5 power of effective saving

Hi everyone, my colleague came up with a article about savings and the 5 steps on how to plan for your saving. Hope you will find this article useful to you

*click on the link to enlarge the article

Retirement Planning Part 2

Hi all !! How was your 2007 and thing is only going to get better in 2008 for all of us. This is the first blog for the year, as mention i will continue on the retirement planning in more in depth.

Determine the sources of fund is important in part of retirement planning. After we have identify all the available funds then we can determine to how to maximise the funds return.

Some of the common source will be from :

• Central Provident Fund (CPF)
• Supplementary Retirement Scheme (SRS)
• Cash Saving

For CPF, there is already various scheme set by the government to prepare people for their retirement. The various scheme are :

• Minimum Sum Scheme (MSS)
• Minimum Sum Plus Scheme (MSPS)
• Central Provident Fund Investment Scheme (CPFIS)

*Note if you want to find out more details about the various scheme please feel free to contact me as there will always be changes to the scheme from time to time .

The Supplementary Retirement Scheme is introduced by government in 2001 as a voluntary scheme to encourage working individual to save for their retirement . The scheme is open to all working individuals who are at least 21yrs old. The contribution rate for Sinaporean and Permanent Residents will be 15% of their income. Foreigners working in Singapore will be allowed a contribution rate of 25%of their income , in recognition that they have no tax benefits afforded by the CPF scheme. Some of the people also do contribution to lower their tax bracket, thus the taxable income will be lesser the contribution amount.

The instrument commonly used by individuals to maximise their return for retirement are:

• Insurance
• Annuities
• Shares
• Bonds
• Unit Trust
• Real Estate investment

However, Some people might not be able to meet their retirement needs. In such situation, some of the option to enable them to have have a higher source of income such that they can have a more comfortable retirement. The options are:

• Reverse Mortgage
• Tradedown of Residential flat
• Renting out part of the house
• Parent Maintenance Bill
• Post-retirement Employment

Wish you all a happy and prosperous 2008......