Tomorrow`s financial independence starts todayPg 2

YOUR FINANCES AND ALL THAT MATTERS TO YOU
ISSUE 6
KDN : PP16208/06/2011(029654)
AUGUST 2010
by
FEATURE STORY
Tomorrow's financial
independence starts today
Pg 2
EURO TRASHED?
Europe’s economic woes
has got the world on
edge again Pg 4
BUILDING YOUR
GOLDEN NEST Pg 8
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off the cuff
Financial freedom begins today
As we look towards celebrating our nation’s Independence this month, we
thought it would be interesting to ponder on how we, ourselves, can
gain independence – more specifically gain financial independence.
Undoubtedly, each of us has made the commitment to work hard to
provide for ourselves and our families, and also build our wealth for the
future. We do it so that one day we can choose to stop working and enjoy
life without having to worry about our finances. That’s what financial
independence is about – to be able to live life to the fullest knowing that
you have built a financial pipeline that will provide for you and the family
well into the future.
So where do you start? Step one is to set your
financial goals. Step two is to start as early as
possible. But remember, planning for financial
independence isn’t just about investing. Yes,
investing in unit trusts or structured investments
is important but there are also other areas
which you need to factor in including investing
in protection like health and life insurance, your
children’s education and also planning to ensure
that your wealth is managed and distributed
properly if something should happen to you.
To help you on your way to gaining financial independence, we’ve outlined
some key things you should consider and steps you should take towards
gaining financial independence. Remember, the earlier you plan and the
earlier you start, the faster you will be on your way towards financial
independence.
And as you plan your road map to financial independence, do speak with
your HSBC Relationship Manager to see how we can help you in achieving
your goals. Perhaps if you plan it properly today, you can choose to retire
and enjoy the fruits of your hard work sooner than you planned.
Best regards,
Lim Eng Seong
General Manager Personal Financial Services
Publisher
HSBC Bank Malaysia Berhad
(Company No. 127776-V)
Editorial
Benny Chee
Jennifer Kwok
Looi Miin Wei
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HSBC Bank Malaysia Berhad August 2010
feature
Tomorrow’s financial
independence starts today
H
ow many of us can safely say that if we choose to stop working today, we can keep up our
purchasing pattern for clothing, holidays, electrical gadgets and toys, and pay for our homes,
cars, children’s music lessons and college tuition for years to come? If your answer is ‘no’, or
even ‘not sure’, then it is time for you to set your goals and plan how to manage your money better
in order to be financially independent.
Financial independence must not be
mistaken with merely earning a high
income. An income is just a means to
aid your financial independence. The true
secret to increasing your net worth is to
spend less than you make. It is a basic
fundamental and the reality of money.
Don’t you ever wonder why, even as
some people earn more, they are more
often than not left wondering why
financial independence and security
are just always out of grasp? That is
because they are not aware of the basic
understanding that income is not wealth.
Hence, if you are reading this, you are
well on your way to paving your path to
financial independence.
Depending on your lifestyle needs
– being single, in a relationship, newly
married, married with children – financial
independence can be gained in many
forms and be designed to suit you at any
stage of your life.
Setting your goals
Sure, setting your goals for your next
holiday destination, luxury timepiece,
sports coupe or electronic toy may be
easy. But when it comes to putting aside
a much more considerable amount
towards a bigger return, it might be
a bit more difficult, at first.
HSBC Bank Malaysia Berhad August 2010
To start, pen down your goals. You might
discover that it might be more achievable
than you initially thought it was. Be
realistic and set some big (long-term)
and small (short-term) goals. The smaller
goals like saving for a deposit or paying
off your credit card will be very helpful in
supporting your bigger goals like owning
a second house or saving for your early
retirement.
With time and the power of
compounding, your investment may
begin to amount to something bigger.
For this to work, you would need to
reinvest your earnings and give it
time. The more time you give your
investments, the more you are able to
accelerate the income potential of your
original investment, which may help to
ease the pressure off you.
Working out your goals and knowing
your net worth will help in giving you
a clearer picture of where you want to
smartly place your hard earned money
to start the ball rolling towards financial
independence.
Compound interest is what makes
financial independence possible
despite rising costs of living, inflation,
and other costs.
