4. Key Needs of Financial Planning
Priority
Retirement Planning
Objective
- To accumulate sufficient retirement funding
Purpose
- To allow the individual to retire at the desired age and financial level.
Principle
- Sufficient education funding = total available resources for education > total education needs (to have at least 5% to 10% extra
- Maintain a minimum of 10% (exclude EPF) of total income as annual savings.
How to achieve?
Consider Investing:
- Unit trusts, Private Retirement Schemes (PRS), money market instruments, retirement insurance policy, EPF self-contribution, investment property, etc.
Timeframe
- Long-term goal is to accumulate sufficient education funding before the eldest child starts tertiary education.
