2014 Whats Your New Year's Resolution

Some days into 2014. Have you made your resolutions? Or these things ain't popular anymore? Anyway, I made mine. This year is about reaching out to as many people as possible and ensuring they have a basic knowledge of financial planning. And what better way then to reach out from here! So the first topic to share on is retirement planning since it was the last few things I shared on in 2013.

In my last post about the impossibilities to retire in Singapore. I mentioned about setting aside monies early for retirement. But how much? Where? Why? How?

To first answer the whys the where and how much will fall into place..

Then why? Well inflation is what u should be concerned about. My usual story of kopi o costing 50 cents 10 years ago and it costing about 90 cents today, inflation 4.13% per year for the past 10 yrs. So which means if inflation carries on at 4.13% the next 10 years. Your kopi o will cost $1.35 in 10 years time. Put that same 90 cents into a savings instrument of 0.05% returns, 10 years later it becomes $0.9045... cannot buy kopi o in 10 years time.

So if we put it into perspective. If your expenditure per month now is $1000 (not inclusive of holidays, car instalment, petrol, ERP, road tax, utilities, future kids school fees, phone bills, cable modem, cable tv, credit card bills...) and you intend to retire in 30 years time. Inflation is at 4%. You will need $3,244 per month at retirement. And based on our current life expectancy, you probably have another 20 yrs of retirement. Calculating very simply you will need $38,928 (not including more frequent visits to the hospital, medical bills, holidays, golf membership fees, high teas, property tax more than 1) per year for retirement. And to ensure this amount last for the next 20 years. You should have $778,560* at the point of your retirement.

Disclaimer
* this figure is based on you having expenditure of 1000 dollars now and no change in spending habits till retirement (scrooge!) with inflation rate at 4%. This does not constitue as a recommendation but a recommendation to call me.

The above calculation will answer how to plan for retirement.

How much to set aside will be dependent on where you put your monies. Leave it in a savings instrument that gives you 0.05% you will need to set aside $2146 per month to achieve $778,560 in 30 years time.

Put into endowment giving you 3% you will have to set aside $1324 per month.

Put into a medium risk investment giving about 5% you set aside $930 per month.

So where and how much will be dependent on your propensity to take risk. Not a risk taker set aside more in lower returns instruments. Risk taker take higher risk. But not all investment vehicles are sound. So enter with your eyes wide open.

So some of you may already have portfolios that may include many assets. Are those assets helping you to achieve your financial objectives? How risky are your assets or your strategy? Have you compiled your portfolio and determined their rate os return?

If you are an individual reading this please share with your friends. If you and a group of friends will want to learn more about detailed calculations for yourself, organise a group and email me. If you are an employee thinking a topic like this will be great for a self improvement talk in your office email me too. Tngjinyau@gmail.com

This is my first step achieving my resolution for the year. More importantly having a first step is an action. Have you actioned on your resolution? Is this years resolution the same as 2013.. if it is then action is what is lacking. Have a great 2014 ahead and stay tuned!

2013 is coming to an end

Its the end of the year again. A time for reflection and a time to give thanks. I will like to thank all my clients and friends that have supported me and believed in my service. Not only have you made my life and work more meaningful, you have also made you and your families lives more meaningful. This is the start of a mutually beneficial relationship which I want to maintain. Please feel free to call anytime. Will catch up again soon.

I will also like to apologise to those that I may have not been able to help getting insurance. I have tried my best. But there are other services I can help you with.

Reflecting upon my life till 2013, it has been an amazing journey. I can still remember the day I bought my first policy long long time ago...

The phone sounded and I picked up to see who called. It was a good friend and ex colleague whom we did many crazy things together. He called suggesting a coffee seaaion. Sure!

At the coffee session, he told me he has joined an insurance company. I felt betrayed thinking I have been lead into a coffee session to be sold an insurance policy. But as a friend I will also want to see him do well. I told him, Bro just prepare a savings policy of $250 a month. He said ok.

We met again to do the paperwork and before we signed he said he will have to present the product. No need, I said. I am doing this to support you, sign where?

But Tang I have to explain the policy first... sshh sign where?

