As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Wednesday, 10 June 2015

The Three Matters On Personal Finance: Saving, Insurance, and Investment!!!


No matters how.

For insurance matters, we always like to think we are right at the start and along the way; but it is only near to our grave or already has one leg in our coffin then we will know we are about right or far off from being right.


How about insurance?

Technically; it is about protection of assets and to cover liabilities i.e. why we pay premiums. But, emotionally, we use LIFE insurance to cover liabilities. 

Why? Emotion!!! We are sold emotionally on the need to protect liabilities and cheapness to do so.


Over the years Uncle8888 has no LIFE insurance coverage for his three children and his stay-at-home-wife. They are liabilities. They are not assets to be protected.

After Mar 2016; Uncle8888 will have no more LIFE insurance protection. When he was at his 30s; he has already thought out carefully and knew very well that his human asset at 60 will become too expensive to be protected and his three children should be able to be on their own. His stay-at-home-wife can retire from home and goes back to work if necessary. Life of an ant is like that. Think too much and plan too far ahead.

After Mar 2016, he will self-insure from his own fund consisting

1. $XX,XXX  for emergency medical and health care
2. Medi-Shield Life (self funding from the yearly interests from MA)
3. MA
4. SA
5. RA


Why maintaining cash for medical needs?

Uncle8888 has never voluntarily touch his MA since day one as it is 4% CAGR. He is interest-wise man!

By now, he is already sitting inside his coffin. He knows he is about right on life insurance matters and not emotionally right.

Read more? Articles relating to views on insurance matters


 

2 comments:

  1. Hi uncle, have you considered the costs of living in a nursing home? Thanks
    Phyllis

    ReplyDelete
    Replies
    1. Like ward classes; there are different class. My late FIL stayed in christian nursing home for 18 mths. After subsidy, it was about $1K+ per month. .

      Once we can delay touching RA and SA to give more buffer. Our home will be the asset of last resort. Once old folks live in nursing room, why still need the HDB flat? It can be rent out or sold. Right?

      Delete

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