Strike While the Iron is Hot?
The financial market has been through a roller-coaster ride for the past weeks and many funds have dropped to their lowest point since the past couple of years. Is it wise to invest now?
The financial market has been through a roller-coaster ride for the past weeks with the collapse of Lehman Brothers and the recent event at American International Group (AIG). Many funds have dropped to their lowest point since the past two to three years. Is it wise to invest now
Before you focus on growing your wealth through investing, it is important to ensure that you are already financially protected as this lays the foundation for solid financial planning and enables you to weather any unexpected storms in life. For instance, have you set aside at least three to six months of your expenses as emergency funds? Also, are you adequately prepared to cope with situations such as illnesses or hospitalisation?
No one really knows if the market has bottomed out or could dip even further. What we know for sure is that markets will continue to rise and fall, as certain as sunrise and sunset. In times like these, the key investing principle to bear in mind is to spend time in the market and not try to time the market. It pays to invest on a regular basis and leverage on the concept of dollar cost averaging to buy low now and sell high later when the market recovers.
Also, you would need to consider the duration in which you plan to invest and the risks that you're prepared to take for your desired level of returns, as these factors could determine what your investments should be and the asset allocation that best suits your financial goal.
Do speak to your financial planner to review your needs and build a customised investment portfolio that helps you to achieve your objectives.
If you would like to make an appointment with me, do feel free to contact me at 96386328.
Ms Phylise Er Jia Li
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This commentary expresses the views of Phylise Er Jia Li, CFPcm representing AXA Life Insurance Singapore Pte Ltd. It is not made with regard to the specific investment objectives, financial situation and particular needs of any person. You may wish to seek advice from a financial adviser before making a commitment to purchase the product. In the event that you choose not to seek advice from a financial adviser, you should consider whether the product in question is suitable for you. The precise terms and conditions of the plan are specified in the policy contract. Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value may be less than total premiums paid. Buying health insurance products that are not suitable for you may impact your ability to finance your future healthcare needs. A product summary is available and may be obtained from AXA Life Insurance Singapore Pte Ltd and the participating distributors’ offices. You should read the product summary before deciding whether to purchase the policy.