In search of higher income and better standard of living. What's missing?

In my 16 years of practical experience being in the financial industry, I’ve assisted a handful in claims – death and diagnosis of major illness. Fortunately, all claims were processed and approved. Their loved ones and dependants are ‘well’ taken care off.

I am writing to you as I am very concern for most of you – in the area of personal financial risk management.

My primary objective as a financial planner is to assist you to identify ‘pitfalls’ in your personal financial risk management. Your responsibility is to identify the goals and prioritize your goals in terms of importance to you.

Be it taboo/’pantang’/superstition, actual financial planning is not executed. The result of not having a financial plan is planning to fail. This results in creating a financial impact to you, loved ones and dependants.

The reality/facts.

We complete our education, find a job/career, start a family, buy a house, and pay off our debts while planning for retirement. However, in this search of climbing the corporate ladder, earning a better income while starting a family, many (NOT all) are in search of higher income.

In my opinion, the primary objectives of most family are a higher income and a better standard of living. What I am concerned about is that the improvement in income and a better standard of living does not equate to a proportionate level of savings, investments, retirement funding, protection of future income for future expenses for self, loved ones and dependants.

Why is that so? The common reasons are:

No money, no worry, no hurry. Hence, the issue is that when they reach pre-retirement, the time factor, health factor, insurability factor may be too little too late.

It won’t happen to me. But when it does and you’re financially not prepared, the impact will create a financial burden to self, loved ones and dependants. Financial worries, unhappiness, quarrels, etc would surface.

Financial planning was not taught in your childhood school days. But even if they did, it involves a large amount of planning and discipline.

Are you planning to fail? How much financial impact will you encounter? Have you done sufficient planning for self, loved ones and dependants? Are your current risk management SUITABLE for your financial needs? Or jump off the plane and find out you’re not wearing a parachute.

In order to avoid a financial impact that will burden self, love ones and dependants, I would strongly recommend that you seek your first financial planning review and subsequently annual reviews without further delay. In conclusion, having a sound financial plan and executing the plan with discipline would ensure a financial peace of mind. Of course, the choice is yours and we set our own destination.

Are you financially prepared? Or do you plan to FAIL.

In brief, most Singaporean while climbing the corporate ladder, earning a better income and experiencing a better standard of living fails to invest in their most important asset – their potential income. Hence, when the inevitable happens, fortunes are lost, they experience big ticket expenses and loss of potential income to supplement their expenses, standard of living and not forgetting retirement needs!

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