Why Invest

It is a known fact that these days, everyone must have most of their savings in some form of investment, that gives higher return (interest) compare to your bank saving account or fixed deposit account. This is because the inflation rate (prices for good and services) is growing faster than the interest rate you earn from saving and fixed deposit account. This is especially true if you are living in urban area.
In another word, you are losing money with banks! Not in term of quantity but definitely in term of value.

Retirement
Whether you feeling it or not, inflation is definitely eroding you saving. This is also among the reasons why 70% of workers who retire at 55, finishes their EPF retirement savings within 3 years. Although they receive a big lump sum of money at age 55, the value of that money has become small. And so not enough pay for the goods and services that continues to cost more. It is sad to note that, after saving for 30 years or so in EPF during their working life, for 70% of the workers, that EPF money can only support them for 3 years of retirement. Why this happened? One obvious reason is, their EPF saving did not grow faster than the inflation rate.
What happen after that? They can continue to work, if they can find work, at their age. Another option is to depend on their family to pay for their living expenses and most importantly their medical bills.
Education
Education is another area where early planning is crucial to ensure you have enough fund to support your child’s higher education expenses. Your child education investment plan must give a return that is higher than inflation.