Friday, April 22, 2016
Tomorrow I'll touch and focus on these areas:
Ø Simple Financial Future Planning for yourself, family and children
Ø Adding to your financial
worth and protecting the future of your beneficiaries or business in case of eventualities
Ø Future Talk: How to increase
what you get after retirement (Are you on the right track?)
BUT FIRST LET'S DISCUSS YOUR FINANCIAL LIFE-CYCLE TO SEE IF YOU'RE ON THE RIGHT PART
The above graph shows how and what your income expense ought to be like during the ages as seen above. Now, use your age to see if you're on track & Let's have a reality check.
Why have you been working? I assume any of these:
Why have you been working? I assume any of these:
- To provide a sustainable income for yourself and family? Cool
- Provide a better education for your child/children if you have any (God will provide but are you prepared?
- To keep the body and brain active?
Which ever or whatever is your reason for working is fine but there are three things you must always have in our minds when working
* Have I made provisions for myself and family?
* The expense (School Fees) of my loved ones will keep increasing
* If you are currently working for someone, you most sort for what is guaranteed (e.g your own business) because nothing last forever.
* Have I made provisions for myself and family?
* The expense (School Fees) of my loved ones will keep increasing
* If you are currently working for someone, you most sort for what is guaranteed (e.g your own business) because nothing last forever.
Ask yourself
1. What will my retirement be like?: Meeting many people from my experience on the field, I have discovered people never want to talk about retirement at a young age but unfortunately only the wise start the planing now because your pension is never enough and investments are risk driven and uncertain. So where and how do yo get up an annuity if you don't plan your future now
2. What will be of my love ones if I pass away: In as much as I don't like talking death but this is inevitable, what time we die doesn't matter now but what plans are set to provide a sustainable income for your beneficiary long when you've gone
3. How do I pull funds to support and start my business?: If you haven't started your business, you need to begin to scout for a business you can start little with. Remember, every business requires financial obligations most especially your fixed cost. Let the planning start now. You are responsible for your future
4. If I have children, how do I manage the fact that school fees are on the increase on a daily basis. You definitely don't want to settle for less.
There are no magical ways of solving these challenges that stare you in the face but the solution is not to embrace fear but provide for your future through planing. The most common problems are we ourselves, we believe in miracles that somehow when the time comes we'll fix it (May be collect loans, take from ROI (returns on investment). Remember, you will have to service these loans with interest. What if investments and business isn't booming at that time? What if you loose your job (Godforbid)
1. What will my retirement be like?: Meeting many people from my experience on the field, I have discovered people never want to talk about retirement at a young age but unfortunately only the wise start the planing now because your pension is never enough and investments are risk driven and uncertain. So where and how do yo get up an annuity if you don't plan your future now
2. What will be of my love ones if I pass away: In as much as I don't like talking death but this is inevitable, what time we die doesn't matter now but what plans are set to provide a sustainable income for your beneficiary long when you've gone
3. How do I pull funds to support and start my business?: If you haven't started your business, you need to begin to scout for a business you can start little with. Remember, every business requires financial obligations most especially your fixed cost. Let the planning start now. You are responsible for your future
4. If I have children, how do I manage the fact that school fees are on the increase on a daily basis. You definitely don't want to settle for less.
There are no magical ways of solving these challenges that stare you in the face but the solution is not to embrace fear but provide for your future through planing. The most common problems are we ourselves, we believe in miracles that somehow when the time comes we'll fix it (May be collect loans, take from ROI (returns on investment). Remember, you will have to service these loans with interest. What if investments and business isn't booming at that time? What if you loose your job (Godforbid)
Solutions to start with.
Draw up a simple realistic Plan in a sheet of paper and highlight the business, children education, & career financial implications. For instance, 6years from now I should start a business worth 10million or have an extra 10million for my child for business or school fees or upon retirement I must have gathered over 20million to support my pension and buy up an annuity that pays me salary for life
* Split these amounts through a number of months such that you can save to achieve the lump sum set as target. If what you can afford as savings can't get you the total lump sum estimated, calculate your savings to a specified year which you can take the lump sum to buy up an investment that will yield profits that could be pushed back to the savings to achieve your set target
* Get a Life Cover: This is a little amount of money given to an insurance company to buy up a large sum in case of eventualities such as death or permanent disability. e.g. N5,000 can be use to get 1,000,000 naira worth for your beneficiary in case of death. This life cover sometimes can be integrated to your savings if you start your savings with an insurance company. Long term savings and futuristic planing are best with insurance companies because one should factor eventualities and discipline to save
* Ensure your savings is not terminated. This is the most difficult part of it, most people end up diverting their savings for some variable expense that spring up. SMH# Expenses will definitely occur. A terminated savings, is a terminated destiny/financial goal... #princesage. You can choose an insurance company to prevent you from accessing it and tie it to a direct debit from your salary account or standing order if you are self employed. Have heard people that have screamed for their money and when they collect it, it is totally wiped off and they don't enjoy the benefits of savings and have had people who completed their savings, thanked me and converted it to a mega business or annuity
Future Talk: How to increase what you get after retirement (Are you on the right track?)
If you have all of these implemented, you are rest assured that you are on the right track never to regret in future
Written
Bayo MBLA
Draw up a simple realistic Plan in a sheet of paper and highlight the business, children education, & career financial implications. For instance, 6years from now I should start a business worth 10million or have an extra 10million for my child for business or school fees or upon retirement I must have gathered over 20million to support my pension and buy up an annuity that pays me salary for life
* Split these amounts through a number of months such that you can save to achieve the lump sum set as target. If what you can afford as savings can't get you the total lump sum estimated, calculate your savings to a specified year which you can take the lump sum to buy up an investment that will yield profits that could be pushed back to the savings to achieve your set target
* Get a Life Cover: This is a little amount of money given to an insurance company to buy up a large sum in case of eventualities such as death or permanent disability. e.g. N5,000 can be use to get 1,000,000 naira worth for your beneficiary in case of death. This life cover sometimes can be integrated to your savings if you start your savings with an insurance company. Long term savings and futuristic planing are best with insurance companies because one should factor eventualities and discipline to save
* Ensure your savings is not terminated. This is the most difficult part of it, most people end up diverting their savings for some variable expense that spring up. SMH# Expenses will definitely occur. A terminated savings, is a terminated destiny/financial goal... #princesage. You can choose an insurance company to prevent you from accessing it and tie it to a direct debit from your salary account or standing order if you are self employed. Have heard people that have screamed for their money and when they collect it, it is totally wiped off and they don't enjoy the benefits of savings and have had people who completed their savings, thanked me and converted it to a mega business or annuity
Future Talk: How to increase what you get after retirement (Are you on the right track?)
If you have all of these implemented, you are rest assured that you are on the right track never to regret in future
Written
Bayo MBLA
