# The Weekend Investor > Your wealth should buy back your time. Perspectives on investing, retirement planning, CPF, insurance and personal finance in Singapore. Public Ghost content for AI and LLM tooling. This file includes a bounded export of public pages first, then recent public posts. Append `.md` to any post or page URL to get the content in Markdown (for example, `/example-post.md`). ## Pages ### Disclaimer URL: https://www.theweekendinvestor.sg/disclaimer/ Last updated: 2026-03-01T01:32:18.000Z The information provided on this blog is for general informational purposes only and should not be considered as professional financial advice. The content is based on the author’s personal opinions and experiences, and it may not necessarily reflect the views of any financial institution, company, or organization. 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By continuing to browse and use this blog, you acknowledge and accept these terms and conditions of use. ### All Articles URL: https://www.theweekendinvestor.sg/https-theweekendinvestor-sg-tag-all/ Last updated: 2026-02-28T15:13:01.000Z _No content available._ ### How much will i have in my CPF? URL: https://www.theweekendinvestor.sg/how-much-will-i-have-in-my-cpf/ Last updated: 2026-08-04T08:45:57.000Z ## How much will I have in my CPF? Most Singaporeans vastly underestimate the power of their CPF. Compounding quietly in the background, your account balances often build into a far more significant financial safety net than you realize. Map out your compounding journey below, factor in housing payments, and discover your true retirement trajectory. 1 Your Profile Date of Birth (DD/MM/YYYY) i Citizenship i Singapore Citizen / PR (Year 3+) Permanent Resident (Year 1) Permanent Resident (Year 2) 2 Current CPF Balances OA Balance ($) i SA Balance ($) i MA Balance ($) i 3 Income & Contributions Gross Monthly Salary ($) i Gross Annual Bonus ($) i RSTU or CPF Top-up / Year (Max $8,000) i 4 Retirement Goals Retirement Sum Target i Basic Retirement Sum (BRS) Full Retirement Sum (FRS) Enhanced Retirement Sum (ERS) Use CPF OA For Housing? i No Yes Target Age i Target Age : 65 **How to use this tool:** Fill out the 4 steps on the left. Leave fields blank if they do not apply to you. Your customized projection dashboard will automatically calculate and update below as you type. Enter your Date of Birth in Step 1 to see your personalized Retirement Sum forecasts. Historical FRS & BHS Rates | Year | FRS | BHS | | ---- | --- | --- | **FRS 10-Yr CAGR:** ... **BHS 10-Yr CAGR:** ... Projections utilize historical growth rates of known limits to forecast your personal caps accurately. Key Assumptions Used - **Housing:** If you use OA for housing, we assume all regular OA contributions are used for mortgage payments and do not compound for retirement (though post-55 overflows are protected). - **Medical:** Assumes no major medical events for yourself or dependents that would deplete your MediSave (MA) balance. - **Income:** Assumes your salary and bonus remain flat (no annual increment or inflation). - **Rules & Interest:** Projections strictly follow current CPF rules, existing caps, and static interest rates (2.5% OA / 4.0% SA/MA/RA). Interest Rates & Caps | Account | Rate | | ------- | ----- | | OA | 2.50% | | SA / RA | 4.00% | | MA | 4.00% | Includes +1% on first $60k combined, and additional +1% on first $30k combined from age 55\. Contribution & Allocation Tables | Age | Employee | Employer | Total | | --- | -------- | -------- | ----- | | Age | OA | SA / RA | MA | | --- | -- | ------- | -- | **Disclaimer:** This calculator is provided by The Weekend Investor for informational and educational purposes only and does not constitute financial or investment advice. While every effort is made to ensure the accuracy of this model, assumptions are used, and inaccuracies or calculation errors may occur. We are not liable for any financial decisions, losses, or damages arising from the use of this tool. This calculator is an independent project and is **not affiliated with, endorsed by, or approved by the Central Provident Fund (CPF) Board**. Projections assume current CPF rules, including the 2025 policy closing the Special Account for members age 55 and above. For official statements, accurate account balances, and personalized guidance, please always refer to the [official CPF Board Website](https://www.cpf.gov.sg/?ref=theweekendinvestor.sg). ### Should i surrender my policy? URL: https://www.theweekendinvestor.sg/should-i-surrender-my-policy/ Last updated: 2026-08-04T08:17:06.000Z ## Policy Return & Opportunity Cost Calculator Find the true yield of your endowment, or see if you should surrender and reinvest. ### 1\. Original Policy Details Payment Frequency i Do you pay your premiums once a year or spread out monthly? Annually Monthly Payment Amount ($) i The exact premium amount you pay out of pocket for each period. How long do you pay? (Years) i The premium payment term (e.g., paying for 5, 10, or 15 years). When do you get the payout? (Year) i The policy year it matures, or the exact year you plan to cash it out. Maturity Value ($) i The total illustrated payout you expect to receive at the maturity year. ### 2\. Surrender & Reinvest (Optional) Current Policy Year i How many years have you already held this policy? (Leave blank if not surrendering). Current Surrender Value ($) i The cash value you would get if you terminated the policy today. Calculate Your Options ### Original Policy Return (IRR) 0.00% The annualized yield if you hold to maturity. #### Opportunity Cost Analysis If you surrender today, you must generate a **0.00%** annual return on your own to match the policy's maturity payout. ##### Alternative Investment Scenarios If you invest today's surrender value + your remaining premiums into the market: | Market Return | Ending Portfolio Value | | ------------- | ---------------------- | | 5% | $0 | | 6% | $0 | | 7% | $0 | | 8% | $0 | | 9% | $0 | ### Engage Dylon URL: https://www.theweekendinvestor.sg/engage-dylon/ Last updated: 2026-09-05T11:36:09.000Z Engage me on a fee # I manage your investments and guide your financial decisions. So you can spend more time on what matters to you. [Schedule a Discovery Call](https://wa.me/6596535000?text=Hi%20Dylon%21%20Can%20we%20schedule%20a%20discovery%20call%20for%20me%20to%20find%20out%20more%3F&ref=theweekendinvestor.sg) ## How this works 01**ORGANISE** ### Discovery Call Understand your situation and priorities. 02**PLAN** ### Strategy Meeting Review your financial and investment plan. 03**IMPLEMENT** ### Commitment Meeting Agree on the way forward and take action. 04**PROGRESS** ### Progression Meeting Review, adjust, and stay on track. 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[I want to retire comfortably](https://wa.me/6596535000?text=Hi%20Dylon%2C%20I%27d%20like%20to%20find%20out%20more%20about%20how%20I%20can%20retire%20comfortably.&ref=theweekendinvestor.sg) [I want a second stream of income](https://wa.me/6596535000?text=Hi%20Dylon%2C%20I%27d%20like%20to%20find%20out%20more%20about%20how%20I%20can%20build%20a%20second%20stream%20of%20income.&ref=theweekendinvestor.sg) [I want to plan for my children's future](https://wa.me/6596535000?text=Hi%20Dylon%2C%20I%27d%20like%20to%20find%20out%20more%20about%20how%20I%20can%20plan%20for%20my%20children%27s%20future.&ref=theweekendinvestor.sg) [I want to make good use of an inheritance](https://wa.me/6596535000?text=Hi%20Dylon%2C%20I%27d%20like%20to%20find%20out%20more%20about%20how%20I%20can%20make%20good%20use%20of%20an%20inheritance.&ref=theweekendinvestor.sg) [I want someone to manage my investments](https://wa.me/6596535000?text=Hi%20Dylon%2C%20I%27d%20like%20to%20find%20out%20more%20about%20having%20someone%20manage%20my%20investments.&ref=theweekendinvestor.sg) [Schedule a Discovery Call](https://wa.me/6596535000?text=Hi%20Dylon%21%20Can%20we%20schedule%20a%20discovery%20call%20for%20me%20to%20find%20out%20more%3F&ref=theweekendinvestor.sg) ## Who I work with Retirees & Pre-Retirees I want to know what I can spend, how my retirement income will be funded, and whether my money can last - without having to manage every decision myself. Accumulators I'm building wealth for retirement and for the people who depend on me. I want one clear plan that brings my investments and financial decisions together. Beneficiaries of Estates I've received an inheritance and want to make thoughtful decisions, without being rushed into products or a strategy I don't understand. [Schedule a Discovery Call](https://wa.me/6596535000?text=Hi%20Dylon%21%20Can%20we%20schedule%20a%20discovery%20call%20for%20me%20to%20find%20out%20more%3F&ref=theweekendinvestor.sg) ## Fees & Client Minimum Minimum investment: $200,000 Annual fee: up to 1% p.a. Platform fee: 0% to 0.28% p.a. Let's use the discovery call to see if we are a good fit. [Schedule a Discovery Call](https://wa.me/6596535000?text=Hi%20Dylon%21%20Can%20we%20schedule%20a%20discovery%20call%20for%20me%20to%20find%20out%20more%3F&ref=theweekendinvestor.sg) ## Posts ### What happens when your spouse manages the household finances and you are not involved? URL: https://www.theweekendinvestor.sg/what-happens-when-your-spouse-manages-the-household-finances-and-you-are-not-involved/ Last updated: 2026-09-07T14:37:31.000Z I realise it is quite common for either the husband or wife to be the one interested in personal finance, or none. One person will take care of the