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Retirement Plan Are you Ready for RETIRE???
How you prepare for your retirement??
What is your retirement Plan??
Are you wants to retire early??
TIME TO THINK!!! THINK!!!THINK!!!
Example only:
let Say if you have RM200K ( EPF + others source) when you retire and your monthy expenses is RM5K.
RM200k/ RM5K = 40
40 / 12 = 3.3 yrs.
meaning your money will finished in 3.3 yrs.
WHAT ARE YOU GOING TO DO NEXT??? WORK AGAIN? THINK AND TRY TO SAVE/INVEST UR MONEY NOW......
Or, if spend your EPF money for your kids education, renovate the house or change your car, or other spend for commitment, the money will finished in shorter time.
MAKE SURE YOU HAVE SUFFICIENT FUNDS WHEN U RETIRE.
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EVERY UNIT TRUST INVESTORS SHOULD KNOW HOW TO CALCULATE THE RELAVENT CALCULATIONS.
CLICK HERE TO DO CALCULATION BY YOURSELF.
All the figures are only an assumption and does not indicate the past or future performance of any specific unit trust Fund. Past performance is not indicative of future performance.
Got enough for retirement? Click here.
Set savings target and live within means. Click Here.
Retiring in Style. Click Here.
27,278 centenarians recorded in Malaysia.
Old, but appreciative of life.
This is a simple calculation, how much you need for your retirement.
Assume your retirement age is 55 and as average Malaysian's life expectancy is 75 years.
You need to prepare retirement period money for 20 years before you reach 55 year old.
THIS CALCULATION WITHOUT TAKING INFLATION IN CONCIDERATION FOR 20-YEAR RETIRMENT PERIOD.
If your monthly expenses is RM2000.
For 20 years =
RM2000 x 12 months x 20 years = RM480,000
This mean you need to get ready with RM480,000 before reach 55 years old.
SO, HOW MUCH YOU NEED TO SAVE MONTHLY.
Le say your age is 30 now and you have 25 years for your retirement, if you plan your retirement age is 55.
The calculation is;
Rm480,000 divide by 25 years divide by 12 months = RM480,000 / 25 / 12 = RM1,600.
This mean you need to save RM1,600 monthly until you reach 55 years old to have RM480,000 for your 20-year retirement period.
With Retirement plan with Public Mutual, with annual average return 10%, You only need to save RM370 monthly for 25 years to get Rm480,000.
RETIREMENT PLAN:
(regular saving or Lump Sum)
Preparing for your GOLDEN YEARS.
One day you will get OLDER and you need money until your LAST DAY. Are you going to depends on others for your financial needs until your last day?? THINK!!! I can show you the way how to prepare to get ready the money for your financial needs after you retire until your last day.
Are you well-prepared for retirement?? If you retire at 55, it means your retirement years could be as long as your working years and you have about 20 to 30 years to go after retirement.
This means you need to accumulate money from your working life to cater to retirement. Your earnings need to last you for 30 years.
What is retirement really means??
Retirement means you are not going to work anymore.
What is retirement plan means??
Retirement plan is make sure you have enough money until your last day without depending others for your financial needs after you retire. One studies conducted in Malaysia have shown that most retirees spend all their EPF money within 3 years of their retirement.
So, how to survive retirement??
Most of us spending most of our savings, on our children Education and clearing debts on house and car loans. Everyone has different Financial situations. However, we need to plan for our retirement apart from EPF savings.
Every individual of different occupation and age will go into retirement one day. Regardless of how you want to spend your golden years, you will need sufficient FINANCIAL preparation beforehand.
Although early retirement is something most of us wish for, it also means you will need a lot more money as you need to fund a longer retirement period. According to Bank Negara Malaysia, the average lifespan of Malaysian is 77 years for males and 83 years for females. As such, your retirement funds will then have to endure the eroding effects of inflation for about 20 years or so. It is therefore important to build a solid nest egg which be able to match the increasing cost of living.
