Are you prepared for your retirement? Watch this video by Financial planner Linnet Lee shared about the five easy ways to fund retirement if you are a Malaysian.

1. EPF

There are five foolproof ways to fund your retirement. The first way is fund our EPF, which we already doing because this is mandatory. However, the real question is: Is it enough? There are planners and unit trust agents who have done a quick calculation, and they have found that most of the time, unless the person is willing to contribute a little bit more, it is not enough.

2. Private Retirement Scheme

The second option, which is newer, compared to EPF, is the Private Retirement Scheme. A lot of people have probably heard of this, but are not quite sure about what it is and how it works, but this is another avenue to fund your retirement.

3. Save and Invest

Then there’s the more traditional way of Save more and Invest. But, before we save and invest, we first need to know how much you need to save and how much you need to invest and what are the ways you are going to save.

4. Extra Income

The other option would be having an extra income. This means that we do something outside your main source of employment. This would be something that would bring you some extra income, then you save that income.

5. Endowment Policy

Last but not the least is the Endowment Policy. Before the advent of mutual funds, one of the most common ways people fund their retirement is through an endowment policy. This is because with an endowment policy, you get your money back by the time you retire.

So, these are the five foolproof ways to fund your retirement. The question is: Which one is the best? Well, that depends on your situation and what you are capable of doing.

How Do You Decide?

You can pick any one of these options or do all of them. There is no right and wrong answer. What is important is for you to realize what your needs are, and then decide which of these will be the most appropriate or which combination would be most helpful in funding your retirement.

Whilst those are fantastic vehicles for you to fund your retirement, what is even more important – and this is the deciding factor on whether you make or break the success of your retirement funding – is your will power to retire. What’s that? Self control.

A lot of people say that they want to retire. Out of these, how many people are willing to stay focused and allow for delayed gratification? This means putting aside short-term pleasures, get rich schemes, quick fixes, and actually focus on preparing for retirement.

Having said that, a lot of people think that, “All work and no play make Jack a dull boy.” So, what I am propagating is not just to save, save, save for retirement, and then after a while you find the journey is so boring. I don’t know how to survive.” What I am saying is to have self-control, focus on what you need to do, and in the course of your planning put aside some money for the little enjoyment when you hit a milestone in your retirement funding. This way, you make preparing for your retirement an enjoyable experience.

What is stopping you from your retirement?

More information and tips for your retirement in this webinar. Click the picture for link.



Personal finance author and trainer

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