So what are the top few concerns that most people have? Below are my own findings so please don’t judge me =)

1) Hospitalisation Bill
2) Major Illness coverage
3) Accidental Death
4) Death
5) Disability

As you can see, most people are very much concerned with regards to the medical costs in Spore and the kind of medical treatment they will receive if they are diagnosed with one of the 30 major illness. With such a simple statistic. i can happily conclude that it does not required a whole lot of money to address all the top 3 concerns for most people. As a matter of fact, i would think that a few plans of less than $100/mth would be able to comfortably address the top 3 issues facing some of the singaporeans.  So stop buying plans from agent who keep pushing saving plan to you and tell you all sort of ‘reasons’ to buy them. 

Start small and cover at least $100,000 for major illness, accident death and hospital. Any upgrade, you can always do it at a much later part.

Types of factors that need to be taken into consideration:
1) Will you be able to achieve 6-8% returns on your own?
2) Are you disciplined enough to keep invested for long term?
3) Are you able to handle the art (emotional) side when you are buying term?
4) How old are you when you are choosing to buy life insurance?
5) Are you willing to pump your money into a plan that yields no return for you if nothing happens?

I am sure that at this point of time many people would have disagreed with some of the pointers that i mentioned above but like i said, it’s purely my own opinion and i am not asking anyone to follow.

Buying ILP will simply solve many problems of a person who doesnt know how to invest but yet would like to do some form of small investments via insurance. But one thing for sure is that the age that you are buying the plan really plays an important part simply because of the mortality charges that you may be incurring. For someone who is 40 years and above, ILP is not suitable and he is better off buying a term insurance for itself. But for someone who is in the early 20s, ILP may not be a bad choice for them compared to term because of the long term approach that we are looking at. I have just done a comparison of a $100k coverage for death, disability and critical illness for ILP and term. What i found out was that in the long run, say 40 years, the different amount payable for the two plans are not really alot ($15k). However if at the point of time the person were to take out some money for his old age, he/she will still have either $37k (5% return) or $169k(9% return) from his/her ILP as compared to nothing from her term insurance.

Therefore looking at the example, one would prefer to get a ILP instead of term. However please take note that such cases differs from cases to cases so please don’t take it personally and think that it will suit you the most.

Another point that i want to emphasize is that for a person to buy term and invest the rest, they need to really master the science and art of investment. They need not only need to know how to pick the right funds but also to handle their emotionals during crisis. One mistake can cost them quite a bomb. We as a logical person, will also have problems convincing ourselves to buy a plan that may cost a $100/mth and there will be no cash value after 40 years. Example: Do you think a person will ever keep renting a house for his rest of whole life? I can tell you that after sometime, this person will still want to buy a house that can still contain some value after he grows old.

As for myself, i have a mixture of limited pay life insurance, term and ILP.  The purpose of having these policies is so that i can still be insured against death, disability and major illness even if i outlive myself and not working next time because i have already fully paid for my limited life insurance. When i grow old and not working anymore, i plan to cancel out my term and surrender my ILP for my retirement needs.

Therefore the morale of this article is to tell you that people’s needs are different and please do engage a committed and honest consultant to do a fact-finding with you and discover your strength and weakness and be able to plan out a bright future for you!

This has brought me to ponder upon why there is a limitation being imposed on ourselves when it comes to being the best. No one can ever tell you if you can be successful in life, not even your parents. Whether you can make it big in life, it’s all within yourself. If you think you can, you will!

Nevertheless i felt that other than mindset, discipline is very crucial in making sure if you become the best. It ensures that you keep up with the actions being done and follow through all the necessary training that was needed. Be it in studies or work, having self-disciplined is sometimes the step in differentiating a winner and loser!

Just got back from my agency goal setting and this was what struck me the most as I finds it so true! This will be something that I will always tell myself when I want to dream big from now on!

This brings me to think about our individual financial situations. Are we financially ready for a ‘rainy season’ in our life? Do we have an ‘umbrella’ to use when we really need it? In case you are now lost, do allow me to explain further what I mean by a ‘rainy season’ and an ‘umbrella’ in your life

Do you agree that from the moment we step out into the working society, we all have unexpected expenses coming to us every now and then? From the allowances we give to our parents, family trips, spouse’s birthday, personal holidays, friend’s birthday celebration, sickness and shopping spree, it all requires us to spend a lump sum at some point of time. Can we really save on this money? To me, yes and no. Let’s say I save on giving my parents a free holiday at the end of the year, I will feel so bad about it and eventually will blame myself for being too calculative. If I save on my spouse’s birthday, it would also seem like we don’t really care much (who doesn’t like to receive gifts!). For friend’s gathering and holiday, societal norms tend to dictate that there needs to be a gift presented, and much as it seems unnecessary, we are all eventually tied down by these norms.
We can hardly find a bunch of friends who can chill out together without spending money. Even dining at a restaurant to ‘catch up’ can easily make you poorer by $50.

