According to the Department of Statistics of Malaysia year 2020, life expectancy for male is 72.6 years old while for women is 77.6 years old. Do you want to work till the above-stated age? I do not think anyone would like to do so. Life is short, live life to the fullest as we only live once. But how to live life to the fullest? We need MONEY as a medium of exchange for happiness.
Why do we need to plan for retirement?
How many of us save 1st and spend the balance, or are we just doing the opposite? Why? Because we know the next month we still get the same income, right? What if we don’t get this income next month? Do you still spend it all? Definitely NO. When money is limited and starts to depreciate over time, we will then start to plan, spending on necessities 1st then only on lifestyles. Then we regret why didn’t we save. Having a recurring income is what makes us spend it all in a month, agreed? So, invest in a plan which can provide you a recurring income every month when you retire.
2nd reason, no one wish to work forever. We want the freedom to choose whether to work or not when we reach retirement age. Imagine how dreadful it is if you are forced to work at the age of 60 due to not having enough retirement funds. Are you frustrated waking up every day to work with traffic jams, work overload, and lesser time with your family? How wonderful would it be, if I know I just need to work 20 or 30 years to accumulate enough money to support me for the rest of my life?
3rd reason, our health will only either maintain or go downhill when we age. Not all illnesses can claim on a medical card. Doctor consultation on normal sickness due to old age, health supplements, consuming medicine for those with diabetes, high blood pressure, hiring a caregiver, buying technology devices to ease our daily cores, all and all, need MONEY. The fact we can’t ignore is the healthcare cost is only to be going uphill instead of downhill over time. To cope with this reality, we need MONEY.
4th reason, we all want to enjoy life after devoting half of our life working. To stay with our desired lifestyle, we need MONEY. Do you like to be a burden to your child?
To retire comfortably, we all need to save early. No magic. The best time to save is when we start work. When we are young, most of us are bachelors, not much commitment we need to shoulder. Just make saving a habit or fixed expenses such as utility bills or rent. The rule of thumb is to save 20% of what you earn. Or if you have many commitments, try to save as low as RM100 per month to let it multiply and grow over time. Invest your money in line with your risk profile and diversify. There are lots of investment tools out there such as property, equity, insurance plan, commodities, bonds, and cash. Choose the one suitable for you. The key point here is to start saving!
Or you can follow this formula. Train yourself to apply to 50/30/20 rules. Spend 50% of your income on paying off necessities, 30% of the income you can spend to pamper yourself (entertainment, fun tech gadgets, dining out) and 20% of your income go for savings and investment. Remember, ‘Rome wasn’t built in a day’.
Excuses just make your plan become paralyzed. Make it happens, work for it. Remember, we only live once so make sure you enjoy it to the maximum.
Book an appointment with us to kick start!