Why a investor should start as early as possible???
example1.
Assume that 7 investors will retire at age of 55. Pls see the different of the returns. Assume the Capital investment is RM10,000 and average return is 10% annually.
MR/CURRENT AGE/YEARS TO RETIRE/ RETURN OF INVESTMENT.
A/ 20 / 35 / RM281,000
B/25/30/RM174,000
C/30/25/RM108,000
D/35/20/RM67,000
E/40/15/RM41,000
F/45/10/RM25,000
G/50/5/RM16,000
MR.A start invest at the age of 20 and his investment period is 35 years. He will get about RM281,000 at the age of 55 due to his money works for him in the name of compounding interest.
MR.G start invest at the age of 50 and his investment period is 5 years only. He only will get about RM16,000 at the age of 55 due to no enough time for his money work hard for him.
What you can learn or understand from above is, The earlier start investing, there are more time for compounding interest and the return is MORE!!!!!.
Example2:
Mr A is 35 year old, who plan to retire at the age of 55 and he expects to live up to the age of 80. This gives him a retirement period of 25 years and now he have 20 years to build up his retirement fund.
Mr A.
- Current Age - 35
-retirement Age - 55.
-required years to build up the retirement plan - 20 years.
Mr A need to pay attention to the basic living expenses during retirement - those that generally will increase as well as those that will decrease.
Increasing Expenses During Retirement.
:-Health and Medical.
:-Vacation and recreation
:-Contributions and Gifts Decreasing Expenses During Retirement.
:-Mortage (Housing) loans.
:-Taxes
:-Transportation
A simple way to gauge how much Mr A. will need for his retirement is taking 80% to 90% from his current annual expenses. However, he will also need to factor in the inflation rate over the years before his retirement.
Mr A.. annual expenses amount to RM60,000(including loan repayments for housing and car). Upon his retirement, he targets to have fully paid off his housing loan and other loans (dept-free) during his golden years.
There, he estimates his yearly expenses during retirement to be 80 % of his present expenses.
Taking into account inflation 4% per annum, his expenses would increase to RM105,120 after 20 years.
Current Expenses = RM60,000
Future Expenses = (RM60,000 x80%) X 2,19(Inflation 4% in 20 years) = RM105,120.
To generate enough money throughout for retirement Mr A. would need to place a lump sum figure into an investment vehicle which gives good returns. However, He should also note that although he may have stopped working, inflation continues to work.
Hence, his real returns will be less after adjusting for inflation. Mr A. targets to get about 5% return on investment upon his retirement. Using his yearly expenditures of RM105,120 and his real rate of return (rate of returns during retirement after adjusting inflation, 5%-4% +1%),he would need about RM2,337,869 at retirement to sustain himself for the next 25 years.
Retirement Fund required =
RM105,120 x 22.24 (rate of returns during retirement after adjusting inflation, 5%-4% =1%) = RM2,337,869
After calculating the retirement amount that is needed, Mr A.will now need to find out how much your shortfall is. Simply deduct off his estimated EPF savings he would accumulated at retirement age to find out exactly how much he will need to save prior to his retirement.
Mr A. estimates to have about RM950,000 in his EPF account when he retire, which leaves him with RM1,387,869 to make up for in the next 20 years.
Retirement Plan =Rm2,337,869
EPF savings = RM950,000
Shortfall = RM2,337,869 - RM950,000 = RM1,387,869.
After setting aside an emergency buffer for six months, Mr.A has about RM70,000 to kick start his investment programme. He plans to invest the lump sum into an equity unit trust fund which he expects will give him annual returns of 9%.(This fugure is only an assumption and does not indicate the past or future performance of any specific unit trust Fund).
This means his investment will grow to RM392,000 upon his retirement, leaving another shortfall of RM995,869.
