AAM Advisory Pte Ltd is a dynamic Company, committed to excellence and to the promotion of a positive and proactive team environment for all of our employees.

We are always looking for experienced candidates with a successful track record in the following areas:

Senior Financial Planner

Telemarketing Executive

Interested? Please send your CV to: info@financialadvice.com.sg

Rest Insured – Choosing Insurance – Men’s Health – August 2010

Working in the boom town – International Adviser – September 2010

AAM Advisory was formed by six individuals with specialist backgrounds in:

• Financial planning
• Fund management

The company was developed with a passion to offer the best in its field, committed to exceeding expectations and industry norms.

We pride ourselves on being a progressive , successful company with a fresh new approach.

We strive to be the best financial planning organisation in Singapore both for our clients and for our valued team.

We currently offer the following added value services:

Active Portfolio Management

• In-house Investment Commitee
• Weekly conference calls /  Monthly data analysis / Quarterly meetings

High levels of ongoing service

• In-house Paraplanning Team
• To produce ongoing bespoke client reports

Marketing and Events Service

• To help organise bespoke events and partnerships with companies

During the course of your life you will need to protect yourself, your family and your assets through the right combination of insurances.

You will also need to set money aside for some key life milestones or goals such as children’s education fees, retirement or that $1M you want to have as you turn 60!

As an  expatriate or local Singaporean you will have differing requirements and can benefit from various opportunities.

We offer a complete financial planning service designed to help you protect and support yourself, your family and your assets and grow your wealth.

We adopt a holistic approach to financial planning as every individual presents a different set of short, medium and long-term goals. Our work begins with an in-depth consultation on your finances and future objectives.

At a second meeting we present a detailed written plan outlining our recommendations and advice based on your needs. Our mission is to then work with you through regular reviews to ensure we stay on track to achieve your goals and objectives. Our areas of expertise include planning for your retirement and children’s education fees, helping you with insurance coverage and tax effective savings mechanisms.

We also offer investments especially tailored for expatriates working and living in Singapore.

We are committed to working with you to develop a personalised financial strategy tailored to meet your individual needs.

Our AAM Advisory Marketing and Events Team organises a number of events every year and enjoys working with partners in various industries.

November 2011

AAM Advisory sponsors Inaugural Singapore Cricket Club Premier Tennis Tournament

November 2011

AAM Advisory Networking Event at Don Quijote

September / October 2011

AAM Advisory sponsors Rugby World Cup at Bar 282

March 2011

AAM Advisory and Rolls Royce Motor Cars Client Event

December 2010

AAM Advisory Seminar: Pros and Cons of “Being a Singapore PR”

June 2010

AAM Advisory Seminar: Tax Efficiency for British Expats & QROPS explained

Investment Advisory Services

We provide advice on portfolios across a range of different investment styles. In each case
we believe our role is not to avoid risk, but rather to manage risk appropriately, relative
to the objectives of the portfolio. We avoid speculation and our processes ensure our
portfolios are appropriately diversified.

The Investor Profile

Your Investment profile will be based on:

Investment Philosophy

Our Investment Philosophy is that asset allocation is the most important factor in overall portfolio performance and that the global and individual country macroeconomic environment, (economic growth, money supply, growth, inflation, unemployment, interest rates, current account etc), determines the relative attractiveness of the various asset classes at any particular time.

Additionally…

• Every investor has a maximum amount of risk he/she is willing to tolerate in order to generate returns above the cash in bank rate – a ‘risk budget’
• We may want higher returns but we must be willing to pay the price i.e. risk
• The role of the investor/manager is to maximise the return within that
  ‘risk budget’
• Before any risky asset is added to a portfolio, its impact on the overall portfolio
  risk must be understood

How to afford to live happily ever after

Many people think retirement planning is something you do in later in life. On the contrary, the earlier we start planning, the better our life will be when we stop work. It doesn’t matter how much you are making now. Planning ensures that you can literally ‘live happily ever after’.

How much money do I need?

There is no fixed amount that you need to retire comfortably. “Financial planners use several ways to calculate how much a person needs, but the general rule is, you need about two-thirds of your last drawn salary to maintain the lifestyle you are accustomed to,” says Alan.

So it depends. Do you want to go thrifty (if taking a holiday in Malacca is your style)? Or live the yuppie dream (with shopping sprees in Sydney)? Or do you hanker for luxury (on a five-star cruise to Alaska)? No matter what you choose, you need to invest early and well.

And then there are the unexpected setbacks. For instance, if one or both of you lose your jobs. Be prepared that even the best plans can go awry.

Why it’s important to start becoming savvy about investing your savings.

Forced savings through the CPF Scheme is generally considered a good thing. One of the biggest problems in Australia is that Australians are not saving enough for retirement (current contribution rate is 9%). However, you can’t put all your investments savings into CPF because funds in CPF are effectively locked away until retirement. So to map out your ‘pre’ and ‘post’ retirement needs you first need to understand how to allocate your financial resources.

