My friend, Mary, is a school principal at a primary school. Her salary has already reached RM5K recently. When she retires 3 years later, she will be getting at least RM2,500 from her pension.
Since she is single, no dependent, staying at school hostel and having no expensive hobby, she has accumulated at least half a million, and a terrace house monthly rental at RM800.
Another friend, Sarah, approached her to join her successful business in the insurance industry. Sarah is a single mother having 2 children. She worked very hard to raise her 2 children and eventually, successful in her insurance career.
Mary was attracted by Sarah's invitation of becoming an agent. After giving much thoughts about that, my advice to her is this.
Firstly, Mary will have no problem with her financial income after retirement. Other than her pension, she will have dividend from her unit trust investment, annuity from her insurance policy and rental from her house. Since she has no dependent, and no commitment other than her medical policy of about RM300p.m., she will have more than what she needs financially.
Secondly, Mary has been a teacher for more than 25 years, and after that promoted to be school principal until now. If she were in the insurance industry, she will be doing sales. This is totally different from teaching. She is a much respected figure in the school. If she starts calling her circle of friends to buy insurance policy, we believe very soon she will be turned off.
Thirdly, when we have reached 60 years old, assuming our life span is 75 years old, there is another 15 years to live. Does she want her next 15 years having a work like that?
When we are older, when money is no longer an issue, people normally want to do something meaningful in their remaining years. Some may involve themselves in charity work, religious activities or engaging in hobbies that they have always wanted to do.
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