Financial Planning v2 (version 2)

The other day I shared about Financial planning theory in a short summary, but I then realized I missed out the most important part that I stressed in my maiden post - Protection!  Yes, Protection through insurance!

So, I updated the Financial planning theory v2 here it goes:

1) When you earn from your job, spend less and save more.

2) When you have income, you want to protect your income because you are the only money-earning "machine", hence the need for sufficient insurance!  (Many kinds to cater for different scenarios, will cover this in future).

3) Make your savings work hard for you via investment.

4) Hopefully by 55 years old (or even earlier), your capital has grown big enough that this capital is self-sustainable to generate sufficient passive income that is sufficient for your living expenses and you don't have to rely on income from work! (This is similar to annuity but I am never a fan of annuity because their returns are just all too low!)

Insurance - Whole-life vs Investment-link vs Term + different types

Insurance policies are very varied, ranging from whole-life to Investment-link to Term-life, which is more value for money?  Which is more suitable for you?  What are the different types of insurance, such as death, permanent disability, partial disability, hospitalization, impatient etc you need?  I will try to give a summary in future post.