Year-end Checklist
Becoming rich is hard. Staying broke is hard. Choose your hard.
— Eric Worre
As we head to the end of the year, you may be looking to do a quick check-up on your financial health. Here is our quick guide on what to look out for.
Review Your Investment Plan
If you have sat through a wealth management process with us, then it is likely that you have received an investment plan that details your goals and the path to get there. The end of the year is a good time to reflect on whether any of those goals or their timeframes have changed. If they have, then the solution needed could differ. Perhaps you need to amend your asset allocation as retirement is on the horizon and you may need to start looking at long-term income generation.
If not, it is a simple matter of checking to see if you are still on track. Either way, sitting through a review session with your advisor will help you determine the right options.
Check your Financial Health
The end of the year is also a good time to ensure that you are up to date on the following;
If you have set up a trust, will, or LPA, it is a good time to check that the person that you have appointed as your donee is still capable of making decisions on your behalf should you no longer be able to.
If you intend to bequeath your wealth and assets to others, it would be useful to also review your letter of wishes to ensure that your list of beneficiaries is up to date. In addition, you should review other nominations you have made, such as those for your CPF monies or insurance policies.
Take Advantage of Charitable Giving Tax Benefits
Charitable giving offers a way to financially support philanthropic causes all while enjoying tax benefits for your generosity.
Donations to the Community Chest or any approved Institution of a Public Character (IPC) enjoy tax deductions of 2.5 times the qualifying donation amount. These donations must be made before the year ends for the tax deduction to be included and processed in the following year’s tax reporting. And if you are looking for new and innovative ways to give back, you can tap into GYC’s social impact and philanthropy initiative.
While cash donations are the most common, there are also other methods to give such as shares donation. More information can be found here.
Maximise your Supplementary Retirement Scheme (SRS) Contributions
The Supplementary Retirement Scheme (SRS) is a voluntary scheme to encourage individuals to save for retirement, over and above their CPF savings. An additional benefit is that contributions to SRS are eligible for tax relief. Investment returns are tax-free before withdrawal and only 50% of the withdrawals from SRS are taxable at retirement.
You have until 31 Dec 2024 to contribute to the SRS scheme with a maximum limit of $15,300 for Singaporeans and PRs, and $35,700 for foreigners. For more information, please refer to the IRAS website.
Invest in The Next Generation:
Start a Million Dollar Builder Plan
It is always a good time to start an education or savings plan for the younger generation. Creating a systematic way to save and invest, we have developed a simple way to reach a million dollars within 25 to 35 years. This type of plan is great for those who wish to put something aside for their young children or grandchildren. It also works well for young adults who may be just starting in the workforce.
The best part is that it doesn’t take much to kickstart this plan with options starting at a small upfront contribution of $5,000, coupled with $600 in monthly savings.
Visit the Mustard Seed Million Dollar Builder page for more details.
