Taoke (Business)

3 Steps to Be Financially Ready in 2021

2021 is here and we want to start the year strong.  In order to do that, I’m sure that you already have strategic and contingency plans on how to be ready for the new year.

Just like in The Avengers: Infinity War movie, our life can be like a snap of the infinity gauntlet — everything can be gone in an instant. In 2020, we may realized that we are not in control. And it’s just practical for us to accept the truth that we may leave this world any time.

So here are practical financial steps for you to be ready for that day so you’ll have peace of mind while you go about your work or managing your Seng Di.

Step 1

First, take note of all your valuable things that you have accumulated over the years. It doesn’t matter if it’s small or big. It’s important that you’re aware of them. Take a piece of paper or open an excel sheet and list them down. Here are some examples: liquid cash, jewelry, properties, business equities, and life insurance coverages.

Step 2

Secondly, decide as to whom you would like to give these assets if ever you have to leave this world. This is very important because our loved ones might fight over it. Of course, we may think that they will not fight over it. But it’s best to avoid conflict, particularly among family. If it’s already decided and written, your loved ones at least have a basis on how to divide your assets. Of course, as you decide on the distribution of wealth, it’s best to distribute them fairly.

We do hear horror stories about heirs fighting over assets of their father or even their grandfather. It usually ends up with all the heirs suing each other and losing money on lawyers’ fees. It’s a waste of time and money. You don’t want to destroy the relationship among your family over simple material wealth.

Once you’re decided, write a holographic will. It’s written as a love letter to your loved ones with details as to whom you would like to give your accumulated assets. A video recording is also now acceptable.

Now, if you’re thinking that you’re still young and don’t have much assets accumulated, I have a solution for you. The fastest easiest way to have a legacy asset for your loved ones is by getting a life insurance plan. Suggest to make it large amount and list your loved ones as the beneficiaries. Just allocate a portion of your savings or monthly income and now you already have a legacy for your loved ones. It’s that easy.

Step 3

Lastly, put your holographic will in place.  It can be kept in the house vault or in a flash drive. Just let your loved ones know where to get it if anything happens to you. This is a practice of my husband. Whenever he  goes out of the country, he will give me a flash drive and say, “If ever something might happen to me, just open this flash drive and you will see everything that you will need.” Then, of course, I don’t feel good and I get angry at him and tell him, “Why are you thinking that way?” But it’s just being practical and being ready.

I hope you learned a lot from my advice. Wishing everyone a fruitful 2021!


About the author

Sheila Ong is a legacy architect.  She helps Chinoy families plan and design their financial homes by not only creating a strong financial foundation but also peace of mind, allowing families to do what matters most, which is to have more time to spend with each other. It’s her passion to empower each Chinoy family to create a legacy of love from one generation to the next through proper wealth management. As a naturally shy person, she evolved into becoming a public speaker driven by her advocacy. She has transformed many lives, including the lives of her team of financial advisors and the lives of about 400 families who are now financially secure.  Sheila also values family time as she is a full-time mom to her son.

If you want to know more, you may send her an email at sheila@legacyoflove.info. For more information, you may also check out her website, https://legacyoflove.info/ and Facebook page, https://www.facebook.com/legacyoflovewithsheila/.

You can also read about her best financial advice on what do with your ang paos here.



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