household budget and decide where to invest. The other person is simply not that interested, so they leave it to their spouse. From my observation, this is quite common! But what happens when the person managing the money is no longer around? Or when the marriage ends? Over the years, I’ve been brought into a few situations like this. After a divorce, after a spouse passes away, or when the children start getting concerned and step in. There are some real consequences that we may not think about while everything is going well. Let me share three stories. ### 1\. Depending on one CPF LIFE payout: “Will my mum have enough for retirement?” There was this couple I got acquainted with. The husband had been the sole breadwinner his whole life, while the wife was a homemaker. After the husband passed away, I was brought into the picture. One of the concerns the children shared with me was: “Will there be enough money for my mum’s retirement?” The couple had been depending on the dad’s CPF payouts for their retirement expenses. Now that he was no longer around, that payout stopped and she was worried. “I no longer receive money regularly. Do I have enough for retirement? The parents had not built up much savings outside CPF. So the children had to step up and help with the monthly allowances. In a way, the children became their mum’s “CPF”. From a financial planning point of view, once the event has happened, our options are more limited. This is why, with other families I work with, I try to bring forward this discussion. For people in their 50s or 60s, if both are depending on one person’s retirement income, what happens to the other person when that income stops? ### 2\. Spending after divorce: “I think I’ve spent too much.” Another client of mine went through a divorce. The whole process was quite emotional for her. Looking back, she felt she wasn’t well represented and didn’t get a very good deal out of it. But she's glad the entire proceeding is over and getting her life back in order. The first problem was getting a roof over her head, because the matrimonial home had been sold and the proceeds was divided. She wanted a place of her own. She made a fairly quick decision on the new home and spent quite a bit. Then came the renovation, where she spent quite a bit more. Afterwards, she started feeling: “Actually, I think I’ve been spending too much. I need to take a better look at the money I have left.” That was how we got connected. But by then, the money had already been spent. This is why I feel financial planning around a divorce should start during the process and not after. By the time everything is settled, some big financial decisions may already have been made. ### 3\. Dad passed away. The children wanted to help, but couldn’t agree on who to trust. The third story involves a family with three children. After the dad passed away, the mum received a lump sum. She relied on her husband for financial decisions throughout their marriage. So she asked the children: “What should I do with the money?” The children were concerned, but they also felt they weren’t good enough with money to advise her. Each had their own financial advisor or friend in the industry. So naturally, they thought, why not get someone they knew to help Somehow, the siblings got into a disagreement. They couldn’t agree on whether the recommendation was in their mum’s interest, or whether the advisor was trying to make a sale. In the end, they decided not to go ahead. The money stayed in a fixed deposit until the situation cooled down. In this case, the estate was mainly cash and property. What if the dad had left behind a portfolio of stocks and shares? Would the children know what to do with it? Would they understand why their dad bought those investments? And how would the mum react if the value dropped? People in my industry would say the family should have set up a trust, or planned how the assets would be passed down through a will. Those may be part of the planning. But there is still this missing link. Who is going to help the family understand what they have, and what to do next? ### Two problems in all transition 1. Emotions are dominant 2. Trust gap surfaces During transitions, people may not know what to do. They can be overwhelmed by emotions, while still having to make important decisions about money. Having knowledge and involvement prior to transitions can help a person navigate more confidently and with rationality. Then there is the trust issue. Who do we ask for advice? Can we trust this person? Can we trust ourselves? Trust gap takes a long time to bridge, which also means, resources may be idle for awhile. If these situations concern you, there are two things you can start doing. **1\. Have a conversation with your spouse.** Understand where the money is and how your spouse is investing it. Why are they investing this way? Who is helping them make these decisions? You don’t need to become as interested in personal finance as your spouse. But at least be in the know. Of course, you may not know what questions to ask at first. That is fine. Start with what you have, where it is, and how it pays for the household expenses. **2\. Find a professional you and your family are comfortable with.** It helps to build this relationship before something happens, while both spouses can still be part of the discussion. For some of my clients, I’m the person they turn to for investment management and help during these transitions. In a way, I take on the role of the family investment manager. Not everybody will find this service useful. But some families find it very valuable to have someone who already knows their situation and whom they are comfortable calling. And don’t just look for someone who has a product to sell. Look for an advisor who takes the time to understand your family and helps you think through the decisions. One spouse can still take the lead in managing the money. But it helps if the other person knows enough to take over, and knows who they can turn to when they need help. ### Your Most Important Investment Decision Is Knowing What You Don't Want URL: https://www.theweekendinvestor.sg/your-most-important-investment-decision-is-knowing-what-you-dont-want/ Last updated: 2026-08-20T08:29:55.000Z Do you want to spend your time picking stocks, or do you simply want your money to grow? Do you want investing to feel exciting, or would you rather it be boring so you can spend your time enjoying your life? Stock picking and timing the market are characteristic of active investing. For years, there has been plenty of literature on active and passive investing. But I'd like to offer another perspective. Passive investing isn't really passive. You still have tons of decisions to make. It's about deliberately choosing which decisions not to make. You are still making decisions, and some of the biggest investment decisions you will ever make happen before your first purchase. For instance, deciding to outsource is an active decision. You decided to trust a money manager. You believe that your money is better in their hands than yours. Think about it, it's a very active decision. Investors often start by asking, "What do I want?" What returns do I want? What should I buy? But perhaps it is much easier to ask: **"What don't I want?"** I don't want to place a trade every month. I don't want to follow the market every day. I don't want to make a decision every time the market falls 10%. Once you have a bunch of these "I don't wants", they start becoming the pillars of your investor behaviour and decisions. Maybe you realise you don't want to pick stocks. So you buy an index. Maybe you don't want to decide when to enter the market. So you automate your investments every month. Maybe you don't want investing to occupy much of your life at all. So you outsource to someone. Maybe you don't want to pay high fees. So you don't buy an ILP and hire a fee-based advisor. These are not the absence of decisions. You have deliberately decided which decisions you don't want to make. So I'd argue, knowing what you do not want is much more important than figuring out what you want. ## Is passive DIY investing what you want? Suppose you've gone down the path of DIY. You'll probably be researching which index fund to buy. But did you just sign up for a job you didn't ask for? DIY investing is a job on its own! That is why we DIY investors can cut out fees. Passive investing doesn't make decisions go away. You still have to decide which index to buy. You could buy the S&P 500, MSCI World or Russell 1000\. But did you know even the S&P 500 has variations? There are market-weighted and equal-weighted versions of the S&P 500\. Each of them reflects a different view. The very fact that you are buying into the S&P 500 means you have chosen to have most of your money invested in large US companies. If you buy a global index, you are choosing not to make such a big bet on any particular country. If you buy the Nasdaq, you are expressing yet another view. Every index is built according to a set of rules, and choosing one means choosing which rules you want to follow. I believe many investors don't understand the rules they have subscribed to. Isn't that scary? ## Then you have to decide how much to invest Once you know what to buy, there is another question. How much to buy? If you only need to invest $2,000 per month to retire, should you invest $3,000 because you have extra? Should all your money be in equities, or might you want some cash or bonds? In finance, professionals call this asset allocation. Just think of it as a fruit basket. Do you want your basket with only apples or a mix of everything? This is one of the most important "decisions" you can make, deciding the asset classes. A person who invests 100% in a global equity ETF is going to have a very different experience from someone who puts 60% into the exact same ETF and keeps the remaining 40% in fixed deposits. They own the same investment. But they don't have the same basket. Asset allocation will be one of the biggest active decisions you will ever make. **Then, are you going to fix your investment amount or percentage?