AS A single parent of two young boys, Ms Annie Lim, 39, is all too aware that she has to be extra cautious with her finances.

So, it is not surprising that the managing director of mortgage consultancy firm Global Creatif Financial ensures that her young family is well-protected before she invests her surplus.

'An adequate level of insurance is very important to me, mainly because there is so much unpredictability in life. I have always viewed insurance very positively. I don't come from a rich family, so I'm very practical about insurance needs,' said Ms Lim, a divorcee.

She is also a director of the Mortgage and Finance Association of Singapore and a district manager at insurer AIA.

Apart from a whole life plan, she has three term policies, as well as insurance to cater for her children's educational needs. She also has a critical illness cover of $300,000 and a disability income policy. Her annual premiums amount to over $10,000.

As she is the sole breadwinner in the family, she is conservative when it comes to making provisions for rainy days.

'I have nine months of emergency funds put aside in bank savings deposits. The balance is for paying down property and investing in company stocks,' she said.

She set up Global Creatif in 2002. Recalling those days, she said it was an uphill task trying to get recognition from banks, customers and staff, as the concept of mortgage consultancy was very new then.

It is an idea that has caught on since. A one-stop mortgage solution provider, her firm helps homeowners sieve through all the loans packages banks and finance companies provide.

This means the individual home owner can do away with the hassle of sourcing information from multiple banks. The service is free as the banks pay Global Creatif if a match is made.

Ms Lim's sons, Jeremy and Timothy, are aged seven and five respectively.

Q What are your money habits?

A As a single parent, it is a challenge to save every month. Still, I try to save 10 per cent of my monthly earnings before I start paying bills. I will not stint on expenses that will enhance a child's ability.

This includes expenditure on interests to enhance a child's learning ability like music or sports. I do not want to let time slip by in these cases.

Q What financial planning have you done for yourself?

A To me, financial planning covers a few main parameters of which the aspects relevant to me include protection planning, retirement planning, accumulation planning, investment planning and mortgage planning.

As for retirement planning, the main bulk of 70 per cent of my investments are in property, with the rest in insurance and stocks. I have a separate unit trust portfolio, investing in Asian equity and balanced funds, which are funded from my CPF funds.

In stock investing, I tend to buy and hold. I'm not a punter and I'm not into penny stocks, preferring blue chips. About 10 years ago, under the influence of some friends, I opened a US dollar trading account and traded in US stocks with some success. For example, there was a stock that I bought at US$70 per share which I sold for US$105 a share after a year.

Q What's your investment philosophy?

A I believe in a systematic and regular investment pattern, that is, using the concept of 'dollar cost averaging'. When I buy AIG stocks, I opt to pay on a monthly basis from my sales commissions. From time to time, I will buy some blue chips.

Q What's your worst investment?

A My worst investment was a two-bedroom apartment in Pasir Ris, bought during the property market peak in 1996. Its value halved over a few years. I am still keeping it. It has reached about 80 per cent of the original purchase price, but I have paid many years of mortgage interest. It's being rented out at a yield of 5 per cent.

Q What's your best investment?

A My best investment is a four-bedroom house in Melbourne that doubled in value within three years. It was bought in 1998 for A$150,000. For properties, ensure that it has a good location and has good potential rental income. This will help ensure that the mortgage payments are taken care of by rental income.

Q Moneywise, what were your growing up years like?

A My parents were both teachers. I have nine other siblings and I'm number nine in the family. We were average, not rich. From a young age, we were taught to earn our own pocket money.

My dad used to put 10 piggy banks, which he made himself, in a row. Whenever we had money, he would ask us to put a portion into it first. That was how we learnt to save.

In primary school, I sold stickers and loaned out library books for a small fee. In secondary school, I gave tuition....Money was hard to come by.

Q What's your retirement plan?

A Staying in a fully paid up apartment and having the health and wealth to travel round the seven seas. I hope to be financially independent at 55 or earlier. In today's dollars, I would need $5,000 a month because I like to be able to travel comfortably.

Q Any financial tips?

A Sometimes we go through difficult times in our lives and find ourselves unable to do what we've planned. We need to identify that and pick up from where we left off. Reviewing our financial plan regularly, particularly when goals have changed, will help us to re-align our goals with the plan, resulting in more realistic expectations.

Q Your home is...?

A A two-bedroom condominium unit in Bukit Timah.

Q Your car is...?

A A red Honda Jazz.

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Positively prepared

'My dad used to put 10 piggy banks, which he made himself, in a row. Whenever we had money, he would ask us to put a portion into it first. That was how we learnt to save.

In primary school, I sold stickers and loaned out library books for a small fee. In secondary school, I gave tuition....Money was hard to come by.'
MS LIM, on the importance of savings to her and her family