Work harder and longer for leaving a legacy?
There is an interesting article which shares that Japanese who wants to leave a legacy will work harder and longer. Those who do not leave legacy will work hard but not longer (read the article talking about this here).
I have a slightly different view to the above. Leaving a legacy for children does not need to work too much longer. Legacy can be built through insurance fund. If we want to leave a legacy using our own assets, it will definitely take longer time to accumulate. However, if we pay some fraction of money to purchase a large payout insurance policy, then, leaving a legacy to our children will be very simple.
See this example. John (aged 30) wants to leave RM 2 millions to his 2 children when he passes away. He will need to save and accumulate RM5,500 a month continuously for 30 years to accumulate RM 2 millions assets. Can John enjoy life after 30 years if he wants to leave all monies he saves and accumulates for his children? The answer is an obvious NO. What if he spends RM 1,500 a month to buy a RM 2 million insurance policy, his children will get the RM 2 million insurance payout when he passes away. If he can save RM 5,500 a month, he can use his remaining saving, i.e. RM 4,000 (RM 5,500 – RM 1,500) to enjoy his life and for retirement.
Do you need to work harder and longer for leaving a legacy? Not really – You just need to be smarter and choose the correct financial tools to help you achieve your financial goals. Don’t ever sacrifice your life especially your retirement life because of your children. You deserve to enjoy your life better because you work hard too!
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