Thursday, December 18, 2014
Do not think that when you have drawn up your will you have taken care of your estate. Your financial status, the people around you change and so are your wishes. Here are the 7 reasons that you need to update your will from time to time:
1.Marital status: You were single when the will was written and now you are married. So the will is no longer valid. The same rule applies to divorce and remarrying.
2.Additional members to your family: When you have promoted yourself to fatherhood, you have to reallocate your wealth accordingly.
3.A member of your family or your beneficiary passes away. It is necessary to update your will as well.
4.Substantial changes of your wealth: You have acquired more wealth and so you have to redistribute your wealth accordingly.
5.Your executor: He has died, moved away or is no longer a suitable candidate anymore.
6.Your appointed guardian: He may not be around or is no longer suitable to look after the interest of your minor children.
7.Your wishes change with the time: Situation changes and so are your wishes. You previous will may not reflect your current wishes.
The simplest and effective way to update your will is to write a new will to supersede the previous one. This article is also to remind myself to take at look at my will.
Monday, December 15, 2014
Have you ever taken a good look at your will? How long ago it was written? More likely than not, most of the items mentioned in your will are no longer relevant or applicable. It is time for you to rewrite your will to replace the previous one. Here is the way to go about it:
1. Appoint your executor and trustee: It is prudent to appoint a reliable and trusted executor and trustee. My executor and trustee is Amanah Raya Berhad. It is a public trust company established under the Public Trust Corporation Act 1995. It has branches all over Malaysia.
2. Provide a list all your assets with supporting documents and the persons to be distributed to for each item:
a. Immovable assets: land and buildings
b. Movable assets: motor vehicles, savings accounts,current accounts, share trading accounts, wealth management accounts, insurance policies, PayPal account, AdSense account, websites which attract passive income, retirement accounts such as your Employee Provident Fund in Malaysia.
3. Appoint a guardian and a substitute guardian (optional) for your minor children: Most likely it is your spouse.
4. Check the draft: A draft is sent to you by email. Go through the draft carefully and identify errors to be corrected.
5. Execute: When the draft is accepted, you will be asked to sign the will at their office. A duplicate copy of the will be given to you for your safe keeping while the original copy is kept at their head office.
6. Items not covered: Do not worry about items not mention in the will or assets subsequently acquire, because there is a clause stating that: I further direct all my residuary estate whatsoever and wheresoever situate, movable or immovable over which I may have any power of testamentary disposition and not specifically mentioned under this will to be distributed to….
I have recently rewritten a new will free of charge because I am a customer of Amanah Raya Berhad. It is a good move to update your will to show your care and concern for your love one
Thursday, December 11, 2014
A will is a person's last instructions for his property to be distributed according to his wishes plus other instructions to be carried out. The person who makes the will is a testator.
Why do you need a will?
1. Look after your assets and your family: A will will allow you to take care of your family and your assets in future the way you want it to be.
2. It's lawful to make a will: You are exercising your right to write a will. By doing so you are able to appoint an executor of your choice to handle your affairs after death. You can also engage a guardian of your choice for your children who are still below the full legal age.
3. Fewer hassles: With a will you can be sure that your assets will be distributed smoothly and quickly.
4. Flexibility and control: While you are alive you are in control of your assets. You can dispose off part of it or sell all of them or draw up a new will to replace the previous one. The will is only effective upon your death.
Monday, December 8, 2014
The news isn't all negative for low savers. Hassara says many older workers can make up a lot of ground if they act right away. "If Americans find that their retirement savings aren't adequate to meet their expectations about retirement life, it's never too late to make adjustments," she says. "In fact, if a 55-year-old starts to max out his or her employer-sponsored retirement plan contribution next year and continues to do so for the next 10 years, those savings could grow to about $325,000."
Thursday, December 4, 2014
Monday, December 1, 2014
This article is specially written for young graduates who have just secured their first posting. In life we have more needs and wants than our limited income. It is essential to budget and avoid overspending. Overspending means getting into debt and more problems.
