Getting a Headstart
Client: Eugene Chua Yujun
Goal: Financial planning, Retirement planning
“I believe that financial planning is important. In the short run, it was to ensure that I would have sufficient funds for marriage, housing needs, and holidays. In the long run, I also wanted to make sure I have a comfortable retirement.”
Eugene was still an undergraduate when he started thinking about investments. He knew in his heart that he would need to invest in order to create another stream of income. This would help prepare him for different life stages, like buying a house, getting married, starting a family and retiring.
But Eugene also knew that he lacked the knowledge to do so proper financial planning by himself. The doubt and uncertainty stopped him from investing since he was unsure about the various investment platforms and procedures.
Another challenge Eugene had encountered was that his parents had their reservations about investing. His parents had their share of bad experiences with investing in the past and were concerned about him dabbling in what they perceived to be “very risky”.
Despite all that, Eugene met Kum Soon and stood by his belief — that it’s better to start now and have his financial future all planned out.
Eugene’s Soul Wealthy Journey
Having started his journey with Kum Soon at a relatively young age, Eugene has been able to discuss his short-term and long-term goals in life with him.
Kum Soon would then advise the investment plans according to Eugene’s goals. Knowing that Eugene had no investment knowledge but was interested in the area, Kum Soon would put in extra effort to help him understand the underlying concepts.
As an experienced independent financial advisor representative, Kum Soon knows that this is an issue that not only Eugene faces. Many Singaporeans often deal with the same problem of not knowing how to invest or what to invest in. Moreover, he is aware that most people prioritise investment returns over risk management plans, which puts them at the mercy of volatile markets. So, Kum Soon always shares his knowledge with Eugene and updates him on market movements and readings.
“Kum Soon is a patient and understanding independent financial advisor representative. With his vast experience, he always makes it a point to explain his thinking and ensures that I am comfortable with it before making any move.”
Kum Soon’s belief and solution for Eugene was simple: “The first objective is to ensure clients feel that investment can be safe as long as we have a long term perspective of things. I also need to help Eugene understand that we are not just investing for returns. What we are doing is investing in a business that will do well in the long run.”
Kum Soon encourages his clients, including Eugene, to imagine their investment portfolio as a business that they own. According to Kum Soon, investing is similar to running a business – you need a business plan, ensure its growth, and manage its risks. Investments involve risks and Kum Soon is dedicated to helping his clients understand the importance of risk profiling.
“The most important thing I share with my clients is the concept of cash flow management, which is something that many of them may lack before working with me.”
With Kum Soon supporting him, Eugene was able to start investing at a relatively young age. He started with a regular savings plan (50% bonds and 50% equities) instead of a plan that requires an upfront, lump sum payment. This helps Eugene to feel more at ease and also mitigates the negative impacts of market’s volatility.
Despite the slow returns from regular savings plans, Eugene was assured that it would be the appropriate option. This was further proven when Covid-19 struck in 2020 and markets suffered. Kum Soon and Eugene then saw an opportunity to use the resources from bonds, which were accumulated over the years, to buy into equity funds in order to profit during the downturn caused by the pandemic.
With Kum Soon’s help, Eugene was able to start financial planning early and working towards his aspiration of financial freedom despite not having much resources as a student.
If you would like Kum Soon to assist you with your financial planning and retirement planning needs, contact us now.