Saturday, February 05, 2011

Reviewing my insurance portfolio

reckless tricycling

Last month, I briefly reviewed my portfolio of insurance policies. I was looking for information as to why Great Eastern kept asking me to upgrade and I actually agreed to pay more and more for additional protection which I am not sure whether I need.

An old friend of mine went through his review of insurance portfolios and shared with us his parameters for his decisions. Should I take an active effort to review and align them to my current protection needs?

Without including my children's portfolios, my protection is with 3 insurance companies (luckily) with no specific insurance agent to work with. Coupled with fact that I filed all my scanned insurance documents in a folder by chronological order, to review is a breeze. I even scanned the "sales / promo documents" to cite as evidence in case of dispute in the future on who said what and when. I never really trusted insurance agents (and property agents too) as our respective interests are not in alignment.

I will try to define my protection into these areas ie. health/medical and accident. Investment and savings are not under the definition of insurance.

Seriously Edgar, get your butt off the chair and review them urgently!!!

Friday, February 04, 2011

Tracking your networth

anyhow stop

Do you have a balance sheet of your personal assets and liabilities? Did you prepare your income statement for the year just ended?

I am not referring to the returns that you prepare for Inland Revenue Authority of Singapore. That generally reflect your gross income but not expenses. How many of us actually track your expenditures too? My dear friends, it is important and I am doing it albeit not in as much details as before.

I watched a documentary of a Malay divorcee talking about her greater awareness and therefore control over her finances as she starts to keep track of her income and expenses. That would be the first step.

Next, we need you to work towards a balance sheet. Lorna Tan, the senior correspondent of ST, talked about her neglect in tracking her gains and losses of $300,000 worth of stocks in her portfolio. I have a portfolio too but definitely not of that magnitude. As I have been tracking my own portfolio, I simplified my holdings based on my new investment strategy after more than 20 years mugging around my money.

My simple advice to you my dear friends, get to know your finances soon with your very own balance sheet and P&L!!!!! Share with me your experience once you have done them!!