Will is More than Just a Will

The thing is , we all are told to accumulate our wealth but we are not told to PROTECT it. Yes you heard me right, PROTECT OUR WEALTH ACCUMULATION. 




There is always this MISCONCEPTION that WILL WRITING is ONLY for the RICH and those who are NEAR DEATH. The thing is WILL is for all of us , it is for YOU and ME. The truth is death is inevitable regardless of  status and we can never ever predict when it will happen. 

The question is not WHEN but is WHAT IF ITS HAPPEN? ARE WE PREPARED ? ARE WE ABLE TO PROVIDE TO OUR CHILDREN AND LOVE ONES? ARE WE?





The amount of unclaimed estates in Malaysia is increasing on a yearly basis. The below are the latest news based on the increased in Malaysia unclaimed estate.

Unclaimed Estate in Malaysia as of 2016

Unclaimed Estate


The effect of NOT having a WILL is greater than you ever think of.



John is a Marketing Director of a company with 2 kids at the age 
of 4 and 5 and a housewife age 35.

One day John needs to go on a business trip for some discussion and unfortunately the plane crashes and John has passed away. 

The wife and the children lost not only the husband and dad but the only breadwinner of the family.

Jake did not write any will and so the wife has to deal with the stress of John's dying intestate. 

In other words, the wife has the money but she is not allowed to be accessed as John did not write a will for it. 



Not only that the house that the wife and the children is staying is now separated into the wife , the children and the husband 's family. 

I not sure if you can imagine the scenario and how stress the wife could be to handle all this as well as the needs of her children.


Let's take a closer example of with will writing and without.




UPON DEATH  ASSET WILL BE FROZEN . In order to UNLOCK we need to go through a certain LEGAL PROCESS



WITH WILL

1. Executor
2. Apply for grant of probate
3. Distribute according to the will

TAKES LESS THAN A YEAR




WITHOUT WILL

1.Choose Administrator
2.Value the estate by qualified valuer
3.Provide 2 Sureties - Independent Party
   i. Safeguard
   ii. Guarantor
4.Apply for Letter of Administration
5. Distribute base on Distribution Act 1958

TAKES MORE THAN A YEAR.


I believe there is no reason for us to lay down the benefits of a will writing because it is clearly much more hassle for the love ones especially when they are lost and sadness came crushing on them when they already have lost you. Let us together , do something so that they are well taken care of even if when we are gone. 



I would love to share with you more precise on this topic but then it will be full of notes and it is definitely better to meet up and discuss over a cup of coffee / tea. For more information do not hesitate to drop me an email of your contact and name and i will get back to you ASAP.




charissim.ristyle@gmail.com

Dollar Cost Averaging a Better Strategy ?

What is Dollar Cost Averaging ?

Strategy in which you invest in a fixed amount of money at a regular basis/ intervals regardless of the market price of an investment .

The Question is , Not Why but HOW can this strategy BENEFITS you and me as a whole?

Lets take an example here, Let's assume we have two different investors here. One with a lump sum investment and one with a monthly investment of $100 per month for 6 months. 

                                         Investor A                         

                        Price $                          No. of
                                                            Units /
                                                            Shares

Month 1           5              $600               120                                
Month 2           5                                      
Month 3           2                                      
Month 4           4                                         

Month 5           3                                    
Month 6           5                                        

What we can see here is that , investor A invested $600 with the no of units / shares of 120 at the price or $5

                                      Investor B                         

                        Price $                         No. of
                                                           Units
                                                           / Shares

Month 1           5                  $100          20                              
Month 2           5                  $100          20                                    
Month 3           2                  $100          50                     

Month 4           4                  $100          25                   

Month 5           3                  $100          33.33                    

Month 6           5                  $100          20                       

               3.56¹ $600   168.33²

¹[( $5 + $5+$2+$4+$3+$2) divided by 6 months.]

²[ (20+20+50+25+33.33+20) divided by 6 months ]

If you can see , there's two differences in using the Dollar Cost Averaging :

1. The price are lower / cost are lower  , instead of $5 is now $3.56 

2. The no of units / shares are higher , instead of 120 is 168.33.

There by using Dollar Cost Averaging its helps us as an investor to create a better opportunity increasing profits and minimizing cost in a longer run. 

Besides  it also helps us to take advantage of the market as we can never time the market. By investing in this strategy we are always in the market whether the market is up or down and hence , we are taking the opportunity each time the market reacts. We all know the beauty of buy low but the fact is how low is low ?

Dollar Cost Averaging also promotes force savings where it creates a good habit for us to set aside our income for investment to add value in our future so that we can achieve our financial goals at a given time frame.

By doing Dollar Cost Averaging , we are less burden in our finances as we could put a comfortable level on our monthly savings / investments instead of a huge amount of lump sum to be saved / invested at a given time. This means , we could save / invest to achieve our financial goals at the same time we do not need to compensate on our lifestyle. That/s a pretty good news for you and me. 

Last but not least,  however this strategy is best to be used for a longer term of investment objectives.

If you have any questions on Dollar Cost Averaging or any other questions on financial goals planning / investment options do not hesitate to leave a comment 

  charissim.ristyle@gmail.com