** Two people can own exactly the same ETF and still have completely different investment strategies. One person invests 10% of his monthly income into it. Another invests $1,000 every month. The guy who sticks to 10% will see his investment amount grow together with his income, perhaps from $500 to $1,000 to $2,000\. The guy who decides on $1,000 stays at $1,000. Same ETF. Same idea of "passive investing". But over time, the outcome can be very different because of one decision made at the start. ## You also have to decide when to invest Imagine you have $100,000 sitting in the bank and you have already decided what you want to buy. Do you invest everything today? DCA over the next 12 months? Or wait for a correction because the market looks expensive? Even if your answer is, "I don't care, I'm just going to invest everything today because I don't believe I can time the market," you have still made a decision. You considered the alternatives and decided that market timing isn't a decision worth making. I think that's quite different from making no decision at all. The same applies when you invest regularly. Do you keep some cash aside to buy more when markets fall? Sell some when a part of your portfolio becomes too large? Or simply continue regardless of what happens? When you still have to make decisions like these, does "passive investing" really free up your life? ## And then there is behaviour This is probably where the idea of passive investing becomes the most interesting to me. Buying an ETF is easy. Holding it when everything is falling is another matter. You can say that you're a passive investor today, but what happens when the market falls 20%? What about 30%? Do you continue investing? Or will you say, "Let's wait it out, might drop further." You can have the best passive portfolio in the world and still end up with a terrible outcome because of your own behaviour. For many investors, I suspect getting these few decisions right probably matters far more than choosing the perfect stock. And quite frankly, accepting the market return will allow most investors to live a very comfortable life. And maybe that's what passive investing is really about. It doesn't mean, "I make no decisions." It means, **"I've deliberately decided that certain decisions aren't worth making."** I'm choosing not to pick stocks because i want to spend my evening with family I'm choosing not to time the market because i want to keep my attention on what matters Those aren't the absence of decisions. Those are decisions. Every investor has an investment process, whether they realise it or not. Active investors generally believe they can add value by making more decisions. Passive investors believe they can add value by making fewer of them. They save their decisions on what matters We are all actively investing, just how active. For investment to work for us and not the other way. We ought to be clear with what we do not want, and hence knowing which decisions are actually worth making. ### Who Helps You When Your Insurance Agent Is Gone? URL: https://www.theweekendinvestor.sg/who-helps-you-when-your-insurance-agent-is-gone/ Last updated: 2026-08-06T11:25:41.000Z Some years ago, I was introduced to a client for retirement planning. He's a stage 4 colon cancer survivor. Thankfully, today he's healthy and well. During the retirement planning process, i found out he had a whole life policy which provides coverage for major cancers So i asked, why didn't you make a claim? He replied, "my agent say cannot claim" Fast forward, i submitted the claim for him, along with justifications for the late submission. His insurer paid out and that pool of money forms part of his retirement portfolio As i write this, I am helping another person with a cancer claim. Why? Her agent is no longer around and she asked for help. Can people submit claim without assistance? Of course. But would most people want to navigate policy wording, fill up paperwork while simultaneously going through the emotional and physical toll of a cancer diagnosis? From my experience, usually not. I suppose, that's one reason many people still purchase their insurance from a human, so that they can get help when it's needed. Or maybe, it's also because regulator and insurers has yet to allow DIY purchase for simple product like an integrated shield plan Let's suppose you had the option to DIY, but you chose to buy from a person, **is it healthy to expect your agent to help with claims when you need it?** --- In some facebook group, you'll find many others in the similar situation. Their agent has left or have gone unresponsive. ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2026/08/Screenshot-2026-08-06-at-5.37.24---PM-1.png) ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2026/08/Screenshot-2026-08-06-at-5.37.06---PM.png) What's happening? Isn't the agent suppose to be around? Many people assume that buying insurance comes with lifelong servicing. Interestingly, that’s not actually written into the insurance contract. It’s simply an expectation that most customers naturally have. And when that expectation isn’t met, people get frustrated. So what are your options? **Solution 1 : Call up the insurer call centre and get re-assigned** As you can see from the above, anonymous participant didn't manage to get a re-assignment. Even if another agent is assigned, they have zero incentive to be involved. Remember, most financial advisors are self-employed and not salaried employees **Solution 2 : Find a friend or another person through word of mouth** That's how people like me got involved, but then another question arises. Is it reasonable to expect another adviser to spend time handling claims for free? Probably not. **Solution 3 : Claim yourself or get a family member to help out** If this has been the plan all along, why can't customer buy insurance on their own? Because the system does not allow. How weird! We are in 2026, we can invest, we can open a bank account online but we cannot buy the most basic insurance. --- I don't expect this article to change anything, but i hope it can manage your expectation towards "service", so you can spare yourself from future disappointment. Given the turnover rate of the insurance industry, many agents will not be around when you need help. It'll be healthier to treat help as a bonus rather than a given. With that said, why are agents being paid? Agents are paid upfront commission from "selling" and recurring commission for "servicing" If they are not servicing, then perhaps they should not be paid. For agents who left, the policies under their care usually gets reassigned to their manager. So why are their manager getting paid? If a policy ultimately reaches no one's care, then shouldn't we as customer have the option to transfer these "servicing" fee to a new guy or pay a lower premium? Insurance is a promise to pay. For many families, having someone to guide them through one of life’s most difficult moments can matter just as much as the policy itself. All i can say is, the incentive structure of the insurance industry remains misaligned to customer's interest. ### Only Invest What You're Willing To Lose" Is Terrible Advice URL: https://www.theweekendinvestor.sg/only-invest-what-youre-willing-to-lose-is-terrible-advice/ Last updated: 2026-07-30T13:16:04.000Z “Only invest what you're willing to lose" You’ve probably heard this before. Don't you think the statement is very funny? I mean… who’s actually willing to lose their money? --- For people with this mental model, i've notice certain patterns in their investments - They invest, chuck the money aside and forget about it. - Hold on to a losing position because they have mentally written it off - Dip their feet into many things, $10,000 here, $10,000 there In some cases, people end up not investing. While the statement may have be said with good intent, it sets the WRONG expectation. Think about it, what asset class has a good chance to go to zero? - Does a basket of stock have a good chance to go to zero? - Does a portfolio of bonds have a good chance to go zero? - Does Gold have a good chance to go to zero? All investments carry risk, but are they likely to go to zero? Probably not. The phrase only really makes sense when there’s a genuine chance of losing everything. For instance, an early stage start up which fails completely. Even 'risky' asset classes as a whole rarely hit zero. May I suggest, drop "I invest what am i willing to lose" from your vocabulary. Instead, embrace : "When will I need the money" Because time And notice how this question immediately gives your investment a purpose and a time horizon. You’re far less likely to simply write it off. As a rule of thumb, if you **have use** for the money, **don't invest.