a digital wealth management tool effectively. To survive in the new business norm, financial advisors need to be adaptable and agile to new digital skills and develop specialized skill sets to address customer demands and goals.

The Cons of human financial advisors: Financial advisor fees tend to be more expensive than robo advisors. Sometimes there might be administration errors caused by advisers. Some financially savvy investors might not like tedious procedures and several numbers of paperwork required, such as face-to-face meeting and conducting risk profile, investment time horizon, filling out the application form etc. Amid the cost pressure of compliance and hiring human financial advisors, the market shares of robo-advisors are increasing. Furthermore, big financial institutions like DBS have invested in robo-advisory platforms to improve their

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21st Century Financial Advisory in the Post-Covid Era

by Kee Siew Poh, CFP® Virtual Practice vs Traditional Face to Face Meeting While it may not be clear at the onset of the pandemic, the benefits of having virtual meetings are now a lot more evident.

Covid-19 pandemic has hit several sectors harder than others, particularly the aviation and tourism industry. The financial sector on the other hand, had been quite resilient in the face of the pandemic. In fact, it even grew by about 6% in the first half of 2021. This pace was even faster than 2019, before the onset of Covid-19 outbreak.

1. Save Time – clients do not need to travel to our office to meet us, they can meet us during their lunch break, from the comfort of their home or even when they are on vacation. 2. Shorter & More Productive Meeting – traditionally when meeting in person, there is often the sense of needing to have a longer meeting to make it worthwhile especially if someone has taken time to travel. In a virtual practice, meetings can be kept short, focused & more productive. Duration of meeting can be set upfront & desired outcome defined before the start of the meeting. 3. Greater Collaboration – for face-to-face meetings, it is often difficult to pick a time & place that suits everyone. With virtual meetings, everyone can connect wherever they are, or they may at least be able to check in for a few important minutes.

Growth is possible because although traditionally the financial services industry relies on face-to-face interactions, it is now possible to leverage on technology to build a virtual practice.

Robo-Advisors vs Human Advisors Robo-Advisors often use a computer algorithm that invests your money based on your answers to a few questions, such as when you need the money, your risk tolerance and how much you have to invest. They often incorporate good investment practices such as asset allocation & diversification, tend to be relatively cheap and come with the convenience of online account opening. In short, when it comes to tedious and mundane tasks, where automation makes investing easier, this is where the Robo-Advisors excel.

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consult a human advisor with sufficient experience and specialized skill set. More importantly this person needs to have your best interest at heart! And with rapid adoption of technology in the post-Covid era, it is now possible to receive such personalized financial advice without leaving the comfort of the living room. As pandemic eases and face to face meetings resume, hybrid meetings may just be the way to go in forging stronger relationships, deeper connections, and long-term trust. Singapore financial sector grew an estimated 6% in first half of 2021: MAS chief Ravi Menon, Banking News & Top Stories - The Straits Times The Rise of Virtual Financial Robo-Advisors for Your Investments Types, Pros & Cons (moneycrashers.com)

But for tasks that require specialized or unique expertise, it is important to pick the right adviser with sufficient experience and specialized skill set. Robo-Advisors aren’t 100% personalized. There could be some issues and concerns which can only be uncovered from a chat with an experienced financial advisor. For many people, as their wealth increases over the years, ignorance is not bliss. Lack of planning (leaving everything to default) can potentially lead to much conflict, confusion & cost. When enlightened by an experienced human adviser with specialized skill set, they would be able to better appreciate following: • Transfer of real estate in a meaningful manner without resulting in unnecessary conflict, confusion & cost • Protection of assets from creditors • Protection of inheritance from divorce • Identifying “leakages” in estate planning & how to plan ahead • Issues related to generational wealth succession & transfer The other big advantage of a human advisor may be more apparent during times of market turmoil such as in 2008 and 2020. A great adviser keeps you to the long-term plan that makes you money and also helps motivate you to do the right thing, even if you don’t always feel like doing it. The Bottom Line A robo-advisor can be an excellent choice to manage your money, especially as you’re just getting started on your investing journey and your needs are relatively simple and straightforward. But as your needs evolve and become more complex, it makes a lot of sense to

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How do I balance between my retirement and children’s education needs? by Lena Teng, CFP®

How do I balance between my retirement and children’s education needs? This is a perennial dilemma for parents today who are likely to enter retirement around the same time when your children enter university – you love your children and want to provide them the opportunity for the best education; you also want to make sure your retirement needs are taken care of so that your children do not have to be a sandwiched generation; and we certainly don’t want to put off spending money and time on people and things that matter the most to us today even as we save for these goals. Is it possible to achieve all this based on our limited resources? Instead of mulling in the unknown, use these 5 steps to help you take charge of your future. Step 1: Find out how much you need to provide for your child(ren)’s tertiary education One of the biggest costs associated with raising your child will be the cost of their university education. How much you will need to provide depends on your aspirations for your child(ren), whether you want to provide for tuition fees only or both tuition fees and living expenses, and how this goal will be split between you and your spouse. The average tuition fees for a local bachelor’s degree are $11,000 per year based on the academic year 2021/22. According to NUS, the cost of living is estimated to be about $500 to $867 per month depending on whether you live on campus or have your own accommodation. In total, a typical 4-year non-medicine programme would cost between $68,000 and $85,600 today. Factoring annual inflation of about 3-4% p.a., this will grow to $110,000 to $140,000 in 15 years’ time. If you aspire for your children to study medicine or head overseas, then you will need to set aside even more. For example, pursuing a medicine degree in the USA is going to set you back by close to $1 million today. Step 2: Find out how much your retirement income will be based on your current resources Before lunging into starting a savings plan for your child, find out how much your current resources and annual surplus will give you first. Use realistic rate of returns based on current market conditions to project the future value of your current assets such as savings in your bank account, investments, CPF as well as future surpluses. Then

