What a new working adult may consider for their FI journey

Before embarking on any wealth building, protection must come first.

Baseline protection

– private medisheld insurance (sufficient to cover the class of choice)

– critical illness insurance

– decreasing term insurance if there are dependents

Emergency funds

– 6 to 12 months of expenses for loss of income or emergency use

– 12 mths of OA balance to pay for home loan in case of job loss

Building wealth

– baseline and last mile of defense for retirement income from age 65 onwards using CPF. RSTU to SA annually till meet the current year FRS. This ensure you get minimal payout from age 65 onwards.

– wealth for early retirement before 65 or add on to extra spending from age 65 onwards:

  • – diversification of dividend stock, growth stock, bonds, percentage adjust by risk profile
  • – acquire high yield skills at work to ensure employability and maximize earning income
  • – Avoid unwanted luxuries – branded goods
  • – Live simple and healthy
  • – Married a spouse who has similar financial value or goals as you


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