Keeping the wealth flowing
Building wealth and
becoming financially
independent takes
time and careful
planning – but rest
assured it will bear fruit
in the long run. Simple,
every day actions such as
cutting your expenses and
generating extra passive income
via investments, for example,
can help you maintain
a steady flow in
your wealth creation.
The range of investments is far and wide
with many different types to choose
from. Broadly speaking, they fit into four
asset classes: short term deposits,
bonds, property and shares.
feature
As you plan how to grow your wealth and
be financially independent, you must also
remember to plan to secure the wealth
you are building for your family. Writing a
Will can be a difficult task to face up to
because it’s an acknowledgement that
we have a finite time in this world. But
having one prepared will ensure that your
family will continue to enjoy financial
independence if something should
happen to you.
A Will lets you take control of what
happens to your property and assets after
your death, ensuring that your property
and assets go to the beneficiaries that
you have named in your Will.
Security through insurance
Some may not know this but insurance
is an important part of managing your
money matters. It is a way to protect
yourself and your family from financial
loss if the unexpected happens to the
things you own, your health or your
ability to earn an income.
The right insurance policy can protect
your assets and create peace of mind
in case anything does happen. It takes
years to rebuild equity. But a good
insurance policy provides peace of mind
and fewer worries about money.
When you consider getting insurance,
you need to weigh the risks of not
having the insurance against the
costs of buying it. At times like this,
insecurities play a big role in purchasing
insurance. When managed correctly,
insurance increases your financial
independence.
51˚N – London, UK
Building a nest egg for your children
In today’s economy, knowing that your
child will have a better financial and
educational future when they are older
is something that will ease your mind.
Teaching personal finance at a young
age is important. Have your child
set aside a certain percentage of
the money they receive as early as
possible. Since you are paying for their
day-to-day needs (home, food, and
clothes), saving a percentage of all the
money they receive from gifts or parttime work should be easy and simple.
“With time and the power
of compounding, your
investment may begin
to amount to something
bigger.”
The percentage that you have set
aside will grow over the years through
compound interest and when it is
time for your child to start college or
university there will be no sweat and
tears in trying to provide the best
education for your child.
Taking up an insurance policy that
builds cash value when your child is
very young is another good way to
start. When they come of age they can
decide whether or not to cash it in or
keep it to help better protect their own
family.
If you have taken all the right steps and
made the right plans, the day your child
leaves for college or university will be
one the whole family looks forward
to. The educational nest egg that
you have built up for them to pursue
their education overseas can now
be made easily available to them no
matter where they are through HSBC’s
Premier UniKit. Within 10 days after
opening a sole or joint HSBC Premier
account, both you and your child will
have the essential banking tools and
can instantly make an unlimited number
of free overseas money transfers and
manage your accounts from anywhere
via online@hsbc.
Rest assured, wherever your child is in
the world, international assistance and
rescue is available when required with
HSBC Premier.
So, take small steps every day –
Rome was not built in a day, neither did
Malaysia gain independence overnight.
Set your goals, know what you want
and work towards it. Write it down,
frame it up – whatever it is, let there be
a reminder that financial independence
is attainable and you are capable of
freeing yourself from the anxiety that
money troubles can bring forth.
3˚N – Kuala Lumpur, Malaysia
She’s 7,000 miles away. Yet she can still
lean on you. Now, that’s peace of mind.
Open your child’s overseas bank account right here in Malaysia, with HSBC Premier.
HSBC Premier is the ideal financial tool for any
parent with a child who is about to head to
university in the UK, Australia or anywhere else.
You can open their account in advance from
Malaysia, even before they travel. After that,
you can easily take care of their finances while
they’re abroad. Now, that’s peace of mind.
Other benefits:
• Free overseas online money transfer anytime, anywhere
• Instant help and support with worldwide assistance from
HSBC Premier Emergency Hotline (+1-908-PREMIER).
• Enjoy the convenience of our service with an extensive
network of local branches (1,670 in UK and 35 across
Australia)
• Manage your child’s spending with easy credit limit
assignment to your supplementary card
HSBC Premier Family Services
Sign up for HSBC Premier today.
Call 1 300 88 9393 Visit www.hsbcpremier.com.my
Issued by HSBC Bank Malaysia Berhad (Company No.127776-V). Terms and Conditions apply.
feature
Euro
trashed?