** - If you're going to buy a house in 5 years, you should not invest - If you need the money to care for aging parent, you should not invest - If the money is meant for emergency, you should not invest Then what? Do I just keep cash? Sometimes, yes. Cash is king, especially for times when you need it. --- But what if I still want to invest? Before you do, know what you're signing up for. Here's the historical range of return for S&P500 from Jan 1926 to May 2023. ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2026/07/image.png) If you had invested for just 1 year - Your $1 could have grown to $2.63 or fallen to $0.32 If you had invested for 5 years - Your $1 could have grown to $4.67 or fallen to $0.39 While the odds of investing for 5 years improve significantly, big losses are still possible. Can you accept the outcome? Human are loss aversion creature. We feel more pain from losses than the pleasure from gain. While it feels silly to hold cash, it's a lot sillier to lose cash. So my suggestion is simple. Don't invest money you have a use for. Drop "I invest what i'm willing to lose" Instead ask, "When will i need this money" I think you'll make much better investment decisions. 💡 **Don't Risk What You Have And Need* In Order To Pursue What You Don't Have And Don't Need - Warren Buffett ### Could the STI be one of the best diversifiers hiding in plain sight? URL: https://www.theweekendinvestor.sg/could-the-sti-be-one-of-the-best-diversifiers-hiding-in-plain-sight/ Last updated: 2026-07-23T10:55:06.000Z ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2026/07/DSC06741-2.JPG) Did you know the Singapore stock market doesn’t move nearly as closely with the S&P 500 as most people think **Historically, for every 1% move in the S&P 500, the STI has only moved about 0.29% on average.** I came across this [article](https://www.lseg.com/en/insights/ftse-russell/beyond-the-headlines-five-things-you-didnt-know-about-singapores-straits-times-index?ref=theweekendinvestor.sg) , where the correlation between Singapore various market indexes range between 0.4 - 0.7, which is a little surprising given how connected we are to the world. Since the indexes the author used were not the usual ones people invest in, or I invest in. I wanted to know how my own investments were actually correlated. I downloaded 20 years of monthly data and ran a simple regression between the STI and the S&P 500 using Gemini. Gemini generously included price correlation, please ignore that column ### Correlation by Historical Timeframes ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2026/07/table_20yr.png) It's quite interesting how little STI & SPY500 returns are correlated. Before trusting the results, I checked the usual assumptions behind the regression. Test Output 1\. Return data is stationary 2\. No serial correlation on monthly time frame 3\. Returns are highly heteroskedastic Nerdy stuff, let's just say we can trust the output 😄 **Singapore stock market returns are indeed not highly correlated with U.S. stock market returns** If we refer back to the correlation, the 10 year correlation is very different from 3 years. What happened? It made me wonder if relationship had changed over time. To explore that, I split the data by U.S. presidential terms and re-ran the regression ### By U.S. Presidential Term (4-Year Intervals) ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2026/07/table1-1.png) Coincidentally, the decline in correlation also spans several U.S. administrations. Whether this reflects changing trade policies or other structural factors, that is beyond the scope of today. But it’s an interesting observation. I think there can be many reasons for this but this poor correlation might be a very useful information for Singapore investors. ### Annualised Price Return S&P500 vs STI ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2026/07/annualised_returns-1.png) If we also compare the returns of S&P500 to STI, recent performance has been stellar. While the difference may appear big at first glance, gap also narrows once you account for STI’s dividend yield, which has historically been around 3–4.5% a year. The article did not take into account reinvested dividends ### Conclusion What started as a curious examination of the article seem to have output an interesting insight to Singapore stock market The correlation of Singapore market to S&P500 From jan 2021 to jan 2025 has been a mere 0.440 and beta of 0.29 Which means for every 1% the S&P 500 has gone up or down, the STI has typically only moved about 0.29%. Over the years, i've seen people spending a lot of time debating whether to invest in the S&P 500 or the STI. Perhaps we’re asking the wrong question. If the two markets behave differently, maybe the real benefit isn’t choosing one over the other, it’s owning both. Diversification isn’t about buying different tickers. It’s about owning assets that don’t move together. ### The Side of Index Investing Influencers Don’t Talk About URL: https://www.theweekendinvestor.sg/the-side-of-index-investing-influencers-dont-talk-about/ Last updated: 2026-07-21T12:42:35.000Z In recent years, I’ve noticed more people adopting index investing So have I. Perhaps it’s been popularised by influencers. Or maybe information has simply become more accessible. It’s so accessible that you can get financial advice from Reddit. And once you start reading about investing, social media algorithm changes your entire feed into finance content. To a point where every other post becomes a reminder to "buy the index" It almost feels like index investing has become a cult. I am one of the believers I too invest into the S&P 500 regularly, and have been doing so for years. I’ve also been recommending this style of investing as one of the approaches for my clients. But as markets continue to make new all time highs every other month, I’m reminded of a story. A story that many influencers and index investors either forget, or choose not to talk about Let me bring you back to the year 2000. --- In March 2000, the S&P 500 reached an all-time high of **1,420.60**. The ten largest companies in the index were - Microsoft - Cisco Systems - General Electric - Intel - AT&T - Oracle - Pfizer - Verizon Communications - Time Warner - ExxonMobil Many, if not most, have since fallen down the rankings. Leading up to that moment, the S&P 500 had already enjoyed almost **9 years of one of the strongest bull markets in history.** 9 years of rally! Optimism was everywhere. People genuinely believed the market would continue to rally. Imagine you had invested **$100,000** into the S&P 500 in January 2000. By the end of March 2000, you’d be feeling pretty good. Your portfolio had grown to **$107,753**. More than **7%** in just three months. Then the music stopped. By the end of June 2000, your portfolio had slipped to **$104,099**. “It’s just a pullback,” By September 2000, you’re still ahead, but barely. **$102,909.** Then December 2000 arrives. Your account is now worth **$94,003**. In less than a year, you’ve gone from celebrating a quick gain to sitting on a loss. Surely it’ll recover soon… Except it doesn’t. Three months later, your portfolio falls to **$83,613**. Nearly **17% below** what you originally invested. The waiting just begun, in the months that followed... Sep 2001 — $74,835 Mar 2002 — $82,058 Sep 2002 — $58,606 Mar 2003 — $60,719 Sep 2003 — $71,618 Mar 2004 — $81,040 Sep 2004 — $80,080 Mar 2005 — $84,523 Sep 2005 — $88,163 Mar 2006 — $93,028 Sep 2006 — $95,715 Dec 2006 — $101,476 (Finally, your portfolio turn green) A full **six years** just to break even. If you had held on just for a little longer, the Global Financial Crisis arrived. Your portfolio fell once again. Mar 2008 — $94,561 Sep 2008 — $83,111 Mar 2009 — $56,979 Imagine staying invested for almost **ten years**, Your $100,000 had become just $56,979. This period became known as... **The Lost Decade.** --- I’m not sharing this to scare you. Nor am I saying you shouldn’t invest in the S&P 500. In fact, I still do. But I think every investor needs to know the complete story and be able to accept both the happy and tragic ending It’s easy to believe markets only go up when that’s all we’ve experienced in the last few years. But when your portfolio stays red, for 6 years. > You will doubt. > You will question yourself. > You will question the strategy, You might sell. History never repeats itself, but it often rhymes. The companies change. Technology changes. But human emotions rarely do. Greed. Optimism. Fear. Euphoria. These will always be around --- In the years that followed, academics and practitioners sought out methods to reduce these long periods of pain. That’s one reason diversified portfolios, such as **60/40 equity and bond portfolio**, became popular. For many years, it worked. Until it didn’t. Every strategy has a period where it shines, and a period where it disappoints. Being in Singapore, someone who invested in the Straits Times Index or even bought a property would have experienced a very different journey. At the very least, they would have collected dividends or rents while they waited. Whatever strategy you follow, never assume the music will keep playing. I still believe in index investing. But investing isn’t just about believing in the upside. It’s about understanding and accepting the downside too. Every strategy works, until it doesn’t. ### Is it just me or is our policy missing the plot on parenthood? URL: