Event: Manage your time and money as caregiver Date: 30 March 2014 Venue: AICare Hub Presentation: Managing your Dollars and Sense by Dr Mary Tan Tips on planning your finances, having sufficient to meet your, and your loved ones' needs while saving up for rainy days.

1. 1
Work Experience
Dr Mary Tan has about 30 years of training experience. She has been actively
involved in the Singapore government’s infrastructure planning, design and
development. Currently, Dr Mary is with the LTA Academy and engages in a
one-stop focal point for governments, organizations and professionals around
the world to tap Singapore’s know-how and exchange best practices in
management and development. She helps to design and conduct learning
programmes, and organizes international conferences and seminars. Dr Mary
also helps at the Singapore Polytechnic Business School and serves as a
member of the Board of Examiners in BCA Academy with effect from 1 Aug
2012. She holds a full Advanced Certification in Training Assessment
(ACTA) (6 units) certification. Besides her contribution in the civil service, Dr
Mary uses her expertise wisely as a volunteer trainer at voluntary welfare
organizations, educational institutions and religious organizations specializing
in Financial Education and Successful Ageing. She was conferred a High
Achiever Business Alumnus by the University of South Australia since 2008,
and has been regularly interviewed by the local radio station Capital 95.8FM
and featured in the local newspaper TODAY.
Mobile: 92958169
Managing Your Dollars and $ense
through Financial Planning
by Dr Mary Tan

2. What is Financial Planning?
• Financial Planning is a life-long commitment
to achieve financial security and success,
particularly for our care recipient’s financial
future.
If you fail to plan …
… you plan to fail!
A comprehensive financial plan includes:
Estate
Planning
Investment
Planning
Retirement
Planning
Tax
Planning
Education
Planning
Making a Will
Saving for
children’s
education
Saving for
retirement
Buying an
appropriate
insurance plan
Choosing the
right investment
product

3. •• Cash ManagementCash Management –– Budget andBudget and
Cash Flow PlanningCash Flow Planning
•• Risk ManagementRisk Management -- InsuranceInsurance
•• Estate PlanningEstate Planning
Basic Focus :Basic Focus :
Are you financially prepared?
• As a caregiver, are you prepared
for:
your own financial independence
when you are retired?
your care recipients’ medical and
financial needs when you have no
income or are gone, particularly
in ensuring that they are able to
maintain their standard of living
including medical and care-giving
expenses?

4. What is Net Worth?
• A snapshot of your financial position at a
specific point in time
• A calculation of your assets (WHAT YOU
OWN) minus your liabilities (WHAT YOU
OWE)
• Preparing a net worth statement will help
you get a clearer understanding of your
financial resources and make decisions
about how best to manage them.
What is Net Worth?
Net worth = Assets – Liabilities
–Implies you have true wealth.
–Implies you are technically bankrupt.
Positive Amount = A Cash Surplus
Negative Amount = A Cash Deficit

5. Mdm. Wong
Mr. Han
• Owns a 5-rm HDB flat worth
$400,000. Fully-paid.
• Has savings of $30,000 in bank
• Current value of her shares is
$20,000
• Owns a $1.2 million private
condominium. Outstanding
bank loan of $1 million.
• Has savings of $5,000 in bank
• Current value of his shares is
$100,000
• Owns a $70,000 car but with
outstanding loan of $50,000
Net worth
$450,000
Net worth
$325,000
Example: Who is Wealthier?
Source: MoneySENSE
Mdm Wong!!! Her net worth is
higher!
How do I track my spending?
A good way to start taking control of your
financial situation is to develop a savings
and spending plan.
This is called a BUDGET.

6. Sources of Income Household Expenses Positive or
Negative
=
_
Salary, employer CPF,
dividend, interest,
rental income, public/
private financial
assistance, etc.
Fixed payments e.g. rent, housing
mortgage & maintenance, car loan &
maintenance, insurance premiums, etc.
+
Variable payments e.g. food, personal care &
use, utilities, medical, transport, recreation &
social, savings & investments, education,
pocket allowances for children, etc.
A Typical Family Budget
+
Care-recipient related expenses e.g. special
diet, diapers, transport (day-care centre/
hospital), specialized treatment, maid/
caregiver, special assistive equipment,
medical fees, etc.
What are the Spending Traps?
• Buying unnecessary things
• Expensive meals
• Cigarettes and drinks
• Gambling
• Keeping up with the others
HowHow much can it cost?much can it cost?

