I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


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Welcome to Ministry of Wealth!

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

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Wednesday, 15 June 2011

What is good Financial Planning?

Just For Thinking

The Golden Formula for a good financial planning

Good Financial Planning = Saving + Insurance + Investment

Read? Saving, Life Insurance and Investing - 2nd Revisit

The degree of importance for these three components: saving, insurance and investment will change during our life time.

Saving

Once our kids are working and independent, do we really need to have to save more? We will need to remind ourselves that we only LIVE ONCE so we should be spending our money on ourselves. Right?

Insurance

Insurance is actually a hedging tool to hedge against human asset and human liability. Once we don't need to support any dependents, we don't need to hedge against human asset; but we still need to hedge against human liability. It has become even important when we are older and a bigger medical insurance coverage is needed. Basically, it is decreasing the hedge in human asset but increasing the hedge for human liability.

Investment

Investment strategy should also change. When we are retired, wealth preservation and maintaining cash flow to support our preferred lifestyle could be the right investing goal.

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