WealthBT: Hot investment insights for living your best life

2024 turned out surprisingly well for investments despite initial uncertainties. As we settle into 2025, what key financial and non-financial issues will drive our investment and life decisions? Genevieve Cua, wealth editor at The Business Times, dives in and shares her insights in the latest episode of WealthBT.

Equities vs Bonds

A remarkable year for equities has seen Singapore and US stocks alike reach impressive heights. The S&P 500 closed the year 25 per cent higher, while the Straits Times Index soared with a return of over 20 per cent. Conversely, bond markets faced challenges, with investment-grade bonds inching up by only 1-2 per cent by year’s end. Although optimism among fund managers is considerable, historical data suggests caution - particularly as low cash allocations may signal potentially toppish markets. 

A critical trend to watch in 2025 is the direction of interest rates and inflation with the latter poised to rise, driven partly by ongoing tariff threats from President Donald Trump. The US Federal Reserve’s reduced expectation for 2025 rate cuts further compounds this uncertainty. Cua shares her insights in the podcast on whether investors should be concerned.

Changes to CPF

Cua delves into the changes to Singapore’s Central Provident Fund (CPF) which present significant considerations for retirement planning. Key updates include a rise in the wage ceiling for CPF contributions from $6,800 to $7,400 monthly and adjustments to how excess savings in the special account are managed for those aged 55 and older. These modifications are set to enhance retirement savings, despite potentially reducing take-home pay. 

She also highlights medical inflation’s continuing upward trajectory, which poses a challenge alongside increasing premiums for Integrated Shield Plans (IPs). 

Being balanced is key

To effectively navigate 2025, maintaining a balanced and rational approach to investments is vital according to Cua who recommends reassessing your strategic asset allocation to align with your financial goals and risk tolerance. She maintains that diversification remains a crucial strategy, providing a buffer against market volatility and enabling the benefits of compounded returns. 

If you live to 100

Living to 100 is no longer a far-fetched idea and comes with its own set of challenges. Cua recommends embracing a lifelong learning mindset as proposed in ‘The 100-Year Life’ by Andrew Scott and Linda Gratton, which encourages perpetual education and adaptability. 

Listen to the full podcast - which puts it all together and equips you with a valuable checklist to enhance financial health but also enrich overall well-being. 

WealthBT is a podcast of BT Correspondents. Look out for the next episode featuring correspondent Derryn Wong who shares insights and exclusives from the Singapore Motorshow 2025. And if you have any thoughts or questions, feel free to reach out to us at btpodcasts@sph.com.sg.

Written and hosted by: Genevieve Cua (gen@sph.com.sg)

Edited by: Emily Liu & Claressa Monteiro

Produced by: Genevieve Cua & Emily Liu

Engineered by: Chai Pei Chieh

A podcast by BT Podcasts, The Business Times, SPH Media

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Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party’s products and services. Please consult professional advisors for independent advice.

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