Mr Adrian Vincent, general manager of FWD Singapore's life insurance business. Source: ST PHOTO: JASON QUAH
SINGAPORE - Saving is the first and most important priority when it comes to investing, says insurance executive Adrian Vincent.
Having adequate insurance coverage and a buffer of at least 12 months of expenses put aside in liquid assets for emergencies are also high on his list.
"Once those things are in order, then I am happy to invest in stocks and properties and have a higher risk tolerance for those," says Mr Vincent, who is the general manager of insurer FWD Singapore's life business.
He adds that he is not too bothered by short-term market fluctuations, as he has an investment time horizon of another 40 years, assuming he lives to the average Singaporean life expectancy.
Mr Vincent, a 43-year-old Malaysian and permanent resident who is married to a Singaporean, worked at insurer AIA and HSBC Insurance before joining Hong Kong-headquartered FWD in 2019.
FWD, which started in Singapore as a digital insurer in 2016, established partnerships last year with financial advisory firms that provide a range of life insurance products to allow it to tap more than 2,000 advisers.
"Based on our research, we noted that over the last few years, more and more Singaporeans have been choosing financial advisers for their personal financial planning, given the access to various insurance and asset management products from different firms," Mr Vincent says, noting that this is a reason why the firm is investing in its financial advisory channel.
Mr Vincent's parents are second-generation immigrants to Malaysia who were very active in serving their community through their church, he notes. His father joined the insurance industry in his 30s and now, four decades on, he leads an insurance team in Malaysia.
"I recall reading about a story in the local newspaper where an insurer provided a huge payout to an individual who tragically lost a few fingers in a grinding machine accident in the factory where he worked at. The individual was coincidentally a client of my father," he says.
Noting how the insurance company paid out the large sum to the victim despite collecting just a few dollars of insurance premiums regularly led Mr Vincent to study actuarial science, in which he has a master's degree from Cass Business School in London.
He sees money as "an efficient tool that allows me to build a stable future for my family and helps bring people together to build on ideas that make the world better".
Q: What's in your personal portfolio?
A: Due to the nature of my job and my family background, I believe in building a strong investment foundation with risk management, and this means I have what some might describe as a plain vanilla portfolio comprising life insurance, cash, money market funds, stocks and properties. The majority of this is in Singapore dollars, with the rest in US and Australian dollars.
About 50 per cent of my assets are in property, with the other half in stocks and liquid assets, excluding my insurance coverage.
I have close to $3 million in term life insurance and critical illness coverage to ensure that if I should die prematurely, all my loans will be fully paid and there will be excess cash to allow my family to move on.
Or if I fall seriously ill, I will be able to afford to stop working to focus on recovery without facing financial ruin.
I bought my first insurance policy, a private Integrated Shield plan, at the age of 29.
I also own a property in Melbourne, which would fetch about 5 per cent in gross rental yield should I decide to rent it out.
Mr Adrian Vincent worked at insurer AIA and HSBC Insurance before joining Hong Kong-headquartered FWD in 2019. Source: ST PHOTO by JASON QUAH
Q: What are your immediate investment plans?
A: I am looking to increase my equity exposure over the next six to 12 months and, in particular, I'll be looking at companies both local and foreign that are at the forefront of the digital and sustainability agenda as these will dominate the world's attention in the coming years, and rightly so.
Separately, the Covid-19 pandemic has also given me the impetus to think about possible gaps in my health insurance coverage, especially as insurers are becoming more aware of medical trends and possible gaps in the current product offerings.
Lastly, I'm a keen endurance athlete, so I'm also looking to increase my personal accident coverage when I take part in these activities, particularly as age begins to catch up with me!
Q: How did you get interested in investing?
A: I learnt the power of compounding interest rates as a young actuarial student and was fascinated that through disciplined savings in the right financial instruments, one's wealth can multiply exponentially.
My approach to stock investing is to pick 10 to 15 stocks and have an investment horizon of at least 10 to 15 years.
This works for me as I don't have the time to watch the market and choose to leave that to the experts.
Q: What else is in your financial plan?
A: I intend to look at legacy planning, such as by reviewing my will, insurance and lasting power of attorney, and seek to better understand the long-term prospects of digital currencies.
Q: How are you planning for retirement?
A: I don't think I will want to retire because I enjoy learning and finding new challenges, and hopefully I can continue doing that.
As I get older, I hope I can give more of my time to the community by helping the younger generation.
In this regard, I feel privileged to have recently joined the board of Special Olympics Asia Pacific, an organisation that FWD closely supports.
During this pandemic, we all felt the isolation of being far away from our loved ones and friends. For the Special Olympic athletes who are intellectually disabled, that unfortunately can often be the norm and sports is a great way to foster inclusiveness and increase community well-being.
Q: Home is now...
A: A three-bedroom condominium unit in the Keppel Bay area and a family apartment in Melbourne. The Keppel apartment was purchased in 2016.
The Melbourne property was bought in 2015, and is in a neighbourhood known for its cafes and boutiques.
My wife and I hope to continue having a home base both in Asia and in a Western country into our golden years as we enjoy the diversity of cultures, network and the adventure this will bring.
Q: I drive...
A: A Mini Cooper S Countryman, a crossover sports utility vehicle. We bought it because it easily fits two road bikes and some luggage but is nifty enough for city driving. We look forward to the borders opening up to hit the Malaysian hinterland for some bike riding on the country roads.
Source: Singapore Sunday Times JUL 4, 2021, 5:00 AM SGT