Europe’s economic woes has got the world on edge again
A
s the European Union (EU) continues to debate on how
best to bail Greece out of a national economic meltdown,
the rest of the world is holding its breath in case the
eurozone crisis spirals out of control and causes a premature
halt to the global economic recovery.
The road downhill starts in Greece
Greece is one of the member states
of the eurozone, an economic and
monetary union of 16 European Union
nations that have adopted the Euro as
their common single currency.
With its adoption of the Euro, Greece
– one of the smallest economies within
the EU – found itself with a newfound
ability to borrow money at low interest
rates thanks to the strength of the Euro
currency. And so began the country’s
borrowing and spending spree on
various high-profile projects, including
the 2004 Athens Olympics which cost
the country an estimated €4.45 billion1.
But with rising levels of inflation and
widespread tax evasion within its
borders, the Greek government has
now found itself in a situation where
it has not made enough money to
pay for the loans it has borrowed.
And that has resulted in the
organisations that provided
Greece those loans to be worried.
Foreign banks and investors who
hold an estimated 70% - 80% of
the Greek government’s debt, and
Western European banks2 that
hold the other 15% - 20% are at risk
of seeing their money disappear into
HSBC Bank Malaysia Berhad August 2010
thin air with the country’s national debt
ballooning to 115% of its gross domestic
product (GDP), budget deficit at 13.6%
of GDP, and showing no signs of getting
any better soon.
The EU and International Monetary Fund
(IMF) have stepped in to provide the first
fix with a €110 billion bailout package
in March 2010. But Greece will need to
figure out fix number two; this will be
the difficult one as it will involve huge
cuts in government spending and raising
of taxes – both of which could easily
send the country’s economy spiralling
downwards even further.
feature
But the collapse of Greece alone would
not crush the EU’s economy. It’s the
knock-on effects and fears of other EU
countries going down the same path that
has the world worried.
More than Greece make the problem
Portugal, Italy, Ireland and Spain in
particular, may also potentially fall into
the same situation as Greece. Each
country has announced various budget
cuts and economic reforms to speed
up the process for them to manage
their respective country’s debts. These
countries have been badly affected
by the repercussions of Greece’s
bailout, as both banks and investors
have lost confidence in the reliability of
investments or loans to countries within
Europe.
Due to the current eurozone debt crisis,
the banks have grown wary of issuing
loans to other eurozone countries due to
concerns of any possible debt defaults.
As a result, the banks have started
charging higher interest rates on loans
to stem any possible losses, and the
situation has grown increasingly difficult
for countries such as Portugal to clear its
sovereign debt.
There are fears that Greek’s debt crisis
will cause a ‘domino effect’ as Portugal,
Italy, and Spain are countries that also
show high debt to GDP ratios as well.
While Spain is the fifth largest economy
in Europe, Italy accounts for more than
20% of total European sovereign debt.
With Greece included, the combined
debt to GDP ratio of these five nations is
significant enough to cause an economic
crisis that could spread throughout
the eurozone and spill over into the
global economy. While the EU may
have announced a second €720 billion
“In reality it’s just more of the same.
The crisis has mutated [but] not
been resolved.” HSBC Global Research
rescue package in May 2010 consisting
of government-backed loan guarantees
and a commitment to buy European
sovereign bonds to stabilise the
eurozone, it may still be only a stop-gap
measure.
In order to contain their economic and
financial problems, these five countries
now have to balance new budgets that
cut public spending and increase their tax
revenues, and reduce their debts to the
banks. But tightening their fiscal belts
could easily stall the already tepid growth
of these countries and cause them to
head back into recession, and possibly
pull the entire eurozone with them.
Perhaps a report by HSBC Global
Research: depicts a clear picture:
“In reality it’s just more of the same.
The crisis has mutated [but] not been
resolved.”4
What happens now?
Frankly, nobody really knows.
There are mixed views on whether
the eurozone on a whole should put
a squeeze on public spending so the
rest of the EU countries don’t end up
in a situation similar to that of Greece,
Portugal, Italy, Ireland and Spain.
Widespread public spending cuts could
send the eurozone back into recession
and pull the rest of the world economy
into a double-dip recession. Others
believe that the solution is for troubled
countries like the aforementioned to
tighten their belts while countries in
good economic health like Germany to
continue spending.
