By Lorna Tan

It should come as no surprise that the chief executive of British insurer Aviva, Mr Shaun Meadows is well insured. And as a reflection of his loyalty to his employer of 20 years, all of his policies are with Aviva.

Mr Meadows, 45, said that he is insured close to $5 million on his life through his firm which provides a death benefit of up to four times his salary as well as his individual term policies.

He has also bought three endowment plans for his daughter, Lucy, 17, which are expected to provide about $30,000 a year for three consecutive years for her university education.

Currently in her final year at Thorpe St Andrew High school, Norwich, Lucy is aiming to pursue her degree at either York University or Cardiff University in Britain.

'My daughter is the biggest drag on my finances. I expect her university fees and accommodation to cost $30,000 a year. But it is money well spent,' he said.

When it comes to his personal financial planning, Mr Meadows considers himself a disciplined saver and investor. In fact, he used to keep a record of his daily expenses, a habit that his daughter has picked up.

The Briton arrived here in September last year when he was appointed the chief executive of Aviva in Singapore, Hong Kong and the Middle East.

His 20-year stint in Aviva included being the marketing director of Britain-based Norwich Union Insurance, a unit of Aviva. Prior to Aviva, he worked for six years as a financial adviser at Lloyds TSB Bank.

Incidentally, his older brother, Barry, is an IT director at Aviva based in France, while younger sister, Judith, works at Aviva Commercial Mortgages in Britain as an administrative officer.

Mr Meadows is separated from his wife, Kim, 45.

Q: What are your money habits?

I like to save a proportion of my salary every month - about 20 to 30 per cent - which I can then use for either long-term investments or treats, such as holidays.

Q: What financial planning have you done for yourself?

I hold a range of investments from properties that I let out, to regular premium investment-linked policies or unit trusts.

I have about 40 per cent in stocks, 40 per cent in equity funds such as Aviva Investors Property fund, Fidelity China Focused fund and India Focused fund, 10 per cent in endowments and 10 per cent in cash.

My stocks are mainly in Britain and Europe equities and they include Hbos, Marks and Spencer, Aviva and Llyods TSB.

I also participate in the British Government tax-free savings scheme. I set up my investment portfolio in 1984/5. I have a financial adviser in Britain who updates me on my portfolio regularly. My China and Indian funds have enjoyed 20 to 25 per cent for the last two years up to August.

My overall investments have achieved annual returns of 10 to 15 per cent.

Q: Please elaborate on your property investments.

I have a two-bedroom condominium each in London and in Norwich, which were bought three and two years ago, respectively.

Norwich is about 170km or about two hours by train from London. Both units have appreciated about 10 per cent above their purchase prices. Both are rented out with rental yields of about 5 per cent per annum.

I also have a four-bedroom house in Norwich which was bought 20 years ago at &pound80,000 (S$195,000) and is now worth about &pound300,000. My wife and Lucy live there.

Q: What about insurance planning?

I have pretty much the full range of insurance from life insurance/

protection, mortgage cover, through to health insurance. I also have cover for my home and car. All with Aviva of course. My annual premiums amount to $7,000.

Q: What's your investment philosophy?

I invest a monthly sum in a range of investment types, as well as occasionally putting lump sums aside. I will look for low- to medium-risk investments.

Q: Moneywise, what were your growing-up years like?

I grew up in Norwich in a semi-detached house in a middle-income household of six people. I was the third child. My father was a printer of scientific journals and my mother was a secretary to a hotel manager. I saw my parents carefully managing money to feed four children and see us all through school. There were always lots of clothes handed down among the children and it was always important for us to eat everything on our plate. This has given me a good understanding on the importance of money.

Q: What has been a bad investment?

I made a couple of bad equity investments in Britain, without really understanding the underlying performance of the companies. I lost a fair bit of money - about $6,000 to $7,000 - over one year. This was the time when initial public offerings were very hot, so they were bought and sold quickly.

Q: Your best investment to date?

The best decision I have made is to carefully allocate my investment monies in a variety of middle- to long-term investment instruments and doing a regular review of my portfolio. This has helped build a balanced portfolio for my future.

Q: What's your retirement plan?

I would like to retire at 50, but probably it would be when I am 55. My dream retirement plan is to live in Italy, perhaps working on a vineyard or making wine. I love wine and Italian wines in particular such as Brunello, Barolo and Gavi D' Gavi. Assuming my mortgages are paid up and my daughter has graduated, I estimate that half of my current income would be sufficient during my retirement.

Q: And your home now is...?

My home is a modest three-bedroom apartment in Orchard Road which I am renting.

Q: And your car is...?

I do not have a car, but I would love to buy a Porsche 911 at some point.

This article was first published in The Straits Times on November 02, 2008.