use a systematic withdrawal strategy to build a sustainable stream of income from each of these assets that you will have by the time you retire. For example, through the CPF savings you have accumulated from the day you started working, these will be used to join CPF LIFE to provide you with a stream of lifelong payouts from age 65. A 65-yearold today can expect to receive between $600 - $2,000 per month for life based on the CPF savings he had set aside in his Retirement Account. Knowing how much CPF LIFE payouts you can expect to have based on your current trajectory would provide you with a good handle of how much your projected retirement income will be even if you do not have any other assets. If you have other investment assets, you will also need to use a suitable methodology to draw down an income from them that can be sustained over your retirement years.

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Of course, your desired retirement lifestyle could look very different from the average or even be made up of various phases with different spending requirements. Nonetheless, it is still useful to have a realistic idea to help set the basis for the next step. Step 4: Adjust your expectations and current lifestyle Depending on your answer in step 3, some adjustments will need to be made to your current lifestyle. This could include finding ways to increase your income, cut down on unnecessary expenses, take calculated risks with your savings by investing them wisely or optimising national schemes. Despite these adjustments, you may still find that achieving both goals would be difficult which will then warrant prioritising the goal that matters more to you. When it comes to prioritising between these goals, there are two schools of thoughts. Some may feel that giving their children the best education would set them for life. Having brought them into this world, they feel it is their basic responsibility. What’s more you can always choose to work a little longer, retire later or spend less in retirement. You may also have raised your children to be filial and take care of you during your golden years. On the other hand, some may feel that it is necessary for parents to take care of themselves first so that they do not add on to their children’s responsibility. Your children can always study hard towards getting a scholarship, work part-time, or take a bank loan to finance their education to be repaid upon graduation. You would also be teaching your children to learn how to fish for themselves instead of always giving them the fish. There is no right or wrong to either school of thought. A plausible middle-ground could even be to set up a joint savings or investment account with your child so both of you work towards your goals together. When the time comes to fulfil it, you can then make the decision on how best to deploy that sum of money based on the circumstances then. Step 5: Take small steps today to achieve your goals Build a financial plan for yourself that takes into consideration your current lifestyle by focusing on the assets you already have and the goals and people that matter most to you. A financial plan is only useful if it is realistic and not too onerous for you to follow. If you do not know how to start, why not try MoneyOwl’s Comprehensive Financial Planning service today?

Step 3: Will it be enough for you? According to the Household Expenditure Survey 2017/18, the average expenditure of a retiree household per member in Singapore is $1,130 per month and $2,840 per month for the top 20% of retiree households. Projecting this forward to 20 years later to account for inflation, this translates to about $2,085 and $5,130 per month respectively.

With this service, you can develop your personalised financial plan with actionable next steps with its online tool that encapsulates the approach and all the complex calculations mentioned in this article. If you need to, you can also engage a fee-based financial adviser with professional credentials like CFP® to advise you on your journey – thus achieving the balance of integrating the best of technology and human wisdom to achieve your life goals.

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Cybersecurity and the Financial Planning Profession: Keeping Data Safe and Protecting Your Clients by CFP Board

Cybersecurity should be an issue of central focus for financial planners and their firms to protect clients, their data, and their assets.

Financial planners are on the frontlines of America’s wealth. This makes them and their firms a high value target for cybercriminals operating on the fringes of the internet. That’s the picture painted by Brian Edelman, Chief Executive Officer of FCI, a nationally recognized cybersecurity firm that specializes in advising financial services firms on their cybersecurity and data privacy practices. According to software firm VMware, the number of cyberattacks on the financial sector accelerated at the start of the pandemic, growing by 238% between the beginning of February through the end of April 2020. More recently, the cyber and intelligence unit of BAE Systems found that 74% of financial institutions have experienced a rise in cyberattacks since the pandemic began. These figures, combined with a spate of high-profile cybersecurity incidents throughout the spring and summer, such as the ransomware attack at IT-provider Kaseya around the July 4th holiday, add a sense of urgency to an issue that should be of central focus for financial planners. As part of its Code of Ethics and Standards of Conduct, CFP Board requires reasonable steps to protect security of non-public client information stored electronically (see Standard A.9.c) and regulators such as the SEC and FINRA have released their own guidance on cybersecurity. Financial planners can no longer reactively respond to cybersecurity incidents; they must proactively protect the data of their firms and their clients. Biggest mistakes With each high-profile incident, cybersecurity increasingly becomes a topic of board-level conversation at the world’s biggest companies. In the wealth management space specifically, a survey conducted by PricewaterhouseCoopers found that 48% of CEOs at money and wealth management firms consider cyberattacks the greatest threat to future growth prospects. Despite this level of attention from the C-Suite, financial planning firms still need to make progress. “Unfortunately, one of the biggest mistakes I see is that leadership doesn’t take cybersecurity seriously enough,” shared Edelman, who developed his passion for cybersecurity and data privacy in the wealth management space while working as a second-generation financial advisor with his mother and sister. “All too many of them say that they’re not ‘techie’ or don’t know enough, so they don’t take the threat seriously,” says Edelman. “Cybersecurity is really a leadership role.”

