Have you ever come across Hong Leong saving plan and wonder this is something you need? While the Hong Leong Assurance saving plan looks very attractive, you should try to understand the reason why it can be an effective plan for you. In order to get an answer, perhaps you need to firstly assess whether our Employee Provident Fund (EPF) is enough for our retirement.
In 2009, I read a piece of article written by Ooi Kok Hwa for local english newspaper The Star, which really shook me. He said, studies shown that most Malaysian retirees used up all their EPF pension fund money within three years of their retirement. That is an alarming fact! All this time, I thought EPF money would have been enough for my pension. Suddenly, it seems that I have to start from zero again when it comes to my pension fund. This is where Hong Leong saving plan came into the picture for me. Luckily, I still have many years ahead of me before retiring.
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| An excerpt from The Star newspaper |
At this juncture, you might ask questions such as “Why should I invest in plans like Hong Leong saving plan or Hong Leong Income Builder? Why not just save money in savings accounts?” The reason can be attributed to a thing known as the inflation rate. Inflation rate refers to the increasing of prices, which is usually determined on an annual basis. In Malaysia, the average inflation rate from year 2004 to 2010 is 2.91%.
This means the buying power of your Ringgit note has lowered tremendously over the years. With RM1, you could probably get two pieces of roti canai a decade ago. In 2012, roti canai cost at least RM1 per piece. Sometimes, you might get charged even more. This phenomenon occurs to all other things as well, most obvious ones being the property prices and petrol prices. As if this isn’t bad enough, I haven’t even include our own personal inflation rate. As you grow older and earn more money, many of us tend to spend on more expensive things. The clothes you buy today may cost a few percentage higher than those you bought when you were a fresh graduate.
Check Out Hong Leong Saving Plan For Your Investment Portfolio
It is therefore imperative for you to acknowledge the hard cold fact that saving your money alone will not be enough. At the time of this article, typical bank’s savings deposit accounts, such as Hong Leong bank rates, cannot even give you 1% interest rate. Unless you have a lot of money, your savings will not be able to catch up with inflation. In fact, your money will lose more values through the years. I urge you to look into investing your money and grow them now. You can look into various tools such as property investments, gold investment and savings plans like Hong Leong Income Builder.
It is never too late to start planning for your retirement. The earlier you do so, the more advantages you have. As with any investment activities, diversification is still the key. Pick up investment books and get to know more investment products in the market would be a great start. Knowledge is power, especially when it comes to find the best investment in Malaysia. In this case, hopefully you will build a profitable investment portfolio for your pension money. While you are at it, don’t forget to check out Hong Leong Income Builder.
For more information on this saving plan, please do not hesitate to me; jitlim.cheng@gmail.com
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