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Fight inflation and prepare for golden years: How to make your money work harder for you
Manage your wealth with ‘moomoo cash plus’ to allow you to handle rising prices, leading to a better financial future
Investing money wisely may help counter the issue of inflation.
PHOTO: GETTY IMAGES
Most Singaporeans are worried about the state of the global economy and inflation.
Out of some 200 respondents surveyed by online trading platform moomoo recently, more than two-thirds voiced their concern at rising prices and economic uncertainty. The survey was conducted via the app and all of the respondents were Singaporeans.
Their concerns are not unfounded and becoming financially independent has become more important than ever.
Financial security may mean different things to different people. But simply put, it is the ability to provide for you and your loved ones financially, and to have the freedom to enjoy life to the fullest.
Money talks
What is keeping Singaporeans awake at night when it comes to their finances? A recent survey by moomoo offers some insights
67 per cent of the interviewees are concerned about a global economy with higher inflation and a stronger US dollar.
80 per cent believe that investing is one of the better ways to fight inflation.
61 per cent think that a diversified portfolio with stocks (48 per cent), real estate (32 per cent), and funds (29 per cent) is the key to hedging against inflation.
65 per cent think that Singapore dollars might be more secure
for their portfolio.
for their portfolio.
80 per cent and 46 per cent of the interviewees are most concerned about the rate of return and fund fees along with handling charges, respectively, when purchasing funds.
Mr Gavin Chia, managing director of moomoo SG, acknowledges that high inflation will have a “significant impact” on individuals.
He says: “It will eventually lead to erosion in the value of an individual's earnings and savings. The earlier one starts investing, the more time they will have to weather the ups and downs of the market, embed healthy financial habits, and find the most suitable approach to hedge inflation.”
Just like Singapore strives to be “Stronger Together” this National Day, many individuals are also striving to become financially stronger.
One possible way to do this is by investing to get relatively consistent earnings over the long term.
Why investing matters
There are many reasons why you would want to gain financial security for now and the future. Firstly, you are going to be around for a long time – probably longer than you expect.
In fact, according to a Department of Statistics study, the life expectancy of Singaporeans is at its highest, at almost 84 years in 2020.
So expect to be in retirement for quite a while. By investing early, you could possibly ensure a healthier bank balance to make your golden years more enjoyable and fruitful.
With inflation and as prices continue to rise, savings are going to be worth less. That means keeping your money in the bank or fixed deposit may not reap the rewards at the speed or value that you wish.
Healthcare costs will not be spared by inflation either, and the issue has become a big concern for governments and households around the world.
As you age, it’s only natural that you will have to spend more to stay healthy. Ensuring you have sufficient savings by investing wisely is one way to stay on top of your increasing medical bills.
As your family grows and your children get older, there will also be more and more things you will need to pay for.
Whether it is university tuition fees, a bigger home or a much-needed family vacation, providing a comfortable life for your loved ones does not come cheap.
For an inflation-beating rate of return, investing in assets is a viable option. This is in line with the results of the same survey by moomoo SG – some 80 per cent of the respondents also believe that investing is the best way to fight inflation.
With your money working harder, it can help relieve some of the burdens of such important obligations.
Get a free moomoo kopi
For those unsure how to kick start their investment journey to fight against inflation and possible recession, help is on the way this August.
From Aug 15 to 23, moomoo will give away complimentary coffee at different shopping malls including Waterway Point, Century Square and Nex from weekdays (5pm to 10pm) and weekends (12pm to 10 pm).
This roadshow is an opportunity for people to share their investment challenges while savouring a cup of kopi on moomoo.
Register a moomoo SG universal account at the roadshow to kick start your investment journey.
How ‘moomoo cash plus’ combines potential returns with liquidity
For those who want to embark on their investing journey towards financial security, moomoo SG offers a flexible unit trust product called “moomoo cash plus”.
It is a money market fund product provided by several fund houses, including CSOP Asset Management and Fullerton.
“It may also offer subscribers a relatively higher level of liquidity and potential return. Investors can invest as low as $0.10 and have a chance to get a 1.5 to 2 per cent return,” explains Mr Chia, who adds that returns may vary according to market conditions.
The product allows investors to withdraw their money as and when they need to and offers returns that are competitive with that of Singapore-dollar fixed deposits.
In other words, “moomoo cash plus” aims to preserve your principal value and maintain a higher degree of liquidity, while producing a decent return.
What is even better is that there are no transaction fees charged for this product, which means you can redeem it anytime without incurring a charge.
To celebrate Singapore’s National Day and its theme of “Stronger Together”, moomoo SG is running a campaign to encourage Singaporeans to subscribe “moomoo cash plus” within the month of August.
In return, new customers will receive $2* cashback every day if they maintain $100 or more in their “moomoo cash plus” account for 30 days*.
*Terms and conditions apply.
Disclaimer: No content herein shall be considered an offer, solicitation or recommendation for the purchase or sale of securities, futures, funds or other investment products. It does not take into account your investment objectives, financial situation or particular needs.
All information and data, if any, are for reference only and past performance should not be viewed as an indicator of future results. It is not a guarantee for future results. Investments in stocks, options, ETFs, funds and other instruments are subject to risks, including possible loss of the amount invested.
The value of investments may fluctuate and as a result, clients may lose the value of their investment. Please consult your financial adviser as to the suitability of any investment.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
