<Title: Helping clients generate a second income stream> 

Building more than one income stream for client’s financial security

In today's environment, salaries are not increasing as quickly as inflation and many industries are also facing hiring freeze, so planning for retirement is getting very tough. I think that Singapore CPF retirement sum also keeps increasing and the amount needed for a comfortable retirement is higher than what most people expect.

These are some of the things that affect my clients, and I also noticed that most of my clients could benefit from additional income to supplement the cost of living in Singapore. This is why it is so important for clients to build wealth on top of their income. Having additional income streams help them to reach their retirement goals faster and with greater financial security.

Starting the conversation with clients

When I sense that the client might already be feeling financially stretched, I'd like to start by acknowledging that, because it's completely normal to feel that way. I'll usually say something like, ”Let's just take a look together. We don't have to make any big decisions today, it's just about understanding where you are now.”

From there, I guide them through a simple cash flow plan. Once they see the numbers clearly, they often realize that starting small is still possible and that with proper planning they can make progress without feeling stretched. What's important is not how much they start with, but that they start.

Establish a retirement timeline to create visual clarity

The most effective approach is actually to start with clarity. I'll construct a simple retirement timeline, mapping out their CPF Life, SRS, savings, investment plans and their targeted retirement age and lastly, the income they hope to receive.

Once they can see everything visually, including the shortfall, it often motivates them to start to take action. I encourage my clients to envision their retirement lifestyle and how they would want their retirement to look like.

From there, I'll recommend suitable options whether it's an annuity plan, a dividend fund, or a regular premium investment through a dollar-cost averaging strategy. After the second income stream is in place, I'll continue to review it with them each year, strengthening it or even creating a third income stream along the way if needed.

Securing clients’ peace of mind

I've been in this career since 2018 and over the years, I've had the privilege of going on a financial journey with more than 250 clients. During every annual review, I often hear the same line: “Wah how time flies eh, Joey?” or “Wah, I’ve already accumulates so much money?!”

One client in particular, came to mind. She planned to retire in Malaysia and was initially very hesitant to start any financial plan with me. But after several conversations and meet up, she finally decided to invest SGD50,000 from her CPF. Years later, that very same investment grew to over SGD90,000. When we met again, she told me how grateful she was that she took the first step and how much more secure she feels now about her retirement.

That moment reminded me that building a second income stream isn't just about return, it's about giving people a peace of mind for the next chapter of their lives.

Helping clients generate a second income stream

Transcript

Author(s):

Joey Yee