Money and insurance

Before your retirement: what to include in your financial bucket list

Here are six money milestones you should aim for so you can build a more secure and worry-free life for your retirement.

By Marife Remo

Bucket lists of all types are great. They inspire people to do more to reach specific goals over a lifetime. A bucket list of the financial kind teaches and motivates us to manage our money and cash flow better—which is the best way to set yourself for retirement.

To start a financial bucket list, your framework should consider three important factors in financial planning:

  • Spending
  • Saving
  • Investing

Remember that these three are interrelated: what you don’t spend, you save. And what you save, you should invest. Pretty simple, isn’t it? Another vital component are your actual goals and the time frame you’re giving yourself to achieve them. What do you want to achieve and when? Obviously, everyone wants to be financially stable by the time they retire.

If you’re not too sure what to include in your financial bucket list, here are some financial milestones you should consider adding.

1. You are debt-free.

Who has not incurred debt? Even the richest people on the planet have at least one debt waiting to be paid.

Not all debts are bad. Bank loans that go into different types of investments will eventually pay off. What you should watch for are bad debts. One example is the growing credit card bills you've been neglecting. Do pay more than the minimum fee.
If you can’t curb your reckless spending, cut your card, pay your debt in full if you can, and start paying in cash.

2. You have a three-month emergency fund.

There’s a reason why being debt-free comes first. Any extra income saved can easily go into your emergency fund that will help cover unforeseen circumstances coming your way.

Three months’ worth of your salary is a safe amount because this means you’ll have money to spend just in case you can’t work or have an income. It will tide you over while you’re recovering. Keep your emergency fund in a bank account so it can also earn a bit of interest over time.

3. You have multiple investments.

Saving your money in a bank account is not enough. You must find a way to make it earn for you and you can do this via investments.

One way to invest is via insurance with investment component like FWD Life Insurance’s ManifestAll Set/All Set HigherHealth Bundle, and Set for Life. With these products, you get life insurance to protect your family financially and an investment that grows your hard-earned money.

Another way to invest is via mutual funds or a pooled fund that professional fund managers control. It’ll be up to you which fund you want to invest your money in. There are other types of investments like government and corporate bonds, time deposits, and UITF. It’s best to talk to financial advisors who can explain and tailor-fit your investments to your needs.

4. You have retirement plan.

It’s heartbreaking to see senior citizens still working due to a lack of proper retirement planning. Do you think you’re too young to be considering retirement? There’s no such thing as planning too early. In fact, the earlier you start, the better nest egg you can build for your retirement days.


5. You have a critical illness coverage.

This type of insurance is a necessity nowadays with more people getting diagnosed with cancer and other critical illnesses. In fact, you can be diagnosed at any age.

The unpredictability of getting sick with critical illness is the reason getting protection is necessary. Treatment costs and medicines can drain your savings in an instant. However, with a complete critical illness insurance like FWD Vibrant, you’ll be able to take care of your health from screening to treatment to recovery.

Meanwhile, FWD’s Set for Health let’s every premium paid works for you. It lets you claim three times for three unrelated covered critical illnesses and gives back 100% of your premiums paid if you never do.

6. You have a real estate investment.

Another item that should be on your bucket list is real estate. As an investment, real estate is stable and rarely depreciates. As an asset, it’s a good thing to have—you can use it, sell it, or make it as collateral.

There are several more items you can include in your financial bucket list. After all, your financial plan should reflect your situation and your goals.

Working on your retirement plans?

Consult an FWD financial advisor on how to make it worth celebrating.

This article is part of a comprehensive series titled “Retirement Planning 101: A 5 Step Guide to Securing Your Future”. The series aims to provide you with valuable insights and practical steps to plan your retirement effectively.