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On the more granular side, Edelman cites password mismanagement and not using multi-factor authentication as the mistakes advisors make that generate the most common forms of breaches. Examples include a password list saved on an internet-enabled computer without any protection or a password that’s given out to staff members so they can log into the financial planner’s accounts. “In my opinion, one of the regulatory requirements called multifactor authentication becomes the most important defense for financial advisors when it relates to passwords,” says Edelman. The National Institute of Standards and Technology (NIST), a division of the U.S. Department of Commerce that sets cybersecurity standards, defines multi-factor authentication below: Multi-factor authentication, sometimes referred to as two-factor authentication or 2FA, is a security enhancement that allows you to present two pieces of evidence — your credentials — when logging in to an account. Your credentials fall into any of these three categories: something you know (like a password or PIN), something you have (like a smart card) or something you are (like your fingerprint). Your credentials must come from two different categories to enhance security — so entering two different passwords would not be considered multifactor. Client expectations have changed Clients are also getting smarter when it comes to cybersecurity practices. They have gained more experience interacting online throughout the past decade and as the prevalence of cyberattacks has grown.

data and articulates how they are protecting their information, what to do if there is a breach, how to train their employees, and what they communicate to their customers. • Risk Assessment: It is a regulatory requirement to have a risk assessment that evaluates the unique vulnerabilities of your firm. These measures provide financial advisors and their firms evidence of due diligence in the event of a breach. Edelman explains that if a breach is being investigated by the authorities, the advisor may be considered a suspect until they can prove they’ve taken the appropriate safeguards. He adds that this also matters from an insurance perspective because adherence to the NIST framework is one of the pieces of evidence that a cyber insurer may ask for when an advisor applies for coverage of an incident. If they can’t provide evidence, the advisor is culpable in the loss. Edelman equates adopting a NIST framework to something financial planners know well: life insurance. “If you adopt these measures proactively, you’re paying the term premium versus doing it reactively where you could potentially be taking the death benefit,” he says. Just as the better advisors dig into the data and financial lives of their clients, the firms that are doing things right on cybersecurity are taking the same approach to their cyber compliance policies. The best practice today for firms is to stay current on cyber compliance policies and proactively take steps to improve their practices where needed.

“Throughout the past few years, more and more clients are coming to these cyber incidents armed with their own experiences with breaches — their Facebook was hacked, Google password was stolen,” says Edelman. “Now consumers are starting to ask: What are you doing to keep my private information safe?” He points to enhanced awareness among the public of best practices, and financial planners should be ready to answer their clients’ questions. “Clients are starting to realize that you’re not sending them encrypted emails and their data is just sitting in your inbox ready for anybody to get access to it,” he says. “We’re starting to see a lot of situations arise where advisors are coming to us because their clients are asking these questions.” Understanding the nist framework outlined by regulators When Edelman’s clients are doing the right thing, he says they are usually following the NIST Framework, a guideline for cybersecurity practices and compliance that has been adopted by regulators across industries, including the SEC and FINRA. According to Edelman, the primary requirements of this framework include: • Chief Security Officer: Every firm is to appoint someone to take on the role of “Security Officer.” Similar to the Chief Compliance Officer, this person needs to be empowered to make sure that everyone at the firm is following what’s called an Information Security Policy. • Information Security Policy: This defines how a firm protects

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A FinTech Snapshot in 2021 by Ben Marshan, CFP®, Head of Policy, Strategy, and Innovation at the Financial Planning Association

How has FinTech evolved to better meet the needs of financial advice professionals and clients? Ben Marshan CFP® Head of Policy, Strategy, and Innovation at the FPA talks about the state of play with technology in financial planning. Compared with the picture presented in the 2017

FPA report Mapping FinTech to the Financial Advice Process: why FinTech is not a threat, FinTech products are increasing in quality and ease-of-use. There are also fewer gaps to fill in supporting the entire advice journey. But perhaps the most encouraging change is the interest shown by financial planners in adopting these solutions for their business and their clients’ advice experience. For many planners, fintech and robo-advice are thought of as confusing and something to fear. This was a clear message in the 2017 report narrative, which was created, in part, to educate financial planners about the extensive role FinTech can play in delivering more efficient, compliant, and cost-effective financial advice. In 2021, I’m happy to report a shift in perspective across the profession as we see many more financial planners looking to integrate technology as part of their advice process. Transformation triggers In some cases, this has come from necessity with the social distancing restrictions of recent times. This has required financial planners to improve their interactive approach to video meetings and create digital content to better explain products or parts of the advice process. But they are also becoming much more educated and knowledgeable about what’s available from advicespecific technologies. This means our professional community is better able to support each other in assessing and selecting solutions best suited to how they run their businesses. In fact, the FPA Innovation in Advice award was introduced for 2020 because of the widespread implementation of new technology and digital advice delivery we’ve been seeing. In recognizing the achievements of award winner Corey Wastle, CFP®, CEO, and Founder of Verse Wealth, we’re also getting the word out about the mindset and habits that go hand in hand with a technology-enabled approach to advice. Corey takes time out on a weekly basis to give thought to what he and the Verse Wealth team can save time on and FinTech will often be part of the solutions they’re putting in place.

