Did you know that you can’t actually use the same funds for your education and retirement bucket? 

Hi, my name is Ka Hoe and I’m the founder of J Advisory and I’m happy to be back to see you guys again where I’m going to share with you an experience, which I went through with a client. and of course this same thing happened to me as well as earlier on when I started planning out for myself because I think we are all faced with this common problem which we may not know until we start doing it. So what do I mean? Now, what happened last week was that I meet up with one my client and as we go through their Financial Compass, we realize that one of the biggest issued he had was he wanted to plan out his children education as well as they want to secure their own retirement both he and his wife goal but then as we go through it as I was asking the questions you know then he began to realize that he was using a lot of the same funds to fund for both his children’s education and his his his own retirement and wife’s retirement. 

What I mean by that is this for example

Typically when we calculate for your children’s education. So what we’d normally do is that we need to find out where you are right now, right? And what is your children’s education goal so that you basically be able to see the gaps say for example, if let’s say your children’s education goal is like 500,000 and currently you have 100,000. So there’s a gap of 400,000. So then we begin to work out how do you actually along the way achieve this goal. But as we went along tagging the 100,000 for education and later on we went on to his retirement goal and we realized that you know, the earlier funds will already be tagged to education, right? 

This is a big wake-up call

I think his unit trust, his shares his property and I guess there’s a very big wake-up call and that’s the reason why I wanted do this video is because a lot of us didn’t realize that we think that our education and our retirement goal is so much nearer, but we have counted twice the same asset whether it’s your EPF your unit trust, your shares, your property is actually a good practice to actually sit down with you know somebody who’s experienced maybe a financial planner or financial advisor. Anybody who has experience or knowledge about planning. 

Don’t over-stretch it 

So when you start to strike off those assets that you have already been tagged to education your kids education goal then you realize that you know, these are so much left for your other goals, and the problem is we don’t do that and many have realized too late when they are only a few years left when they trying to stretch for the kids education or their own retirement. And there is the main reason why I wanted to do this video so that you guys have a wake-up call and you know, do let me know if you are somebody who has the same experience or somebody should be learning from this video, you know, thank them in the comment section. I’ll see you guys next week