It is no surprise that, as the managing director of UOB Life Assurance, Mr Toi See Jong, 50, has already laid the groundwork for his retirement.
Having started planning early, he is confident that his retirement will be sufficiently funded through several streams of income, mainly from a life annuity and his property investments.
He was fortunate to learn the importance of retirement planning at an early age, said the Malaysian-born Mr Toi.
His first job was in a pensions consultancy firm in Britain, where he learnt to calculate how much money an individual would need to retire comfortably.
This was after he graduated with a degree in actuarial science and statistics from Heriot-Watt University in Edinburgh.
It was a love for mathematics that led him to pursue actuarial science, a discipline that applies mathematical methods to assess risk in the insurance and finance industries.
He worked in Britain for 12 years before returning to Malaysia, where he worked for nine years in Mayban Life Assurance.
This was followed by a two-year stint in China, after which he joined NTUC Income in Singapore two years ago. Last August, he became the managing director at UOB Life.
Mr Toi said although he might not be retiring any time soon, early planning gives him a longer timeframe to grow his nest egg in.
He started by deciding how much he would need to maintain his retirement lifestyle and what age he would be retiring at.
To meet his retirement needs, he has bought a life annuity that will provide an income stream for life. The rental returns on his property investments will also provide a regular income when he retires.
In addition, he has made provisions for medical needs and other liabilities by ensuring that he has adequate insurance coverage.
Assuming that everything is paid up by the time he retires, including the education of his two children, he believes $5,000 to $10,000 a month would be a reasonable amount to live on, though $10,000 to $20,000 would be ideal.
'Think about how much regular income you need, and invest in such a way that you can generate investment income for the rest of your life,' he said.
He is married to former lecturer Sonia Teh, 46. They have two children, Grace, 11, and Samuel, seven.
Q: What are your money habits?
My saving plan varies during each of my life stages. I started off with a smaller proportion of savings, then I moved on to investing in a combination of financial products. Most importantly, I don't believe in spending beyond my means or more than what I earn.
Q: What financial planning have you done for yourself?
First, I ensure there is adequate protection for my family and myself. This should be anyone's top priority for financial planning.
Second, I set aside some savings for investments to help me achieve my financial goals, such as retirement and my children's education.
I make it a point to review my financial plan periodically, and I adjust it to ensure optimal insurance coverage and savings over my lifetime.
Q: What's your investment philosophy?
I enjoy investing in financial products that potentially provide higher returns.
Over the medium to long term, I invest in stocks to grow my investments as part of my retirement planning. My assets are mostly properties and stocks.
As I'm very busy, I leave the management of my main stock portfolio to a professional money manager. I have another, smaller stock portfolio that I manage myself.
I buy stocks for growth and dividends and for the long term. They include shipping trusts and blue-chip shares that provide steady and high dividends over five to six years.
The average annual returns have been about 5 per cent to 10 per cent over the past few years.
Q: What about your property investments?
I invest in property with the objective of watching it grow in value over the years.
For instance, I bought a two-bedroom condo in North London more than 18 years ago, and its value has appreciated substantially. It is being rented out.
I also have properties in Malaysia. I consider property the safest investment because you can ride on the scarcity of land, as is the case in Singapore.
I believe 80 per cent of those who are rich accumulated their wealth through property transactions. It is also easier for the man on the street to understand this asset class, as it is all about location, compared with stocks, which require discipline and financial knowledge.
Q: What about insurance planning?
I have different insurance plans to suit different needs, such as protection, savings and retirement. Term insurance plans are practical for the whole family as they provide adequate protection for your loved ones should you suffer any disability or critical illness.
I'm covered for nearly $1 million on my life, and I have a $500,000 critical illness cover. I have purchased endowment plans for my children's education, as well as retirement plans for myself. These include a participating life annuity, which will provide a lifelong income after I retire.
I manage my insurance premiums by increasing the number of plans and coverage according to which life stage I'm in and what I can afford on my income at the time.
My annual premiums are about $24,000.
Q: Moneywise, what were your growing-up years like?
I grew up in Kelantan in an average-income family of nine. My father owned a grocery store and my mum was a housewife. My parents cultivated good money habits in us.
Since childhood, I've understood how to budget wisely for my needs and wants. My family members did not have expensive hobbies. We believed in simple pleasures that did not cost much to enjoy.
I left home when I was 17 to study in Britain. My studies were funded by my parents and my eldest brother, who was the first among my siblings to come out to work. I also worked during my school vacations.
Q: How did you get interested in investing?
My interest in investing grew when I started my studies in actuarial science. I like the excitement of watching my investments grow when I select the right stocks.
Q: What has been a bad investment?
A certain blue-chip stock that seemed to be a good investment initially. I invested $50,000 in it about 20 years ago, when I was working in Britain.
The price of the stock declined, and I lost my entire investment within a year. This has made me believe strongly in diversifying my portfolio. It also helped me realise the importance of having a savvy professional fund manager who can provide accurate investment assessments.
Q: Your best investment to date?
My properties. However, buying a property is not only about reaping potential returns over a suitable timeframe.
I want to give my family a comfortable home so that my children can have wonderful memories of their growing-up years.
Of course, with land so scarce, properties are likely to appreciate in value.
Q: And your home now is...?
I am currently renting a place in Tanjong Rhu, but I hope to buy a suitable property for my family some time this year.