A more refined offer Although the increase in demand from many financial planners may have been led by the circumstances of COVID-19, this widespread adoption is also due to the market doing a better job of meeting financial planners’ FinTech needs. Four years ago, we saw a lot of ideas on the table seeking to solve particular pain points or parts of the advice process. There were a great many products to support fact-finding and administering client data, for example. We’re now seeing a product range that is narrower, yet more refined. Many solutions have disappeared and the ones that have stayed are enabling financial planners to take advantage of digital in dealing with a broader set of issues. As well as product suites that are getting closer to a one-stop-shop for the whole advice journey, there is now a better range of tools on offer for the constituent parts of the process. The quality and choice in customer relationship management (CRM) solutions have advanced and we now have more in the way of implementation tools giving financial planners and their clients a far better user experience (UX) in managing investments and reporting on results. The majority of these solutions are platform-driven, but we’ve seen improvements across the board with UX design and functionality for FinTech. Greater trust in technology Another benefit of this rationalization and maturity in the FinTech market is the acquisition of successful products by larger product providers. This, in turn, gives rise to better integration between products which has gone some way to solving two major issues with FinTech, one with adoption and another with implementation. Privacy and cybersecurity are always there as risks associated with the adoption of new technology. Financial planning businesses taking on many different niche technology solutions and stitching them together compounded the risk factors. This was a major and justified concern for licensees and played a part in their prescriptive approach to FinTech. With better integration, these risks are more limited, and licensees are now more inclined to allow financial planners to choose their own solutions. While trusting technology not to compromise their business or clients has always been important, the implementation of so many different FinTech solutions was perhaps a greater hurdle for financial planners. Having to move data manually from one system to the next was difficult, diluting much of the efficiency advantage of FinTech as well as introducing more margin for error.

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The ideal scenario

Making a start

While the overall FinTech offer is now far more comprehensive and more easily integrated, there are still parts of the advice process yet to be mapped to solutions. We’ve come a long way since the days of a technologyenhanced advice experience mostly consisting of calculators, but strategy development tools are still lacking.

Although FinTech has become far more popular among FPA members and our wider community, many have yet to take advantage of the improvements to efficiency and engagement technology offers. With financial planners swamped with regulatory burdens and busy providing advice and doing exams, this is hardly surprising. Plus, there are the challenges of determining which pieces of FinTech best fit with their way of delivering advice.

More products to support planners and clients in defining goals and objectives, scoping their engagement, and tracking goals and financial positions would go a long way to streamlining financial advice business administration as well as delivering a better customer experience. Another win would be new technology to track how clients have been progressing over the entire relationship, giving financial planners an easy way to track and present a point-in-time assessment for annual reviews and other client engagements. With the gradual introduction of the Consumer Data Right (CDR) we can glimpse the next phase of FinTech for financial advice. This would bring together these strategic and reporting tools with instant access to critical client data from bank accounts, Centrelink, the ATO, and more. This opens the door to a live-in-your-pocket financial plan, tracking progress on the basis of live data feeds for the benefit of the planner and client. It’s getting close but we’re not there just yet.

Focused thought is certainly needed to tackle technology selection and implementation. I would encourage any financial planner to spend time once a week figuring out their advice process, what drives the best engagement and advice outcomes, and considering how technology could enable this to happen more efficiently. The tools available through the FinTech hub on the FPA website https://fpa.com.au/fintech/ can provide you with bestpractice guidance and support for this process. Breakout quotes Many solutions have disappeared and the ones that have stayed are enabling financial planners to take advantage of digital in dealing with a broader set of issues. We’ve come a long way since the days of a technologyenhanced advice experience mostly consisting of calculators, but strategy development tools are still lacking.

Support for compliance There are also a number of areas where a FinTech solution could better support financial planners with compliance, both directly and indirectly. Financial planners still need to use their product knowledge to make a recommendation around the implementation of advice. This responsibility and process carry with it a significant risk in selecting the ‘wrong’ product when there are literally thousands to choose from. So far there are no tools available to optimize that process. It’s a challenging area for FinTech to tackle with so much data to collect, map and maintain, but a company offering the ‘Spotify’ of product selection to financial planners could definitely expect strong demand. A more direct, but equally challenging compliance solution would be using technology to evidence and record that a client has understood the advice and recommendations provided. This is required by standard 5 in the FASEA code. With technology already available to help planners meet each other’s standards, it follows that FinTech providers will soon be coming forward with a solution for this new requirement. This missing piece of the standards puzzle will also support a wholly digital approach to delivering Statements of Advice (SoA). This has been a focus for the FPA for some time now and we are currently developing additional support and resources to follow on from the Future of the SoA interactive guide launched in 2020.

