Savings and Retirement

Do you still remember the joy of having your newborn child in your arms? It was sheer happiness, wasn’t it? In fact, our children give us the new purpose in life, for sure we are eager to plan for his education, car, house, overseas trip, and a promising future. The truth is in every parents heart, we have decided from the very first day to provide our children with an inheritance as a safety net.

One way to build the inheritance is through regular savings. People are generally can be grouped into two categories. 95% are people wo will spend first and spend later and the remainder 5% who will save first and spend later. Of course the 5% would the more dicipline way of saving your hard earn money.

Many has thought that by earning more, he would be rich in future, but bear in mind, savings and lifestyle will always be a habit. Even how great our earning power is, without proper planning and savings habit, it is all equal to zero. The short term penalty would shortage of funds at the end of the month, credit card debts, and finally risking our children education and your very own retirement fund.

Why savings is so important?

1) We need savings in order to have your very own 1st dream house and dream car.

2) As standby cash for future children education.

3) We need savings for retirement either to support basic needs like food, house, bills,clothes, medical fees to enjoyment like travelling and hobbies. It is never too early to start planning for your retirement fund as it take time for your funds to be compounded.

4) We need to save up some capital to fund future business projects.

5) Old aged parents might depend on us due to the shortage of their own retirement fund.

6) Profitable investments that came by is meaningless without any standby funds.

7) Due to the rising inflation, we need to save especially in an anti inflation account to counter money value depreciation.

There are various ways we can manage our savings. Either it is channeled to some investments funds like bonds, share market, forex, unit trusts, or to be placed in some guaranteed accounts such as fixed deposits, epf, and insurance savings. All depends on the personal risk profile and appetite on the returns. For retirement purposes, always ask yourself these questions. Is this account…..guaranteed? non taxable? how much can i get during my retirement age? what other benefits it offers compared to the conventional bank savings?

The conclusion is that plan before you spend as spending is always about the balance of what you need and what you want.

Check out your retirement number and your child education fund with your agents. Start early as it takes time for money to grow. We provide consultation savings and retirement with a number of financial planning tools to suit your needs and lifestyle. Check out on the products.