RM1,000,000 is a necessity not a privilege at retirement.

Good day fellow readers,

Is ONE MILLION ringgit a value that we can be proud of? Maybe today, but in 20 years down, everyone must have that amount or more due to several reasons.

Challenges of Retirement

• Escalating Food Prices @ 3.5%*
• Escalating Healthcare Costs @2.3%*
• Escalating Education Fees @ 2.2%*
• Escalating Property Prices @ 10-15%**

*Department of Statistic Malaysia, May 2013

**The Malaysian Insider, April 2013

Rule of thumb, we should save at least 10% of our monthly income for retirement purposes. Do we really do that? Or are we been living in our debt every month without anything to spare, and hope for a miracle/bonus to pay off some but continue piling up that debt soon after?

Case scenario : You have been living your life in the exact way described above, and now you are 54 years old. Next month you will be retiring, and your only savings are from your EPF. There are around RM350,000 in there, and you smile happily thinking all the things that you could buy and places you could go with that money.

In 6 months you have almost depleted your EPF by settling your credit card, housing, and personal loans. Right now you have around RM15,000 left, with no income, and bills to pay (yes bills does not stop after you retired). You are desperate for income, and took the first opportunity to be a night guard in some shopping complex even though you have severe back pain issue. 

No choice, as your children have their own bills to be paid, and can only give meager amount of money to support their parents. And guess what, you didn't even have the chance to use the EPF money for your leisure, as the bills piled up by the time you retired due to the thinking that everything can be settled after EPF withdrawal.

Above scenario can be avoided with proper financial planning, and there are a lot of ways to do so. My name is Tajul Naim, a financial ADVISOR under CWA, and it is my job to advise people on how to manage their money healthily. If you are keen to know what can be done to make sure you have at least RM1,000,000 in hand by the time you retired, contact me now at 012-9232917.

I won't sugar coat the fact that the longer you wait the more money you need to invest. If you are in your 30's, by right you should have a plan already! If not, help me to help YOU by contacting me now!

Do now or regret later.