Sustainable healthcare in today’s world Key Takeaways • The UN released its annual Sustainable Development Goals (SDG) progress report in July. In the past year, Covid-19 has reversed some of the 17 goals’ developments. One impacted area is with respect to more efficient funding of healthcare systems. • The pandemic has also reinforced the urgency of building a more sustainable healthcare system. Not only is it important to provide adequate and affordable care, but it also helps promote resiliency in the event of future crises. • Healthcare equities outperformed general markets over the last 20, 10 years and still continue to outperform MSCI World, Europe and Asia. There is an ongoing mega trend of a worldwide aging population having increasingly chronic and metabolic diseases. Global healthcare market with high margin businesses estimated to growth from $8,45T in 2018 to $10T in 2022. This present opportunities where investors should develop a robust understanding of the future profitability and sustainability on the healthcare industry and invest in companies that can successfully evolve into a more sustainable business model and behavior. Learning About ESG is an educational series that connects environmental, social and governance topics with investing. The better we understand ESG, the bigger the role it can play in our everyday lives – and investment portfolios – contributing to a better world.

What was recently released? The United Nations released its annual Sustainable Development Goals (SDG) progress report in July. The SDGs were created in 2015 and places the world on an agenda to “end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity”1. This year’s report describes the impact of Covid-19, reversal of development and added challenges experienced by countries. One impacted area is with respect to more efficient funding of healthcare systems.

The effects documented in this report are extensive. Global poverty rates rose for the first time in decades, as over 71 millionpeople were pushed into extreme poverty in 2020 alone. Over 150 million people suffered chronic hunger and an estimated 2.7billion people are experiencing malnutrition due to insufficient quantities of food. Access to critical health services has been disrupted in most countries, with over 90% still reporting issues. Inequalities in vaccinedistribution between emerging and developed countries were also pronounced. Vaccines were administered in nearly 70% ofpopulations in North America and Europe, but less than 2% in sub-Saharan Africa. Yet even prior to the pandemic, global healthcare costs were escalating2. For example, Singapore have seen costs inflate by 50% over the past 20 years. Rising costs have also resulted to many insurers to not cover critical therapies that are needed to treat diseases. The phenomenon stretches across the world. Nearly 13% of the global population are already paying out-of-pocket healthcare expenses, representing 10% or more of their income. This has led to tens of millions of people in poverty as a result, and Covid-19 poses a greater impact on public health and expenses.

Source: World Bank/World Health Organisation Global Health Expenditure; data as of Feb 2021 1 .United Nations Sustainable Development Goals 2 .World Bank/World Health Organization Global Health Expenditure

Why is investing in sustainable healthcare important? While the pandemic has exacerbated the existing weaknesses in global healthcare, it has also reinforced the urgency of building a more sustainable healthcare system. Not only is it important to provide adequate and affordable care, but it also helps promote resiliency in the event of future crises. Developing a more sustainable healthcare system means reducing the total costs across the value chain. To illustrate, about two-thirds of total healthcare spend goes towards hospitalisation costs, with the rest to medication and medical devices3. Methods to decrease time spent in hospitals can also support total cost reductions and place more emphasis on more preventative care. Across the industry, there are many opportunities to reduce overall costs and promote wider more equal access to critical treatments. To alter the trajectory of unsustainable cost growth, leading healthcare companies will need to deliver solutions that improve patient outcomes without adding costs. Healthcare expenses are spread across various components of a system. Addressing them more holistically opens the door to efficiencies and cost savings.

Companies that actively consider cost reductions will create larger opportunities for the treatments they bring to market. Most importantly, this would help avoid the cycle of perpetual additive costs. With nearly 75% of total healthcare costs spent on patient care, it reinforces the need for care solutions with decreased time. This can be achieved not only through new treatments that better manage or even cure chronic ailments, but also through tools and technology to more efficiently deliver care. Firms that can deliver this stand to grow revenues and market share. Furthermore, companies able to reduce costs for payers will improve their ability to protect and grow margins. Not only will they be afforded greater pricing autonomy, but by avoiding access restrictions they will expand the market potential of their products, driving scale and profitability. Source: World Bank/World Health Organisation Global Health Expenditure; data as of Feb 2021 3 .OECD Health Data, 2019 4 .Ibid

What can investors explore in the healthcare sector? Companies with products and services that add on to increased healthcare industry costs can impair their own sales,profitability and ultimately investor returns. Investors should develop a robust understanding of the future profitability and sustainability on the healthcare industry, and incorporate the mentioned considerations into the investment decision-making process when exploring opportunities. With clear return opportunities and a need for risk mitigation, investors stand to benefit from a proactive approach to security selection and company engagement. One might assume that the Environmental, Social and Governance (ESG) scoring criteria, when applied to healthcare companies, would differentiate those that contribute more or less to the unsustainable cost strain. However, this is often not the case. Some companies with high ESG scores may still be the worst offenders in raising drug prices unjustifiably. Hence, industry-specific analysis and understanding is needed to truly ascertain company impacts on healthcare sustainability. New technologies are increasing opportunities to deliver care more effectively and efficiently. Emerging diagnostic tools are able to identify illnesses at earlier stages, allowing for more effective treatment options that reduce hospital admissions and time in care. Likewise, medical devices are playing a growing role in delivering both preventative and ongoing care more efficiently. Digital health services are also becoming more prominent due to their ability to provide operational efficiencies while expanding access to care. A holistic approach to therapies, supported by new tools and technology, can help transition healthcare systems to a more sustainable footing. Investors have a key role to play. They are in a position to influence companies to evolve into a more sustainable business model and behavior. This transformation can in turn benefit companies’ outlook on returns despite the potential risk due to unfavourable market condition. As we have seen through the topic of climate change, increased focus can shift the way of thinking over time.

