One of the Best Insurance & Financial Planning in Singapore

Have you ever wondered where does most of your money goes to, and are you saving too much (too much money in the bank idling) or not enough? Are you having children and is time you start planning for their children education and for your own retirement? Are you currently ready for retirement financially? How much money is enough for your retirement? How much insurance should you obtain without having to pay a large premium?

If you are having all that questions and do not know where or how to start your financial planning, you are not alone as understanding insurance and financial planning can be tricky. My purpose here is to help you on your insurance and financial planning, go through with you 6 stages needs-based advisory process.

Insurance and Financial Planning is to help you reach your financial goals, through wealth protection and wealth accumulation

What is Insurance and Financial Planning?

Financial planning is to document your personal long-term goals and creates a strategy for accomplishing them. The plan should be highly personalized to reflect your personal and family situation, risk tolerance level (on investment), and your future expectations. (Family situation may include children insurance and education planning, etc.) The planning starts with a calculation of your personal current net worth and cash flow. Financial plans do not have a set template, as it is “tailor-made” for each individual, as everyone needs is unique. A licensed financial consultant will be able to create one that fits you and your expectations. It may prompt you to make short term changes that will help ensure a smooth transition through your life’s financial phases.

The core objective of a financial plan is an individual’s clearly defined goals. For example, you may include funding an university education for the children, upgrading to a larger home, starting your own business, retiring on time or early retirement, or leaving a legacy. No one can tell you how to prioritize these goals. However, a professional financial planner may be able to help you choose a detailed endowment savings plan or a specific investment for your wealth accumulation needs, an insurance plan to protect your wealth, that will help you take care of your financial goals, one by one.


6 Stages Needs-Based Sales Advisory Process

Stage 1: Establish and define client-representative relationship

I will meet up with you and explain the purpose of the meeting. I will introduce the company I am representing, disclose my status and years of experience in this industry, and explain my role and the types of financial advisory and investment service I can provide.

Stage 2: Gather data, including goals

I will first need to identify and analyse your financial needs, starting with a fact-find form. I will find out which life stage you are at, for example, are you currently a student, newly married, planning a family or nearing your retirement, and so on. I will gather as much relevant financial information you all me to, to understand your needs, and determine your concerns and financial goals. I will also need to ascertain your attitude to risk. I will relies on the information you have provided to assess your financial needs. To assist me in giving you the best advice, it is important to share as much information as possible regarding your current financial circumstance.

Stage 3: Analyse and evaluate financial status

In this stage, I will analyse all information gathered and evaluate your financial situation in relation to your goals and objectives. The analysis and evaluation of the information provided are crucial as it form the basis on which recommendations are made.

Stage 4: Develop and present Recommendations

In stage 4 I will explore relevant alternatives to meet your financial goals and objectives. I will design solutions and provide options that can reasonably meet your objectives. I will explain to you the basis of my recommendation, as well as the costs involved, the features and advantages and disadvantages between the products recommended.

Stage 5: Implement Recommendations

You should now evaluate the advice and recommendations given to you and select the most appropriate recommended policy or policies for yourself, according to your needs and objectives and information from your financial analysis done previously.

Stage 6: Review Periodically

Lastly I will contact you to conduct a review of your policy or policies. Monitoring and review them with you to ensures that you are achieving your financial objectives. There is no hard and fast rule as to when a review should be done. The recommended practice is to monitor and conduct a review annually. You should also initiate a review whenever there is a change in your objectives, personal or financial circumstances.


Holistic Financial Planning Strategies

How to integrate insurance into your financial planning and create a holistic financial planning strategy? Making use of insurance to protect your wealth and your income, because it will create wealth for you which is not there in the first place. And on your retirement, provide you with a guarantee stream of monthly or annually income, no matter where you are, what you do or what condition you are in. Find out the different types of assets classes in the market that can be integrated into your financial planning at retirement planning and strategies.


Types of Insurance Planning

Here are 4 main types of insurance and wealth accumulation planning


16 Financial Tips

  1. Start saving regularly as soon as you get your first job, as saving is like running the more you save the easier you will form the habit. Try to save at least 20% of what you earn.
  2. Do not purchase large property and expensive car with the notion of just showing off. Because what you save and invest that is more important in the long run.
  3. Unforeseen situation can greatly hurt all your plans and financial. Ensure you are in a position to handle these risks by doing regular financial planning review.
  4. In Singapore, car purchase should be avoided unless it is for daily use.
  5. Do ensure you are saving money into a retirement plan which will provide you with a guarantee monthly or annual income, as soon as you retire. As income in retirement is an asset. And Assets in retirement can become a liability.
  6. Set aside your saving from your income first before you spend any of it. Do not take up loans and liabilities unless that is the only way out of a situation. As unnecessary loans (including credit card debt) will affect your cash flow and your peace of mind in ways you cannot imagine sometime.
  7. Even though marriages are made in heaven, but the cost can break your pocket very quickly. Wedding can be more beautiful on your pocket and just as warmer if kept simple, consider this when you think about spending more money.
  8. Do not treat life insurance as an investment and looking from the perspective of getting market returns. Life insurance is to protect your future.
  9. Have an emergency fund which will be able to covers at least 6 months of your expenses.
  10. Health is Wealth, take good care of both, as losing either can be very dangerous. Do regular check-up and review for both, health and wealth.
  11. If you invest in stock market, watch it cautiously and be ready to take action.
  12. We cannot predict death and illnesses, thus, obtain adequate income protection insurance for illnesses and death.
  13. Income has to be earned, but old age is an automated process through time, which cannot be stop. Old age is real, do not overestimate your working capacity, you will need some form of “guarantee income” in your retirement. As age has its funny way of taking a toll on your ability to work.
  14. Investment in your knowledge and skill set should be your first, after that you can invest into other physical assets.
  15. Be cautious of how much money you keep in your current saving account, as inflation is real. If there is excessive amount in your basic bank account, you will be losing more and more to inflation, which be the way is an hidden risk to many individual and families.
  16. Avoid buying property on a large mortgage, as it will take a lot of your income unless you have a well-planned strategy to clear off the loan. As cash flow is very important, although the house will be your asset on your balance sheet, your commitments and liabilities will also increase.

Source: MoneySENSE


I had also created another best top 10 financial tips with explanation, that will help you to start or to end your year with a good money management strategy, and help you on your financial planning.


One Last Thing

As our world, society, lifestyle, economy and life circumstances continue to change and evolve, so does insurance. Current insurance plans provide us with more customization to suit our needs. But there so many types of insurance policies out in the market, how to choose the right one? What you should look out for? Even if you can afford it, you do not have to buy every type of insurance available. My purpose here is to make insurance easy to understand and financial planning a happy process, contact me for a holistic insurance and financial planning strategies.

With a sound financial planning in place, you have a peace of mind and will be confident of your future, and focus on what you do best – enjoying your passion in life.


Note: Opinions expressed are solely in Mr. Chan Kong Meng’s personal capacity and neither express the views or opinions of Prudential nor represent any professional advice in Mr. Chan Kong Meng’s capacity as a PACS representative.



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