The last two years have been tough, as the pandemic upended our lives as we knew it. Although border closures and restrictions are cautiously being lifted around the world, ongoing geopolitical instabilities, market downturns and the worsening impact of climate change – among a slew of other challenges – continue to shape our outlook for the future.
As inflationary pressures look set to rise with no end in sight, the sooner we face the reality that relying on our savings alone may no longer be enough to cover our needs, the better equipped we will be to navigate how the future may turn out. Although financial freedom in times of uncertainty seems difficult to achieve, it is not impossible. Investing may be able to help you build a cash cache for your future needs. However, taking the first step in your investing journey can be intimidating if you are unsure of where to start. Here are three ways to grow your investment portfolio.
1. Diversify your investments for dynamic returns
When it comes to investing, diversifying is important. With so many unpredictable global events to consider, spreading your investments across different assets, markets and/or countries could safeguard you from the repercussions of a single yet significant negative performance. You can consider doing that through investment-linked policies (ILPs) that allow you to access a large number of funds spread across industries and geographical regions, to ensure that your risks are balanced out. In addition, you can also enjoy coverage in the form of insurance protection and earn potential returns, depending on how the ILP itself is structured.
2. Being flexible results in better financial rewards
If COVID-19 taught us anything at all, it is that we have to be prepared for anything – particularly the curveballs in life. If you have loved ones to consider, the ability to customise your investments will allow you to accommodate the evolving needs of your family. Choose an ILP that offers you greater flexibility as the ability to switch funds for free, gives you the flexibility to make adjustments to your investment plan as your priorities change. Working with your financial representative, you can also determine a suitable investment horizon to make sure the ILP meets your financial goals.
3. Planning ahead for a secure retirement pays off
At 83.5 years in 2021, Singapore’s life expectancy at birth is one of the highest in the world. It also means that we can expect to live for many years post-retirement. This highlights the importance of giving yourself sufficient time to build your retirement funds for the longer post-retirement period. With an ILP, you can start your retirement-planning process early. Many ILPs allow you to personalise your policy according to your preferences and budget.
Manulife’s ILPs combine insurance and investment components that provide you with the protection coverage while growing your wealth. Depending on your priorities, different ILPs might be suitable for you. To find out more, give the Manulife’s investment calculator a try.
This content was produced in partnership with Manulife Singapore.
Please be aware that all forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone. We encourage our investors to invest carefully. All information provided in this article is on an "as is" basis, and is purely for information purposes. It is not intended for trading purposes or financial advice. Neither we nor any of our partners is liable for any informational errors, incompleteness, delays or for any actions taken in reliance on information contained in this article.