CAROLINE AND ANTHONY WERE MARRIED for two years when the financial planning bug bit them. They had just had their baby girl, an event that made them see their responsibility to the new life that they had brought into this world. They wanted to do everything they could to make sure their daughter would be well provided for. They also looked forward to retirement years where they would not be a financial burden to her.

Several things were not right about their financial planning so far. They had jobs and could take care of current expenses. But, if anything was to happen to either one of them or both of them, they realised that their child would have nothing much to fall back on. They had some unit trusts, but no critical illness, permanent disability or death cover. They had also not made out a will to say who was to get what of their assets in the event of death.

“We felt we had to make the most of the 30 remaining years of our working life,” said Anthony.

The couple went to see an independent financial planner who helped them plan towards their financial goals. After speaking to them, he felt what they wanted was:

1. Financial independence from age 55
2. Enough money to send their daughter to a local university when she turned 18
3. For the family to have enough money to pay for expenses including estate duty (if any), legal and probate cost etc in the event of death of either party
4. For their assets to be distributed according to their wishes to the intended beneficiaries
5. Their daughter to be well provided for financially in case either one or both of them were to die or be struck down by an illness
6. Enough money to pay for overheads and hospitalisation charges in case any of them was to be struck ill or become disabled

The Financial Plan Investment

Caroline and Anthony invested in two portfolios of unit trusts in which they could make regular contributions using cash and CPF. “These portfolios were recommended based on our needs, willingness and ability to bear risk. The portfolios also took into consideration our current holdings of unit trusts,” said Anthony. The portfolios are being monitored and reviewed regularly.

Insurance

Term insurances protecting the couple against death, disability as well as hospitalisation expenses were also recommended. This was after taking into consideration their existing insurance policies.

Making A Will

The couple was also advised to make wills for themselves and to integrate that with their CPF nominations. They invested in the proposed plan and have seen their investments grow since they made some portfolio changes. Now the couple are on track in terms of achieving their financial goals, says the financial planner.