Too Many Policies, Too Few Updates
Client: Jessica Lim Mei Mei
Goal: Retirement planning
“While I was saving with fixed deposits, the bankers who served me recommended investing in unit trusts for a higher interest rate. After I said yes, there were no updates. I later found out some of my investments were not producing results even after more than 12 months.”
Jessica holds many policies but is not totally sure what the benefits and coverage of each are. Without an advisor to provide regular updates on her portfolio, she was completely in the dark about her investment status.
This was because, before meeting Alvin, Jessica only saved her earnings using fixed deposit accounts. As these are low-interest investment instruments, the banks recommended unit trusts to her. However, the returns were equally disappointing. That’s when Jessica started looking for options.
During the financial review, Alvin started with a detailed financial analysis by assessing her risk appetite, job status, and financial goals she wanted to achieve. He then categorised her total wealth into insurance and investments. By having a systematic way of consolidating her policies, he is able to provide periodic reviews of her portfolio.
“Alvin took the time to organise the policies and investments I got before meeting him in a spreadsheet to be able to show me a better visualisation of my current wealth. After categorising the policies by companies and type, he went through every policy that I owned and explained how the coverage and how it benefits me. I also found out that a number of them were investment type policies that needed constant monitoring.”
Jessica also appreciated how Alvin shared the benefits and added value by explaining the details of the products with fund factsheets and growth charts.
“He is always well prepared for our meetings and wastes no time. He gets straight to the point by updating on the expected growth of my existing portfolio and introduces new products at the same time. He shares interesting updates from the government or any relevant news. It is always an educational experience whenever we meet up!”
Alvin recommended and showed Jessica how to diversify her investments so as to be able to tide through market downturns. By leveraging her diversified investments with careful planning, she would be able to achieve her financial goals without the worry of economic fluctuations. Under Alvin’s guidance, Jessica’s portfolio currently yields more than 3% returns annually, which was higher as compared to her previous fixed deposit accounts.
“Alvin was a good listener and considered my preferences. He constantly updates me whenever there is a change in the market. He shows me when I should cut my losses or switch funds whenever there are signs from his experience. He also monitors the growth to ensure that my investments are doing well.”
For Alvin, it helps that Jessica is always willing to meet up for a periodic portfolio review. During these reviews, he gives Jessica quarterly updates on her portfolio when there are no major market movements. When there are signs of impending market volatility, he would advise her on the adjustments she needs for her portfolio, such as shifting her allocated funds into safer investment instruments such as fixed income funds. He believes that being there to reassure and guide Jessica during a market downturn is also a duty of an independent financial advisor representative. During signs of an impending market recovery, Alvin will notify Jessica when the opportunity to profit arises.
Under Alvin’s guidance, Jessica’s portfolio now grows 7-8% on average annually.
If you would like Alvin to assist you with your retirement planning needs, contact us now.