Page 28 - Masala Lite Issue 157 January 2024

28 CASH COURSE WITH SHIVA increase contributions to your retirement portfolio.

THE BENEFITS OF ADOPTING Thailand allows you to contribute towards retirement through tax saving funds. While
the performance is below par on most investments, the tax write-off is advantageous.
A LIFE STAGE APPROACH TO The money gained back can be used to contribute to your nest egg.
For those with growing families, your children’s education and living costs are high in
FINANCIAL PLANNING this stage, as you’re aiming to set them up for their future. Do not forget to prioritise
yours. Reviewing and updating your investment portfolio or insurance coverage to
ensure proper protection for yourself and your family is also vital during this stage.
SHIVA SACHAPHIMUKH from
Pre-Retirement: Balancing Your Goals
Farnam Tree gives his insight. For pre-retirees (your 50s and 60s), the focus intensifies on transitioning from

accumulation to protection and income. This means you may switch out from
growth/aggressive investment products into more investments that pay a more
stable income. This involves rebalancing your portfolio to ensure it aligns with your
risk tolerance and remaining time horizon.
Estimating your retirement expenses and planning for benefits allows you to forecast
your future financial needs and make informed decisions about your retirement
income streams.
Different stages of life necessitate different needs and wants, which need to be
reflected in your financial planning. Trade-offs are involved in how you manage your Retirement: When Your Hard Work Pays Off
investments. Younger individuals that have a longer investment horizon are more Finally, as you enter retirement (your 60s and beyond),
suited for volatility compared to people in retirement. Seldom does coming up with managing your retirement savings to cover living
a plan today work 10 or 20 years in the future. expenses becomes the central focus. Downsizing
Understanding this is crucial for a sound financial plan as you will need to periodically your home and reevaluating your healthcare needs
update and review it. Your plan needs to be specific to your stage of life, and also can help optimise your budget. Remaining active and
flexible enough to be changed once you cross milestones in your life. Outlined below socially engaged will contribute significantly to your
are priorities that should be most important for different stages of your financial life. overall well-being during this phase. After all, wealth
is pointless without health. SHIVA SACHAPHIMUKH
Young Adults: Build a Foundation for the Future However, the journey of financial planning is not linear. is a Director and part of
Setting yourself up for the long-term is paramount in the early stages of adulthood Life throws curveballs, and unexpected events like the investment team
(your 20s and 30s). Your number one priority is to establish and maintain an emergency marriage, divorce, illness, or job loss can significantly at Farnam Tree. He is
a licensed Investment
fund to cover unexpected expenses and financial storms. This is made possible once impact your financial landscape. Therefore, flexibility Consultant with the Thai
you save from your income – saving up to 3-6 months of your expenses is a decent and adaptability are key. Regularly reviewing and
Securities and Exchange
start, and can be adjusted for your circumstances. The worst thing that can happen updating your plan to reflect changes in your Commission (SEC).
is if you need to liquidate some or all of your budding investment portfolio. Even if circumstances and goals ensures your financial roadmap
you are not a high–income earner, take the time to put a plan together. remains relevant and effective. Farnam Tree is a boutique
investment and wealth
Another important thing to bear in mind is establishing good credit history. Minimise Remember, it’s never too early or too late to take
debt balances and don’t fall behind on credit card payments. This will help you in control of your finances and chart a course towards management firm based
in Bangkok. The company
the future if you need to apply for a mortgage. financial security and prosperity. Most importantly, is a licensed Investment
do not compare yourself with others. Having enough
Middle Age: Maximise Retirement Contributions money to retire comfortably is the most important Advisor under the Thai SEC
and Ministry of Finance.
As you transition into middle age (your 40s and 50s), applying momentum towards goal. This is where, “it’s not about winning, it’s about
your goals will pay off in the future. Being disciplined financially will allow you to finishing.”

MASAL A LITE ISSUE 157 - JANUARY 2024