19/07/2024
Good morning!
So yesterday, got a question from a friend.. Why get an insurance for retirement? I just save it in the bank, she said.
I said, in life there is what we call wheel of life., The no income years and productive years, when we are born it’s the start of our no income years til we graduate college and find a job or do a business. Our productive years is from the time we are earning but up to 60 years of age.
She answered, I have SSS, I will have my own business and it will grow so sure I will still have income by age 60 and beyond.
So my reply:
1. How sure are you reach that age?
2. If you reach that age how sure are you that you are healthy?
3. How sure are you that you get the best employee to run your business.
Insurance is like magic, the moment you start investing, you are automatically insured. That’s the first benefit, you will not be a burden to your family incase you are taken out of the picture.
Second, when you invest in insurance it should be long term. If you need the money in the next 3-5 years, then you are correct just save it in the bank, it’s liquid, it’s better. Bank is actually for an emergency fund (but hey it doesn’t protect you and your love ones). If you are at your productive years, I suggest get a retirement plan, do a long term savings and investment because if it’s long term, the value increases, your investment increases, aside from that you get the protection that you need.
If you want to do a one on one financial needs analysis so we can assess your goals properly, send me a message. I will be very glad to assist you.
Take care everyone and may you have a productive mid-week!
