Have you heard of PAM in 2020?

Hi all, have you heard of PAM in 2020?

PAM stands for Protection, Accumulation & Management.

In the financial planning world, protection is the key to building wealth in the long term. Let me elaborate further for a quick explanation.

Protection of Self forms the cornerstone of our long term wealth building. There are basically 6 categories in the protection zone, 3 categories in the accumulation zone and finally "Legacy Planning" in the final zone (Management Zone).

Imagine you are the golden goose and you can lay the golden egg. So do we protect the golden goose or golden egg when unforeseen events happen? The answer is as clear as the sky on a sunny day. The goose, of course.

To make it simple, we protect the Asset (Self) first, then we build our wealth through careful planning & long term investments. Finally, we manage the wealth to ensure it can outlast us for a comfortable retirement or leave a sizable legacy for the next generation if need be.

So this is the PAM in 2020.

Note: I didn't elaborate on the different categories as it contains financial jargon which only financial practitioners will understand better. I would prefer to give the overview than to confuse readers.