Invest in retirement insurance policy Malaysia? To invest in retirement insurance policy Malaysia actually there’s not a complicated step. But people often do, so to make sure you not gonna the same mistake you should avoid this few things. Here are few thing that you should avoid.

Click Here For Why Everyone Needs Computers Now

Thing That You Should Avoid.

1. HAVING NO GOAL OR PLAN
   Taking a passive approach to your retirement and underestimating your financial needs is a big gamble. It is estimated that many Malaysians will use up their EPF savings within 5 years. What will you do when you run out of money? You should also keep in mind that the goal after retirement is to enjoy the same. Or better standard of living than during your working years.
   
   If you don’t have a plan, you will face financial difficulties. Which it may put a heavy burden on your family members. There are also factors to consider such as inflation and the rising cost of goods. Not only that you also need to consider medical care. Which this things will increase your cost of living. A right plan will help you achieve a worry-free retirement.
   
2. DON’T DIVERSIFY YOUR SAVINGS
   This is a big mistake. Many people rely solely on their EPF, but it shouldn’t be their sole source of retirement savings. Despite growing at around 6% per year, there are other options with similar or better returns worth considering. Means of achieving long-term, consistent and competitive returns with low risk.
   
3. WITHDRAWALS FROM YOUR EPF ACCOUNT
   While your Account 1 is strictly prohibited until retirement age. This EPF has allowed you to withdraw from your Account 2 under certain circumstances. You can make withdrawals for a down payment on a house, a mortgage, higher education or unexpected medical bills.
   
   However, if you’re not in a bind and are disciplined enough to refill the money. Which it will happen when you get back on your feet. That may be wiser to leave that money in the account. Like especially if the money isn’t going towards a growing investment becomes .
   
   Instead, try to keep increasing your EPF funds. The EPF allows members to withdraw up to 20% of their Account 1 to invest in EPF-eligible mutual funds. Which this will happen after reserving basic savings* on Account 1.
   
4. NO HEALTH COST CONSIDERATION
   Many Malaysians take their health for granted and have no preventive healthcare plans. When you retire, medical costs will be much higher than they are today. This will make you have greater health care needs as you age.
   
   It’s important to consider a medical protection plan that covers hospital needs, outpatient care, and other health care needs. Additionally, you should be aware that after age 65. Like if you have a known medical condition or have prior insurance claims. But you may not be able to renew your policy. So make sure your retirement plan provides funds for such situations.
   
   Click Here For BEST RETIREMENT PLAN MALAYSIA – RETIRE WITHOUT WORRIES
   
5. START SAVING TOO LATE
   The sooner you start, then there much more you can get. The early start of the savings process has its advantages through two magic words: compound interest. What is the compound interest? Interest brings interest.
   
   If you save RM10,000 and your bank gives you 3% annual interest. So you will have RM10,300 at the end of the year. Next year you will start earning interest on RM10,300 and by the end of that year you will have RM10,609.
   
   Now imagine that you are depositing RM1,000 into the same account every month. After 10 years he would have accumulated RM153,235. So in conclusion without compound interest you would only have RM130,000.
   
   This means you have earned MYR 23,235 from compound interest alone. It is recommended that you start saving by the age of 20. So you will have more time to let compound interest do its job. Putting money in the bank isn’t the only way to make compound interest work for you. You may want to consider other investments such as Mutual funds, which may earn you a higher interest rate. Without compound interest, you would only have 130,000 RM.
   
6. SPEND YOUR BONDS IMMEDIATELY OR GET IN DEBT
   Many people believe that they are safe to spend their annual bonuses. That is because they’ve invested in EPFs, bought a home, or saved up monthly. Instead of spending your bonuses right away, see how you can use them to pay off debt. Like a student loans, credit cards, car or home loan or top up your savings/investment fund.
   
   It’s important to note that compound interest on credit cards and loans can also increase your debt. It might not be as much fun as spending lots of money. But actually it’s to keep from taking all the joy out of your work life.
   
   This will make you consider a variety of savings cubes. After your bills, payments, and emergency cash are done, see how much of your bonus you have left. Usually it would allocate different amounts to a travel cube. Like a new phone cube, or whatever purchase you want to make. No need not to mention your savings or investments. This way you can still collect bonuses before you retire.