When we last discussed the medical sinking fund for critical illness, my friend shared an interesting wealth management idea with me.
I would probably come up with it one day, but that day would be far away.
By paying more attention to this finance space, I came across more perspectives about different things, but I also had to contend with more noise and distractions.
Okay, so what does this interesting solution solve?
Can You Easily Visualize How Much You Have Committed to Each of Your Financial Goals?
Most of the more financially savvy readers would have an idea of the different intermediate and long-term financial goals they need to save up to.
A few:
Money for each of your child’s education. Emergency funds. Retirement income fund. Allowance for parents. Money to be left to your children.
Have you committed any starting capital to these goals? How much are you contributing to these goals?
Most importantly, if I give you time to go back home tonight to find out, how much of your wealth have you contributed to them currently (i.e. how much now)?
I would like to guess most of you have no idea. After five years in Providend/Havend, we have seen those with elaborate spreadsheets who knows where their money is leading up to, to those who have no idea and would just download the statements for us to help them organize.
That is partly what they pay money for. Not everyone makes money a large part of their lives (even though money impacts our lives a lot).
We most commonly will separate our commitment to certain goals based on accounts or products.
It will look like this visually:
We buy endowments for your children’s education and retirement.