Glossary Environmental, Social and Governance (ESG) score: a numerical evaluation designed to measure a company’s relative performance, commitment and effectiveness across the E, S and G pillars based on publicly-reported data5; scoring criteria and methodology can differ within the industry Healthcare expenses: costs within the healthcare system ranging from hospital care (both in-patient and out-patient), long-term care, medical goods and related services UN Sustainable Development Goals (SDGs): the 17 SDGs were adopted by all UN Member States to end poverty and other deprivations, improve health and education, reduce inequality, generate economic growth – while tackling climate change by 2030 .Refinitiv

BOOK REVIEW

Book Review Values: Building a Better World for All by Mark Carney Reviewed by Yash Mishra, CFP®

The credit crunch, the Covid-19 pandemic, and climate change demonstrate the problem. I have been in the Finance Industry as these unfurled and have read swathes of research on the cause and effect. All three have either been caused or exacerbated by a failure to properly value the importance of safeguarding future well-being. In “Value(s): Building a Better World For All” the former Goldman Sachs banker who went on to lead two major central banks dissects a trio of global crises to show all that market prices can fail to capture, to society’s detriment. He starts with an overview of economic history that traces how social and political priorities gradually became subsumed by the market. As Carney puts it, the “price of everything is becoming the value of everything”. This lays the foundations for a scathing critique of how policymakers and society can be led astray by excessive faith in the ability of markets to price risks accurately and deliver the best outcomes. He says the financial crisis was a result of fault lines in the system which meant warnings were ignored. Covid is the same, and worse. The three big crises of the 21st century - credit, Covid, and climate – are all down to a common crisis of values. If things aren’t listed on a market somewhere, we don’t assign them worth.

Amazon, the company, he notes, is valued by the market at $1.5 trillion. The Amazon rainforest has no market value, until it is stripped of trees and turned into farmland. How did society get to the point where it knows the price of everything but the value of nothing? Markets, he says, are not only flawed as a mechanism for measuring value, but their encroachment into our lives has also changed those values in the first place. The initial ideas sound simple, far from radical, and therein lies its acceptability. Key notions presented are • Relative equality is good for growth – it is better for rich folks if the rest aren’t so poor • Thinking longer-term about how we do business, about our health, and our environment • Companies need to have a purpose beyond money The narrative includes the history of the financial system and a look at where the money comes from – banks invent it when they make loans, is the short version. When an author as well versed in finance and policymaking as Mark Carney argues against the supremacy of market values, it’s clear that there is a problem. The uplifting fact is that he is using his experience to try and change the status quo. Get inspired to take action.

FPAS UPDATES

FPAS — People’s Association Financial Literacy Talk FPAS has launched a series of financial literacy talks in collaboration with People’s Association to help selfemployed people to have a better understanding of their financial roadmap. Following are the snippets of the talks by our CFP® Professionals, Kee Siew Poh, Serene Luah, and Christopher Loh. We have also invited GoalsMapper to share their consumer platform to the audience on how to plan and understand their journey so that they can reach their financial goals. 新加坡金融理财协会与人民协会合作发起了一系列金融知识讲座，以帮助自雇人士更好地了解他们的金融路线图。以下是我们的 CFP® 专业人士 Kee Siew Poh、Serene Luah 和 Christopher Loh 的演讲摘要。我们还邀请了GoalsMapper向观众分享他们的消费平台，了解如何规划和了解他们的旅程，以便他们能够实现财务目标。

FPAS UPDATES

CPF & Your Retirement Forum 2021: “The Gig Economy is there hope for Retirement?” FPAS is pleased to be invited to speak at Precepts inaugural CPF & Your Retirement Forum 2021 where we have five CFP® Professionals presented including CPF Board. The percentage has been rising on the working force who are taking on jobs that are less consistent and end up as self-employed including freelance designers, website developers and programmers, grab delivery persons etc. This group of persons can be vulnerable for lack of planning for their retirement. Watch the presentation by “The Gig Economy - is there hope for Retirement?” by Roseline Fong. Click to watch

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Project We Care: Adopt-A-Family FPAS was also involved in PA’s Project We Care Adopt-A-Family initiative that aimed to positively impact the lives of families who need support. Corporate volunteers are invited to provide support in the form of cash or in-kind sponsorships. FPAS has adopted 2 families in 2020 and is committed to provide the necessary support.