Lump sum investment = RM70,000
Total after 20 years with average returns 9% = RM70,000 x 5.60 = RM392,000
Shortfall = RM1,387,869 – RM392,000 = RM995,869
MR. A plans to invest in a portfolio of stocks and unit trusts to fund for his shortfall. Using an example of 9% annual returns, he will need to invest RM1,484 monthly in order to get RM995,869 by the time he retires 20 years later.
Amount needed = RM995,869
Monthly investment with average returns 9% = RM1,484
MR.A. Start the investment with lump sum of RM70,000 with the average return 9%. The return for RM70,000 will be RM392,000 upon his retirement.
Lump Sum investment =Rm70,000
Total after 20 years (average return 9%) = RM392,000.
Shortfall = RM1.387.869 - RM392,000 = RM995,869.
Amount needed = RM995,869
Monthly investment (average return 9% for 20 years) RM1,484.
Conclusion: Mr. A need to prepare RM2,337,869 before reach 55 years old. He need to start his initial investment with RM70,000 and monthly top-up is RM1,484 to achieved RM2,337,869 when he reach 55 years old.
1.Counting on the nest egg:Click here
2.Way too young to retire at 55?:Click here
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RETIREMENT PLAN BY PUBLIC MUTUAL:CLICK HERE. Retirement Planning Needs Analysis. Proceed to use calculator : Click here
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A Simple example for better understanding , If MR A plan to have RM500,000 when he retire.
IF THE AVERAGE RETURNS IS 3%. (CONSERVATIVE FUNDS)
Invest the money with average return 3%.
MR A. need to save RM1520.00 monthly for 20 yrs to get amount of RM500,000 upon 20 yrs.
Total invested amount is RM1520 x 12 Months x 20 years = Rm364,800
IF THE AVERAGE RETURNS IS 4%. (CONSERVATIVE FUNDS)
Invest the money with average return 4%.
MR A. need to save RM1360.00 monthly for 20 yrs to get amount of RM500,000 upon 20 yrs.
Total invested amount is Rm1360.00 x 12 months x 20 years = Rm326,400
IF THE AVERAGE RETURNS IS 5% (CONSERVATIVE FUNDS)
Invest the money with average return 5%.
MR A. need to save RM1210.00 monthly for 20 yrs to get amount of RM500,000 upon 20 yrs.
Total invested amount is Rm1210 x 12 months x 20 years = Rm290,400
IF THE AVERAGE RETURNS IS 6%. (CONSERVATIVE / MODERATE FUNDS)
Invest the money with average return 6%
Mr A. need to save or invest monthly RM1075.00 for 20 yrs to get amount of RM500,000 upon 20 yrs.
Total invested amount is Rm1075.00 x 12 months x 20 years = Rm258,000
IF THE AVERAGE RETURNS IS 8%. (MODERATE FUNDS)
Invest the money with average return 8%.
Mr A, need to save or invest RM845.00 for 20 yrs in to get amount of RM500,000 upon 20 yrs. Total invested amount is Rm845 x 12 months x 20 years = Rm202,800
IF THE AVERAGE RETURNS IS 9%. (MODERATE FUNDS)
Invest the money with average return 9%.
Mr A. need to save RM745.00 monthly for 20 yrs to get amount of RM500,000 upon 20 yrs.
Total invested amount is Rm745.00 x 12 months x 20 years = Rm178,800
IF THE AVERAGE RETURNS IS 10%. (AGGRESSIVE FUNDS)
Invest the money with average return 10%.
Mr A. need to save RM655.00 monthly for 20 yrs to get amount of RM500,000 upon 20 yrs.
Total invested amount is Rm655.00 x 12 months x 20 years = Rm157,200
Free Online Calculator.
example:
Base amount = RM1520
Annual Int Rate = 3
years = 20
Reg monthly deposit = RM1520
Interest Calculated = Yearly
Currency = others & click calculate
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A FREE - Financial Freedom Retirement Planning Software.
At Public Mutual, we have developed a simple do-it-yourself software that is speacially designed to help you plan for your retirement. The software allows you to:
1.Diagnose your Financial risk tolerance.
