Choose The Right Financial Path And Achieve A Brighter Life With Sun Life
Achieve #ReelToRealBrighterLife Through Financial Independence
Life is never easy. Being financially stable would allow you to do the things that you want such as traveling or pursuing your hobbies and interests, pampering yourself, chasing your dreams, etc. You can just do away with all the stress that having no money brings.
So how will you achieve #ReelToRealBrighterLife through financial independence? How will you maneuver your journey towards lifetime financial security by financial planning? With Sun Life, you can get your answers to those questions.
Third Part of the Sun Talks – Achieving Your Own Brighter Future
#SunLifePartnerForLife has yet again organized the third part of the Sun Talks: Digital Media Edition series. Titled Achieving Your Own Brighter Future, a financial advisor shared ways to having financial freedom.
Agency Strategy and Digital Transformation Head of Sun Life Philippines, Ms. Jennifer Del Mundo, talked about her financial journey and gave everyone guide and insights for financial planning.
The Financial Planning Pyramid
The Financial Planning Pyramid is very important in Ms. Del Mundo’s financial journey. She followed this Pyramid which shows the hierarchy of financial needs and priorities. Each part has the following explanation:
- Manage Liquidity
- Protect
- Accumulate
- Transfer
This includes Emergency Fund, Time Deposit Savings or Current Account, and Money Market. It covers everyday needs, debt reduction, natural calamities and pandemic, and temporary job loss or business disruption.
This involves Life Insurance and Health Insurance. After paying debts and having your emergency fund, there should be wealth protection to cover illness, accident, disability, and death.
This involves Mutual Funds, Variable Unit-Linked Bonds, and Stocks. This covers wealth accumulation goals for your child’s education, money for retirement, life goals like buying a house and car, starting a business venture, and mid-term and long-term savings.
The last step includes Estate Planning. This is wealth transfer to cover estate taxes, inheritance for heirs, and business succession.
Wealth Protection
Ms. Del Mundo also discussed Wealth Protection. She made sure to set up a Health and Wellness Contingency Fund to protect her finances in times of illness, accident, disability, or death.
According to her “I have my HMO benefit and emergency fund. But what if I get seriously ill and my HMO won’t cover all expenses? I must have a contingency fund so that I won’t draw from my savings and investment that was intended for other life goals, and I won’t end up borrowing or begging for funds”.
Wealth Accumulation
Ms. Del Mundo said that wealth accumulation must be intentional, the reason why she did not redeem her accumulated funds unless needed.
- Buying a House
- College Education
- Retire in Comfort
She invested in her first mutual funds at age 25 followed by balanced and equity mutual funds after 13 years. Then she redeemed her first mutual fund at 45 (after 20 years after opening her first mutual funds) to buy her dream house. Since she had enough money saved for the house, she paid 70% in cash. Only 30% was taken from a loan.
Her second redemption was for her children’s college education. She started early at 30 years old and saved regularly to beat inflation many years later. Among her portfolio are Sun Life’s financial plans RP VUL, SP VUL, and mutual funds.
She and her husband, once retired, want to be financially free, and have control over their financial choices. They also want to pursue new passions and advocacies and wouldn’t want to depend on other people.
Leaving a Legacy
A person’s focus will shift from income continuation to cash estate. As stated in the financial pyramid, you must also plan for wealth transfer to your heirs.
How to Achieve Financial Security
Financial freedom means having choices, says Del Mundo. Below are important variables in attaining financial freedom:
- Boost and grow your income source. Be proficient and develop your career or business.
- Be conscious of your money habits therefore saving before spending, living within your means, and being careful of the debt trap.
- Define your priority life goals or milestones — what, why, when, and how much?
- Transform your principles about saving. It’s not denying but rather sacrificing, and it’s postponing reward. Thus, thanking yourself for the right choices you’ve made today.
So, if you find yourself at a loss on how to get on the road to that financial freedom, remember the important points in this article.
About Sun Life
Sun Life Philippines is a leading life insurance company that offers a wide array of financial planning, investment options, insurance, and retirement savings products to secure your future. Get in touch or consult with a Sun Life advisor via www.sunlife.co/TalkToAnAdvisor today.
