I think it’s easy to see that majority do not have any retirement plans. Either everyone is too confident of their future or they just simply do not bother. This is definitely worth more thoughts than spending time on the usual gossips and forwarding of stupid unverified news on Facebook. The first thing for any retirement plan is always to INVEST.
INVEST. Starting is quite easy. Choose a forced savings type and buy a wealth protection plan; insurance. These two would be sufficient for a while until you have saved enough for a bigger investment such as a property, a second property and so on. Without sufficient knowledge, unit trust is better than stocks directly. Fixed Deposit is good and should have enough to last you 6 months should you be out of job.
Rely on ourselves, not others. By the time we retire, it would be that time when we may be sick more often. Our children may love us a lot but do remember that they too must work hard to sustain their lives and some may also be struggling. Thus, if we intend to help them and help ourselves, it’s best that we have enough to at least last us until the day we bid goodbye.
Lessen your monetary burden. Try to structure our debts in such a way that by the time we retire, we would have nothing to pay for monthly except for our insurance. Mortgage payments are normally a huge one on a monthly basis, especially when we are no longer working. If this is not planned, it would mean an additional unnecessary pressure when we retire.
If we have been taking actions for our retirement, chances are there would be enough in our EPF to supplement what we already have. However, do note that for the majority in Malaysia, relying on just EPF is a mistake. There’s just not enough to last more than just a few years. Thus, EPF is last resort and not be treated as main source. Oh yeah, when retirement comes and we do not have enough money, we can blame the world but the one who has to live on is ourselves. Think and act, ok?
written on 9 June 2015
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