- Keep record: For a start, find out your current financial situation. Are you in debt? Congratulate yourself if you are debt-free. If not, your top priority is to get rid of your debt as soon as possible. Discovering your own net worth, finding out your earning potential and checking your spending pattern are your first step towards personal financial management.
- Plan ahead: The next step is to design a budget. If you are in debt, incorporate debt settlement into your monthly budget. The main aim is to clear your debt as soon as possible. The longer you delay, the more interest is added and the more you have to pay The second thing is that your monthly expenses should not exceed your income (with debt repayment included)or else you will be adding new debt every month and there will no end in sight to settle fully your debt
- Follow the plan: Now that you have your monthly budget, you have to stick to it faithfully in order to achieve your goal of debt settlement.
- Save: As soon as you are debt-free you have to use the same amount of money or even more ( you will get pay increments and bonuses anyway)to save for several specific purposes:
- Down payment for your first car
- Down payment for your first house
- Emergency fund
- Plan for retirement and children’s education early: The earlier you set aside an amount the less you will need to budget because compound interest will work wonder for you in the long term
- Avoid wants: Don’t do impulsive spending over and above your budget. If you want something save for it and buy in cash. Exercise your self-control and willpower.
- Avoid credit: Use debit card or prepaid card instead of credit card to get the hang of using plastic cards. Just remember credit cards are for convenience and not for the purchase of things on credit. Credit means debt and debt means bankruptcy.
- Major purchases: A car and your own home are major purchases in life. In most cases you need financing to get them. However, when you have already put aside an amount for these purposes , it will be easier on your monthly budget The bigger down payment you can make means the less you will need to borrow and the less interest you will need to service and the less you will need to pay for your monthly installments. It also means a shorter period to settle the loan.
- Manage your debt: By now you must have incorporated your monthly payments for your car and house into your monthly budget. If it is not within your budget you will have to give up one or the other. Go for it only when you have saved for a bigger down payment for the item you cannot afford. Pay your monthly installments promptly to build a good credit record. When you need a loan in future your credit worthiness will work in your favor.
- More income streams and fewer expenses: The aim of personal finance is financial freedom. The prudent way is to identify more incomes streams and especially passive income because you don’t have to work for it. At the same time you will have to spend wisely within your means.
Managing personal finance is a balancing act. When you spend more you will have less to save and when you allocate more in one area you will have less in other areas.
Whatever you do spend less than what you have earned.
Thursday, November 27, 2014
Where do you get extra cash when you have exhausted your emergency fund?
Look into your own sources of fund before you get outside help:
- Children’s savings accounts: Here is good source of fund that you can tap into quickly with no hassle.
- Your fixed deposit: Here is yet another source of quick cash but you have to sacrifice your interest income for premature withdrawal.
- Cash value of your insurance policies: You don't have to surrender a policy, but you just get a loan against the cash value. You can get your cash in just a few days. You can also redeem your investment-linked insurance policy just like you liquidate your unit trust. There is no need to make repayment
- Sell your investment: Dispose off part of your shares or your unit trust holding to meet your cash requirements
- Pawn your valuables: Another quick way to get cash is to pawn your gold rings, gold chains, gold coins or other valuables but don't let your friends or relatives spot you at the pawn shop.
- Cash advice from your company: You can get your salary advance without interest easily from the place where you work.
- Credit card advance : You will definitely incur substantial interest but it is a quick source of cash and is better than getting the money from Ah Long or loan shark
- Borrow from your friends and relatives: You have to be thick-skinned and it may not look good for you financially but what to do when you need the cash. Perhaps you can be kind enough to repay the loan with an extra amount to make your lenders happy.
- Personal loan or a secured loan from the bank: It may not be as fast as you think but it is a way to secure the needed sum. You may not require collateral for a personal loan but you can secure an overdraft facility with your own house.
- Loan shark: This is the last resort. If you can, avoid it. If you must borrow, make very sure that you pay back promptly or the debt will be snowballed into a sum beyond your means to settle and that is the beginning of your nightmare.
One good thing about getting a loan from financial institutions is that you can establish your credit worthiness by making timely repayments. You are better than someone with no credit history
Visit All About Living With Life for more articles on living a happy life .