A Personal Finance Blog for Malaysian: What should be your key (money) concern?

Wednesday, April 12, 2017

What should be your key (money) concern?

Most people, whom are not super rich and not an orphanage, will have at least these three (3) key money concern. Other money concern must be addressed too but these three (3) should be made top priority.

First key money concern is Death & Disability (DD).
Die too young (or lose the ability to earn...)
Imagine if you died yesterday, what happens to your loved one? Who is going to take care of them next 12 months and next 10 years, financially?
Accident happens everyday, you can read from newspapers, how about disability to earn as much as you do now? How is your lifestyle be affected? Watch "Dr. Strange" and you will know what i mean. Not everyone can become the powerful Dr. Strange. 
Thanks to hardworking life insurance agents and financial advisers, most people has a life insurance policy now. Some have more than a policy. They just need to review it periodically to ensure the coverage stays relevant and adequate.

Next is Retirement.
If died too young not a problem, then die too old is another problem you got to deal with. 
If you think you are too young to plan, you are definitely wrong. People regretted not planning earlier at age 40 when they are at the age of 50.

Above chart show how inflation can eat into your retirement fund fast. At inflation rate of 2% the fund last till age 89 but when inflation rate is 4%, it lasts at age 79 only. Scary? It is hard cool fact.
Lastly, third concern is Education.
Don't worry about this, only applicable if you are married or planning to..... 
No wonder many young generation only have one or two kids. Some even can't afford to marry since they can't even take care of their own retirement.
Without proper planning, Education can jeopardize one's retirement plan or vice versa. 
 To avoid having such problem, you just got to start early in Financial Planning.
Other money concerns, including but not limited to below are (not covered above) ....

  1. Medical Plan to cover hospital bills.
  2. Writing a Will (what happen when die too young...)
  3. Debt Management
  4. Investment Plan
Let's talk to your Financial Adviser or Agent today to plan or review your money health.