40 is the new 30, if you’re savvy.

Your 30s are when your career hits full stride. But your 40s are truly when you come into your own. This decade is when you probably have a home, see even more growth in your career, and maybe even start putting a child or two through school.

You’re really living life, but have you checked if you’re financially diverse enough in your 40s so you can enjoy your later years? If you haven’t, you’ve come to the right place. Let’s talk about that, so you’re ahead at that next dinner table chat with your friends!

Key Takeaways

• Financial diversity is important in securing your financial future.
• Investment diversification means getting into multiple assets classes.
• Income diversification can give you security in a tough job market.
• Insurance coverage protects you against life’s hard knocks.

What is financial diversity anyway?

The concept of financial diversity is one that’s less mainstream that we’d like it to be. This concept refers to the practice of building multiple financial resources and owning different assets across different kinds of investments.

It also means developing different income streams, and getting sufficient insurance coverage to make sure anything that happens to you won’t break the financial moat you’ve worked so hard to build over the years.

As retirement looms, you can see why building financial diversity early is important. After all, you don’t just want to end up with only 1 source of income and no protection when you’re in your 60s.

Investment Diversification

You know that one guy that decided to throw everything he had into that condo property just so he could become a landlord? That might be considered income generation and potential value appreciation, but it doesn’t mean he has diversified his investments.

In fact, allocating funds across a wider number of assets is important at this point. You can consider stocks, bonds, property, commodities, or mutual funds, to reduce the impact of any one investment’s performance on the overall portfolio.

Alternative investments are also getting popular. With new Fintech companies spinning up to offer investments in fine wines, art, and even collectables, access to alternative investments has never been easier.

Of course, when it comes to investing, you have to always think about what kinds of risks you’re able to handle, and be sure you do your own due diligence before plunging into any asset!

Widening Insurance Coverage

As the value of your assets rise, and your income streams get more numerous, you’ll need to make sure you start to build protection so that you can replace that income and maintain those assets if a major illness or accident occurs to you. Apart from investments, you may want to consider critical illness coverage.

As we age, critical illnesses tend to rear their ugly head. You might already have coverage for critical illnesses, but think that you need to increase that cover. Instead of upping your already expensive premiums, you can choose to protect your financial health from things like stroke, heart attack and cancer is through critical illness insurance like the Tiq 3 Plus Critical Illness. This plan provides affordable, and flexible cover that starts from $30,000 all the way up to $300,000.

This policy covers 90% of all critical illness claims, and even pays out 20% of the sum insured for any Diabetic complications or severe rheumatoid arthritis. Policyholders can also opt for a heart and neurological disorder rider, which covers the emergence and treatment of common heart and brain related diseases.

Besides expanding on your critical illness coverage, you should also consider adding to your hospitalisation coverage in the event that you need advanced medical care.

Income Diversification

One full-time job, one salary. That’s always been a case for most of us. This might have worked in the 1960s, when life was simpler and pensions existed. Today, retiring on only one income stream is no longer possible.

This is why diversifying your income in preparation for retirement in your 60s is important. Income diversification can comes from things like freelance work, new business ventures, rental properties and investment dividends.

These income streams allow you to have some form of stability by reducing your reliance on that one full-time job. If a retrenchment exercise happens, you know you’ve got money coming in from other sources.

Remember to enjoy your 40s!

Whatever happens, remember that you can’t turn back the hands of time. While you’re working hard to build your financial future, you deserve to feel safe in the knowledge that it’s protected. Discover the right critical illness insurance in Singapore to protect that hard-earned future and ensure peace of mind. Click here to receive a personalised quote today.

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Information is accurate as at 24 August 2023. This policy is underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K). Protected up to specified limits by SDIC.

Tiq by Etiqa Insurance Pte. Ltd.

A digital insurance channel that embraces changes to provide simple and convenient protection, Tiq’s mission is to make insurance transparent and accessible, inspiring you today to be prepared for life’s surprises and inevitabilities, while empowering you to “Live Unlimited” and take control of your tomorrow.

With a shared vision to change the paradigm of insurance and reshape customer experience, Etiqa created the strong foundation for Tiq. Because life never stops changing, Etiqa never stops progressing. A licensed life and general insurance company registered in the Republic of Singapore and regulated by the Monetary Authority of Singapore, Etiqa is governed by the Insurance Act and has been providing insurance solutions since 1961. It is 69% owned by Maybank, Southeast Asia’s fourth largest banking group, with more than 22 million customers in 20 countries; and 31% owned by Ageas, an international insurance group with 33 million customers across 16 countries.

Discover the full range of Tiq online insurance plans here.