Sunday 4th June, 2006


Make it on your own

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After the tsunami of 2004, Sri Lanka and Indonesia had a Herculean task of reconstruction and managing aid relief. It was a lesson in Public Sector Management, to say the least.

More than 2,500 schools had to be rebuilt or repaired, 200,00 homes had to be constructed for 1.7 million who were homeless, and 260,000 jobs were lost. Of course billions of dollars of aid was flown in, but the bureaucracy trap was overwhelming.

It is comforting to know that world agencies will help. But it is better to know you have positioned yourself and your family, to be independent of governmental aid in the truest sense.

The difference between state sector reconstruction and individual estate preservation and conservation, is that one is wide scale and the other is individualistic.

In this column we’ve created an estate based on astute savings and investment strategies, or we have set a course to that end. That was Plan A! Now we devise a blue print for Plan B.

All good plans start with a dream of independence and perpetuity, and a blue print. From the blueprint we generate a plan and establish certain policy positions. We seek approval for these projects from the stakeholders, and the experts in the field.

We pay attention to build capacity to fulfil the aims and objectives we set ourselves. We educate ourselves, we source good jobs with excellent benefits packages, and we manage the plan by constant review.

Upgrade property

Plan B is ensuring events that destroy value in what you’ve already built for self and family, cannot be washed away by the waves and vicissitudes of time.

The average person acquires a primary residence through the vehicle of a mortgage loan. The loan is normally guaranteed by collateral. More often than not the collateral involves insurance. There is likely to be insurance on both on the life of the borrower and on the property itself.

Do we have a social responsibility to mitigate risk? Yes we do! The danger is in being short sighted.

An optimum choice for insurance collateral is cash value life insurance in a universal life policy. The fund value can be withdrawn periodically, say every ten years to perform routine maintenance and /or upgrade.

Property protection should be upgraded to include, floods, hurricanes, earthquake and natural disasters. Very often because of limited financial resources it is logical to select the cheapest alternatives.

However, revision is necessary once you’ve established some foothold in your economic affairs. Very often the value of the home has increased, and the insurance coverage you purchased ten years ago will not indemnify your loss.

Hence the techniques of conservation and preservation are tied in with re-evaluations and revaluations.

How often do you see retirees with house in need of repair, in old clothes, and a “wired-up” old car? Without the energy levels to rebuild should a storm strike, can they await the bureaucracy? What is the possibility that a Plan B is vital for you?

©2005-2006 Trinidad Publishing Company Limited

Designed by: Randall Rajkumar-Maharaj · Updated daily by: Sheahan Farrell