What is evident is that EU members that
can – meaning countries that are solvent
– need to lend a hand and bail out the
weaker links. As Joseph Stiglitz, the
Columbia University professor and Nobel
laureate, puts it: “The European Union
should have a fund to help member
nations in need of financial aid such as
Greece. Deficit fetishism is a mistake.”
As for the rest of the world, including
those of us in Malaysia and the region,
we can only wait and see. Certainly,
because Europe consumes a lot of the
products and services originating from
this region, if the eurozone crumbles
there will be a spill-on effect. But as
China, India, and even Indonesia have
shown, if you can create enough
domestic demand, or even regional
demand for that matter, you can actually
cushion the impact of an economic
crash.
So if our own Malaysian market and
demand remains strong, and the rest of
the region together with other emerging
markets continue to grow at the rapid
pace seen in Quarter 1 of 2010, there is
every reason to be optimistic that we will
experience very little, if any, of the knockon effects of the eurozone crisis.
1 Athens News Agency via www.greekembassy.org: “Cost
of Athens 2004 Olympics” 13 November 2004
2 J.P. Morgan: “Market update and investment views on
Greece’s contagion risk”
3 The Star: “Idris Jala: M’sia must cut subsidies, debt by
2019 or risk bankruptcy” 27 May 2010
4 HSBC Global Research: “Emerging Markets: A wall of
worry that’s the tip of the iceberg” 5 May 2010
Greece has announced it’s budget, public
spending cuts, and tax hikes. Spain
and Ireland have announced austerity
measures to cut the budget deficit.
Germany has banned “naked” shortselling of government bonds. Whether
any of these measures will stem the
problem, we will have to wait and see.
HSBC Bank Malaysia Berhad August 2010
5
feature
05/11/2009
Greece’s new government announces
2009 budget deficit will be 12.7% of
GDP, more than twice the previously
published figure
08/12/2009
Fitch Ratings cuts Greek debt to BBB+,
first time in 10 years it has been rated
below investment grade
22/12/2009
Moody’s cuts Greek debt to A2 over
soaring deficits
14/01/2010
Eurozone crisis:
A concise timeline
Europe’s economic woes has got
the world on edge again
Greece unveils stability programme
aimed at cutting deficit to 2.8% of GDP
by 2012
29/01/2010
Spain announces plan to save €50 billion
through government spending cuts
and public sector pay cuts
05/02/2010
Spain attempts to raise retirement age
from 65 to 67 triggering union protests
05/03/2010
Greece announces new package of tax
increases and public sector pay cuts to
save an extra €4.8 billion; state-funded
pension frozen
Eurozone’s
sovereign debt
problem:
A layman’s view
HSBC Bank Malaysia Berhad August 2010
Borrowing money
Like any person, it is normal for a country
to take loans. We may take a loan to buy
a house. A country may take a loan to
build a highway.
feature
10/05/2010
28/05/2010
Fitch cuts Spain’s credit rating on record
household and corporate debt and
mounting public debt
11/04/2010
Global policymakers set up emergency
financial safety net worth €750 billion
to bolster financial markets and shore
up the euro against contagion from the
Greek crisis
Eurozone finance ministers approve €30
billion aid mechanism for Greece
13/05/2010
25/03/2010
Eurozone leaders and IMF agree to
create joint financial safety net to help
Greece
23/04/2010
Greece asks for activation of EU/IMF aid
27/04/2010
Standard & Poor’s downgrades Greece’s
debt to junk status; following day
downgrades Spain’s debt due to poor
growth prospects
02/05/2010
Portugal draws up steps to slash deficit
including public sector pay cuts
25/05/2010
07/06/2010
Germany approves budget cuts and
taxes aimed at saving €80 billion over
three years
11/06/2010
Greece vows not to default on its loans
Italian cabinet approves €24 billion
austerity package to cut deficit to 2.7%
of GD by 2012
27/05/2010
Spanish government approves
€15 billion austerity package
Greece agrees to bailout deal with
EU and IMF in exchange for additional
budget cuts of €30 billion over three
years; bailout package amounts to €110
billion over three years and is the
first for a member of the
16 nation EU
Borrowing too much
money
The problem with Greece, Portugal, Italy,
Ireland and Spain is like a bank customer
who has overextended himself by taking
out too many loans and now finds
himself without the required cash flow
to pay off the loans.
When you are late on one
payment here
and miss another
one there, banks
get very
concerned.
