Legacy Planning in Singapore

legacy planning meng chan financial

Do you feel it is an advantage to start legacy planning early in Singapore? Did it ever occur to you that a 4-room BTO HDB flat would start at $700,000 in the next five years? I used to believe BTO flats would not be as expensive until 15 or 20 years later. How much do you think the price of a BTO flat will be in 20 years?

When I encourage my friends and clients to begin legacy planning to help their children get a head start in life, they often put it off and focus solely on education savings. “In the future, they will be able to earn their own money and purchase their own home.” The majority of them responded similarly. I cannot disagree with them. How much can a BTO flat cost in the future? It cannot be that expensive, I reasoned. But I know that parents’ love for their children is unconditional. And eventually, they will want to leave some legacy to their children.

This news caused me to rethink legacy planning. The launch of this waterfront BTO project potentially set a new benchmark for future BTO and HDB flats prices, including resale flats.

Starting your legacy planning while you and your children are still young will have several advantages. You have more years to accumulate your wealth, allowing your descendants to receive more with the same amount of input. That enhances the effectiveness of compounded interest and dollar-cost averaging strategies. Do you feel it is an advantage to start early? While you are in good health and actively earning an income? And what will you do with the pay-out if your children do not need it in the future? The pay-out will be a good source of retirement funds for you.

And did you know that you can accomplish all of your children’s education, legacy planning, and retirement planning (or your retirement) in a single plan and continue to receive interest while receiving pay-outs from it?

Connect with me to know more about legacy planning.

Article source: ST April 13 2022 


Note: Opinions expressed are solely in Mr. Chan Kong Meng’s personal capacity and neither express the views or opinions of Prudential nor represent any professional advice in Mr. Chan Kong Meng’s capacity as a PACS representative.

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