Going on a vacation?

It’s undoubtedly the top past time for busy working Singaporeans whenever we can can afford it or have time for.

A good vacation can involve much time involved in planning especially for free and easy multi-week vacations across Europe, U.S.A or Japan and can amount easily to a tidy five figure sum.

Now with your plans all finalized, leave applied and approved, flight and accommodations all paid, what’s next? Insure it of course!

Insurance is often an after thought or not consciously incorporated in one’s travel plan when it should, shouldn’t it? After all, what happens if the travel agency closes down before you travel (I’m sure you’ve read such horror stories in the papers)? What if a close family member falls ill and you need to cancel your trip? lose your passport or have your money stolen? lost luggage? fall ill and require hospitalization? and the list of possibilities goes on…and your vacation can turn out to be a real nightmare.

In such circumstances, you’ll be glad that you had bought a travel policy to insure against these and more. After all, the cost of insuring is insignificant relative to the cost of your vacation and the amount of time and effort put into planning, so the only logical decision is to get insured, isn’t it?

So now that you’ve decided to secure a travel policy, next question is, does it cover my pre-existing medical conditions?

Most insurers will not cover pre-existing medical conditions which means that if you have high blood pressure and you suffered a stroke whilst overseas and need emergency hospitalisation or medical evacuation back to Singapore, sadly you’re on your own…well until now.

An insurer has just launched a travel policy that will cover your pre-existing medical conditions, thereby giving you greater security and peace of mind. However, it comes with a caveat – there’s 50% co-payment or lower insured limits for certain benefits, and comes at a higher premium of course.

Notwithstanding, it’s an excellent option that is now available when previously there was none.

To find out more, just drop me a note on the right and we’ll get in touch soon.

ntuc-enhanced-pre-ex-travel-insurance

If a genius like Einstein claims that compound interest is the eighth wonder of the world, should we embrace it or reject it?

If you feel that your money is not growing fast enough, read on….

http://www.businessinsider.sg/amazing-power-of-compound-interest-2014-7/#.VsxvOxjon7Q

Harnessing the law of compounding interest is THE most important aspect in wealth accumulation. There are only 4 parameters to apply in order to maximize your wealth accumulation potential:-

1. how early in life you start saving/investing

• the earlier you start, the better

2.  how long you save for

• the longer you contribute towards your savings or investment plan, the better

3. amount of regular contribution towards your accumulation plan

• the higher your contribution amount, the better

4. rate of return

• the higher the rate of return, the better

Sounds easy enough isn’t it? Then why are Singaporeans having difficulty in achieving their accumulation objectives?

http://www.straitstimes.com/singapore/majority-of-singaporeans-unprepared-for-retirement-survey

Let’s examine some possible reasons :-

• low savings due to lifestyle choices (choosing Wants over Needs) or over commitment to home and car purchase
• starting late in life on your saving/investment plan due to procrastination or fear of commitment
• not sticking to the accumulation plan long enough – accumulation is a marathon, not a sprint
• not contributing enough resources towards your accumulation plan – You reap what you sow.
• playing it too safe by keeping too much money in the bank at low interest rates, allowing inflation to erode your spending power over time

Successful wealth accumulation requires prudent spending, starting early, contribute the best you can afford, stay the course and be prepared to take calculated risks.

More importantly, take ACTION to better your financial future…you only have One Chance to accumulated for your child’s education and your retirement! Once time has passed, it can NEVER be regained so wait no further.

To re-quote Einstein :-

“Compound interest is the eighth wonder of the world. He who understands TAKES ACTION AND APPLIES it, earns it Achieves financial success … he who doesn’t … pays for it.”

To secure your plan for wealth accumulation or develop a holistic financial plan, just send me an email on the right and we’ll get in touch soon.




Till then

Live life to the Fullest, without Regrets!

https://youtu.be/Q23Exmnio8s

Just came across a few interesting articles and thought of sharing with you all

http://www.greatdeals.com.sg/2012/09/26/infographic-cost-of-a-child/

http://dollarsandsense.sg/the-cost-of-raising-a-child-in-singapore-explained-for-the-average-singaporean/

http://www.sgmoneymatters.com/much-cost-raise-child-singapore/

Starting a family in Singapore and bringing up your children entails much financial responsibility and the best way forward to secure your child’s financial future without breaking the bank is by starting with making the right financial choices.

If you’re keen to explore how you can give your children a head start in life without breaking your retirement nest egg, just  connect with me on the right and we’ll get in touch soon.

Live life to the Fullest, without Regrets!

Have you wondered why

1. our govt came up with CPF, dependant protection, home protection schemes & CPF Life?

2. newborns are automatically covered upon birth under Medishield?

3. Medishield Life will be made compulsory?

4. Eldershield is an opt-out rather than an opt-in plan?

5. motor insurance is a pre-requisite to car ownership?

6. maid insurance is a pre-requisite to hiring a maid?

