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.

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