4 Pillars of a Financial Plan

On Financial Planning

When it comes to “Financial Planning”, there’s a handful who tell me they’ve heard enough, and ask, “what products do you have?”

Planning to me means a different thing.

In urban planning, we study the site context, users’ needs and available resources. We then explore the different ways we can design, execute and implement the urban plan.

In architectural space planning, we study the context, users’ needs and available resources. We then explore the different ways we can design, execute and implement the architectural plan.

So, in financial planning, we study the Clients’ circumstances, current needs and the available resources they have. We then explore the different ways to design, execute and implement their financial plan.

So, here’s my reply to that question “it depends on what you need & which aspect you want to address”.

When we plan, we 𝗽𝗹𝗮𝗻 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗳𝘂𝘁𝘂𝗿𝗲 𝗶𝗻 𝗺𝗶𝗻𝗱. The “need” is to address a future event, not the present.

It’s just like… When you plan for holidays, you plan for it in advance.

So what are the 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝗶𝗲𝘀 𝗼𝗳 𝗰𝗼𝗺𝗺𝗼𝗻 𝗻𝗲𝗲𝗱𝘀 that only responsible individuals would plan for?

Pillar 1

F – Financial Loss (of Income) / Risk Mitigation

In the event of inability to work and provide for an active income, how will you continue to pay for your daily regular expenses?

Pillar 2

A – Assets Preservation

With on-going inflation, how will you ensure you don’t outlive the financial resources you saved so hard for?

Pillar 3

D – Dependents Needs

When you’re no longer around, how will the expenses you spend on your dependents be taken care of?

Pillar 4

E – Estate Distribution

In the event of death, how will you ensure your estate(s) are safely and equitably distributed?

When any of theses areas are not checked / taken care of, your hard earned income can easily FADE away..

To date, no two persons have the same plans, because everyone has different priorities at the time. (Unless of course, if they’re a husband-wife couple, and they want to implement the same plans at the same time. )

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