2.Analyse your children's education needs.
3.Determine the fund required.
4.Come up with suggested funding options.
The software also lets you do a quick check on your EPF funds to see if they are sufficient money for your retirement goals.
Pls call/email me to get free copy of this.
I will brief, if you interested to know about Unit Trust.
If you interested to know about Unit Trust Investment, just Call me/SMS me /Email me for free consultation.
Parameswaran.K @ RREMY
Unit trust Consultant/MFAS
Agency Supervisor.
017-8735029
Klang,Shah Alam,PJ,KL @ all Malaysia.
http://www.publicmutual.com.my/
kparam77@yahoo.com
http://www.grow-money77.blogspot.com
http://www.cara-menguruskan-wang.blogspot.com
EVERYBODY DESERVE TO BE FINANCIAL FREEDOM.
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The followings are for example only and no guarantee.
A few type of retirement plan for those 25 years old now. Assume retirement age is 55.
This is a 30 years plan.
Conservative = low risk
Moderate = Medium risk
Aggressive = High risk.
Below is the plans base on average return of 10% - consider medium to lower aggressive investors.
RM5,000,000. 00 (RM5 MILLION) PLAN.
Initial investment = RM1,000.00
Monthly top up for 30 years = RM2500.00.
(RM2500 x 12 months x 30 years = RM900,000.00)
Total investment value = RM1,000 + RM900,000.00 = RM901,000.00
Profit = RM5,445,000 – RM901,000 = RM4,544,000.00
AFTER TAKEN OUT RM5,000,000 FROM PUBLIC MUTUAL (AFTER 30 YEARS OF TIME INVESTMENT PERIODS), THE INVESTOR CAN PUT THE MONEY IN FIX DEPOSIT. IF FIX DEPOSIT GIVE AVERAGE RETUEN 3% ANUALLY.
RM5,000,000 X 3% = RM150,000 ANUALYY RM150,000 / 12 MONTHS = RM12,500 MONTHLY.
THE INVESTOR CAN GET RM12,500 MONTLHY WHICH CAN USE IT FOR MONTHLY EXPENCES WITHOUT TOUCHING THE CAPITAL RM5,000,000.
RM1,000,000.00 (RM1MILLION) PLAN.
Initial investment = RM1,000.00
Monthly top up for 30 years = RM440.00. (RM440 x 12 months x 30 years = RM158,400.00) Total investment value = RM1,000 + RM158,400.00 = RM159,400.00
Profit = Rm1,000,000.00 – RM159,400.00 = RM840,600.00
RM500,000 PLAN. Initial
Investment = RM1,000.00
Monthly top up for 30 years = RM220.00.
(RM220 x 12 months x 30 years = RM79,200.00)
Total investment value = RM1,000 + RM79,200.00 = RM80,200.00
Profit = RM500,000.00 – RM80,200.00 = RM419,800.00
RM250,00.00 PLAN
Initial investment = RM1,000.00
Monthly top up for 30 years = RM110.00. (RM220 x 12 months x 30 years = RM39,600.00) Total investment value = RM1,000 + RM39,600.00 = RM40,600.00
Profit = RM250,000.00 – RM40,600.00 = RM209,400.00
SINCE MINIMUM TOP UP IS RM100.00, IF YOU OPEN AN ACCOUNT WITH INITIAL INVESTMENT RM1000.00 AND MONTHLY TOP UP IS RM100.00 FOR 30 YEARS WITH AVERAGE RETURN 10%. EXPECTED RETURN IS BEETWIN RM200,000.00 TO RM240,000.00.
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A few type of retirement plan for those 35 years old now. Assume retirement age is 55.
This is a 20 years plan.
Conservative = low risk
Moderate = Medium risk
Aggressive = High risk.
Below is the plans base on average return of 10% - consider medium to lower aggressive investors.
RM250,000.00 PLAN.