Therefore the so-called ‘rainy season’ would refer to the type of expenses I mention above. You don’t spend the same amount every month but yet its seasonal. Do you save on a monthly basis to cater to such expenses? Typically I would recommend setting aside 10% of your net-income for it so that when you really empty this account, you are still safe.

To me, an ‘umbrella’ in my life would mean getting adequate insurance coverage to protect against major illness (hot topics these days), death, disability and hospitalisation. The very purpose of an umbrella serves to shelter you from either sun or rain. It is meant as a covering, and a safeguard should the weather unexpectedly change. I am willing to bet that you who are reading this article currently have an umbrella in your possession, kept somewhere in your storeroom, who only makes an appearance when the skies turn dark. Imagine heading out into the pouring rain without an umbrella.. not a feasible idea right? You don’t buy an umbrella only when you see the skies turning dark, you buy one and keep it at home, ‘just-in-case’. The same premise holds true for insurance, you don’t start scrambling only when a major illness hits you. You keep one with you at all times in a cupboard, and take it out when it starts turning dark. The consequence of not learning this concept will also render you helpless and definitely ‘wet’ (with tears maybe) when the rain starts pouring in your life.

Yet when it comes to buying insurance, you may wonder what and who to buy from. Well this answer can be easily solved by getting a reliable consultant who stays long enough to survive in this financial industry and someone who spends time understanding your needs and wants. Tied or independent agents does not really matter because it’s the agent’s character that plays the most important part. Don’t you agreed with me that even people in high governmental positions (SLA incident) can also be corrupted?

For those who are reading this, please be nice enough by informing your friends or relatives not to buy any plans from roadshow advisors that promise you freebies. Most of them try to lure you to putting down an instant lifetime commitment, whilst not having the space and capacity to thoroughly address your needs. Always remember that ‘a one time greed will make you regret for life’. Its not worthwhile Another important point that I always advocate is to not buy a savings plan as your first policy. An ethical agent always makes sure that he addresses your life protection needs FIRST before looking at other aspects. Hence, advisors who solely touch on wealth management plans are mostly not looking out for your needs, but their own. So please take note

Just my two cents worth!

Enough has been said about all kinds of financial planning or products available in the market. However does one sit down and reflect that despite all that has been said, somehow, all of the knowledge just doesn’t seem to do any good or make any change in one’s life?

As with any other aspect of our lives, financial planning too requires an important ingredient – discipline. All requires Consistency!

If you are consistent in revising your homework everyday, it won’t come as a surprise if you score A’s in your exam. If you are consistent in reading your bible, you will find yourself getting closer and closer to God. If you are consistent in exercising, you will always be in shape. If you consistently save $50-100/month since age 18 from your pocket money or salary, I can assure you that your yearly holiday trip will not blow a hole in your pocket, but instead be easily splurged on.

Nevertheless, theoretically speaking it seems an easy enough habit, however the application into reality often fails us. We are often distracted by other unrelated matters (objects of desire) in our life and easily allow it to overtake the important matters. I hope that all of us can solve this issue by really asking ourselves this question – WHAT DO YOU REALLY WANT? Is it financial freedom? A nicer body? Being healthy? Growing closer to God?

Fix your mind to your end goal and abide strictly to it and the end result will definitely be much sweeter. Forget about short term discomfort, we only need to focus on long term gain. Do you really want to sit by a coffeeshop when you are old and complain about how the government does not help people in the middle-income level when you actually did have a choice during your younger days to make a difference for yourself? It could be creating a sum for your retirement to having a closely knit family or developing a multi-million dollar business, the choice is in your hand.

For whatever possessions that wealthy people have, it is all because of their hard work, and efforts placed into reaching where they’re at. (of course there are some who are blessed with a silver spoon in their mouth from their births, but are you?) It is never truly just dumb luck (are you sure you’re not rationalising to make yourself feel better?) For what you sow is what you reap. So folks, I hope that after reading this article, you’d be inspired to be more consistent in whatever you are doing.

Just remember: You can move a big mountain by first learning to move away the small rocks

In my recent appointments with my new clients, I realized that many of them are really in need of proper financial planning simply because most of them are lacking the basic foundations of saving. What I mean is that more often than not, they don’t know how to save money in a systematic way and never realize the importance of first setting aside money to save before deciding to spend that same amount of money.

