Money Ideas

We do see more staying single, these days. While, everyone has problems of some sort, a writer wrote this in yesterday’s ST opinion page on singlehood.

An excerpt from her article:

“Singles have a different set of problems. The key to surviving single-hood, I feel, are financial independence, mental strength and discipline, resourcefulness and preparedness, and connections (with community, family and animals).”

Are you a business owner and have thought of succession planning?
Here are some pointers for consideration.

1. *Start early*: Begin planning at least 5-10 years before retirement or exit.

2. *Identify goals*: Define your objectives, such as ensuring business continuity, minimizing tax liability, or providing for family members.

3. *Develop a plan*: Create a comprehensive plan, including strategies for leadership transition, ownership transfer, and asset protection.

4. *Choose a successor*: Select a suitable replacement, such as a family member, key employee, or external candidate.

5. *Train and mentor*: Prepare your successor with the necessary skills, knowledge, and expertise.

6. *Gradual transition*: Implement a gradual transfer of responsibilities and ownership.

7. *Legal and financial planning*: Address legal and financial aspects, including buy-sell agreements, wills, and trusts.

8. *Communication*: Openly communicate with stakeholders, including employees, customers, and suppliers.

9. *Review and update*: Regularly review and update your succession plan to reflect changes in the business and your personal goals.

10. *Seek professional advice*: Consult with experts, such as attorneys, accountants, financial and business advisors, to ensure a smooth transition.

Remember, succession planning is an ongoing process that requires careful consideration and planning to ensure the continued success and legacy of your business.

A small group session on financial literacy. This is a complementary invite on a first come first serve basis. Light refreshments provided. Register via link or PM me.
https://docs.google.com/forms/d/e/1FAIpQLScDU_DaP3-JPyW1VnM0ELqajhBBKS2WBTK8AoEoiAvpzErmBg/viewform

Teach financial literacy to kids, and you'll set them up for a lifetime of financial stability, responsibility, and success!

Some ideas!

1. *Money management skills*: Kids learn how to handle money, make smart financial decisions, and prioritize spending.

2. *Saving habits*: Developing a savings habit early, helps kids understand the importance of setting financial goals and achieving them.

3. *Smart spending*: distinguish between needs and wants, making informed purchasing decisions.

4. *Debt awareness*: Kids learn about the risks of debt and how to manage or avoid it.

5. *Investment knowledge*: Introducing investment concepts early, helps kids understand how to grow their money over time.

Which is of greater importance and value to us?

The golden eggs or the goose that lay’s the golden eggs?

We may have possesions that we value very dearly and may go to various extents to secure and insure them for their market value, just in case. That’s good thinking. Our golden eggs may include, house, car, antiques, art, jewellery etc.

What about the Goose?
In fact, one’s goal for self and family, lifestyle and financial wellbeing, mortgage and loan repayments, etc are mostly dependent on one’s future earnings.

Isn’t it of greater importance to protect and insure the goose’s future earnings of the crucial years ahead?

The question is what type of arrangement and what amount to protect.

A QUIZ Of LIFE!

Mr. A didn’t know that he will be morally & financially responsible for a Mr. B twenty years later.

Mr. B didnt know as well that his future wellbeing was dependent on a Mr.A.

Reality was such that both apparently didn’t know each other then. Anyway, Mr. B was not around then.

Mr. B is supposed to have benefitted from Mr. A’s accumulation of savings and on its investment growth to enjoy his golden years.

The truth is, whether you like it or not, it’s the responsibility of Mr.A to plan and provide for Mr. B so that the latter can continue to live a dignified decent fulfilling life.

It’s an obligation Mr. A owes to Mr. B and it’s only a fair expectation of Mr. B to have been dependent on Mr. A for his future livelihood.

What’s the relationship between Mr. A & Mr. B and what you think Mr. A should have done?

A,B,C and D decided to save and invest $300 a month consistently for 25 years and chose different investment options.

The yield on the deposits were calculated on a monthly basis and compounded.

All four had different experiences in terms of their average annualised returns.

At the end of the 25th year, they realised that their proceeds (which includes their monthly contributions and the compounded interests) were significantly different to one and another.

Below is a chart that shows the approximate returns at their various rate of estimated overall average annual compounded interests.

A - 116K @ 2%
B - 154K @ 4%
C - 207K @ 6%
D - 285K @ 8%

Some factors that ABCD had considered before putting their money in the various options are;

•Accumulation objectives
•Length of time to achieve objectives
•Their individual risk profile and tolerance levels.
•Their affordability, after setting aside for necessities, household expenses, emergencies, fund for home purchase, their financial standings ;assets, liabilities and obligations
•Sufficient savings and insurance in place for unforeseen circumstances.

Have you come across anyone who regretted saving money? Most of the time, it’s the reverse.

Money need not be de most important in live. Probably, there are many other more important things, however, money is important too as it’s a means to self reliance, independence, providing for loved ones, expressing of love, caring & sharing etc.

We would probably have had ”valid reasons” for not saving enough and might wish we can turn the clock backward to 5/10/20 years.

What if you are asked the same question, say in 5/10 years from today? How would you like your answer to be?

Inspite of our many challenges, we still need to squirrel away some money, from our income, for rainy days, big ticket items, special occasions, family obligations, major life events, golden years etc.

The first expense upon receiving your income, ironically, should be SAVINGS.

There is an adage that says…………

“PLANS DONT FAIL AS MUCH AS WE FAIL TO PLAN”.

A very appropriate statement, isn’t it- at least where financial planning is concerned ?

Many of us fail to plan, for various reasons and they could be just convenient excuses.
The following may be some:

•Don’t see a need for it or not sure if need to.
•Not now - procrastination.
•Don’t know how to or where to begin.
•Very tedious.
•Need help and guidance.
•Too young to talk of this subject.
•Maybe for others- not for me.
•No time.

Sounds familiar?

Wouldn’t it be wise to pay some genuine attention to this matter to be self dependent in future and avoid being dependent on someone else financially?

Money Ideas Seminar 2022