10 Financial Mistakes You Should Avoid
10 Financial Mistakes You Should Avoid- Strategies Designed to Help Keep Your Money SAFE and Growing by Stephen. S. K Ng
It is extremely important to be plan for ones retirement and grow their existing funds. In his book Stephen shares with the readers 10 Strategies to prevent yourself from being broke in your golden years.
One of the most important thing that you need is A PLAN. There must be an idea of how you would like to grow your limited funds. You need to know your time horizon and whether the finances set aside is for long or short term. The plan that you execute has to be one that will beat inflation and taxation while and even longevity risk.
The author goes through the meaning of annuity and how to avoid taxation which depletes your savings. There are several different instruments which one can use for investment. It will certainly be prudent to find out which one is suitable for you and also how each one works.
It is very important to be educated about the different investment vehicles available. Not all strategies that are currently used are applicable to you. One has to look at their age and a host of other factors before determining which is the best course of action in dealing with financial investments.
One must remember not to put all eggs into the same basket and develop a diverse financial portfolio. It is important to seek advice from professionals before deciding on what to invest in. They will be able to give you a clearer idea of what is more suitable for your in the short and long term depending on your goals.
There are certain types of insurance which one may need to consider to secure your estate for future generations. Some of the insurance which the author recommends is term, disability and long term care. Longivity risk is something which has to be addressed as nowadays many people are living well into their nineties and beyond.
Reading this book by Stephen Ng made me reflect on my own personal financial planning. I haven’t really been thinking much about retirement and having enough to sustain the kids and my needs as for the past 20 years I left this to the Ex who is a CPA/CFA. On hindsight it was really naive and foolish to do so as he has been financial manipulative and I’m still working towards regaining my financial independence and freedom.
I definitely recommend this book if you are looking to know what are the 10 financial mistakes to avoid. It was certainly an eye opener for me reading the book and have encourage me to think more about my financial stability.
Disclaimer: I received a copy of this book for review purposes. Opinions are 100% mine.