Initial investment = RM1,000.00
Monthly top up for 20 years = RM328.00 (RM328 x 12 months x 20 years = RM78,000.00) Total investment value = RM1,000 + RM78,000.00 = RM79,000.00
Profit = Rm250,000.00 – RM79,000.00 = RM171,000.00
IF YOU OPEN AN ACCOUNT WITH INITIAL INVESTMENT RM1000.00 AND MONTHLY TOP UP IS RM100.00 FOR 20 YEARS WITH AVERAGE RETURN 10%. EXPECTED RETURN IS BEETWIN RM83,000.00 to RM90,000.00.
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XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Base on Past performance of some funds, as follows.
PLS BE INFORMED THAT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE. THE FUTURE PERFORMANCE MAYBE SIMILAR TO PAST PERFORMANCE OR LESS OR HIGH, DEPENDING ON MARKET SITUATION. MARKET HISTORY ALWAYS REPEATS, THATS GOES DOWN/UP/DOWN/UP.......
1.Public Saving Fund. The first fund lauched by P.Mutual in march 1981.(29 yrs). Current year 2010.
- Moderate Fund.
Initial Investment = RM10,000.
After service charge, Invested amount is RM9,500.
As at 1/7/2010, the CURRENT VALUE is RM82,690. / average return is 7.75%
Profits = RM82,690 - RM10,000 = RM72,690
(The money is 8.2 times in 29 yrs)
Initial Investment = RM50,000.
After service charge, Invested amount RM47,500.
As at 1/7/2010, the CURRENT VALUE IS RM413,450 / average return is 7.75%
Profits = RM413,450 - RM50,000 = RM363,450
(The money is 8.2 times in 29 yrs)
2.Public Growth Fund.
Moderate Fund Launched - 12/1984 (25 yrs)
Initial Investment = RM10,000.
After service charge, Invested amount is RM9,500.
As at 1/7/2010, CURRENT VALUE is RM80,060. / average return is 8.9%
Profits = RM80,060 - RM10,000 = RM70,060
(The money is 8 times in 25 yrs)
Initial Investment = RM50,000.
After service charge, Invested amount RM47,500.
As at 1/7/2010, CURRENT VALUE is RM401,500 / average return is 8.9%
Profits = RM401,500 - RM50,000 = RM351,500
(The money is 8 times in 25 yrs)
3.Public Index Fund.
Moderae Fund. Launched - 03/1992 (18 yrs)
Initial Investment = RM10,000.
After service charge, Invested amount is RM9,500.
As at 1/7/2010, CURRENT VALUE is RM54,100. / average return is 10.15%
Profits = RM54,100 - RM10,000 = RM44,100
(The money is 5.4 times in 18 yrs)
Initial Investment = RM50,000.
After service charge, Invested amount RM47,500.
As at 1/7/2010, CURRENT VALUE is RM270,500 / average return is 10.15%
Profits = RM270,500 - RM50,000 = RM220,500
(The money is 5.4 times in 18 yrs)
4. Public Regular Saving Fund
- Moderate Launched - 4/1994 (16yrs)
Initial Investment = RM10,000.
After service charge, Invested amount is RM9,500.
As at 1/7/2010, CURRENT VALUE is RM38,400. / average return is 9%
Profits = RM38,400 - RM10,000 = RM28,400
(The money is 3.7 times in 16 yrs)
Initial Investment = RM50,000.
After service charge, Invested amount RM47,500.
As at 1/7/2010, CURRENT VALUE is RM188,900 / average return is 9%
Profits = RM188,900 - RM50,000 = RM138,900
(The money is 3.7 times in 16 yrs)
5.Public Ittikal Fund
- Moderate Launched - 4/1997 (13yrs)
Initial Investment = RM10,000.
After service charge, Invested amount is RM9,500.
As at 1/7/2010, CURRENT VALUE is RM30,150. / average return is 9.25%
Profits = RM30,150 - RM10,000 = RM20,150
(The money triple in 13 yrs)
Initial Investment RM50,000.
