TRIBUTE
Planning your financial future
Albert Schweitzer is reported to have stated that “ the point of division between primitive man and civilized man is the point where man can give up today ’ s good in order to have something better tomorrow .” Therein lies the importance of planning today to secure one ’ s financial future , as the Lord wills . Christian concern for loved ones probably is the strongest motive for practical planning for the future . The fact that emergencies do arise provides added incentive for sensible planning to enable one weather them .
BUILD A WEDGE AGAINST INFLATION Your money is more likely to depreciate in value . Protect yourself as much as possible against it . Most families need to plan for :
• An adequate retirement income .
• Adequate income in the event of an illness or disabling accident .
• Provision ( financial ) for children or spouse .
• Family development – home of one ’ s own or overseas trip .
• Provision for Christian causes – through gifts and bequests .
VICTOR EKPUK
FIGURE YOUR NETWORTH Your networth is the difference between what you own and what you owe . Determine your assets . Determine your liabilities . Deduct the latter from the former . That is your networth . Distinguish between cost or book value and current or market value . To plan for the future , one must know where he ’ s starting from .
DETERMINE YOUR INSURANCE NEEDS One of the most basic tools in planning your financial future is insurance . Life insurance ( endowment , single premium mortgage related policies ) are more critical for the earlier stages of one ’ s life but general risk covers would apply throughout life ordinarily . No family should be without some form of life assurance . In determining your life insurance needs you should :
• Estimate how much monthly income your family would need over a reasonable period if you were to die suddenly .
• Find out how much would be available from all sources .
• Determine the difference between what your family would need and what is now being provided .
• Call your life insurance agent to help you plan to meet your objectives and needs . Insurance cover is available for health
Gamaliel Onosode
2nd May 1933 to 29th Sept . 2015
& medical , home and automobile . DEVELOP A SAVINGS PLAN To spend 100 % of one ’ s salary between one payday and the next is dangerous practice . Set up an emergency fund equal to at least three months income , in liquid assets – consider savings certificates of deposits and similar instruments .
MAKE INVESTMENTS This is your best wedge against the biting effects of inflation . The uninformed investor should seek professional advice .
Consider real estate , bonds , stocks and shares . As a Christian you are concerned about the nature of any business you may consider for an investment . Would you invest in any of the following ?
• Church bonds ;
• A distillery ;
• Tobacco industry ;
• Firearms plant ;
• Farm equipment company ;
• Municipal bonds Would you want to invest in a business that could bring harm to others ?
PLAN FOR THE DISTRIBUTION OF YOUR ESTATE
What good reason would the Christian have for not providing for the distribution of his estate after he will have fallen asleep ? Common instruments include life assurance , gifts , trusts and wills . Wills should provide for the following :
• The recipients of the property
• The guardian of your children if they are not age
• The manner of dividing the estate
• When the property is to be given to the designated recipients .
• How the property is to be safeguarded
• Who will handle the distribution of the estate . Financial planning for the future is never complete . Adjust your changes in family needs and circumstances . Your future does not begin at some distant point in time . It begins now . Take advantage of your future for God ’ s glory and for the good of others beginning with your own family .
Dr . Gamaliel Onosode , was a deacon of the Adelabu Street Baptist Chuch ( now Good News Baptist Church ) and made this contribution at a seminar for young Christians . It was first published in Expression magazine in March 1992
26 invests . ng - MARCH / APRIL 2017