I am not quite sure how exactly my portfolio looks like, since my wife is also managing a big part of our joint finances. But, more or less, my investment portfolio is looking a lot like this:
1. Education plan
Since birth, our three kids are enrolled in an education insurance (Takaful Siswa) plan earning 9-10% returns per annum. Every month Rp.250,000 for each kid is automatically deducted from her salary. To date, this combined plans have accumulated more than Rp.25m. We plan to withdraw for the first time this July, to cover Hayyan’s enrollment fee for Primary school. The rest of the accumulated funds are still intact, and will hopefully be, since my wife and I plan to withdraw lumpsum when the kids are entering college/university.
2. Retirement
I started a retirement plan (lumpsum upon retirement) at one DPLK in 2005, and contributed a meagre Rp.100,000 per month. I will have to contribute this amount until I am 50 to this plan. Small but that’s what I could afford then. After three years now, and good returns of 12-14% per year, my retirement plan looks promising and not that bad. I think I have a balance that could sustain 2 months of life without a job. My wife joined last year and she allocated double my amount, and she already happy with the returns.
Other than this, I also have a pension plan from my current employer. Its about 10% of gross salary and solely managed by the company. I can only get this fund when I quit the job – and received them all in lump sum. Not very flexible though, but at least the money is safe there and beyond my tempted hands to spend them.
3. Emergency fund
This is my biggest loophole at the moment. I am fully aware that ideally a household should have somekind of emergency fund, which is enough to sustain basic expenses for at least 3 months. Frankly, I dont have one. But I do plan to start one and begin allocating 3-5% of my salary to this ‘account’ next month – and I hope it materializes.
4. Others
I dont recall any other investments that I have – I am afraid none. But my wife does have some fixed deposits from her own part-time businesses.
So, basically my portfolio looks pretty basic and not so much of a role model. But in the near future I plan to add more instruments into my egg basket, primarily unit trust, unit link/insurance, gold, and a liquid saving/current account for emergency.
Originally published on luqyantamanni.wordpress.com, June 10, 2008: view original.