After service charge, Invested amount RM47,500.
As at 1/7/2010, CURRENT VALUE is RM150,700 / average return is 9.25%
Profits = RM150,700 - RM50,000 = RM100,700
(The money triple in 13 yrs)
6.Public SmallCap Fund
- Aggressive Launched - 6/2000 (10 yrs)
Initial Investment = RM10,000.
After service charge, Invested amount is RM9,400.
As at 1/7/2010, CURRENT VALUE is RM36,200. / average return is 14%
Profits = RM36,200 - RM10,000 = RM26,200
(The money triple in 10 yrs)
Initial Investment = RM50,000.
After service charge, Invested amount RM47,000.
As at 1/7/2010, CURRENT VALUE is RM181,000 / average return is 14%
Profits = RM181,000 - RM50,000 = RM131,000
(The money triple in 10 yrs)
7. Public Islamic Equity Fund
- Aggressive Launched - 5/2003 (7 yrs)
Initial Investment = RM10,000.
After service charge, Invested amount is RM9,388.
As at 1/7/2010, CURRENT VALUE is RM20,200. / average return is 11%
Profits = RM20,200 - RM10,000 = RM10,200
(The money double in 7 yrs)
Initial Investment = RM50,000.
After service charge, Invested amount RM46,940.
As at 1/7/2010, CURRENT VALUE is RM101,400 / average return is 11%
Profits = RM101,400 - RM50,000 = RM51,000
(The money double in 7 yrs)
A successful investor should monitor the market during market uptrend before exit from market with handsome profits.
YOU ARE ADVICE TO READ AND UNDERSTAND THE MASTER PROSPECTUS BEFORE DECIDE TO INVEST.
For Your Informations;
Public Mutual fund managers will seek to maximize your returns.
Public Mutual Funds aims to provide you with the opportunity to outperform the Benchmarks.
Public Mutual Fund hopes to provide you with a reasonable hedge against inflation.
Public Mutual Fund seeks to present you with the opportunity to earn attractive returns at an acceptable level of risk.
Pls be informed that this Unit Trust investment is not a Guaranteed / Risk-Free at any specific time period.
Pls go to POSSIBLE RISKS SECTION in http://grow-money77.blogspot.com/p/possible-risk.html for more info’s on Unit Trust risks.
However, this Unit Trust Investment might be considered LOW RISK compared to direct investment in STOCK MARKET.
This Unit Trust Investment is capable to give better returns compare with Fixed Deposits and EPF in long term, with taken risk.
YOU MUST UNDERSTAND THAT:
*The total return is the overall return of the fund over the period.
*The annualised return is the compounded annual rate of return of the fund over the spesified period.
* The distribution yields of funds are computed by dividing gross distribution for the financial year/period over the Ex-NAV per unit and it not directly comparable with EPF rate and FIXED DEPOSIT rate. The distribution yields for the financial year/period prior to 1 July 2007 was computed by dividing gross disribution for the financial year/period over average selling price. These distribution yields have been adjusted by dividing gross distribution over the Ex-NAV per unit for purpose of comparability in presentation.
* The asset allocation presented have verified by the Trustees.
* THe stocks invested by the fund are classified according to various criteria which include the country classification assigned by international index providers and the company's main business interests in term of geographical segmentation.
*You are advised to read and understand the contents of the prospectus before investing and you should consider the fees and charges involved;
*The price of units and distributions payable, if any, may go down as well as up;
*Where past performance is quoted, the past performance of a fund should not be taken as indicative of its future performance;
*Where unit trust loan financing is available, You are advised to read and understand the contents of the unit trust loan financing risk disclosure statement before deciding to borrow to purchase units;
*Where a unit split/distribution is declared, You are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV; and
*Where a unit split is declared, You should aware of the fact that the value of your unit trust investment investment in Malaysian ringgit will remain unchanged after the distribution of the additional units.