Did the paperwork and we had coffee and talked about life. And till today, I feel thankful towards him. I never beleived in insurance because my dad told me bluff people one.. cheat money one. I had my pre concieved idea that its bull.

It all changed when in 2000 I did my Certificate in Life Insurance, the only paper you need then to be a financial representative of an insurance company. I started to realise and see the need for financial planning. But in 2009 I did not just see the need, I experienced it.

I woke up one morning with a tingling sensation in my shoulder: first thought.. stroke! Immediately booked my $300 plus medical checkup and waited 2 weeks for my results. Doc said that in an emergency we will call you within 2 weeks and please come down immediately, if not just come back in 2 weeks time.

The results were consoling yet damaging at the same time. I have no cholestrol (surprise!) but have minute traces of blood in my urine, fatty liver, slightly high reading of sugar in my blood and is obese (not surprising) Doctor advised exercise.

Whew! Not stroke, realised it was probably my new sleeping posture which prevents my snoring. I find out if I slept on my side I don't snore, so the tingling sensation was from me sleeping on my shoulder the whole night.

Better increase my coverage, I thought. I was a trainer then in an insurance company and I applied to upgradr my shield plan which was still at a public hospital A ward. Rejected!!! I have been denied coverage in a private hospital by their company I work with!!! I tried other companies and it was either a reject or premiums loaded. I resigned to my fate and got my coverage with loading and all.

If only I had gotten my coverage earlier. If only I had not felt so invincible then. I could have covered myself more. Sigh! If only I knew the numbers to this weeks 4D and ToTo.

Well, if you are at the moment healthy and fit, please do not be complacent about it. Nature has made us to last only for a limited time before we deteriorate. Even a car engine don't run forever. Just like when the car breaks down we want to push it into the best mechnic to get it repaired. And that cost money. Imagine when we start breaking down...

These cost can be eatimated and planned for and there is no better time then now. My sincere hope that your resolution for 2014 will include: start a financial plan or speak to a financial adviser.

Happy New Year! In advance.

Happy New Year

Last day of 2012 and we survived the end of the world. We had a year of sex scandals, uncertain economic conditions, crazy road and industrial accidents, natural disasters, civil unrest around the world and doomsday prophesies.

It is time today to relook at 2012 and pray for those that are affected. It is today where you give thanks knowing you are safe and looking forward to 2013.

Today, you think about the people who you care and love and give thanks knowing they are safe and sound too. Who are these people? They are the people that if your phone rings at 3am at night and they tell you they are in trouble you will go all out to help them and you know they will do the same if you called them at 3am.

And if you know who these people are you may want to forward them this post just to let them know you appreciate them. (If your friend forwarded this post to you, they want you to know you are appreciated.)

I want to take this opporunity to give thanks to my parents that have been supportive of everything I do. I remembered a post I have seen on Facebook about the relationship between a pencil and an eraser is like the relationship between parents and children. I write my mistakes and they erase them no matter what. The relationship between a parent and a child is probably the only unconditional one. No matter how bad your mistakes, they will still love you, unless you have shot them in the face like the crazy person in the Newtown shooting.

I want to give thanks to my siblings that also have been supportive and understanding. Thank you for doing the things that I may not have done as a son to our parents. I apologise for not doing the things as a brother too.

My wife, thank you for believing and supporting in all my decisions. Thank you for believing that I will be a good financial adviser when others have shunned me. Thank you for taking care of things at home and giving me a great family. I know its not easy taking care of the kids (I know I am a kid at times).

Thank you all the great friends I have. You know who you are. Putting up with my sh*t at times. Thank you all my clients and prospects that have given me the the trust and opportunity to serve them.

Last but not least:

Thank you for the music, the songs I'm singing
Thanks for all the joy they're bringing
Who can live without it, I ask in all honesty
What would life be?
Without a song or a dance what are we?
So I say thank you for the music
For giving it to me

http://m.youtube.com/#/watch?client=mv-google&v=0dcbw4IEY5w&rdm=mfca6b1uj

So what are your plans in 2013? Have you taken the steps today towards what you want to achieve in 2013 or the future? Have you stopped today and smell the roses before it is too late?

Have a great 2013! May all your dreams be fulfilled in the year ahead!