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