How many of us as we are reading this and are reminded of the friends around you who behave in a similar manner? They earn quite a decent amount of income but they always complain to you that they do not have enough to save. Yet at the same time, you see them wearing new clothes, bags etc. I bet that you must be nodding your head and having that particular friend in mind right… Or perhaps even yourself?

If you do care about this particular friend, I urge you to ask this friend of yours to meet ME! Having spent a certain amount of time in this industry, I have had my fair share of viewing how industry workers work. And while there are many competent consultants out there in the market, I too know of many others out there who do not place much emphasis of understanding their clients and designing a tailor made plan which will help them to maximise their outcomes using minimum resources. Many consultants fall into the trap of advising based on what is best for them instead of recommending based on what is best for the client’s sake.

Personally though, I have always retained the mentality of “If you give others what they want, others will give you what you want.” Having that in mind helps me a lot as I grow with my clients, and they see that through the years as I keep them up to date with their plans, and how their finances have grown leaps and bounds, without them having to leave their comfort zone. As such, it is of utmost importance that you ask yourself this question whenever you meet a new consultant – “Is he/she in it more for me or more for themselves?” If you get the slightest notion that they’re not the least bit concerned about what you’re saying(about your life, your family – which all factors into your decision making process), my advice would be to leave. The consultant has the responsibility to grow with you!

Coming back to the topic of getting the basics right, I believe that every individual needs to first have that desire to WANT to plan because without this desire, there is no ‘NEED’ to plan. A person will not be motivated to do anything when there is no desire. Once he/she finds that desire, the execution and planning part will come hand in hand. It is not easy in the beginning but once it becomes a habit, it will be of second nature to you. So the important question is this – What kind of foundation should you have? Well that is exactly what I am going to share my two-cents worth of knowledge with you.

Tips on getting your basic foundation right:

1)      You need to get the formula right: It is supposed to be ‘Salary – Saving = Spending’. NOT the other way around.

2)      Set up at least 4 bank accounts! One for daily expenses, one for emergency fund, one for luxury/entertainment and the last one for long term savings which can come in the form of normal bank savings or endowment plans.

3)      Allocate 10% into the 3 accounts and set the remaining for expenses account.

4)      NEVER buy a savings plan first.

5)      Set aside $10 per day for meals. Double it up on weekend. This way you can limit your monthly expenses for food. There is no need to eat expensive food when you know the next moment, it will turn into ‘waste’ – literally.

6)      Say ‘NO’ to credit card DEBT! Use credit card wisely before it kills you back.

7)      Don’t buy a car unless it can be used to generate more income or to serve your family. The amount of money that can be saved by not buying a car is enough for an average Singapore to hold a simple wedding in 1 year’s time.

      Live simple!

Yes, my last tip to get your basics right is to LIVE SIMPLE! Our grandparents eat porridge everyday and yet manage to live up to 80+ years. In today’s society, we eat nice seafood, Japanese ramen etc and still we all die at an earlier age in spite of all the nutrients. So what does this indicate? There is no need to splurge on unnecessary things and just focus on leading your life in a more meaningful way. The person that told you that getting everything you want in life will make you happy was lying to you!

I thank you for taking the time to read this article and I hope that you will take away these tips and apply it into your life. Do let me know if it creates an impact to you. =)

Just some background about her: She is a christian and has been quite a faithful child of God. In her life, she has always been blessed with smooth journey and talented abilities. Basically she doesn’t have much problems in her life.

So there was one day that she suddenly had a relevation from God. She said that she shouldn’t be coasting through her life anymore. She needs to work hard and make full use of her natural abilities and do more in life so that she will be able to serve others better. Be it her parents, sisters or her friends, she has decided to make a big change NOW! She mentioned this statement that has particularly made an impact on me: ‘ Why should she settles down when she has the potential to provide for many others around her’

After hearing this, it really makes me THINK! How many of us are really limiting ourselves in life? Are we always telling ourselves all the negative things? Are we also being too pessimistic about what is going to happen? Are we being too self-centred? Many other questions came through my mind and i shall just named a few over here. I felt that it was so true when she made that statement. Who is to limit ourselves when we are the master of our life and God is the creator of it?

Basically NO ONE is able to decide where is your fate except you. I have always heard people complaining about life is getting tougher etc but can you kindly take a minute to look at this person and ask him what he has been doing to change that fact? Most of the time, the answer is ‘ I have been trying to work hard in my 9-5 job’ Each time when i heard this answer, i knew why is this person keep complaining? It was because he has basically done nothing to improve his situation.