With regards to the amount that people need to save, the question is, how much do you need to live on comfortably per year in retirement that will satisfy both your immediate needs and personal goals? These personal goals can be yearly overseas holidays, car replacement, upgrading furniture, etc. This means that advisor’s need to base retirement needs on your dreams and not your expenses or budget.

To base your retirement goals on your expenses or budget has the potential to ‘perpetuate’ poverty.

Finally, understanding financial products and issues is very important to your financial success. The educational aspect of financial planning is critical so that you can make ‘INFORMED’ financial decisions.

The Slow and Steady Way to Build a Better Portfolio

An adviser’s job is not to get you the highest returns, but to help you achieve a decent consistent returns based on the risk that you wish to take and the goals that you have set.

This means that purchasing the best performing funds may not be the best choice. In a study at the University of Virginia by Ronald Wilcox a marketing professor fund that most investor place twice as much emphasis on past returns then any other factor. Investors must be reminded that past returns is no guarantee for future returns. Most performance figures as shown as 1-6 month average or 1-5 year averages. All these performance figures show is what happened in the past and my not necessary be indicator for the future.

A US study by the Brandes Institute which is a research division of the Brandes Investment Partners found that funds that are consistently placed in the 43rd percentile (beating 57% of similar funds) would have moved into the top quarter after only five years. This result was conducted by looking at the results of many of the big funds from 1992 to 2003. However, the sad reality is that no funds will beat 57% of its peers consistently.

What this means is that moderate results could become great results over a period of time. The reason for this is that it is better to have a funds that is more consistent than a funds that is ranked 1st this year, last next year and in the middle in the 3 rd year. However, when a fund is sold based on performance it tends to attract a lot of investors and the fund then may find it hard to obtain all the right type of stock or assets immediately. This would mean that the funds will a more consistent inflow could catch up in terms of it relative performance.

We have seen many recent examples where investors have investor based on the hottest funds or sector, Asian boom and technology boom immediate come to mind. The other side of this story is the Asian crisis and technology bubble burst. Chasing the hot fund or sector can get investors into a lot hot water. Currently many investors are looking to invest into the energy sector as oil price reaches records highs. The only problem in buying into this sector at the moment is that the investors may have missed the boat and have brought the investment at the high price. Buying into energy is good for the speculator who has a high risk appetite but most investors should invest for the medium to long term.

Another aspect that most investor neglect is to understand is the fund managers’ objective. Just because the fund is an Asian Fund, this information doesn’t tell you anything. This name of the fund doesn’t tell you where the investment is mainly situated like an overweight in China or Indonesia. The title also doesn’t explain is the fund manager is only looking for value, top down, big cap, or small cap stocks, etc. Understanding the fund managers’ process will also give you the information needed to reduce the risk of the investment.

As the best performing fund may not tell you that all the investments were placed in medium to small capital stocks that carries a high level of risk. While middle ranks funds may have a process to look at the value of the stock or specifically target stock that pay good dividend. These funds may not be sexy but they may have a lower risk rating for their investment process.

Therefore to avoid or minimizing building an investment portfolio based on hot or average performance figures follow this check list:

• Understand that the “average” return can be inflated by a short hot streak. The best way to see if there is a short hot streak is to look at how a fund performed over time. Examining the performance graph since the inception of the fund can help.
• Look for a fund that has a yearly ranking usually in the top half and don’t necessarily look for the top fund. Consistency is the name of the game.
• Read the fund prospectus and report to see if you can understand what the fund manager’s objective.
• Finally good fund managers will own up to their mistakes. They will tell the good, warn investors if they have concerns and tell them what their strategy will be during uncertain times.
• Investors should be consistent with their investment strategies and have a plan. Investing into a hot fund or sector for less than 12 months is not a plan.

Remember the race between the tortoise and the hare. The hare may be fast but he soon ran out or steam while the slow and steady tortoise won the race.

Quick Overview & Considerations

Medical Insurance, or Health Insurance as it is commonly known, is the most basic form of protection in our daily life. It prevents you and your family from suffering a financial loss as a result of an accident, illness or disability. It can provide an income while you are disabled or in hospital, or cover the cost of your medical treatment or nursing care.

The type of health insurance product you would need depends on what you want protection against.

Questions You Need To Ask Before Taking Up Health Insurance

• What will my health insurance policy cover?
• Am I already covered for the same thing under another health insurance policy?
• What doesn’t the health insurance policy cover and when will I not be covered?
• How much will I be paying for my health insurance and will I be able to afford the premiums over the long term?
• How often will the premium be charged and will it be a fixed or variable sum?
• Will my policy automatically be renewed and what is the penalty if I do not pay any premium on time?
• When or in what circumstances will my health insurance policy end?
• How do I make a claim?
• Are there any limits to the benefits that can be paid out from my policy?
• How will my future premiums be affected after I have made a claim?
• Will I be covered for medical treatment performed outside your resident country?
• How is my health insurance policy affected by other schemes that pay for healthcare?
• If I am covered by my employer’s group policy, what am I cover exactly for?

