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4 Ways To Start Planning For Your Retirement

Have you started to plan for your retirement? If you have, VERY GOOD! If you haven’t, no worries, we can start NOW! Today’s topic is about ‘4 Ways To Start Planning For Your Retirement’. The big question will become ‘How much is enough for me to retire?’ ‘How long do I need to save for it to be enough?’ But those questions are unique to your own LifeStyle and age. But I’m not talking about that today. Today… I’m letting you know 4 tools that you can use to maximize your capital. First, through EPF or KWSP. Most if not all private-sector workers are enrolled in this compulsory savings & retirement planning. Many will be sorely dependent on their EPF when they retire at the age of 55 or 60.

If you can see the graph showing on the screen right now, it shows the past 10 years of interest rate. The average is around 6.67%. This is of course better than just leaving your money in the bank collecting dust. Let’s say your current EPF account has RM 100,000 and the interest rate is 6% annually, it amounts to RM 6,000 per year. And if you did not make any withdrawals using any of the methods (Buy a house, Education, Health, Haji etc) Now, the second is through Property.

Investing in property is a more commonly known way to build your income and capital over time. Property is just not limited to houses but can be in shop lots, land ownership, apartments, and many others. When you buy a house, you can rent out the rooms or the entire house to tenants or make it as an Airbnb. This will generate an income for you steadily and when you retire from your main job, it can still be your source of income. The third tool you can use is the Stock Market.

Stock Market is a riskier way you can invest your money in. If you have the extra money, you can try buying some of the stocks available. The reality is that investing in the stock market carries risk, but when approached in a disciplined manner, it is one of the most efficient ways to build up one's net worth. While the value of one's home typically accounts for most of the net worth of the average individual, most of the affluent and very rich generally have the majority of their wealth invested in stocks. So you can see how the Stock Market can be a lucrative venue you can go into. BUT! WARNING! Don’t put all your retirement savings into the Stock market, expecting it to be a gold mine.

The last one will be Insurance. Yes, you heard correctly, through Insurance.

What I’m talking about is the safety net that Insurance gives to the clients in the event that they have to retire early due to unfortunate events. Such as illness or disability. Yes, there are investment plans you can purchase through an Insurance company. This plan is a 20-year payment premium plan. With funds to select that offer interest up to 7% annually. Honorable mentions: 1. Cryptocurrency. 2. Fixed Deposits. 3. Unit Trusts. 4. Your Children. Remember, it’s never too late to start planning your retirement. If you’re interested in the Insurance ways of increasing your investment, do contact me through the number below.

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