Keeping your money safe through a Secure Savings Program

With the continuing turbulence in the global markets, keeping money in the bank appears to be the only safe option for Malaysians. Certainly, the government's guarantee on all bank deposits until the year 2010 gives further assurance that our savings are safe for the next two years.

Unfortunately, with the curent global economic uncertainty, we can't expect to have our cake and eat it too. Interest rates have been falling in the world's major economics. The low interest rate outlook as well as the limited investing options available are making it difficult for many people to achieve their personal financial plans.

How do you continue growing your retirement fund, or save for a deposit of your future house, if you can't put your money to work for you by generating more attractive returns?
While keeping your money safe is a priority for now, that doesn't mean it work as hard to help you achieve your financial goals.

That is why a growing number of people are turning to insurance products, especially for those that offer capital protection and guaranteed returns that are better than the current interest rates.
Who wouldn't want to maximise their returns without any risk of loosing their savings?

Out of 100% of people when they reach age 65; 1% is rich, 7% financial independent, 16% still need to work, 10% in bankruptcy, 28% passed away, and the remaining 38% need to depend on others. Therefore, you can see that 2/3 of the people will be faced financial problems when they retired.

The distribution of assets of most people are 50% in their business, 20% invested in share market or unit trust, 20% in property investments, and only 10% for savings. As you can see, 90% of their assets are none guaranteed. This is because business is not always good, while most people suffer huge lost in share markets or unit trust, and houses or shops might not be rented out.

In AIA, there are several saving programs, typically with the tenures of 8 years or more.
Do you have any problem of saving RM10 or RM20 per day?If you can continue saving this amount for 8 years, you will have a guaranteed income every year untill you are age 88. At that time, you need not worry about your old age expenses anymore.

The one important benefit that the bank cannot provide us as compare saving money in insurance company is "Force Saving". Money save in the bank can be easily withdraw; once the money is withdraw, it is usually difficult to save it back again. That is the reason why we usually heard a lot of people complaint; why I save everyday, how come I can't see the money at the end? But for our saving and retirement program is diferent, because it can really help you to save up the money.

The purpose of saving money is to protect your capital, because this is "serious money" that we are talking about. This is the money that you cannot any risk like investment is share markets or unit trust where the investment is not guaranteed. Therefore, return is not the main issue we focusing here. The main facus is how to protect your capital.

Should you need any further details, please do not hesitate to contact me. Thank you.


Best regards,
Chee Wai