Wealth creation

							Mr. Prospect, do you have any personal and family lifestyle goals that you want to achieve?
In actual fact, almost
all of us do but many of us do not have a plan. Would you like to know more about what
Prudential can do for you
to help you achieve your financial goals and financial independence?




                                                                                              1
One of the best ways of creating wealth for your lifetime goals and to achieve financial
independence is to invest regularly. By doing so, you will be financially able to live your
dreams. This is because when you invest your money:-


1. It will help you to hedge the cost of inflation compared to if you do not invest your
money as the value of money will shrink due to inflation.


2. In the long term, it will help you to built sufficient financial reservoir, or else you will
stuck in a financial pit.


3. With your financial reservoir, you will able to finance your lifestyle goals. For some other
people who do not build a sufficient financial reservoir, their goal is just daily survival.


By doing this from now, you will be able to live the life of your dreams thus achieving
financial independence. For others who do not invest, financial independence will be just a
dream.




                                                                                                  2
What happens to your money if you do not invest? Inflation eats into it. Lets take a look.


This is a projection of low, medium and high rates of inflation on RM10,000 during a
period of 10, 20 and 30 years.


E.g. RM10,000 at an inflation of 5% in 20 years will be only RM3,769.


So, we must look into our investment options available to be able to manage this better.




                                                                                             3
What are some of the options out there to create wealth? And many of these options are
things some of us do already. However every option does have its limitations. As such we
should “not put all your eggs in one basket”

One of the ways is to start a business. Here, huge capital is needed and there are overhead
costs that come together with it. Any business too requires a succession plan to continue
should the unforeseen occur if not everything you have worked so hard for can be lost
overnight.

Share investments is one of ways to get high returns. However, with high returns come high
risk as well. Also it is important to be actively managing your portfolio to maximise returns
and mange risks. This would require expert investment knowledge and skills.

Property investment is lately becoming increasingly popular. However, it too requires high
initial expenses to start off. Property has its ups and downs as well with maintenance and
tenancy problems. It is also not very liquid and in cases of emergency a “forced sale” will
end up in you making a loss.

Mr. Prospect, I would like to propose to another sound option to investment which can take
you closer to fulfilling your lifetime goals and achieving financial independence.




                                                                                                4
The question now is how to do it? How to make it happen? Would you be able to live the
   life of your dreams or will it remain just a dream.


With our success formula, you can turn your dreams into a reality.


1.    You need commitment of regular payment and active management of your account.
2.     You need to set aside a fixed amount to money to invest monthly. With frequent top-
      ups, you will accelerate
     achieving your financial goal.
3.     Any investment requires time to grow. The effect of compound interest and dollar cost
      averaging (making
     consistent deposits regardless of unit value) will ensure you reach your financial goal.




                                                                                                5
How does dollar cost averaging work? Lets look at this 6 month illustration for purposes of
  understanding the concept.


You make a deposit every month of RM1,000. With the understanding of the fluctuation of
   unit prices, you may buy at a higher price or you may buy at a lower price. Thus, your
   unit price may vary each time and your number of units purchased can be different each
   month. This working over a long term minimizes market fluctuations and is how dollar
   cost averaging can work for you.


Your focus is simple:


1. Every month invest a fixed amount of money
2. Do frequent top ups to accelerate accumulation
3. Allow time. Only then can compounding and dollar cost averaging can work for you.




                                                                                              6
All financial goals require time and money. Your commitment to start investing now will
help you achieve your lifestyle goals and ultimately financial independence. Which would
your rather have----financial independence or no financial independence?




                                                                                           7