Measuring standards – Picking the right policy for your needs

International health insurance has the potential to cover all eventualities but the sheer breadth of policies on offer can be quite bewildering. Picking the right policy for your needs is no easy matter. One person’s essential benefit is another’s optional extra. This review of basic benefits suggests that expatriates would be well advised to set about their selection armed with a check-list of must-haves. And, before making any selection, you should ensure that your research reveals not only what each benefit covers but also any gaps.

You will see from the providers’ benefit list on the following pages what is included in a range of “standard” plans available from the leading international healthcare policy providers. Here, we describe those benefits which expatriates have found, from experience, are necessary on any “essential to include” list.

Most insurance plans are marketed as having a fair degree of in-built flexibility, and you will find that with some providers you can save on premiums by signing up for a basic plan and then cherry picking the optional extras that your own life-style dictates and is treated as essential. So if your chosen plan does not include a particular benefit which you and your family need, it is always worth enquiring whether such a feature can be bolted on as an extra.

Accompaniment by a parent

Expatriates with children will want to think carefully about this benefit. Insuring your children within a family policy isn’t enough on its own to ensure an accompaniment benefit is included. To appreciate how important accompaniment is you need to ask yourself some questions. Who will pay for you to accompany your child if an emergency evacuation is necessary? Who will pay for your accommodation while you are living away from your overseas home in order for you to be close to your child? This is a vital area of cover for parents and one which needs to be examined in detail, so read the small print. With some policies only insured adults are covered to travel with a child, or there may be a maximum age restriction, or the accompanying adult may have to be a family member. The rules vary between policies, so it is important to know what your particular plan is offering. Also some policies offer accommodation only, while others include both travel and accommodation expenses. Beware, some policies do not offer this benefit at all.

Emergency evacuation

BUPA International’s records show that every month on average 20 of its policyholders will be removed from danger from locations as diverse as deepest Africa and downtown Oslo to receive urgent medical treatment that is unavailable locally. All of which suggests that emergency evacuation for expats is an absolute essential. Plans differ widely, in that some include this benefit as standard, while others offer it as an optional bolt-on to a standard plan.

Air-lifts to hospitals are often described as wings of mercy, not least by those who have had to call upon such services. It’s one matter covering against unexpected illness or injury but the location of any such misfortune is important, too. Often these events happen in places with no regular transport, let alone medical assistance, and in some cases the location of any accident or injury could be remote. Accessibility is crucial in an emergency. That’s why the air-lift benefit can prove vital.

Pregnancy cover and routine complications

Maternity and childbirth care is a classic example of a category which is an essential benefit to one family and a total waste of premiums to another. If you are starting a family, or plan to start a family, a policy which covers the costs of maternity and childbirth care will bring a sense of security and peace of mind. Look for those more comprehensive plans which cover both normal childbirth care and births which meet complications. You will find some plans even cover home births. If you know maternity care is not required, nor ever will be, look more closely at plans which have this as a optional extra and not as an integral benefit.

Out-of-area cover and home country cover

Where you live has a direct impact on healthcare policy premiums. Probably the most favourably priced zone is Europe. However, even when you are resident in a European country, if you intend to travel further afield either for work or pleasure you will need to check which policies offer out-of-area cover and for what periods. Some plans offer generous amounts of time per annum for travel away, but always check exactly what is and what’s not covered and what’s the benefit limit (there will be one).

If you do venture outside your policy’s defined geographical zone, don’t skimp on cover. Many policy providers offer limited cover even in the “expensive” regions, typically North America, Canada and the Caribbean, over a set period or number of days per annum at either no extra charge or for a minimal sum.

Alternatively, buying in extra insurance to cover short periods of time spent in those out-of-area territories as well as for visits back home, need not be too expensive and will prove cheap in comparison to the financial outlay you might have to make should a medical emergency arise.

And remember if your travels take you to a less developed location, emergency medical evacuation cover will be essential for real peace of mind. Double check with your insurance provider that your policy has this benefit and double check that the benefit extends to all the countries you will travel to.

Road ambulance

This is one of those types of benefit which no-one would ever think about until, of course, they came to need it. When we imagine an illness or accident, we think of hospitalisation and operating theatres – we never think of how we’re going to get to them. Given that local road ambulance service is generally a classified benefit in its own right, check that it is listed in the standard benefits of your chosen plan. Without it, you risk incurring a bill which you’ll sometimes have to pay for before you’ve even started treatment.

Sporting injuries

Sports lovers should research carefully as to whether sporting injuries are covered. This is a particularly grey area. Insurance policy providers who do cover some sporting injuries may not cover others and do not always state as much on the policy literature. Unfortunately, it is down to the policy-holder to check, and check again. Enquire in detail, making a list of every sport you may indulge in and confirming the cover on each one. Bear in mind that specific areas of cover which have been included in one year’s policy may not automatically be included in another, so never make assumptions when renewing a policy. Check to ensure you don’t come a cropper with cover when you come a cropper at play.