The Priciple of Building Equity
This concept theorizes that a person’s responsibilities generally decrease and wealth generally increases over time.
Young Old
(Protect die too young) (Protect live too long)
Rule of 72
You can determine what kind of savings plan works best for you and your budget by using The Rule of 72 – dividing 72 by the interest rate to estimate the
number of years it takes for your money to double.
The High Cost of Waiting
You can make time work for or against you. No matter where you are in life, the key to achieving your goals is to get started now. Consider this example of the monthly retirement savings required of two investors and the potential difference an early start can make.
Principle:
1. Build foundation, Family Protection. Protect die too young= Life Insurance
2. Saving for long term investing, protect live too long=Annuity
(Life Insurance is very important part of our assets, not expenses…)
