Underwriters call for early financial plan in 2020

There are several myths and misnomers when it comes to financial planning, and individuals can take in a lot of advice from many good and not-so-good sources.

Misnomers can range from confusing high incomes with wealth to not knowing the importance when choosing investments.

For insurers, there is a need to help provide individuals in 2020 with some key insights that will hopefully lead to a more financially independent life.

AXA Mansard has called on Nigerians to kick off the new year making wise financial decisions and a journey towards financial independence, in efforts to achieve set goals in 2020.

Speaking on financial planning, the Chief Operating Officer, AXA Mansard Investments Limited, Alex Edafe, explained that it is important to start taking decisive steps now to foster the achievement of 2020 financial goals.

Edafe stated that yearly, people all over the country aspire for financial independence by starting out with new year resolutions and set goals.

However, many are still unable to realise these goals due to various reasons, including low financial literacy, lack of determination, unclear goals and late implementation of financial plans, though it is better late than never.

He pointed out that financial goals differ for everyone and could be short-term (0–1 year), like investing towards the next house rent, school fees, travels, wedding, automobile among others.

For medium-term (1–5 years) goals, it will not be limited to investing towards buying a property (land/house/shop), advance/continuing education, starting a business/equity ownership in business(es), future school fees.
On the other hand, long-term (after five years) goals include philanthropy, retirement savings, financial independence, among others.

He listed key strategies that can be applied for financial success in the new year to include paying attention to one’s health, building an emergency fund whilst improving financial literacy, taking insurance on risks you are unwilling to take, getting an extra source of income, automating one’s savings and investments, getting out of debt, creating and living within budget, proper record-keeping of savings and investments.

According to him, financial independence can be achieved by focus and intentions.

“As we go into the year, a great way to achieve financial independence is to invest in the AXA Mansard Money Market Mutual Fund, which provides unitholders with capital preservation and a competitive return.

“The fund is liquid, hence a unitholder can liquidate within 24 hours, affordable when you consider the minimum investment amount of N1,000, accessible through various online and offline channels and professionally managed by AXA Mansard,” he said.