Can your savings last you for LIFE?

Can your savings last you for LIFE? This is an interesting question that I regularly ask my new clients. Should someone not do their wealth management properly, that is , to properly diversify their wealth into different asset classes so as to generate regular streams of income for themselves, they will not be able to maximize the potential of the cash they currently hold. Yes, no doubt you can save and stinge all you want. But come retirement, Will your savings last you for life?




During retirement , how certain are you that
1) you will not outlive your savings?
2) suffer from a critical illness (eg heart attack, stroke) AND recover, only to see your hard earned savings almost depleted?
3) have an emergency financial need? - E.g. sponsoring part of your dearest grandson tertiary education costs.

Certain wealth management techniques that are done poorly are as follows. An example would be the typical asset rich but cash poor syndrome amongst plenty of Singaporeans. Not having enough investments in their entire wealth portfolio simple means that you are not making your money work harder for you. Can your house tide you through your retirement years? Does it generate an income for you? There are also people who put their lump sums cash into fixed deposts due to the "attractive rates" given by the banks. Question is if the inflation rate is around 2 plus percent, what use is there by putting your money into fixed deposits at 1-1.5% . You are basically "giving" the bank money so that they can lend out more money to other people are profit from the difference.

The 3 problems I mentioned during retirement could be easily solved by talking to a proper licensed financial practitioner. He or She could devise a plan so that you could get inflation hedged annuities before retirement which means you get a guaranteed lifetime income for life. The answer to the health portion is pretty simple too. Knowing the right insurance product that provides you the maximum coverage is critical for a peace of mind. Thus, whatever happens ,you know that you are protected. Also, by talking to a financial practitioner, you will be able to well apportion our your investments in your golden years to ensure maximum stability and a stable stream of income.

Do you want a Financially Secure , Worry Free and Satisfying retirement in the future?

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