KNOW YOUR DOMINANT INVESTING MOTIVES FROM THE START
There are basically 7 dominant investing motives that I had from the day I started my financial journey. Initially it was tough to get started but as I handled one at the time it became easier and easier as days, months and years goes by. These are the 7 dominant investing motive to get you started so that you can achieve your financial freedom as soon as possible.
FAMILY INCOME FUNDING
Before you start taking the journey to be financial free get your home organised, ensure that your loved ones are protected in the event things to go wrong with you. Calculate how much you need: Household monthly income per person is calculated by taking the total gross household monthly income divided by the total number of family members living together. Provide for them at least 10 years of the total amount. (including inflation); these can be easily done by buying a Term or Wholelife Insurance program from an Insurance Company.
Set aside each month 12-15% of your gross income for your retirement so that you WON’T be a liability to anyone around you. Take full responsibility when you grow older. Mutual Funds, ETF, Stocks, Bonds and R.E.I.Ts instruments could be used to create a solid investment portfolio so that your money will grow with inflation and cost of living. Retirement income funds are funds that are designed to provide income for an investor who is retired.
If you are married is important that you put aside some earn income to safe for your kids higher education so that they will be dependent as they grow up. You can do this easily by buying an endowment plan with premium protection and set some money in the blue chips stocks that have high yield dividends.
ESTATE PLANNING FUNDING
Ensure that you planned your entire estate for a successor to take care in the event you are gone. Speak to a financial adviser and also to a attorney who specialises estate planning and have that clearly drawn up in a will. Also, ensure that you have set aside estate tax duties if there is any so that your estate can be transferred quickly.
This is an important part for your financial freedom. Never burden anyone in the event you are disabled; get an insurance plan and transfer this risk. It’s usually a very cheap premium.
Your parents can be a burden when they get old but its your responsibility to care for them in the event they have diluted their resources. The most important program you must have is medical care. Medical plans can be costly if you are buying at the older age. Get this plans for them asap and this can be bought by all siblings putting some funds collectively.
MEDICAL & MORTAGE FUNDING
Medical plan for yourself is important; wealth is health remember that. No use having all the wealth and you have no health. Get your medical plan as early as possible.
Mortgage plan for your home that you have bought. This can be bought thru an insurance company which is called Decreasing Term. In the event you are sick or death where to happen the mortgage of your home is fully paid and there will be no more burden to pay the banks.
If you take all the first words of the 7 Dominant Investing Motive you will read as FREEDOM. Freedom from financial burden is important so that you can live peaceful as you get older each year.
Start your Financial Plan today with your preferred Financial Adviser. Be educated in Insurance & the Stock market & other financial instrument thru proper financial education.