Title : Retire Rich
It is a 90% chance that you ( we, you and I) do not enough money for your retirement. Firstly, the cost of living has outgrown pensions. Next, 90% of contributors have less than RM60,000 in their EPF account when they retire. In fact, 58 % have less than RM10,000 in their account. Worse, 38% percent of workers are neither covered by pensions of EPF!. In other words, a significant number of Malaysians will not enough money for their retirement. The golden age will turn out to be the ultimate prison for these folks and you ( again we, u n I) could very well be one of them.
This book tell about :
• 5 strategies to catch up on your retirement fund
• 4 lies about retirement
• 3 roadblocks to retirement
• 10 steps on how to save for your retirement
• How to create additional sources of income (ADI)
• 5 things you can do if you're already in hot water.
We have not save for retirement! Not even given a serious thought to retirement at all.
Let consider this:
A 25 y o employee hoping to retire at 56 with monthly income of RM2000 will need to accumulate RM1.48.
A 35 year-old employee planning to retire @ 56 with a monthly income of RM3000 will need to accumulate RM1.5mil by time he retires.
Those are the example..
The book looks in what what can we do if we are at the same situation and not having enough saving.
What can we do.
1. Start saving today...
2. Reduce your expenses drastically
3. Build a second income
4. Move to a cheaper place
5. Retire later
Chapter 2 tell about the brief history about the retirement.. Retirement started because of job created. It started when Industrial age started in Europe late 1700.
Early age of human. There were task and duty. Our forefather were farming and brought up the families, The family help him tremendously with the various task of maintaining the farm. When father died, the sons will take over. The process repeated itself for hundreds and thousand years.
then the stories goes by mentioning chancellor Otto Van Bismarck chose 70 as the age of retirement when retirees would be entitled pension. Later America adopted this age in 1935.
Being the former colony of British , we followed many of British practice and one of them is retirement. British chose age 65 while Msia chose 55. May be bcoz our life expectancy is lower that Brit.
Chapter 3 talk about lies... lies about retirement
The author shares the few lies about the retirement.
1. retirement is painted as paradise. A time when old people can reap the fruits of their labor.. do what ever they want to do and enjoy their golden years.
in fact the retirement is not a bliss. It is often a pain for most people. certainly the one that the author met. The retirees loss touch with friends, Friend move away or died. When he goes back to kg he runs some of the older folks and pity them . Most are in some sort of pain, suffering from some disease or another. A few bedridden and some others, the lucky ones, have died.
Some sad stories emerge for city folks, and it tougher. City people are often not as caring as their kampong folks. Cost of living is significantly higher than of the kg. The crime rates are also bad in city.
Lies no 2! All you need for your retirement is EPF.
Fact is that the survey done shows that most of the retirees would have spent their money within 5 to ten years of retirement.
That the end of bad news..see lie no 3..
3.YOU have enough money for retirement!!!!
The biggest lie is that you will have enough money for retirement. The author says that 90% that you do not have money enough money for retirement
4. You'll be able to do whatever you want to do when you retire..
This another big lie. Man value freedom above everything else. But the moment they have that and can do whatever they want to do, they quickly conforms and does what everyone else is doing. the author assures us that we are not suddenly going to Morocco or Jordan seeking for adventure just because we are retired.
Most likely we will tending our garden and look after our grandhildren,,and keep complaining about the company that have forgotten our effort and contributions.
Combining w the above lies (that I mentioned earlier)...you will realize that we hardly will be able to do half that we have wanted to.
Let move to another topics...
3 roadblocks to retirement.
In every journey the will be a obstacle and diversion.
The major roadblock according to the author in achieving comfortable retirement financially are
1. Taking care of parent
2 Paying for your children education
these two roadblocks are good and as good son and good father/mother that's what will we do..
3 The desire to outdo others.
The dangerous and the biggest treat is us. Our desire to look good. feel good, show off, live well and give ourselves a treat is costing our future. We know this. We don't need this book to know this. Anyone that spend a lot of money to look/feel good will quickly rationalize it.. I DESERVED IT!
The author retort that..
If you only look cool wearing expensive shades, It’s the shade that cool, not you.
If you have to take a five year loan to buy a car, you cannot afford a car.. Erm a it open for a debate here. But I m not a critic here but only to give a book review.