Paying back the money
So like any person caught in a financial
fix, they need to immediately do a
couple of things: firstly, find someone
who will loan them money while they
figure out how to fix the financial mess;
and secondly fix the financial mess by
finding ways to spend less and earn
more.
While ordinary bank customers can
mortgage their home or sell their car to
refinance their loans, these countries
do not have the luxury of such a choice.
And that is why they have to now
depend on the bailout packages to make
ends meet while they right their ships.
Sources:
The Star: “BRIC economies to peak in 40 years”
22 May 2010
Goldman Sachs: “Is this the ‘BRICs Decade’?”
20 May 2010
Goldman Sachs: “The BRICs as Drivers of Global
Consumption”
HSBC Bank Malaysia Berhad August 2010
feature
Building your
golden nest
F
“The Future of Retirement III” found
that most respondents cited their family
as their most important source of
retirement income2.
feel younger than ever before.
After all, it’s only natural you want
to enjoy the fruits of your labour
without restriction and be financially
independent. Depending on others can
mean watching your dreams taking a
backseat, especially when faced with
burdening loved ones for your retirement
income. But growing old doesn’t
necessarily mean you have to constantly
worry about running out of savings or
the threat of illnesses or disabilities.
or many of us who have been working for a large part of our adult lives, the
retirement years are certainly
something that we look forward
to. Many retirees describe their
post-working years as a fresh
breath of life that makes them
This is the time to pursue activities
you wanted to do but did not have the
time or resources during your younger
days. With an average life expectancy
for women at 76 years and men at 72
years1, Malaysian retirees could now
have as many as 20 years or more to
enjoy their golden years.
However, to some, retirement means
depending on your family to support
your lifestyle. HSBC’s research study,
HSBC Bank Malaysia Berhad August 2010
But should that really be the case?
In retirement, you should be able to
pursue your interests while enjoying
the same level of living standards, and
the best way to this path is by achieving
financial independence for yourself.
In most cases, to be able to enjoy
the same level of living standards in
retirement, you would need between
70% to 80% of your current income.
Relying solely on your EPF might not
sustain you throughout your golden
years, especially with the unpredictability
of life as anything can happen.
Your EPF, while a good start to saving for
the retirement years, would not give you
adequate income spread over 20 years
feature
for you to enjoy the standard of living
you seek in your golden years. In fact,
statistics suggest that 70% of retirees
use up all their EPF savings within
three years of retiring3. It is no wonder
then that only 14% of Malaysians are
confident about their preparation for
retirement now compared with 23%
in 20073.
HSBC Amanah Relationship Manager,
you’ll be able to tap into retirement
products that can help you diversify your
retirement savings portfolio that both
create and protect wealth. And if you
start planning early for your retirement
with us, you can benefit through
potentially attractive regular payouts and
Longevity Bonus^.
So how do you stay ahead of the game?
The key is to build your retirement nest
egg as early as possible to ensure that
you continue to derive a regular stream
of retirement income well into your
golden years. Malaysians have certainly
started to take heed. We are now
starting to plan for retirement at the age
of 34 versus 37 in 20073. Start planning
ahead and ensure that your retirement
is protected from factors like inflation,
economic fluctuations and health issues.
Stretching your Employees Provident
Fund (EPF)
While withdrawing your EPF in a lump
sum is tempting, the smarter option is
to opt for periodical withdrawals over
the period of your retirement. This will
ensure that you will not use up all your
EPF savings within the first few years
of your retirement. Also, be wise about
what you do with the EPF withdrawals.
While you may use a portion for your
retirement expenses, you should
also consider re-investing your EPF
withdrawals into low-risk investments
that can provide better returns than EPF.
By doing so, you can look forward to
living out your retirement years to the
fullest.
Seek professional advice
A research study by HSBC, “The Future
of Retirement”, revealed that up to 73%
of respondents failed to seek advice
from financial professionals. Perhaps
this may explain why 77% of Malaysian
are putting their money in low-yielding
savings vehicles. While reading a few
books about investments is good
knowledge, it doesn’t make you a pro.
Your best bet when planning for your
retirement is still a financial professional
who can assess your current financial
position and give you unbiased advice
on how to reach your retirement goals.
Consult with our financial professionals
and let us help you strategically plan
your preferred retirement today.