https://www.theweekendinvestor.sg/is-it-just-me-or-is-our-policy-missing-the-plot-on-parenthood/ Last updated: 2026-07-21T08:29:16.000Z Singapore's total fertility rate just hit 0.87. One of the lowest in the world. And what was our response? Budget 2026 rolled out several measures to ease cost concerns for parents: - $500 Child LifeSG Credits per eligible child - Enhanced pre-school subsidies - Continued Large Families Scheme - Strengthened Student Care Fee Assistance Is it just me, or are we missing the plot? It got me thinking, if all these measures aren't moving the needle, are they just white elephants? What are the issues that will actually motivate people to have children? And while policy changes take years to bear fruit, what can people in their 25-35s do to prepare themselves for parenthood? Here are my thoughts on 3 major issues: Housing, Quality of Parenthood, and Work Culture. **Housing** New houses are getting smaller. Gone are the days where a 5-room HDB could fit a kampong. Even condominiums are becoming shoebox-like. The issue with small houses became apparent after 2021\. Covid normalised working from home. Adults need more space, for work and for living. Housing policy clearly has not factored this in. Simply put, will you find it easier to focus at an uncluttered home-office desk, or at your dining table? Bigger space also means more room for imagination. How can that spare room be used? For your child? For a helper? For your parents to stay over and help with the kids? Space has not been designed with family planning in mind for many years. Supply of HDB has been ramped up in recent years, and people are able to get their first home slightly faster. But even a 2-3 year lead time may be too slow. For someone who went to university, boys graduate at 25 and girls at 23\. From the time they feel ready to wed and get a house, they will usually be 30 when the keys arrive. Surely policymakers are aware that pregnancy chances decrease significantly with age. One may argue that couples could stay with parents after childbirth. But consider this: working from home, living with two elderly parents, a child, maybe a helper, and a pile of diapers from Shopee because bulk buying is cheaper than NTUC. Is that a situation you want? My last point on housing is distance. Further from the city centre, houses are arguably cheaper and bigger. But distance not only makes the heart grow fonder, it also makes our fatigue grow stronger. Greater distance coupled with Return to Office meant increased commute and fatigue. Couples travel to and from work, and some travel to and from their parents' place too. Our connectivity may have improved over the years, but it fundamentally does not address the fatigue people face from commuting. How romantic will a person feel after a long day of work? Does it look like Fifty Shades of Grey, or another Conjuring sequel? **Quality of Parenthood – On Car Ownership** Budget 2026 also removed the ARF rebate for COE. Whether that is a pro-car ownership policy, I will leave it to you to decide. Some people buy a car because it is their hobby and they can afford it. Others buy a car because they need it to make life liveable. They tried to fill the cracks of housing policy with their own means. “Stay further away? Fine. I will get a car.” Any reasonable Singaporean can accept that Singapore is a small country and we cannot have every household owning a car. Many people in their 20s and 30s are already shunning car ownership because the numbers do not add up. But when a child comes along, a car is no longer a luxury. It’s a tool to make parenthood less painful and increase quality time A car raises the quality of parenthood. For instance, it allows parent to forge a different memory with their child. They could bring their child to fly a kite at Marina Barrage along with all the “barang-barang”, something they may otherwise not do. Is our policy supportive of parenthood car ownership? **Quality of parenthood - On Childcare** No parent wants to miss the first few years with their child. If money were no concern, childcare would be used for enrichment, not as a dumping ground. It should be a place where children interact with peers for social development, not a place where parents drop off their kids so they can hustle from 9am to 7pm just to pay off the very fees that childcare costs. Do children want to spend 12 hour in the day care? Do parents want to be separated with their child 12 hour a day? I’m not so sure. I can’t speak for others, but for me. I want to have kids because I want to share my joy with them. I want to spend quality time with them. Not just for the sake of having them. If I am struggling, why would I bring another soul into that struggle? **Work Culture** Some of us worked hard because we saw our parents struggle. We studied hard, we gave our best at work. Naturally, we ask: how will having a child affect everything I have built? Female peers have shared concerns about career slowdown due to pregnancy. Inevitably, someone on maternity leave cannot output as much as someone working 365 days a year. Come performance ranking season, who gets ranked higher? Beyond career progression, the pace of work is only getting faster with technology and AI. Do Singaporeans work less because of technology, or do we simply work faster and output more? At the end of each workday, many Singaporeans barely have mental space for themselves, let alone a hobby, let alone the bandwidth to care for a newborn. When the baby arrives, everything else takes a backseat: health, finances, friendships. **So what is the solution?** Will extending maternity leave to 36 months work? Maybe. Will allowing parents to buy a car without bearing the full cost of COE work? Maybe. Will building 6-room HDBs and allocating them to young families work? Maybe. All of these cost money. The question of funding is real. But my point is this: our TFR is a symptom of collective policy gaps, not a standalone problem. It is likely my views will not be heard. But if they are, I hope Singapore can be a place where I can make a living and also live a life. **What can we as individuals do?** In 13 years of working with people in their 20s and 30s who want kids, the clearest advice I can give is this: be prudent with your money. Your 25-30s are the best window to save before family expenses kick in. Big outflows are coming. Travel, retirement dreams, ageing parents, and eventually children. You will have to prioritise and make choices. If you are not prudent in your 25-30s, the next good savings window comes only in your late 40s to 50s. Cheers to all parents. It is not easy, and your best is good enough. \~ Compounding what matters ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2026/03/Ghost-IO-Thumbnail.png) ### Inflation at 1%. Why do things still feel so expensive? URL: https://www.theweekendinvestor.sg/inflation-at-1-why-do-things-still-feel-so-expensive/ Last updated: 2026-07-21T09:47:52.000Z [Singapore core inflation eases to 1% in January, better than expectedHeadline inflation up at 1.4% from 1.2% in December, driven by higher accommodation costs Read more at The Business Times.![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/icon/favicon-7.ico)The Business TimesLow Youjin![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/thumbnail/bbea83700a5fd5cc6bcaf7115744806667f77d1b560d50cddd88849a784f5cc3-4)](https://www.businesstimes.com.sg/singapore/economy-policy/singapore-core-inflation-eases-1-january-better-expected?ref=theweekendinvestor.sg) Inflation has fallen from the heights of 2023\. As reported on businesstimes, Singapore's core inflation has eased to 1% in January 2026. That sounds like a good thing. Right? Let's not mistake disinflation with deflation. Disinflation means things are still getting expensive, but at a slower pace. If you feel that Singapore is expensive. It's quite likely our price expectation is anchored at pre-covid level. The days where GST is 7% and could get a kopi-o-kosong at $0.90 In [2025](https://vulcanpost.com/895377/singapore-expensive-city-for-expats-not-locals/?ref=theweekendinvestor.sg), Singapore clinched the 4th costliest city for expats and 28th for locals. But if we change the presentation of data to country instead of city, it tells a different story. Let's say we rank the countries based on the position of their most expensive city. Singapore will rank 3rd in the world for expats and 10th for locals. ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2026/02/inflation-sg.jpg) ss It made me wonder. **Where will we be in 10 years?** I thought, let's look at the last 10 years of inflation data. Lucky me, the [worldbank](https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?ref=theweekendinvestor.sg) provides the inflation rate, CPI data. According to World Bank CPI Data, Singapore's 10Y inflation rate. **2015 - 2024 : 1.58% p.a.** ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2026/02/Untitled-design.png) 10 year inflation rate for world's most expensive countries and cities As a thought experiment 1. suppose the top 10 country starts at same starting line 2. inflation behaves the same way for the next 10 years Singapore might rise 2 position for locals! Quite likely, we're going to stay as one of the costliest city & country in the world. --- How do we as a nation and individual tackle this problem? On a national level, we've combated inflation via stronger currency, government transfer (GST voucher) and [higher real wage growth ](https://www.businesstimes.com.sg/singapore/economy-policy/singapores-real-income-growth-improves-4-3-amid-low-inflation?ref=theweekendinvestor.sg) over the last few years of elevated inflation. And maybe, we have exported some of our inflation to JB or other countries 😜 But as individual, how can we help ourselves? If we are working hard and still feeling the squeeze of rising costs, how? The answer is 1.58%. Make your money work harder. It should be working harder than you! Our wealth cannot be growing slower than the long term inflation. If your money is idling, go get some interest that's higher than 1.58% If you are investing, add another 1.58% p.a to your retirement figures. > *What are you doing to make sure your money is growing faster than 1.58%?* That's all from me, a ramble on inflation! \~ Compounding what matters ### Most investors focus on returns, few focus on this URL: https://www.theweekendinvestor.sg/most-investors-focus-on-returns-few-focus-on-this/ Last updated: 2026-02-24T08:09:24.000Z “Hey Dylon, there’s a new fund and their return looks good” It’s interesting how investors and advisors both get lured into the fads of novelty and the allure of higher return. Every year, new funds appear and people talk about it. Some of these funds are also limited to accredited investors, offering a sense of “status” and complexity. I do wonder, what are people’s investment philosophies and where do all these fit in. An investment philosophy lies on a spectrum, the two ends are Passive and Active. Most investors lean active. ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2025/08/image-1.png) Source : wealthshape.com In portfolio management, an active approach means market timing, tactical asset allocation or security selection. By and large, evidence shows active management underperforms long term. According to [SPIVA](https://www.spglobal.com/spdji/en/research-insights/spiva/?ref=theweekendinvestor.sg), 84.34% of funds underperformed the S&P500 over the last 10 years. ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2025/08/Screenshot-2025-08-22-at-6.07.11---PM.png) What do you think happens when an investor adds more ACTIVITY into their investment journey? Not only do returns suffer, their probability of success falls too! Activity stems from 3 sources 1. Investor 2. Advisor 3. Fund Manager The fund managers are active to select the securities to invest in. The advisors are active in selecting the fund manager and allocating the money. The investor is active to engage the right advisor and provide the money We can relate to this in fitness terms. Find a trainer, the trainer provides a workout program and the gym, the gym owner provides the equipment. All that’s left is to lift! Unlike fitness, more activity doesn’t yield better results in investing. Every layer of activity introduces **human error and fees,** which jeopardises the success of an investment program For example, some advisor ignores the need for dollar cost averaging and an investor ends up with two tiers of timing risk, on the fund manager’s level and the advisor’s level. Completely unnecessary! My point is, most investors focus on returns and risk, but rarely on the probability of success Since Probability of Success + Probability of Failure = 1 An investor seeking to reduce the probability of failure will ensure a higher probability of success. Those who embrace passivity are more likely to increase their odds of success Passivity means choosing a market, accepting the average return and insulating decisions from emotions. One may argue, active management provides the opportunity for better returns despite lower odds of success. Totally valid, but what’s the investor’s objective? **Are we investing so we can retire and travel the world or are we investing for the 15% return?** That’s a question every investor should think about. “Next time someone pitches a new fund or idea, don’t ask ‘what’s the return?’ Ask instead: ‘Will this improve my odds of success?’” ### How a Free Power Bank Doubled Your Investment URL: https://www.theweekendinvestor.sg/how-a-free-power-bank-doubled-your-investment/ Last updated: 2025-08-09T06:27:32.000Z **The Reciprocity Effect** Did you know that you are inclined to spend twice as much after receiving a gift? This insight comes from the Classic [Coca-Cola experiment ](https://www.decisionskills.com/social-reciprocity.html?ref=theweekendinvestor.sg)by Dennis Regan, a professor from Cornell University, in 1971. The results showed the power of giving. > In the condition where Joe did not give the participant a soda, the degree to which they liked Joe influenced how many raffle tickets they bought. But in the condition where Joe did give a soda, participants bought **twice as many tickets** as the no-soda condition, regardless of how much they liked Joe. Gifting, quite often a power bank, is a common phenomenon at many insurers roadshows. Does it really get people investing twice as much into an investment plan? I’ll leave you to decide. What I do know is for every satisfied customer, there’s bound to be a disgruntled one. A quick scroll through Reddit SingaporeFi shows buyer’s remorse is a weekly affair. The latest post: *“Parents Coaxed By Doorknock Agent To Purchase ILP Amounting To 200K.”* And here’s something to notice, people who speak up are often the outspoken ones. It led me thinking, are majority of people somewhat satisfied or do they simply choose to stay silent? --- **Expectations towards Investment** How is it that two people can buy the same investment plan but feel so differently about it? **Person A :** *Expresses buyer’s remorse* **Person B :** *Satisfied with their investment* If a product is objectively bad, it’s unlikely that both would buy it or both would likely regret it later. Clearly, the product was acceptable to one of them. This must mean they had **different expectations.** **Person** **A** : *My situation could have been better if I invested elsewhere* **Person B** : *My situation has improved compared to me not investing* As the saying goes, comparison is the thief of joy! If we compared only to our “before”, we’d probably be much happier! But here’s the bigger problem If there’s objectively a better alternative, then **Both A & B have made a sub-optimal life decision.** They might both be better off investing their money elsewhere. Perhaps, people don’t make decisions that are objectively in their best interests. Instead, people make decisions based on what they **perceive** to be the best. **Person A** : *Was exposed to new information, altering their perception, leading to remorse* **Person B** : *Hasn’t been exposed and remains satisfied* This difference in perception often comes down to who we listen to. --- **Why We Trust Advisors (and Often Get It Wrong)** Many Singaporeans make financial decisions along with their financial advisors, bankers and insurance agents. They are also key sources of information. To a large extent, we trust them. Have you wondered, why do you trust your financial advisor? Michelle and Dennis Reina, trust-building experts, found that trust is built around three critical areas: **Character, Communication, Competence**. We trust someone because: - They behave with integrity and act in our best interest (*character*). - They are transparent and make us feel safe (*communication*). - They are capable and get things done (*competence*). In financial services, I believe the logical order should be: 1\. Competence 2\. Character 3\. Communication First, find people who are capable. Then, narrow down to those with the character to act in your best interest. Finally, if possible, choose someone who communicates well. In reality, the order is often reversed 1\. Communication 2\. Character 3\. Competence > *“I prefer to work with people who communicate best with me. As a result, I trust this person. Hopefully, this person can help me reach my goals.”* There’s also a big misconception that being licensed means being competent. That’s far from the truth. Just because I graduated from culinary school does not make me a Sushi Chef. Being licensed simply means a financial advisor is **minimally qualified to get started.** In the absence of competence or character, we get situations of buyer’s remorse. That’s why we must carefully assess and question the role of our advisors. Are they here to sell or to advise? If they lack character or competence, chances are they’re here to sell and you will have to do the heavy lifting yourself. For those who want to take things into their own hands, it’s important to get educated and exposed. For those who prefer to outsource, it’s critical to discern the quality of your advisors. --- **Conclusion** Ultimately, personal finance is a personal responsibility. If you’re like me and weren’t born into wealth, we work to improve our life. We trade time for money, and use that money to buy choices, experiences and memories. Some of us are more privileged, able to invest and make smarter financial decisions. By doing so, our money works for us so we don’t have to trade away as much of our life. A sub-optimal money decision is really a sub-optimal life decision. As Seneca said in On the Shortness of life : > “we do not receive a short life, but we make it a short one, and we are not poor in days, but wasteful of them” ### Did you know private hospital rider could cost as much as a HDB? URL: https://www.theweekendinvestor.sg/did-you-know-private-hospital-rider-could-cost-as-much-as-a-hdb/ Last updated: 2025-08-08T14:55:27.000Z The premium you pay for a private rider (from 31 to 90) ranges from $200,000 to $400,000\. If you consider the opportunity cost and future price increment, it’ll be much more! You could technically buy a [2 room HDB](https://www.99.co/singapore/hdb-resale-price?ref=theweekendinvestor.sg) or a Tesla with this money! Take a look at the cumulative premiums for the riders of our 4 major IP insurers. These figures are obtained from the insurers' website as of June 2025\. ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2025/07/Screenshot-2025-07-03-at-11.39.29---PM.png) Cumulative premium of IP riders (2025 June) --- Healthcare cost and medical insurance premium has been a hot topic recently. As our [health minister posited](https://www.moh.gov.sg/newsroom/speech-by-mr-ong-ye-kung--minister-for-health--at-the-securities-investors-association-%28singapore%29-s-25th-anniversary-members--night--12-july-2024--700pm--at-one-farrer-hotel?ref=theweekendinvestor.sg) : the design of insurance product has led to “buffet syndrome”, which inflates medical expenses and insurance premium. Going forward, rider premiums are likely to keep rising and we should give this growing expense a serious thought! “what was once worth it, may no longer be” With the recent [withdrawal of pre-authorisation benefits](https://www.straitstimes.com/singapore/insurer-great-eastern-pauses-pre-authorisation-certificates-for-mount-elizabeth-admissions?ref=theweekendinvestor.sg) by Great Eastern, I was motivated to examine this question. **Are riders still worth it?** But how do I measure “worth?” It’s subjective. For the purpose of this article, I'm exploring this question only from a quantitative lens. To answer the question, we have to first understand the benefits of a rider --- **History of rider** *Era 1 : 1994 to 2018* When rider [was first introduced in 2006](https://www.sma.org.sg/news/2021/May/healthcare-insurance-a-chronic-issue?ref=theweekendinvestor.sg#:~:text=1994:%20First%20IPs%20started%20by,for%20private%20sector%20professional%20fees), it had a very simple objective. To fully cover deductible and co-insurance. For those who want to have a complete peace of mind, pay for this add-on! **Purpose of rider: 100% Coverage** Inevitably, this disrupted the pricing mechanism of the healthcare industry. Healthcare cost escalated over the years. To tackle the issue, Ministry of Health required all [new riders ](https://www.moh.gov.sg/newsroom/riders-and-cdl?ref=theweekendinvestor.sg)from 2018 onwards to have a minimum co-payment of 5% *Era 2 : 2019 to 2022* During this period, most insurers migrated clients who are on full coverage riders into a partial coverage rider. The purpose of rider also evolved. It no longer sought to provide 100% coverage, instead, it seek to minimise your payment. insurers did so by imposing a limit to how much you need to co-pay. Several insurers set the limit at ($3,000 or 5% of bill) , whichever is lower **Purpose of rider : provide a limit on co-payment.** *Era 3 : 2023 to current* In 2022, Ministry of Health introduced[ Cancer Drug List.](https://www.moh.gov.sg/newsroom/support-for-cancer-patients?ref=theweekendinvestor.sg) “The Cancer Drug List (CDL) is a list of clinically proven and cost-effective treatments, introduced to keep cancer treatments affordable and enable the Ministry of Health (MOH) to negotiate better prices with drug companies. I felt the introduction of CDL over-complicated medical insurance. Complication 1 : Medicine which used to be covered by Integrated shield plans are no longer be covered as they fall under the [non cancer drug list](https://www.straitstimes.com/singapore/end-of-insurance-coverage-extension-for-cancer-treatments-not-on-cancer-drug-list?ref=theweekendinvestor.sg). Complication 2 : The cancer drug list also stipulated a claim limit for different category of medicine. This means a drug may not be sufficiently covered. These led to a third change in the rider landscape **Purpose of rider :** 1. **provide a limit on co-payment.** 2. **additional coverage for cancer drug / treatment** I hope this gives you a clearer idea of what riders are meant to cover today, or at least how I interpret their purpose. With this, let's do the cost-benefit analysis! --- **The Math** We should see paying for rider as paying for 2 core benefits 1. Limit on co-payment 2. Additional coverage for cancer drugs / treatments To explore point 1, Let’s take a look at different bill sizes and the impact of a rider : ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2025/07/Screenshot-2025-07-03-at-11.56.27---PM.png) **How to read the table?** For a bill size of $100,000\. the net gain of having a rider is $9,700. You are better off by $9,700 in that 1 bill. But how many times must we experience $100,000 bill to justify having this rider in our lifetime? Assuming I am on Great Eastern's TotalCare : the cumulative premium from 31 to 90 is $382,801\. This is also assuming no claims. The cumulative premium would be higher in the event of claims. Suppose the net gain on a $100,000 bill is $9,700\. If we take Total Premium / Net Gain = $382,801 / $9,700 = 39.46 A person would have to be hospitalised for 39 times and with 100,000 bill each to breakeven the lifetime premium that they will be paying I think the probability of this situation happening is EXTREMELY low. **Quite honestly, I don’t see how the math could justify having the rider until 90 yo.** But I thought, why not shorten the rider duration to 60yo. Just to insure us during our working years. The cumulative premium from 31 to 60 is $68,865. If we take Total Premium / Net Gain = $68,865 / $9,700 = 8.96 **A person would still have to be hospitalised 9 times and at $100,000 bill each to breakeven!** Pause for a moment to digest this. Do you think a rider is worth it? --- To ensure this article is balanced. I also thought, what are the situations where a rider is useful? Here are 3 which i can think of 1. Extraordinary bill like $500,000 2. If we are young 3. For people of poor health A friend of mine is in her 30s and have been in and out of hospital for the last 4 years. Her total bill till date is >$400,000\. In an extraordinary situation like this, the rider did its intended job. It minimised the impact to her savings, especially when she’s still in her 30s and trying to accumulate wealth. In her case, she is no longer able to buy any more insurance. Having this rider is probably the best plan she will ever have! **Finding 1 : My math suggests that having a private rider is not worth it unless we fall into the situations above!** --- Let's move on to explore the second core benefit of rider. The coverage for outpatient cancer treatments that fall outside the Cancer Drug List (CDL). I’ll use Great Eastern’s TotalCare rider as an example again. The rider provides up to $200,000 of coverage per year for treatment that’s not on the cancer drug list. ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2025/07/Screenshot-2025-07-03-at-6.02.01---PM.png) Basically, the payment for rider is also paying for $200,000 of cancer drug benefit per year. If you think about it, this may be replicated using a term critical illness plan or a cancer insurance. If our lifetime premium is $200,000 - $400,000\. i think we could possibly replicate this benefit in other form, especially if we are still young. **Finding 2 : There may be alternate path to replicate the cancer drug benefit which could be more value for money** --- **Is a rider still worth it?** For most people, probably not past age 65\. But if you’re young, uninsured or of poor health. It offers a peace of mind. The math simply don't justify having the rider, especially in our old age. --- **Conclusion** I think i’ve achieved what i set out to do in this article. To explore the question : "Are riders still worth it?" Purely from a numbers perspective, my answer is no. I believe there are other arguments to support having one, probably an emotional one. But I’ll leave that to other people --- Disclaimer This article is for informational and educational purposes only. It reflects my personal views and interpretations based on publicly available data at the time of writing. While I have done my best to ensure accuracy, **some information may be incomplete, outdated, or contain unintentional errors**. This is **not financial advice** and should not be treated as such. Please consult a licensed financial advisor or insurance professional before making any decisions regarding your insurance or financial planning. ### 5 reasons your ILP won’t do well! URL: https://www.theweekendinvestor.sg/5-reasons-your-ilp-wont-do-well/ Last updated: 2025-08-08T14:56:53.000Z On reddit [singaporefi](https://www.reddit.com/r/singaporefi/?ref=theweekendinvestor.sg), there’s plenty of people seeking advice from the online community. “what should i do with my ILP” “i regret buying this, how?” These pleas usually follow a barrage of well-meaning advice, some are well justified and some are biased But have we considered, why is this still an issue in 2025? We live in a time where information is abundant and readily available. Surely, investors will do some due diligence before committing right? Perhaps it’s the salesman or the agents that’s pushing for the product. I recently came across a tiktok video where a financial advisor defended his position on ILP. He said because the product is MAS approved, that must mean there are merits to it. Is this statement false? In my opinion, the product contributed to the issue but is not THE ISSUE. A commonly cited reason against ILP is high fees. 2%, 3% maybe 4% fees. But If you look at the hedge fund industry, the standard fee structure is [2 on 20](https://www.investopedia.com/terms/t/two%5Fand%5Ftwenty.asp?ref=theweekendinvestor.sg). It comes with lock in period too! (albeit likely shorter than ILP) 2% annual management fee with 20% performance fee. So clearly, fees alone cannot be the issue. If a hedge fund manager fail to perform, i’m certain the investor will be upset the same way as the ILP investor If your investment makes you 12%. are u okay paying 3%? If your investment makes you 8% consistently, are you okay to keep it going for your retirement? **So the crux of the issue is mismatched expectation of returns.