7. The Costs can Add Up…
Item Monthly
Expense
Amount when you are
85-yr-old*
Cigarettes
($9.50/box, 3/week)
$114 $66,432
Beer
($2.50/can, 3/week)
$30 $17,482
Gambling
($10/week)
$40 $23,309
Assuming you are 45 years old. *Interest @ 3% p.a.
Some Money-Saving Ideas on Utility
• Standby power can account for up to 10% of your
home electricity use. Switch off your home
appliances from standby mode!
• Energy saving light uses up to 80% less electricity
than light bulbs to produce the same amount of
light, and they can last up to 10 times longer!
Use an energy saving lamp (7W) instead of a bulb
(40W)!
• A fan uses less than 10% of the electricity used by
an air-conditioner! Use a fan instead of an air-
conditioner to keep cool!
• Boil water only when needed or consider using a
thermo-flask to keep hot water. Electric air-pots
which keep water hot constantly can cost you
about $180 a year in electricity! Source: www.e2singapore.gov.sg

8. Mrs Lim saved $50
monthly for 40 years
starting at 25.
Who will have more at 65?
$74,126
The Savings can Add Up too…
Mr Lim saved $125
monthly for 20 years
starting at 45.
Time is Money!
The earlier in life you start saving,
the more you’ll have later!
Note: Assume 5% p.a. interest
25 30 35 40 45 50 55 60 65
AGE
$50,725
$ 75,000
$ 45,000
$ 30,000
$ 15,000
$ 0
Total Savings =
$24,000
Total Savings =
$30,000
Why should I save?
Achieve your financial goals
LongTermGoals
ShortTermGoals
Savings can help you
manage your risks too!

9. Tips for Maintaining a Budget
• Spend on your Needs, Save
from your Wants
• Exercise will-power and
self-control
• Develop a good record-
keeping system
• Review your budget regularly
• Educate yourself in money
matters
Basic InsuranceBasic Insurance
SchemesSchemes ToTo
ProtectProtect
CaregiversCaregivers &&
Their ElderlyTheir Elderly
Loved OnesLoved Ones

10. Insure Your “Largest” Assets
• YOUR HEALTH
• YOUR HOME
• YOUR INCOME
What is Insurance?
Protection against large-scale
financial loss in exchange for a
small charge (premium). In other
words, in the event that something
unexpected were to occur, it is one
way to AVOID risk, MINIMIZE risk, or
to pass on or TRANSFER risk.
Life Insurance
• Gives you and your family financial protection
against the financial loss that can happen after
your death or if you suffer a total and
permanent disability.
• Can also give you a retirement income or act as
a financial back-up in emergencies and protect
you against health-care costs.
Insuring your Income

11. Types of Life Insurance Products
Traditional Policy
Whole Life • policy will pay out the sum insured
and any bonuses you have built up (if
any) when you die or become totally
and permanently disabled
Term Life • pays the sum insured only if you die
or become totally and permanently
disabled during the covered period.
Endowment • pays the sum insured and any bonuses
you have built up at the end of the
set period of time (maturity date),
when you die or become totally and
permanently disabled if it happens
during this period.
Source: MoneySENSE, “Your Guide to Life Insurance”
Mortgage Reducing Term Assurance
Plan (MRTA)
• provides for a sum of money to
cover the housing loan balance if
the insured person dies
• the sum insured is reduced over
the loan duration in tandem with
the decrease in the housing loan
amount
Insuring your Home

12. Home Protection Scheme (HPS)
• For borrowers who use CPF
savings to pay instalments on
HDB, HUDC….
• CPF will settle the housing loan
if the insured dies or meets any
incident that incapacitates their
ability to earn income
Insuring your Home
Insuring your Health
Health Insurance
• Prevents you and your family
from suffering a financial loss as
a result of an accident, illness or
disability
• Provide an income while you are
disabled or in hospital, or cover
the cost of your medical or
nursing care

