Tag Archives: Retirement

Future plans

To what extent do you want to plan for your retirement?

INSURANCE agents, telemarketers and direct sellers have traditionally topped my list of people to avoid on most days, no matter how good my disposition. Now, there’s a more intimidating addition – people selling financial products that will turn my paltry savings into magical millions.

These are the seers of gloom and doom, resolute in their conviction that since I didn’t start planning for my retirement the moment I joined the legions of the employed more than two decades ago, I am fated to spend my old age in abject poverty. Ah, but wait … there is hope, they whisper to me conspiratorially.

These folks are the evolution – or mutation, depending on your outlook – of the insurance agent of yore. Once, they sold life, medical and accident policies, but then realised none intimidated people like me effectively enough. So they added the spectres of retirement and old age to their portfolios!

Just the other day, I was told that if I planned to live another 20 years, post-retirement, I would need at least RM3mil to keep me and the missus good for the long haul.

Really, who does the maths for these things? And to tote up that sort of money, I would need to work five lifetimes!

Look, I’m not much of a saver but despite our country’s ridiculously youthful retirement age of 55, I’ve planned stuff to keep me occupied for many more years. Or not, depending on how long I’ll live. Proles like me can handle only that much planning, beyond which, Fate calls the shots.

One agent making his pitch to me dismissed the good, old-fashioned insurance policy outright, and said it was old hat. Investments – bonds, funds, equities, all words existing in the fringes of my consciousness – were the way to go, he said, and these would grow and grow to ensure a comfortable nest egg upon retirement.

However, in order to do that, I first had to get into debt to be able to shell out the premiums. OK, I’m kidding, but the pay­­­ments would have left me with little to savour at the end of the month!

“It’s a small sacrifice to take care of your family’s future,” I was assured. See, that’s how they tighten the screws, suggesting that you’re an uncaring hound and don’t love your family if you don’t go with the proposal.

My plan for now is mostly to live one day at a time, and in moderation. Why deny yourself the more salubrious elements of life when you could get a heart attack and die the day after you retire? What irony to have planted and tended investments while denying yourself any indulgences, only for someone else to enjoy the fruits of your planning!

The future looks scary enough as it is. Earthquakes, tsunamis, floods, volcanic eruptions, diseases – who knows which of these will one day bring the human race to its knees and nudge it to the brink of extinction? Today, you’re going about life as usual; tomorrow, you’re standing at the precipice of a nuclear disaster.

So enjoy the normal and desultory while you can, for these may be rare in time to come. Don’t grow old worrying, scrimping and saving, afraid that you won’t have enough to last you until you turn 80 – the end could be sooner, and you don’t want not to have lived your life to the fullest.

Now, if I could only keep ducking those agents for a few more years and then, when they ask me what my retirement plan is, I can say: “I’m living it!”

Time to start planning that grand and exotic vacation ….

sumber : The Star Online

So kawan-kawan, star your retirement planning now!!!

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5 reasons why you should invest

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Make your money work harder – Generate more income, without lifting a finger. An investment with regular returns could provide financial support if you’re unable to, or decide to take a long break, from work.

Retirement – With life spans increasing, fruitful investments can help ensure peace of mind in your retirement years.

Education – Your investments will provide proper financial support for all your children when they knock on the doors of higher education.

Beat inflation – The right investment vehicle will generate returns that consistently surpass annual inflation rates and ensure your future needs are well provided for.

DreamsCaribbean cruise? Business venture? You can make that long-cherished desire a reality with a sound investment strategy.

 

How much do you need for retirement?

Retirement saving is about devising a plan that meets your financial needs.

THERE are many retirement calculators online that can help you estimate your retirement “number”, which is how much money you need to support yourself after you retire. For this article, StarMag used a calculator found at www2.listen.com.my/calculator_/index.html.  With this calculator, you will be asked to enter information for the following questions:

·Your expected retirement age, and how many estimated years of retirement spending?

·Your chosen lifestyle and expected monthly expenses (basic, modest, comfortable or indulgent)?

·Details of your expected monthly expenses upon retirement (food, transport, clothing, medical, travel and entertainment, housing, and other expenses). Consider how each of these will be different at retirement age, eg your risk factors for diseases, or whether you will travel more?

·Your existing resources for retirement, including EPF, unit trust, property, fixed deposit, and other assets?

Based on projections, such as returns and inflation rates, you will get a rough estimate of how much you will need when you retire, and whether your existing resources match this number. Remember, this is only an estimate, as there are many financial factors beyond your control. This number may change if your lifestyle or circumstances alter, for instance if you have more dependants, or experience a drastic change in income.

Credit : The Star Online