Many people especially youngster have a perception that retirement is too far from us and retirement planning only needs to be done when we enter 50s. This is not correct! Once we start work and earn money, we should plan for our retirement. Traditionally, EPF (Employee Provident Fund) is one of the major sources for our retirement fund. However, in this high inflation era, EPF is no longer enough for our retirement life. We need to get alternative to prepare for our retirement fund.
Since EPF is not enough for our retirement life, we should look for alternative. Saving is another method to fund our retirement life, but if you just put your saving into bank FD (Fixed Deposits), how much interest you can earn? Most of the banks now offer 3.7% interest per annum for FD. 3.7% is obviously lower than the inflation rate. After the recent fuel price hike, inflation this year is estimated to increase to 4-5%. Your money in bank FD is actually losing value in terms of purchasing power.
So, we should save money every month since we start work, and invest the money into investment tools that are suitable for us. Regardless what kind of investment tools, time is a very important aspect. If you invest in properties, the properties need time to appreciate. If you invest in stock market, your stocks need time to grow as companies need time to grow and generate profits. Any kind of investment need time to grow, and the magic of compounding effect will make your investment grow faster and faster in a long run.
Obviously, if we want to prepare a sufficient fund for our retirement, we need to start planning fast. Earlier you start to plan, higher the chance you can be successful, and more fund you can get for your retirement. Very soon, I will show you the difference between start invest early and start invest late.
DO NOT hope that your children will take care of you financially in future. Nowadays, we get married late and when we retire, normally our children just come out to work or not even work yet. They do not even afford to support themselves financially. PLAN FOR YOUR RETIREMENT FUND ASAP!!!
Since EPF is not enough for our retirement life, we should look for alternative. Saving is another method to fund our retirement life, but if you just put your saving into bank FD (Fixed Deposits), how much interest you can earn? Most of the banks now offer 3.7% interest per annum for FD. 3.7% is obviously lower than the inflation rate. After the recent fuel price hike, inflation this year is estimated to increase to 4-5%. Your money in bank FD is actually losing value in terms of purchasing power.
So, we should save money every month since we start work, and invest the money into investment tools that are suitable for us. Regardless what kind of investment tools, time is a very important aspect. If you invest in properties, the properties need time to appreciate. If you invest in stock market, your stocks need time to grow as companies need time to grow and generate profits. Any kind of investment need time to grow, and the magic of compounding effect will make your investment grow faster and faster in a long run.
Obviously, if we want to prepare a sufficient fund for our retirement, we need to start planning fast. Earlier you start to plan, higher the chance you can be successful, and more fund you can get for your retirement. Very soon, I will show you the difference between start invest early and start invest late.
DO NOT hope that your children will take care of you financially in future. Nowadays, we get married late and when we retire, normally our children just come out to work or not even work yet. They do not even afford to support themselves financially. PLAN FOR YOUR RETIREMENT FUND ASAP!!!
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