13. Types of Health Insurance Products
If you want to…
• Have your medical expenses paid Medical expense
insurance
• Receive a fixed amount of cash when
you are in hospital
Hospital cash insurance
• Reduce your financial burden when you
are diagnosed with a major illness (e.g.
cancer)
Critical illness insurance
• Protect your income when you are
unable to work
Disability income
insurance
• Pay the cost of any care you need when
you are too weak to look after yourself
Long-term care
insurance
Source: MoneySENSE, “Your Guide to Health Insurance”
• MediShield Plan
– An affordable basic medical insurance that protects you
from large bill shocks
– Intended for subsidised (Class B2 and C) bills
– Intended for selected subsidised outpatient
treatments such as dialysis and chemotherapy for cancer
– Designed to target large subsidised bills through claim
limits, deductibles, and encourage responsible use of
healthcare through co-insurance.
– Works on the basis of risk pooling i.e. by pooling and
spreading the costs of large bills across all its members.
Basic Insurance Schemes

14. • MediFund
– an endowment fund set up by the Government
as a safety net to help needy Singapore
citizens who are not able to pay their medical
expenses.
– also a safety net for those who are unable to
afford the subsidized charges at restructured
hospitals even with Medisave and Medishield.
http://www.moh.gov.sg
Basic Insurance Schemes
Proposed MediShield Life
Source: MOH
• With more benefits, better coverage, and greater peace of mind,
premiums will be higher.
• But premiums will continue to be affordable, and Ministry of Health will
help those who cannot afford it.

15. Estate PlanningEstate Planning
“Basic” Estate Planning
• Mental Capacity Act
– allows you to appoint guardians to make decisions
on your behalf should you lose your mind to illness
or accident
• Will & Trust
– deals with disposition of property at death
• Trust & Revocable Nomination
– with use during lifetime and at death
• Advance Medical Directive (AMD)
– allows you to set forth your wishes regarding
extraordinary life-saving measures

16. Mental Capacity Act
• New law passed in Sept 2008
• Allows you to:
1. Choose someone you trust
beforehand to make decisions
for your welfare and finances
when you can’t do so yourself some
day.
2. Ask the court to appoint a decision-
maker for your loved ones when you
are no longer able to do so.
Avoiding Intestacy
If you die without leaving a valid Will, you are said to die Intestate.
Surviving Relatives Entitlement
1. Spouse (no children, no parents) Spouse takes all
2. Spouse & children Spouse takes half,
Children share balance
equally
3. Spouse & parents (no children) Spouse takes half,
Parents share balance
equally
4. Parents (no spouse, no children) Parents share equally
5. Siblings (no spouse, no children
or parents)
Siblings share equally
6. Grandparents (no spouse,
children, parents or siblings)
Grandparents share equally
7. Uncles & aunts (no spouse,
children, parents, siblings or
grandparents)
Uncles & aunts share
equally
8. In the absence of any of the
above mentioned relatives
Government takes all

17. Why have a Will?
• To ensure that it is YOU who decides how your estate is
distributed upon your death.
• To be assured that your loved ones (who are ultimately
the Beneficiaries of your Will) are provided for in
accordance with your wishes.
• To avoid Intestacy and having the public trustee decide
who receives your property
– To appoint an Executor whom you trust
– To appoint a Guardian for your loved ones
– To appoint a Guardian or Trustee to administer
property for your loved ones
Resources and Assistance Schemes
for Patients and Caregivers
•Advance Care Planning
•Aged Care TransitION (ACTION) Project
•AICare Hub
•Caregivers Training Grant
•Community Health Assist Scheme (CHAS)
•Foreign Domestic Worker Grant
•Foreign Domestic Worker Levy Concession for Persons with Disabilities
•HOlistic care for MEdically advanced patients (HOME) Programme
•NEXTSTEP
•Public Education and Community Engagement
•Seniors' Mobility and Enabling Fund
•Singapore Programme for Integrated Care for the Elderly (SPICE)
•Singapore Silver Pages
Source: NCSS - Assistance Schemes for Individuals
& Families in Social and Financial Needs
Please check AIC website at www.aic.sg for more details

18. Q & A
Thank you!Thank you!