Tuesday 12 June 2012

What is missing in your financial plan?

A financial plan is an on-going process of fact finding, analyzing your current budget and financial goals to accomplish the final financial goal or a set of circumstances, e.g. elimination of debt, retirement preparedness, etc.
If you have a sound financial plan, you could probably ignore the rest but please send me a bouquet if you find something that is 'of thought' in my post. Thanks in advance. In addition, if you have been following my posts, you would find my articles 'unique and rare' in the sense that other professionals do not post in their blog mainly because they 'charged' exorbitantly for professional charges. You get free, NO obligation in my blog.
Most often than not, most Singaporean do not have a financial plan which includes a budget & balance sheet, risk management or insurance plan, investment plan, will and income tax plan, etc.

·         Most often than not, most Singaporean do not have a financial plan which includes a budget & balance sheet, risk management or insurance plan, investment plan, will and income tax plan, etc.

·         I am not surprised to find out If, most of you, who have an impressive portfolio of insurance policies but have not make any plans for any nomination or will planning!

·         If you do have a will, were you advised the advantages of making your insurance nomination through the will or ‘nomination of beneficiaries’ framework such that you can decide intelligently given ‘that’ knowledge? If not, you need to find out where the difference is?

·         If you do not have a will, are you familiar with the ISA? Do you have a wish on how you like your assets to be distributed or leave it to the Act?

Whichever, what were your pending instructions for your investments through the insurance companies and various investment platforms after our demise? Would you leave it to the Executor or the Estate? How long would it take to identify and nominate an Administrator to manage your investment when you do not have a will (given the volatility of the market since March 2012)?

·         If you don’t understand what I am saying to any or all of the above
·         If you do not have a ‘valid’ CPF nomination, will or nomination of beneficiaries
·         If you do not have an insurance plan, investment plan, tax plan
·         If you do not have a financial plan

Why then do you

1.    Buy insurance for risk management
2.    Invest your hard earned savings for a comfortable retirement???
In the midst of your heavy schedule climbing up the corporate ladder, in search of a higher standard of living and comfort but you may not have realized that you may have paid the least attention to having a proper financial plan for yourself, your loved ones, siblings or dependants???. Most of us would deem this as least important but will realize it is too late when the unexpected event occurs. Pardon me for saying but the reality is some of you do not understand or know where your family priorities are!

What’s next? Having a plan is similar to having a health screening report. Without taking the prescription or executing the recommendation is equally pointless.

Last but not least, having an on-going financial plan is equally important as there are various and different aspects/stages in the life cycle that we have to go through as we become ‘wiser’!

Or would you blame it on your incompetent insurance agent, legal advisor or financial planner who forgot to tell/advise you in your reviews? Or are you probably waiting for snow to fall in Singapore?

Whatever is your journey, I hope you will come to realize the importance of planning and executing your financial plan soon. While for some, seeking a fresh or second opinion will help you realize what is missing! If you have any further queries, I am sure you’ll know who to contact. Happy planning!


1 comment:

  1. Useful information shared..I am very happy to read this post..Thanks for giving us nice information.I appreciate this post.



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