Studying Hard vs Financial Planning

I recently had a conversation with a university friend whom I hadn't met in 25 years. During our conversation, my friend, who has two children, mentioned an intriguing question asked by one of their children: "Why should we study so hard when the government approves a minimum wage starting at RM 1,500 per month?" My friend was stunned by this question, and I couldn't help but smile. Determining Your Future Salary The real question to ask is, "How much will be your last drawn salary if you start with RM 1,500 per month now?" Let's assume you begin working at age 20 and plan to retire at age 60, giving you 40 years of working life. For the sake of simplicity, we'll assume a permanent annual salary increase of 4%. The answer is that your last drawn salary upon retirement at age 60 will be RM 7,201.50 per month! In contrast, considering an article that suggests a fresh graduate's starting salary will be RM 2,500, and assuming a permanent increase of

Estate planning is beyond distributing your assets

Meet Mr. A, a hardworking family man. Tragedy strikes when he unexpectedly passes away, leaving his loved ones with a significant burden. While he had purchased life insurance, there was one critical aspect overlooked: income tax payment for the current assessment year.

Mr. A's sudden demise leaves his family grappling with a complex situation. Besides dealing with the emotional toll, they discover the looming issue of unpaid taxes.

As a partner in a small online business, Mr. A had additional tax obligations. Failing to settle these taxes would have consequences for his family.

The responsibility for settling the unpaid taxes falls on Mr. A's beneficiaries. Without sufficient life insurance coverage, the family faces a financial strain that could have been avoided.

The story of Mr. A serves as a stark reminder of the importance of comprehensive tax planning and adequate life insurance coverage. Don't let the unexpected burden of unpaid taxes add to the hardships faced by your loved ones during an already challenging time. 


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