7. home insurance is a pre-requisite to taking up a bank loan?

The above measures are meant to provide basic protection and accumulation of wealth for retirement so why must our govt step in to legislate these requirements? Won’t we be able to do these ourselves?

Sadly for the majority, if left to our own devices, will either not know what’s required to be done OR be in denial and refuse to do it OR understand that it has to be done but procrastinate on it.

I mean, who likes to put money into insurance or think about unfortunate events that can potentially befall on themselves and their family? or lock up significant amounts of money to save up for retirement when this money can bring immediate satisfaction and enjoyment now by buying the material things we so desire?

Well, that’s why our govt has to play the role to set the minimum basic requirements…but if you allow the govt to be your financial planner, then I’m afraid what you’ll end up with will be very basic benefits. Our Govt now has plans to raise the employment age and introduced reverse mortgages for asset rich, cash tight citizens….would you like to sign up for that?

Our Financial Attitude

By conventional wisdom, here’s most people’s financial equation

Income – Expenses (Living + House + car) = Savings, of which a small portion can be deployed for financial planning

For the financially successful, their financial equation may be

Income – amt set aside for financial planning = Expenses (Living + House + car)

The difference between both equations is in how much financial planning is prioritized (valued) over current lifestyle choices.

Which financial equation would you like to employ in your life?

Undeniably, our attitude towards financial planning is the single most facilitator or obstacle in achieving our financial goals.

Let’s examine further

At your workplace, would you prefer to work with an employer who looks after your welfare by providing you adequate employee benefits and a pension plan for your retirement? I’m sure you would.

In a similar fashion as the head of the household, how should you be taking care of your dependent’s (spouse and children) financial needs and aspirations so that they too feel loved and cared by you?

Again at the workplace, are you rewarded for anticipating problems and designing preemptive solutions to address them, meeting KPIs and deadlines on your projects? I’m sure you are.

In a similar fashion as the head of the household, there could be a lack of accountability or financial reward to carry out your responsibilities. Hence, do you chose to procrastinate or deny the need to plan financially or should you take proactive steps to secure the financial plans to address your family’s protection, child education and retirement needs? If you don’t take the lead, who will?

Why not employ the same work attitude that has made you successful in your career, into your family’s financial plan as well? Then you’ll be truly successful – holistically.

Cost of Procrastination

A. On insurance protection

Would you prefer to pay pennies now, or dollars later?

B. On Wealth accumulation (Child education & retirement)

The above is neither a religion that you have to believe in nor science fiction but rather realities that we face in life. The sooner we step up to the plate, the better it will be for you and your loved ones.

Hope the above was useful. To get in touch, just send me an email on the right and we’ll get in touch soon.

Till then…
Live life to the Fullest, without Regrets!

https://youtu.be/m82gm0Ln_EQ

Have you taken a subway in UK or the MRT in S’pore?

If you have, you would have noticed signs & floor markings cautioning you to “Mind the Gap” between the boarding platform and the arriving train to prevent any mishaps. In spite of the warnings, unfortunate incidents have occurred where individuals actually fell onto the track or had their limbs trapped in the gap. Hence, it’s best to heed the warnings or ignore them at one’s peril, wouldn’t you agree?

Similarly, in the context of financial planning, one might have financial planning gaps in the following areas :-
1. Insurance planning
2. Child education planning
3. Retirement planning (wealth management)
4. Estate planning

Not adequately addressing these financial gaps can expose one and one’s family to serious consequences.

Such examples would be:-
– financial distress caused by loss of income due to illness and accidents
– burdened by large medical bills
– not having sufficient resources to provide the best education for one’s child
– not having adequate resources to outlast your retirement or live the retirement lifestyle you desire
– leaving an inadequate estate to your loved ones (e.g loss of a breadwinner may force the surviving spouse to take a second job in order to support the family)

But how would one be able to identify where their gaps are, the size of the gaps, how best to prioritize one’s resources to address the gaps and what’s the best way to close up the gaps?

In my work with my clients, my role will be to guide them through the process and help them obtain the answers to the above questions. Finally, by implementing the financial plan recommendations, I’m confident that they will achieve greater peace of mind knowing that they have done their up most best to close up their financial gaps in order to protect theirs and their family’s long term interest.

If surplus financial resources are available, why leave things to chance?

The choice is either to pay a small price today to address one’s financial gaps or potentially face a significantly higher price later on in life due to inadequate planning
Indeed, how well we can overcome the financial hurdles in life often depends on the choices we make today….and there’s no better time to plan than Now.

To seek advise on the above or to refer a friend, just email me on the right side and we’ll get in touch soon.

Till then…
Live life to the Fullest, without Regrets!

How sturdy is your insurance umbrella?

If there’s a puncture on your car tyre, will you get it fixed?

If there’s a hole in the roof of your home, will you get it patched up?

If there’s a hole in your umbrella, will you continue to use it?