Diversification is key
Familiar with the adage “Never put
all your eggs in one basket”? It holds
true when you are planning for your
retirement. You should look at ways
to not just create wealth for your
retirement, but also to protect that
wealth. For example, unexpected
health complications in your later years
can easily wipe out all your retirement
savings and put a dent in your retirement
plans. With the help of your HSBC or
HSBC Retirement Protection Plan**
Consider HSBC’s Retirement Protection
Plan. You can withdraw from your EPF
savings at the age of 50 and 55 to
fund this plan with a minimum single
contribution amount of RM100,000
or a minimum regular contribution of
RM1,000 a month to help grow your
savings and preserve your wealth
against the effects of inflation over a
certain time period. Plus, it will provide
you with a regular stream of retirement
income up till the age of 75.
Why
HSBC Retirement
Protection Plan?
}Steady stream of income until the
age of 75
}Receive up to 11.30% p.a. for
single contribution and 12.20%
p.a. for regular contribution on
your contribution and accumulated
profits (if any)^
}Enjoy a potential longevity
bonus* in the form of payout
upon maturity of this plan
}Potential surplus sharing to grow
your retirement savings
}Flexibility of choosing to save
via a single contribution or regular
contribution
}Enjoy Takaful protection
throughout the tenure of the plan
}Pass on your wealth as a gift
to your loved ones to secure
their future
^The amount of the payout varies according to
your entry age, contribution mode and amount,
and tenure of your accumulation period. It is
subject to the performance of the Participant
Fund and is not guaranteed. The 11.30% p.a.
is based on the assumption of a gross 4.78%
p.a. return of investment for a 55 year old
with RM100,000 single contribution and an
accumulation period of 10 years. And 12.20%
p.a. is based on the assumption of a gross
4.78% p.a. return of investment for a 40 year
old with a RM12,000 regular annual contribution
and an accumulation period of 25 years.
*Provided that the Certificate is not cancelled,
surrendered or terminated due to death/Total
and Permanent Disability (TPD)/Critical Illness
(CI) prior to maturity.
Learn more about HSBC’s Retirement
Protection Plan:
}
Talk to your Personal Banker or Relationship Manager
}
Call us at 1 300 88 0181
}
Click www.hsbc.com.my
Source:
1 The Star: “Can you retire?” and “Counting on the
nest egg”, 27 May 2007
2 HSBC’s Future of Retirement III, Malaysia Report
3 The Star: “Saving early for retirement”,
21 June 2009.
^ Provided that the Certificate is not cancelled,
surrendered or terminated due to death/Total and
Permanent Disability (TPD)/Critical Illness (CI) prior
to maturity.
Retirement Protection Plan is managed by
HSBC Amanah Takaful (Malaysia) Sdn. Bhd.
(Company No. 731530-M)
**
HSBC Bank Malaysia Berhad August 2010
Enjoy
2%
extra
per annum1 above
prevailing board rate
From 21 July - 20 October 2010
An exclusive offer for you.
From now to 20 October 2010, take advantage of our special
offer for potentially better returns when you make Foreign
Currency Time Deposit/Foreign Currency Term Deposit-i2
placement with us.
PARTICIPATING
FOREIGN
CURRENCY
USD (United States)
3 mths
0.01%
2.01%
GBP (Great Britain)
3 mths
0.05%
2.05%
AUD (Australia)
3 mths
4.00%
6.00%
SGD (Singapore)
3 mths
0.01%
2.01%
EUR (European Union)
3 mths
0.01%
2.01%
NZD (New Zealand)
3 mths
2.25%
4.25%
CNY (China)
1 mth
0.65%
2.65%
* The above Current Board Rate and Special Interest Rate/Special Profit Rate are indicative
and is accurate as at 29 July 2010. For the latest rates, please refer to your nearest branch.
Call 1 300 88 1388
Click www.hsbc.com.my
Visit your nearest branch now
There is a minimum deposit required for each Participating Foreign Currency. The exclusive offer is only applicable if the source of funds for the HSBC CombiNations Foreign Currency Time
Deposit Account/HSBC Amanah Foreign Currency Term Deposit-i2 placement is from conversion of Malaysian Ringgit to a Participating Foreign Currency or from conversion of one foreign
currency to a Participating Foreign Currency. The Participating Foreign Currencies are: (i) HSBC Bank: USD, GBP, AUD, SGD, EUR, NZD and CNY (ii) HSBC Amanah: USD, GBP and EUR
1 HSBC CombiNations Foreign Currency Time Deposit Account/HSBC Amanah Foreign Currency Term Deposit-i2 campaign Terms and Conditions apply. Programme period from 21 July
2010 to 20 October 2010. The conversion of funds for the said placement or upliftment under this Programme is subject to the inherent risk of currency fluctuation and exchange rate
applied shall be the rate at the time of actual conversion.
