Want to Retire At Your Desired Age? Start Savings NOW & Call Me to discuss ideas over coffee!

Dear CFO

Richard Russell taught his children the ‘money bible’ which is the compounding interest table. If you studied Finance during your university days, you would have come across this table.

The compounding effect is often quoted as the fascinating 8th wonder of the world. Indeed, the earlier you start savings and making your money work harder for you, the higher the chance of you accumulating your target.

If you read my earlier post on ‘Ways to make your savings work harder’, you’ll recall that we need only a few things to help us achieve our financial goals:

a)      money via savings

b)      a plan

c)       discipline

d)      knowledge and intelligence from experts to identify investments of potential value

e)      time

The most important element is time. Why? Because time allows the compounding effect to take place to make your savings and investments grow.

Do not get me wrong. I am not here to tell you to drastically change your lifestyle to save every cent.

I want to help you understand your personal finance.

The key point is to focus less on having material stuff and focus on the long-term benefit in savings to accumulate wealth for you so that you can retire with dignity and with financial security in your later years.

Ask yourself this: what do you want to happen when you retire and how is this important to you?

If you want to take action, I can help you put together solutions to meet your budget and needs.

Start saving today, even if your savings per month is small, do it, every cent counts.

For example, start saving and investing $100 a month.

Yes, this is do-able for everyone; call me at 9231 8779 for a free consultation today to kick start your plan to retirement.

Both men and women in Singapore are anticipated to live longer over the next decade and the government is also raising the retirement age.

When you think about yourself at age 62, what do you see or what do you want to see?

  • What’s your dream?
  • Do you want to retire at your desired retirement age? Is this important to you?
  • How much do you want for your retirement nest egg?
  • How much of it do you have now?
  • What are the consequences if you can’t retire at your desired retirement age or if you do not have enough  savings?
  • Will you outlive your resources or depend on your children? I’m sure responsible adults like you do not want to add burden to your children.
  • Do you want to continue working after retirement age? If yes, what kind of job do you want? Would it be a full-time or part-time job?  Would it be easy for you to find a job? Would your health allows this?
  • An example to get you thinking about your retirement.

For a man aged 31, who wishes to retire at age 65 with a monthly income of S$3000 (in today’s dollars) to maintain his current lifestyle, his retirement nest egg is potentially about $1,608,140, assuming a 3% inflation rate over the next 34 years.

To achieve this target of $1,608,140, he needs to save $3,742.34 per month in the savings account at the current savings account rates in Singapore which yields about 0.13%.

Alternatively if he saves at an interest rate of 6%, he only needs to save $1,246.83 per month.

To conclude, to accumulate wealth for yourself and your loved ones, you MUST seize time and TAKE ACTION NOW.

To enjoy the benefits of the compounding effect of money and use it to your advantage, START NOW!

NB: If you let your savings and money just sit idly in the low yielding savings account, you’ll be deprived of the retirement income you were hoping for.

Unless you act right now. Call me at 9231 8779 to determine how you can make your savings work harder for you and maximize your wealth for you and your loved ones!

It’s obligation-free on your part until I can add value to you. Is this fair enough?

Best regards

Claire Soh

Important Notice and Disclaimers:

Nothing in this material constitutes personalized investment advice. Information provided here should not be considered as advice or as an offer or enticement to buy or sell or trade.

The contents of this material, including any financial data, information, opinions and analysis, are strictly intended for educational use only.

No guarantees are made as to the accuracy of the information provided herein.

You shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility.

Please consult your financial advisor or call Ms Claire Soh at 9231 8779 before investing in any investment or insurance.

Should you choose not to seek such advice, you should consider whether the investment or insurance product in question is suitable for you.

Contents © 2010 Ms Soh Ming Hwei Claire. All Rights Reserved.

Please note that you do not have permission to copy or post the contents of this blog to any web pages whether private or public.


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