Thinking Beyond Today
Client: Zheng Junfang
Goal: Retirement planning
“We want the reassurance that we would not burden our children and be financially dependent on them when we retire in the future. We were particularly interested in retirement planning strategies and how we can accumulate our wealth to retire comfortably.”
Zheng Junfang is an analyst in a multinational company. When she was expecting her firstborn, she felt that she could not continue living from paycheque to paycheque and spending all of her income on daily expenses and leisure travel. After becoming a mother at 32, she started planning for four more income streams and her retirement with Soul Wealthy’s help.
“Having a baby coming our way has reminded us to consider financial planning earlier. The addition of the little one will definitely increase our expenses exponentially. We want to plan ahead in case of emergencies and start planning for our retirement. We would like to make good use of the spare cash we currently have for a better future.”
Junfang has never had any proper financial planning. She only had some insurance policies from when she was approached by roadshows agents. She started looking for a reliable insurance company that can provide her with proper financial planning for her family. She met Kelvin through a colleague, who suggested an independent financial advisor representative could help her identify her family’s financial needs.
Kelvin was quick to identify Junfang’s financial needs during the Wealth Journey conducted in their first meet-up session along with her and her husband. With his wide knowledge of financial planning and solutions, he reviewed the young couple’s existing plans and developed a comprehensive plan that the young couple was looking for. He also pointed out the protection they were still lacking but was important for a young family.
“Kelvin recommended that we would first, have to protect the family against unforeseeable emergencies that might deplete our life savings. My husband did some research before we had a financial advisor and he was pleased that Kelvin readily accepted his idea of using the SAF group term plan as our first layer of protection. Kelvin respected our decision and did not try to push for other insurance policies. He only reminded us that the SAF’s group term plan has a payout limit capped at $10 million which my husband was not aware of.”
Following Kelvin’s recommendation and advice, Junfang got the first layer of protection she needed for her family. She then took Kelvin’s advice and adopted Soul Wealthy’s 4 Taps Strategy for her family:
- CPF Life, which is a mandatory government scheme
- Private annuity schemes, also known as retirement income plans, that would provide a steady monthly payout after they turn 60
- Dividends, or investment income, by investing spare cash into long-term capital-growth funds. Kelvin created a well-diversified portfolio for her with a 60% allocation in equities and 40% in bonds, which should be resilient enough to tide through any market crisis.
- Rental income from property or real estate investment trusts (REITs)
After planning their four passive income streams, Junfang and her husband would be able to enjoy having a retirement income of at least $5,000 monthly each when they turn 65. This would allow them to confidently enjoy their well-deserved golden years.
“Prior to meeting Kelvin, we had no actual retirement plans. We obtained our first few insurance policies by blindly copying our friends’ investment portfolio or by following a banker’s recommendation without researching. It ended up not being the best or most suitable product for us. Everyone has different financial needs and risks, what works for our friends may not be suitable for our family. I would highly recommend engaging an independent financial advisor representative like Kelvin for professional advice on financial and retirement planning. For people who are new to financial planning, an independent financial advisor representative would be able to help us understand the importance of financial planning and having enough basic insurance. They can make recommendations based on our needs and help us prepare for retirement.”
If you would like Kelvin to assist you with your retirement planning needs, contact us now.