Generally women live longer than men in Singapore. We usually take this for granted but isn’t it true that we usually see the elderly mothers of our friends but not the elderly fathers. A joke that’s been around said that men don’t live longer because their wives drove them up the wall when they spent more time at home during their retirement!

Since we agree that women live longer, why are women still so passive when it comes to financial planning? Is it because they trust that their husbands will do all the planning for them? What about single women, divorced or never married? Do they worry about finances during their golden years?

If you are interested, what should you look at and where should you start?

You must look at two main areas for a start now. Wealth Protection and Wealth Accumulation.

Buying enough life and accident insurance to buy you time to achieve your financial security. How much you need depends on your income and expenses, you need to sit down with a financial adviser to discuss how buying insurance can help you. You should have a good hospitalisation & surgical plan, a disability income plan, a critical illness plan and a plan that will leave a financial legacy to your next of kin or a charitable organisation that you are keen to help.

Putting all your money in the bank will not be sufficient for you to achieve your financial success because it will take a very very long time to double your money. The rule of 72 will help you to calculate how long it takes for your money to double. It takes 10 years for your money to double if you invest in a financial instrument that gives you a 7.2% p.a. return. At 1% p.a. return, your money will take 72 years to double.

Discuss with your independent financial adviser what investment vehicle to look at which matches your risk profile. Complete a financial risk profile to see where you stand now. You should have already calculated how much you need after you retire based on your expected expenses.

If you need my help, please feel free to give me a call or email your concerns to me. I will do my best to help you achieve your financial security and success!