personal financial planning

Question 1

Young single

Answer 1

take out insurance protection against possible financial burden that may result due to their own death or disability.
if have strong financial discipline: save for flat and retirement
-credit card debt
-monthly payment for insurance
-monthly savings for marriage
-salaries tax

Question 2

Just married

Answer 2

start saving for retirement and planning their investments
take out insurance protection against possible financial burden that may result due to their own death or disability.
-down payment on a flat
-take out another insurance plan
-monthly savings for retirement
-investment

Question 3

married with young children

Answer 3

educational expenses
car purchase
take out another insurance plan
income will decrease if mum or dad wants to stay at home to take care of the children.

Question 4

married with older children

Answer 4

might earn higher income because the have reached the middle stage of their careers.

• repay loans
• saving for their children’s university education
• prepare for retirement
• pay for leisure activities

Question 5

pre-retirement

Answer 5

children have grown up and become financially independent. insurance provides financial protection to the children and the non-working spouse gradually decrease. first priority is saving for retirement

Question 6

retirement

Answer 6

to maintain their desired lifestyle
medical expenses, if there are shortage of funds, they may need to sell their assets
estate planning: distribute wealth with minimum taxation (estate duty abolished on 2011)