Wednesday, August 18, 2010

Want to retire? Start saving at 24 (08-Aug-10)

Today's ST was featuring some 'retirees' working beyond 65yrs.. because of passion, because of love of job... because of nothing to do at home... or because they need to? Reasons vary.. and what's yours? Do you see yourself working for a long long time because you love to or you need to? Do you love your job now and see yourself working with an iron rice bowl? Or do you want to plan something that is more predictable, at least financially?


The fundamentals of financial planning is to first acknowledge the fact that you want to be in a better position to determine your final destiny. Of course, there will be pple who prefer to take the 'cross the bridge when it comes', but I would take the former anytime. Why? Because all men desires a better life, and not struggle to make ends meet throughout my whole life.

How to?

1. Start saving. When I started out working, it's just money in money out without any consistent effort to keep track of savings. With excess, this money often goes out to stuff like holiday, luxury items... then followed by big ticket items like a house, wedding stuff, renovation... and for those with kids... it would be baby powder money.. education, classes... etc... so where's the excess for retirement savings? You need to force yourself to save.

2. Get yourself properly insured. Can you tell me anyone who will never be sick.. and never die? Superman also can die. Upgrade your H&S plan to a better one if you have not done so, and review your coverage to see if it's sufficient to cover yourself and your dependence. Singapore's statistics has shown that most Singaporean's coverage is only abt $50k, and that is highly under-insured. When crisis comes in the form of major illness, or death, it's not only you, but your loved ones who will be burden heavily, emotionally, if not financially. Be a responsible person to ensure you can protect or minimize the potential damange.

Key thing is, get yourself insured while you are young and healthy. Some pple want it also too late to get it.

3. Long term plan. Time is your good friend. If you do not make good friend with time, it will outrun you before you realise it. If you started working, you are in a good position to make things right for the first time. If you are half way through your career, re-think what you want for your future as you are now in a matured stage. If you are heading towards your golden generation, keep track of your existing assets and see if there's anything else within your means that is to your advantage.

Hope all these little reminders will put you on track on financial freedom. Do drop me a note or call me to review your financial portfolio. And do recommend your loved ones and friends and colleagues to me whom u think I can add value to them.