In all the above situations, I’m sure you’ll do something to rectify it and with a sense of urgency as well, wouldn’t you?

In the area of protection planning for you and your family, I often charaterize it as an insurance umbrella – one that will serve and protect you and your family in the following situations:-
– premature Death
– Disability and resulting loss of income
– Critical Illnesses and resulting loss of income

Your insurance umbrella is only as strong as it’s weakest link and that I feel is in the area of disability protection due to a lack of awareness by the public. It presents a gapping hole in your insurance umbrella which most people are unaware of or not adequately addressed yet.

This is a major area of concern because it can potentially wipe out one’s lifetime savings in a short span of time if one is financially unprepared for it. Its impact on the family will be both financially and emotionally draining, so why not do something now to insure against it?

Disability protection can be addressed through a combination of the following plans:-

1. Disability income plan
– serves to replace up to 75% of your monthly salary in the event of disability and resulting loss of income

2. Medishield type hospital plans
– serves to reimburse hospitalisation and surgical expenses

3. Eldershield and Eldershield supplements
– serves to provide a steam of cash benefits in the event one is disabled and requires long term care e.g hire a maid, nurse, nursing home, rehabilitation expenses etc

4. Personal accident plans

Hope the above was useful. To seek adequate and comprehensive protection, just send me an email on the right and we’ll get in touch soon.

Till then…
Live life to the Fullest, without Regrets!

Do these pictures evoke a strong emotional response or desire to own one?

If it does, you’re perfectly normal as we’re naturally attracted to things of beauty and the desire to look successful and live the ‘Good Life’.

Thus, it’s not surprising that in spite of rising cost of living, escalating home and car prices, there appears to be no shortage of buyers. Is this a reflection of the deep pockets of Singaporeans, demand/supply mismatch, foreign demand driving up prices or are people simply over leveraging themselves?

Well, it’s probably a combination of the above factors but what is probably most worrying is if individuals are overstretching themselves to purchase these material stuff before they can well afford it or acquire these at the expense of other more important financial planning objectives such as:-

1. Insurance planning
2. Child Education planning
3. Retirement planning

http://www.todayonline.com/business/rising-household-debt-worries-singapore-central-bank#inside

Hence, is our govt doing the right thing in reining in personal debt through

1. 8 rounds of property cooling measures – so many that it can make your head spin
http://www.property-singapore.sg/singapore-property-measures.html

2. imposing financing restrictions on motor vehicle loans
http://www.mas.gov.sg/news-and-publications/press-releases/2013/mas-imposes-financing-restrictions-on-motorvehicle-loans.aspx

Well, having seen what happened during our last Asian financial crisis in 2007-09 where interest rates rose, asset values plummet and jobs were lost (a triple whammy situation), and that we’ve still in the midst of the ongoing global crisis, some financial prudence is certainly warranted.

To seek a second opinion on your financial plan, just end me an email on the right and we’ll get in touch soon

Till then…
Live life to the Fullest, without Regrets!

Came across an interesting article which I’ll like to share with you. Hope you’ll benefit from it.

http://www.marketwatch.com/story/8-habits-of-highly-effective-retirees-2013-05-15

http://intentionalretirement.com/wp-content/uploads/2013/04/8-Habits-Poster.pdf

Securing your retirement requires one to follow certain systematic steps, cultivate good financial habits and applying action plans to achieve it. It certainly does not happen by chance.

To secure your comfortable retirement, just send me an email on the right and we’ll get in touch soon.

Till then…
Live life to the Fullest, without Regrets!

Hope that you’re having a great start to the year!

Came across the following article

https://www.healthxchange.com.sg/news/Pages/Singaporean-Living-Longer-Good-Health.aspx

“MEN in Singapore have the second highest healthy life expectancy in the world and women the fourth highest…..But these longer healthy lives also come with longer years of disability”

“A boy born here in 2010 can expect to live 68.1 years in good health and 10.7 years coping with serious disability.

“A girl can expect 70 years of healthy life and 13.3 years with poor health”

“Women are hit especially hard by disability. Women aged 15 to 65 years lose more healthy life to disability than men.”

http://www.straitstimes.com/singapore/more-living-to-100-years-old-in-singapore

So what does it have to do with financial planning? EVERYTHING!

With increasing longevity, will your retirement nest egg be sufficient?

How big should your retirement nest egg be come the age you wish to retire?

Should health fails and your income ceases, how much are you willing to drain your reserves to fund your healthcare cost? how will you continue to care for your family and fund your financial commitments?

Is your insurance cover adequate?

Do you have disability insurance? Do you realize that many disability situations will not satisfy a Death, TPD or Critical Illness claim? i.e none of your existing policies will offer a payout. Hence, not having one is akin to trying to shield you and your family with an umbrella with gaping holes or caring for them in a house with a leaking roof.

Would you do that to your family?

To seek advise on the above, just send me an email on the right and we’ll get in touch soon.