A flexible financial plan

I wish to recommend a flexible financial plan that can be adopted by most people, regardless of their age group.

* regardless of age, a working person needs a flexible saving plan combined with adequate insurance coverage.

* the insurance coverage is needed to replace the income, in the event of death or permanent disability; this can be best bought through a decreasing term assurance; the coverage can be increased, when needed, to keep in line with higher earnings or family commitments.

* each person should save 10% to 20% of the regular earnings in a flexible saving plan, and invested for the long term in a large, well diversified low-cost fund (comprising mainly of equity).

This plan is suitable for a working person, from age 20 to 65. As the investment is to get a long term return, there is no need to worry about "risk profile" - just take a long term view.

The only change is when the person retires. At that time, I suggest that they convert a significant portion of their total savings (say 50%) into a life annuity. The remainder can continue to be invested in the fund.

A good financial adviser will probably give the same advice to you.