Retrenchment have started

I have received the 1st piece of retrenchment news of someone I know outside of the financial sector today. There was news of retrenchment in the finance and banking sector over the last 2 months. Headcount and traveling freeze was quite common in other sectors. But for retrenchment outside banking sector, this is the 1st one. I hope this will be the last one as well…

For those who have not built up a emergency fund, this is the time to do it while you are holding your job. Even if you are very confident about your job, it is still advisable to have an emergency fund, although the amount can be smaller.

For those who have emergency fund ready, confident about your job security and have a long term investment horizon, it is a good time to start a Regular Savings Plan (RSP). RSP is investing a fixed amount at fixed intervals, using done using GIRO for the convenience. This will achieve a Dollar Cost Averaging (DCA) effect. As it is almost impossible to time the market, having a RSP will take out the guesswork and ensure you are not buying at the highest point. Considering the fact that the market has come down so much, starting a RSP now is actually like shopping in a sale. Can the market go further down? Of course it can! But will it actually go down? No 1 knows. So, a RSP will also ensure you are not dumping everything in before the market falls further. If the downward slides continues, you will be buying more cheaply.

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