FPAS UPDATES

Event Calendar 2021 - 2022 JANUARY - FEBRUARY 2021

15 JULY 2021

NOVEMBER 2021

2021 CFP Examinations (Cycle 1)

FPAS Financial Literacy 2021 Talk with People’s Association: “Who Will Pay My Medical Bills? (English Version)”

2021 CFP Examinations (Cycle 4)

MARCH - APRIL 2021

2021 CFP Examinations (Cycle 2)

21 SEPTEMBER 2021

FPAS Financial Literacy 2021 Talk with People’s Association: “Who Will Pay My Medical Bills? (Mandarin Version)”

27 APRIL 2021

FPAS 21st Annual General Meeting

18 NOVEMBER 2021

FPAS Financial Literacy 2021 Talk with People’s Association 5 DECEMBER 2021

Maximising Your Money Webinar for CPF Digital Festival 2021

11 MAY 2021

FPAS Financial Literacy 2021 Talk with People’s Association: “(A Self-Employed) Journey Towards a Happy & Purposeful Retirement”

25 SEPTEMBER 2021

MARCH 2022

CPF & Your Retirement Forum 2021: “The Gig Economy - is there hope for Retirement?”

2022 CFP Examinations (Cycle 1)

6 OCTOBER 2021 JULY 2021

FPAS World Financial Planning Day 2021: “The Future of Financial Planning Practice” and “Robo Advisor & You”

2021 CFP Examinations (Cycle 3) 210mmx148.5mm_mag ad(beans)_P.pdf

6/3/20

4:17 PM

APRIL 2022

FPAS 22nd Annual General Meeting

FPAS UPDATES

FPAS 5th Annual World Financial Planning Day FPAS celebrated its 5th Annual World Financial Planning Day on 6 Oct, cohosting with FPSB Ltd in conjunction with the IOSCO WIW. The event is to honor this profession and to raise the awareness of the value of financial planning. We wished to thank all the wonderful panelists for their candid sharing on the future of the financial planning practice and the readiness needed for the role in the Banking, Insurance and Financial Advisory sectors.

Fireside chat 1: The Future of Financial Planning Practice (Virtual)

A fiery dialogue among our panelists for the fireside chat 2 segment, “Robo Advisor & You”. This has indeed been a very sensitive and yet a very real situation for the financial planning industry. Instead of running away, let’s face it head on! Covid-19 has made us realize that the industry needs to evolve. We believe it has benefited the audience and has provided some hard truths on what they need to do to stay relevant!

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KOLs: the way to go to scale your business Sharing by Lisa Lee, CFP®, during the WFPD2021 event

“For centuries, our economy has revolved around the production and consumption of physical things, from cars to cows, grain to gold… Today, the true value of companies like Microsoft, Apple, Google or even Starbucks lies in intangible assets, be it software, research capabilities, branding or organizational development.” Let’s take a step back to reflect – who are the successful stockbrokers/financial adviser reps in our industry? Why are they successful? Why are they even more successful during the COVID-19 pandemic when lockdown/ restrictions limited face to face engagement? In my view, they are successful because they have managed to enhance and optimize one of their most important intangible assets – their own BRAND as an educator, counsellor, influencer to anyone who has the hunger for financial knowledge. Leveraging the power of the internet - be it social media like Facebook, YouTube, Telegram, WhatsApp, Zoom, Microsoft Teams and so on, they are able to reach and engage a wider audience. These Stockbrokers and Financial Adviser Reps have transformed into be KOLs for our industry. Key Opinion

Leaders (KOLs) are trusted, they are able to use their intangible assets like brand, knowledge, and social media to ENGAGE. What about the public, prospective and existing clients? Why do they look up to KOLs and why are they “hungry” for education and knowledge? My answer as to why KOLs are able to amass great viewership and great following is precisely because as consumers, we are bombarded with information all the time – and in fact, excessive information. KOLs are able to CURATE information and deliver to us in a palatable and digestive manner. We look up to KOLs for inspirational thoughts, deciphered information, product, and financial planning advice. Furthermore, just like successful emotional marketing efforts, most KOLs are able to connect with our emotional well-being. Becoming a Financial KOL and continuing to be the GUARDIAN for our clients is the way to go to scale your business. At this point, it will be good to hear from the horses’ mouth:

ARTICLE place that they know they will be able to “locate” me. c) Joey Choy, Stockbroker, Educator, Life Coach My philosophy is to always think about how I can add value to my target audience even before they come on board as a client. I believe in the “KLT” framework which I have learnt over the years. Basically, in any business, people want to work with you only if they Know, Like and Trust you. It is that simple, once you fulfil this KLT, they will automatically come to you. As such, I am motivated to create video contents weekly, share my thoughts on certain popular stocks and conduct free webinars to teach and guide people for free. Perhaps the greatest risk for the future intangible economy is the risk of underinvestment in knowledge, the inability to embrace the digital age and then innovate by pursuing a client centric and holistic approach to wealth management.

