Considerations on the use of the early critical illness payout

There are several considerations on the use of the early critical illness payout. Everyone situations and priorities are different. What is suitable for me does not meant that it is suitable for you or anyone else out there. I can only provide a view of my thoughts and actions to serve as a reference (Not financial advise).

After the initial excitement, I wasted no time to transfer the money into an investment saving account that I have while waiting for that flush of excitement to calm down. To be honest, the six digit payout was like a lottery windfall but given a choice, I am sure that nobody would like to make such a claim payouts. 

While I have an urge to spend it like a lottery windfall, I knew that I would be in trouble if I did that. Not going to judge or anything, there are some people who would be spending the payout like a windfall. They could afford a lifestyle whereby they would be able deal financially with another critical illness without such payout. There are others who would need to take a break from their career to perform self actualization after such scare. There are also people who would need the money to improve the living condition at home. There are a minor group who would hope to use the money to secure an early retirement. I belong to the last group. I want to make use of the critical illness payout to secure monthly passive income which I hope eventually I could retire with the money.

No matter what happen, do not let other judge or tell you how you should spend your critical illness payout. This is your money. You are free to do what you want so long as you have no regret. 

To be able to retire early with a good disposable income is something that I had in mind since I stepped out of school. I knew the importance of investment and it will be the key towards my retirement. While working as a risk manager, I was not savvy in financial investment. I made losses trading in shares, forex, peer-to-peer lending and etc. I knew that I was not born to be someone who was able to make a living out of trading. 

Through my insurance agent, I managed to have a few saving investment plans. (Many people did not like and trust the insurance investment plans citing the high price to pay for such investment. While I agree that it had a high paying price, if you hold it long term, your investment will outpace the cost.). I also invested a dividend share and enrolled myself into a few robo advisors to assist me with the funds. 

 I was inclined to move towards that direction. I called for an appointment with my insurance agents to ask him to give me advise on the investment plans in the market. We set the appointment on Christmas Eve. I was impressed by the Greatlink Multi-Sector Fund and Greatlink US Income and Growth Fund. Instead of taking the fund and invest on their own, they invested it into Pimco GIS Income Fund for Multi-Sector Fund. As for Greatlink US Income and Growth Fund, I do not have any clue to who manage the fund. I could be wrong, this could be an in house product. Whichever is the case, these products provide a monthly payout. 

Ultimately, I felt that these are the right products for me for the following reasons:

1. The portfolio of these funds are diversify.

2. The track record of Pimco and Greatlink

3. Agent proactive monitoring (They themselves and their clients are vested too)

4.Monthly dividend payout is a plus. I could send this dividend back into the fund or other funds for dividend growth.

I will update the dividend result once I have the info and incoming, The road to FI and passive income is long and I hope that I could be an inspiration to those who want to use their early critical illness payout to create something for themselves and their family in the future.

P.s. Not a financial advice. Please treat this as the rambling of an middle age uncle.