FWD : Save more on your own

My Dear Friends,

It is not enough to rely solely on savings from the Employees Provident
Fund (EPF) when you retire, say financial planners.

“While the EPF has been very successful in forcing people to save, it is
still not enough as most Malaysians cannot support their lifestyle over 20
years solely with their EPF,” said licensed financial planner Rajen
Devadason.

“Also, to depend on your children for support can be quite difficult.

“They will have their own families, their own retirement plans, taxes,
loans and mortgages. Too many goals, too little money to go around.”

He was elaborating on The Star's frontpage report in which psychologist
Prof Dr Low Wah Yun advised Malaysians to start planning their retirement
20 years in advance.

Dr Low said retirement is a transition that could cause major life changes
and be very stressful if one is not prepared. “But with advance planning,
it can be very satisfying and retirees can lead a very productive life,”
she told a conference on Saturday.

Rajen, who has been in financial planning for 10 years, said he would
convince his client to save up to half his or her take-home salary.

“This is after deductions in EPF, Socso and taxes. But if a 35-year-old
person saves 30% (excluding EPF) of his nett salary every month until he
is 55, he should be all right.

“People should also set up a three to six months' buffer fund from their
savings, so that they will have something to fall back on should they lose
their job.

“Three months if you have a stable job, six months if your boss hates
you,” he said with a laugh.

He said Bank Negara Malaysia's insurance mortality table showed that the
average 55-year-old man is expected to live up to 79, while the average
55-year-old woman to 83.

Chartered financial consultant Gary Low recommends a 10% savings of the
salary for those who have just started work and save more as their career
develops.

“A recent survey showed that 17% of Malaysians cannot survive more than a
month with no income. And I believe many more would not be able to survive
three months without income. This is what the emergency buffer is for,”
said Low.

The crucial thing retirees should remember, he said, is that their health
would not get better.

“And it is for this time of old age that you will need your finances to
support your medical bills. When you retire, you should enjoy retirement,
and not spend it worrying when your money runs out.”... like most old folks...

Word of advise,.. with your accumulated 10% savings per month, go for
"safe haven" investment that'll beat inflation,.. go go GOLD...!!!