a) Louis Koay, CFP, Financial Services Director, Stockbroker and Financial Adviser Representative Are you searchable on google? This has been the company motto since last year. With the advancement of internet information, investors are likely to search information online before making any investment or financial decision. This is why it is important for us to increase our online presence. This is the new industry trend, the COVID-19 pandemic has brought forward the change for this new trend. As the internet is constantly flooded with information, we need to create a platform for visitors to look for structured information with ease. We need to position ourselves as the expert in the area of our services. This will certainly boost our confidence and the trust our clients have in us. b) Darren Chew, Branch Manager and Financial Services Director, Stockbroker and Financial Adviser Representative Someone once told me that if you want to sell, don’t teach. I completely disagree with it and feel that if I teach my client how to fish, empower them with the life skills and tools on finance related matters, they will be more appreciative of me, and our client-adviser relationship will become stronger. Conducting courses online, webinar and educational YouTube videos has allowed me to reach out to even more people at a faster rate compared to the traditional way. It allows me to build trust faster and attract more prospects. Even before meeting them, they already “know” me and are very open to discussing their concerns and needs with me. By operating a physical investor center, it increases the confidence clients have in me as there is a permanent

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Financial Planning Standards Board: Future of Financial Planning Practice Survey Press Release SUNDAY, OCT 03, 2021 Financial Planning Practice in Future Will Be More Innovative, More Human and More in Demand, According to Global CFP Professionals FPSB Research Shows Global Financial Planning Community Optimistic About Profession’s Future, Committed to Professionalism and Eager to Promote Value of Holistic Financial Planning NEW YORK – 05 October 2021 – Financial Planning Standards Board Ltd. (FPSB), owner of the international CERTIFIED FINANCIAL PLANNER certification program outside the United States, has released the results of its Future of Financial Planning Practice research, a survey of 4,250 CERTIFIED FINANCIAL PLANNER professionals across 23 territories, conducted in partnership with the global FPSB Network. The survey was carried out as a complement to FPSB’s Global Job Analysis, a landmark international study on the current practice of financial planning, and captures CFP professionals’ view on trends likely to affect financial advice delivery in the next five years. • Technology expected to enhance the practice of financial planning. CFP professionals viewed financial technology (42%) as the factor likely to have the greatest impact on how financial planners work with clients over the next five years, with almost 70% favorably viewing technology as something that would allow them to spend more time doing financial planning with clients. Two thirds (66%) of CFP professionals increased their efforts to shift to a more virtual practice during the Covid-19 pandemic, and a majority expect at least 40% of their client meetings to continue to be virtual in the near future. • Financial planning relationships shift towards collaboration, financial planners embrace “softer” skills. During the Covid-19 pandemic, almost one third (32%) of CFP professionals reported being more involved with their clients in managing emotions. When asked about the value financial planners will provide to clients in the future, over half the CFP professionals surveyed reported that collaborating to set and achieve financial goals (29%) and providing objective advice to facilitate decision-making (27%) will be the greatest value they can provide to clients. In support of this shift towards more collaborative client relationships, CFP professionals reported financial planners needed to learn more about behavioral finance (55%) and coaching (43%) to be successful in the future, along with more traditional topics such as financial issues related to aging (68%), estate planning (62%) and investment management (57%).

• Public demand for financial planning will increase, driven by retirement needs. Overwhelmingly (82%), CFP professionals expect increased demand for financial planning services over the next five years. CFP professionals see demand growing due to more people preparing for retirement (61%) and younger generations seeking financial planning (35%), increased levels of consumer awareness of the value of financial planning (56%) and the need for professional advice caused by global economic uncertainty (41%). Not surprisingly given the importance placed on retirement, CFP professionals listed retirement security (69%), investment planning (64%), managing inheritance / wealth transfer to the next generation (61%) and finances associated with aging and long-term care (47%) as the top items they expected financial planning clients would want them to address in the future.

• Raising awareness of the value of financial planning and (re)building trust will be key to engaging the public. Although increased public awareness is expected to be one of the drivers of demand for financial planning, CFP professionals indicate there is significant work that needs to be done to promote the value of financial planning and the value of working with a financial planner. Respondents cite a lack of awareness of the value of financial planning (79%) as the top reason people do not seek out financial planning services, followed by a lack of trust in financial advisors (46%).

ARTICLE FPSB sees initiatives like the global financial planning community’s fifth World Financial Planning Day on 6 October as an important step in this effort, and looks forward to enhanced public awareness and financial literacy opportunities in the coming years that will promote to the public the value of financial planning and of having a financial plan, and the value of seeking out practitioners who have committed to standards of competence and ethics, like the global CFP professional community.

• Continuing Professional Development Key to Financial Planner Success. In welcome news to FPSB, and affirmation of the commitment of the global CFP professional community to professionalism, respondents listed continuing education / professional development (65%) as the action that would have the most significant impact on their success over the next five years. This was followed by embracing technology (60%) and shifting client service to a holistic model of financial planning (59%). “FPSB will use the information we’ve gathered through this year’s global research projects into the current and future practice of financial planning to future-proof the financial planning profession and CFP certification program,” said Noel Maye, CEO of FPSB Ltd. “FPSB looks forward to engaging the global CFP professional community and other stakeholders to ensure that our standards and certification requirements are appropriate for an evolving financial planning profession, and that CFP certification continues to be recognized as financial planning’s global symbol of excellence.”

2022 The Industry-Wide competition by FPAS for Financial Planners in Singapore to be recognized for their Financial Planning Excellence in the Banking, Insurance and Financial Advisory sectors. SUBMISSION OF PLAN September – November 2022 ORAL PRESENTATION & MEET THE JUGDES January – February 2023 AWARDS NIGHT & GALA DINNER April 2023

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