Everyone has different needs at different stages in their life. When you are uncertain or faced with a financial shortfall, you may want to talk to your financial planner about your financial concerns. Before that, you may want to do a quick Financial Health Check. The Financial Health Check will help you to identify your financial needs and assist you to make informed decisions.
Financial Health Check is almost similar to a medical check-up. While the medical check-up assesses your medical condition, Financial Health Check assesses your financial situation. Please answer these simple Financial Health Check :
- Do I have drafted a Will to distribute my estate to my loved ones?
- Do I have started building my retirement fund of at least 10 times my gross annual income?
- Do I have started to plan for my children's university education?
- Do I have emergency funds (i.e. cash/cash equivalents) to provide for expenses for at leaast 6 months?
- Do I have critical illness insurance coverage of at least twice my gross annual income?
- Do I have hospitalization and surgical insurance coverage that can provide for my hospital bills without any out-of-pocket expenses?
- Do my house will be fully paid-up in the event of my death or disability?
- Do I have life insurance and disability coverage of at least 10 times my gross annual income?
None - Fantastic!
Good job! You are managing your life's financial concerns well. You might want to think about building up some other savings and investments.
1~3 - Monitor
Most of your financial concerns seem to be under control at the moment. Whatever your circumstances, it is good to review your unfulfilled concerns immediately.
4 or more - Alert!
You should be on "Red Alert!". What if the worst were to happen - will your loved ones be able to manage financially? You would ask - What should I do next?
(To be continued...)
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