How can a person improve his income or lifestyle when he is doing the same thing and working on things that he knows that he will have no control over it. By working 9-5pm, he will allow his boss to decide his paycheck, promotions and bonus. No wonder he will stuck to his job for life!

WE make the choice and WE decide where does our future going to be? It’s a conscious decision we make daily to make life better so that people around us can benefit from it. Hope this little sharing will be beneficial for you to help you in the long run!

Just my 2 cent worth =)

First of all, we must tell ourselves that there is always money out there to be earned. Importantly, we need to also do something first – ask ourselves this question:  “How do I earn EXTRA money?” Once this question has been asked, it will be natural for us to find the answer. This type of question is what we call a “primary question”. Eg: If you realised that you are the ‘happy go lucky’ type of person, you can examine yourselves to see if your primary question is it ‘How to make myself happy’ . Or if you are the ambitious kind of guy, the possible primary question can be ‘ How do i achieve success in the future’.

Human actions are often directed by what we think and how we think is formed by what we ask ourselves. Therefore if you ask the right question then you will react and think accordingly. Do take a moment right now to reflect on the primary question that you ask yourself daily. From there, you may be able  discover the reason for your financial status now. This is because the way you lead your life and the choices that dictate your actions are based on the question that you ask yourself.

Next is to make money your best friend. Protect your money! Don’t let it slip away from you easily by outside temptations. Many of us will treat our good friend nicely and making sure that they can get the best deals out of town. In fact, we will not take them for granted and will spend quality time with them to create memorable experience. Imagine you can do the same thing with money. You take good care of your dollar and make sure every time you spend it, you can get the best of it. Eg: Is it possible to get the same satisfaction or fufil the needs by buying a cheaper products? If yes, why not go for the cheaper alternative! Also invest only on things that are possible to increase in value, not lossing money from the moment you buy it.  Eg: Buying a house. If you do this, i’m pretty sure you can grow your money pretty fast. Most importantly, you will not be ‘abusing’ it by spending on unnecessary items.

Lastly you need to know what is your intention with the money that you are going to have. What are your beliefs around money? You see, all these little intricacies help determine whether a person can hold on to money or not.  To put it simply, their habits, beliefs, and thought patterns around money will determine their financial wealth.  Makes perfect sense doesn’t it?

Two perfect examples of this are Mike Tyson, and Michael Jackson.  Both accumulated much wealth by being great at something.  But yet at the end of the day, they both went broke!

With the right intention in mind, your mindset towards handling money will be totally different. You will be more cautious towards spending it. Imagine your intention is to have earned enough to provide your son/sibling for education, do you think you use it to buy things or invest without doing prior research?

In summary, you need to ask the RIGHT primary question and to MAKE the dollar your best friend and lastly POSSESS the correct intention of accumulating your wealth from the begining.

With these in mind, you are already starting to have a more positive mindset towards money. Just my two cent worth of thought. Hope it is useful to you!

Hi there!

Its been again quite long since i posted here. Recently i received couple of feedbacks telling me that i should come up with a theme on a monthly basis so that i can keep my readers coming in. Well that was an excellent feedback and to be frank, it has been back of my mind to do similar post but just that i am trying to put time to sit down to write. So to start of, i like to talk about our mindset towards money for the month of July!

Being a financial planner, i have met numerous people ranging from low income family to high net worth individuals. So basically what is the main difference in them other than the fact that the high net worth are richer? If i can do up a summary, it would be their mindset towards money.

To start off something, let us examine how normal people view money. They regard money as something that they must work hard for and think it is quite hard for the money to work for them. They view money as the root of evil. They look at money as a mean for them to live day by day rather than looking at it as a resources to allow them to invest and earn better returns. When they want to buy things, they rather save up than to think of ways to increase their income to support the things they want to buy. (Such thinking may not applicable to all) Generally if people view money in this manner, it is no wonder that they don’t become wealthy.

So let’s take a look at how high net individuals view of money: They regard money as a way for them to do bigger things in life. They invest in business or property to yield them better returns. They will always look for ways to increase their income rather than saving up. In fact, most of them are quite generous in spending on useful things such as investing in books or self improvment course. They see money as a way to get them to a different stage of lifestyle. They have a totally different mindset towards money!

Therefore to kick start an individual view towards money manaagement, one needs to re-adjust their mindset. We become what we think so that’s why it is crucial to talk the root of all problem. I will talk more in depth in my second part on how i can share with you the secret to shift your mindset towards money =) 

Remember: The love of the money is the root of all evil and not the money itself =)