26
Dec
2011

“理财有两个主要的目标,一个是财务安全,一个是财务自由,财务安全是基础,财务自由是终点。从另一个角度讲,理财有两个方向,一个是进攻,一个是防守。”

Hi 小琪, I like the way you described the term of financial planning, very sharp and clear.

-我想请问,如何能做到或说是“财务安全”& “财务自由”?

1.财务安全是否就是,当遇到不如意的事或危机都不会影响手上的资金或股票之类的?那是否就是利用保险来解决这问题?

You are absolutely right. We should always save for a rainy day. With a little planning and saving in advance, you can avoid seeing yourself in debt (or too much debt) and keep from paying too much in interest charges. Everyone should have a cushion of cash to fall back on in case of an emergency. You’ll want to have enough money on hand to cover at least three- to six-months’ worth of living expenses. That means enough to cover your mortgage or rent, food, utilities, debt payments and other regular expenses you can’t put off even in an emergency.

Transfer the possible of paying huge future medical cost to insurance company by purchasing medical insurance plan and enough life insurance coverage for protection of income replacement purpose due to any disability, illness or death occurred.

The objective of Financial SECURITY is to survive with peace of mind. Financial SECURITY should cover the following:

1)  Being debt-free
Consider two women: Mary makes RM35,000 a year. She has RM250 in her savings account, and owes RM10,000 on her credit cards. Joan makes RM35,000 a year. She has RM10,000 in her savings account, and owes RM250 on her credit cards.

Which woman do you think feels financially secure? Which sleeps better at night?

2)  Being in control of your expenses

If you control your expenses so that they are less than your income, you can save and invest the extra money, and you’re on your way to becoming financially secure.

3)  Consistently increasing your savings/assets/net worth on a monthly basis

We should focus on saving money every month. It’s a great feeling to watch your savings grow, especially because the interest compounds without any extra effort from you. Instead of you working for money, your money can work for you.

4)  Not being forced to work at a job you dislike just to pay the bills

Many people live paycheck-to-paycheck and are stuck at jobs they don’t enjoy because they have to pay their bills. If they quit their jobs or were laid off, it wouldn’t take long before they were encounter financial trouble.

2.财务自由又是什么?是不是当我退休或不能工作时都有一笔收入?让我不需担心我的衣食足行?

Financial FREEDOM is: Having enough capital to generate a permanent income flow to provide your desired standard of living.

Income is classified as temporary if the income flow ceases the day you cease work. Permanent income on the other hand, does not depend on your active involvement. It will continue to work for you for the rest of your life and can even passed onto your beneficiaries and remain with them for their life time if that capital is invested prudently.

Financial FREEDOM therefore involves: Establishing a measurable financial goal with a specific time frame and progressively achieving it according to a predetermined strategy. People fail to succeed because they never PLAN to succeed. It is not that they plan to fail, they fail to plan.

3.那我该如何做才能得到所谓的财务安全和财务自由?

In order to achieve the total Financial SECURITY & FREEDOM status, our financial planning advisory should cover the following areas:

F – Family Income Protection Planning

R – Retirement Planning

E – Education Planning

E – Estate Planning (Preservation & Protection of your assets)

D – Disability Income Protection Planning (If you still depend on temporary income “man at work” method for survival)

O – Obligation Planning (Post retirement & medical care for our senior parents at home)

M – Medical & Mortgage Insurance Planning

Each of us is an individual with unique circumstances and needs. So you must first carefully assess your situation and attitudes before embarking on specific steps that will affect your financial well-being. If you are in any doubt over any suggestion found here, do check with an appropriate professional (Licensed Financial Planner) who knows you and understands your specific circumstances.

4.如何學習更多理財知識?

  1. Reading financial magazine or paper ( like “China Press Financial Corner” )
  2. Attend financial planning related seminars or courses.
  3. DIY by “google” the financial website.
  4. Seeking advice from your trusted licensed financial planner.
  5. Learn from friends or relatives who have experience.
  6. “Like” VKA Wealth Planners/facebook for receiving financial tips update regularly.

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