Financial Planning in a Time of Low Yields

Friday, April 15th, 2011  |  Financial Planning

This is a full article jointly written by Chiong Tuck and Eddy. Despite robust economic growth and inflation in Singapore, interest rates have remained low because they are tracking global interest rates emerging from a financial crisis. Conservative investors who rely mainly on fixed deposits now face the prospect of insufficient income. Chiong Tuck presents the investment response, in which he suggests short-term currency-hedged bonds and REITs as possible alternatives. Eddy presents the financial planning response, which advises increasing savings, decreasing consumption, delaying retirement, and possibly taking on more risk, among others.