2 Foreign Currency Term Deposit-i is a product of HSBC Amanah Malaysia Berhad (Company No. 807705-X) (“HSBC Amanah”) and HSBC Bank is a distributor of this product.
Issued by HSBC Bank Malaysia Berhad (Company No. 127776-V) (”HSBC Bank”) Information is correct as of time of printing.
feature
It takes many years to build up your assets
How you want them distributed can only be indicated by a Will
1. What is a Will?
Document which contains the Testator’s wishes on matters
which will take effect after his lifetime.
7.How do I go about getting a Will?
Testator may prepare his own Will or sign up for HSBC Will
Writing Services.
2.How does it work?
The Executor must administer the deceased’s estate
according to the Will.
8.What requirements are needed to do a Will? Witnesses? Etc
Testator must be at least 18 years of age and of sound mind.
The Will must be made in writing and signed by a Testator in the
presence of two Witnesses.
3. What is required?
For a Will to be valid, certain formalities must be observed.
4. How to do it?
Testator must follow section 3, 4 and 5 of the Wills Act 1959.
5. What is the law governing it?
The Wills Act 1959.
9.Is a Will applicable to everyone or can it be overridden by
Shariah Law?
Muslims can also make a Will to dispose up to 1/3 of
their net assets to Non Heirs. However Muslims cannot
make a Will to change the Heir’s entitlement under Faraid.
Example is as follows:
6. What happens if you don’t have a Will?
Assets will be distributed according to the Distribution
Act 1958 (amended in 1997).
Deceased Husband: (With Children)*
Surviving
Heirs
Shares/
Entitlement
Equals to
Surviving Beneficiaries
Entitlement
Spouse only
(no parents/children)
Spouse - Entitled to
whole estate
Wife
1/8
9/72
Father
1/6
12/72
Spouse + Parents
(no children)
Spouse - 1/2
Parents - 1/2
Mother
1/6
12/72
Children only
(no spouse/parents)
Children - Entitled to
whole estate
Son
Residuary
26/72
Parents only
(no spouse/issue)
Parents - Entitled to
whole estate
Daughter
Residuary
13/72
Spouse + Children
(no parents)
Spouse - 1/3
Children - 2/3
Parents + Children
(no spouse)
Parents - 1/3
Children - 2/3
10.What are the advantages of having a Will?
Testator can appoint an Executor to administer his estate
and nominate a Guardian for his minor children.
Spouse + Parents +
children
Spouse - 1/4
Parents - 1/4
Children - 1/2
11.How do I exercise the Will when someone has passed on?
The Executor will need to use the Will to apply for Grant of
Probate to “unfreeze” Testator’s assets.
*
For Guidance only. There may be different methods of calculation depending
on each case.
Enjoy a discount of RM200 when you sign up for HSBC Will writing services today.
Bring this voucher to any HSBC & HSBC Amanah branch.
Promotion valid from 15 July - 31 October 2010. Terms & Conditions apply.
RM
Will Writing Voucher
Authorised By
Name:
NRIC No:
/
/
Signatory for the voucher, Hew Su Chan
Head of Private Wealth Solutions
Issued by HSBC (Malaysia) Trustee Berhad (Company No. 001281-T)
Terms and conditions:
• The Will Writing Services is provided by HSBC (Malaysia) Trustee Berhad - Private Wealth Solutions • This voucher is given out to new and existing customers of
HSBC Bank Malaysia Berhad and HSBC Amanah MalaysiaBerhad and each customer is entitled to redeem one (1) voucher throughout the campaign period
regardless of the number of accounts he/she holds • Our fee for the Will Writing Services is determined by the complexity of the Will • HSBC has the discretion
to revoke the promotion at any time during the campaign • This voucher is non transferable or exchangable for cash or other services and is not valid together
with any other promotions • Voucher is valid until 15th July till 31st October 2010
No.