** Or bluntly put. **Poor returns**. As investor, you are not satisfied with the returns. You do not believe the instrument will take you to your goals. --- **Here are 5 reasons why i think many ILP will not do well** 1. **Allocation in bonds** Are you aware of the historical returns of bond? NYU published these [data](https://pages.stern.nyu.edu/~adamodar/New%5FHome%5FPage/datafile/histretSP.html?ref=theweekendinvestor.sg) recently. The average return for corporate bonds between 1928-2024 is 6.59% p.a Bond is typically added to an investment portfolio for risk management. However, investors have to ask themselves if it’s justifiable paying 2-3% fees to buy into bonds when the returns are 6-7%. Typically a balanced portfolio will have 50% bonds, which means half the money will earn no more than 3%+. Your returns have been capped by the asset allocation. On its own, it’s fine. But with high fees, it becomes an issue. 1. **Guesswork** The funds in ILP are often recommended by advisors or selected by clients. Most clients will seek guidance from advisors. But how do advisors decide what to recommend? Are the recommendations based off a hunch or guesswork? There was a period where the world is optimistic with china and their stock market. But the stock market isn’t the economy. ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2025/06/Screenshot-2025-06-12-at-3.55.37---PM-3.png) The shanghai composite index returned a total of 16.56% over the last 5 years (2020-2024). The index grew by 3.11% p.a The same 5 year period, China’s GDP grew by 4.86% p.a If an ILP had heavy allocation to China, it will not have done well compared to global or US exposure. I’m not saying that we should not invest in China. But if you were invested in China, why? Was it because of a sound reasoning? Or was it guesswork? How many times will you be able to guess heads when flipping a coin? 1. **Absence of active management** If you’re on a plane and it is flying in the wrong direction. How soon will you want the captain to adjust the flight path? In the case of active management, the advisor acts as the captain. If the portfolio was started on the basis of active fund selection, are there rebalancing and switches being done? If the portfolio is set and forget, is the fund which you have forgotten being monitored by anyone? If none of these are happening, what active management are there? And how confident are you that the portfolio will do well? I’m not a strong believer of active investing. [Evidence](https://www.spglobal.com/spdji/en/research-insights/spiva/?ref=theweekendinvestor.sg) have shown that a passive index portfolio will outperform many well managed active portfolio. Let alone, a poorly managed one. Should we even be surprised that an “actively managed” ILP will not do well if it is not even managed 1. **Cost of Insurance** ILPs first came out as insurance products. It was designed for the purpose of protection but some have bought under the guise of investments. In recent years, ILPs have evolved and there’s ILPs for protection and investments now. Many of the ILPs that were sold as insurance products simply will not perform in the long run because of the escalating cost of insurance. The older you get, the more you pay, the lesser is your investment returns. Can we fault the product? Or should we fault the agent who sold the product? For the people who bought it for the purpose of insurance, they are less likely to see the lack lustre investment return as an issue. But for those who were sold the idea wealth accumulation, it is quite likely they will show up disappointed in years to come. The idea of having 1 product to solve insurance and investment sounds nice, but the reality is far from ideal. 1. **Mismanaged expectation** If you have an ILP, what did your advisor promise you when you bought it? Did they show you some documents with columns of 4% & 8%? (It’s part of the policy illustration) Did they throw in terminologies like sign up bonuses or loyalty bonus? What did they promise you? I would speculate that many plans were sold without setting the right expectations. Without expectations set, clients will form their own. How can an ILP do well if the expectations were not even set. **How do we know our child passed their exam if we don't know the passing score?** For those who managed to set realistic promises, the challenge is to deliver on them. But are these advisor still around to uphold them? --- **Summary** There are many contributing factors to a poor ILP experience and often times it’s due to the human factors in the investment management process. The very idea of removing human errors by automating through an ILP or outsourcing to “professional” don’t seem to be working out very well for many. I hope this article provides a perspective as to why many ILPs is not likely to perform in the long run. Fees are hardly the only issue or even the main issue. But fees coupled with low returns is like putting fire beside a gas canister. It won’t end up well ### Do You Really Earn 11% from the S&P 500? URL: https://www.theweekendinvestor.sg/do-you-really-earn-11-from-the-s-p-500/ Last updated: 2025-08-08T15:03:12.000Z Are you investing into an index ETFs? Some of the common ones are S&P500 Index (VOO / SPY / CSPX) or MSCI World Index (VRWA / IWDA / SWRD) **Have you wondered how much do you really make by investing into them?** We've probably heard statements like : "if you’ve invested $100,000 10 years ago, it would have grown to $284,000" Guess what, this statement is true. If you did invest $100,000 on 1 June 2015\. Your account would have $284,000 today. That's 11% p.a return for 10 years. BUT. Only if you have invested all of the $100,000 in 2015\. What if you’ve chosen to invest it over 10 years? Or what if you don't have $100,000 and had to invest every month for 10 years? **Will you still be getting 11% p.a?** Let's see what historical data tell us! --- To explore this, let’s consider investing into the S&P 500 : [SPY](https://www.investing.com/etfs/spdr-s-p-500-historical-data?ref=theweekendinvestor.sg) over a 10 year period. An investor will invest on the 1st day of each month. Depending on when we start, our end outcome should be different. Regular Savings (RS) : $1,000 per month for 10 years Lump Sum (LS) : $120,000 one time for 10 years ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2025/06/Screenshot-2025-06-10-at-5.21.54---PM.png) ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2025/06/Screenshot-2025-06-10-at-5.20.25---PM.png) Rolling 10 Year Return on SPY from 1995-2024 --- For period between 1995 to 2024\. The backtested result shows the median Regular Savings return being 7.96% p.a Which means if you have started investing within this period, there's 50% chance you'll be earning 7.96% p.a Not bad! In addition, RS return is slightly higher than LS! --- As I was looking at the output, i notice the return (post 2008) looks quite different from (2007 and before) ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2025/06/Screenshot-2025-06-10-at-5.20.17---PM.png) Rolling 10 Year Return on SPY from 1995-2007 ![](https://storage.ghost.io/c/59/89/59896f3c-f7b5-4b57-8eb0-65accd9d7f0c/content/images/2025/06/Screenshot-2025-06-10-at-5.20.22---PM.png) Rolling 10 Year Return on SPY from 2008 - 2024 I believe the global financial crisis might have changed the investment landscape in someways. Suppose your 10 year regular investment started in any year after 2008\. Your median RS return will be 11.55% p.a That is quite a big jump from 7.96% p.a On top of that, the minimum return is 8.36% p.a. Which means, so long you've started regular investing from 2008, you will make 8.36% p.a --- **Conclusion** Back to my starting question. Will you be getting 11% p.a return? Mathematically yes. In the pockets, no. For a $120,000 investment in 2010\. Your account in 2019 will be : Regular Savings : $215,914 (11.48%) Lump Sum : $359,654 (11.6%) Total Invested : $120,000 Even though both returned 11%, there is a big difference in value. This is because the money under lump sum approach has started working earlier. Howard mark has written a memo on this in 2006! (Quite a lengthy read) [Howard Marks - You Cant Eat IRR2006 July 122006-07-12-you-cant-eat-irr (1).pdf100 KBdownload-circle](https://www.theweekendinvestor.sg/content/files/2025/06/2006-07-12-you-cant-eat-irr--1-.pdf "Download") So is it fair to assume that our investment in the S&P500 will return 11% p.a? In my opinion, probably not. Having this expectation might likely lead to disappointment Lower expectations, Lower disappointment! I'll leave it to you to decide 😉