Bond-market boss saves for retirement

He is expecting to live as long as 90 years - or way beyond that.

For decades Nattapol has put 30 per cent of his revenue into life-insurance premiums to make sure that he lives comfortably until he turns 90.

"Life expectancy in Thailand is now over 70 years. My dad, smoking and drinking, is now 87. I neither smoke nor drink, so no doubt I'll live beyond that," said the executive.

While voicing concern that most Thais do not take life in retirement seriously, he admitted that he started buying insurance when he turned 43. That explains why the insurance portion is as high as 30 per cent, when the proportion of earnings for those saving at an earlier age could be less than 20 per cent. Still, at 70, he is pleased that the savings should be enough for the next two decades.

Aside from the safe bet, Nattapol, like others, is channelling his savings into mutual funds. As a tax shield, every year he buys the maximum amount of long-term equity funds (LTF) and retirement mutual funds (RMF). As an individual can invest a maximum 15 per cent of income or Bt300,000 per annum in both LTF and RMF, this brings tax savings of over Bt100,000 each year for a taxpayer who is subject to a 30-per-cent tax rate.

He also has unit trusts in money-market funds, which act like savings accounts whereby investors can gain returns and retain the full liberty to sell the unit trusts when needing cash. With leftover funds or in changing circumstances, he shifts to fixed-income funds or equity funds. To him, banking accounts are where his money takes temporary refuge before taking up permanent residence elsewhere.

 Nattapol does not feel ashamed when saying that he holds not a single bond in his investment portfolio for the time being, even though he is president of an association where he oversees the trading of over 600 bond issues.

"I hope that political conditions will improve, then the stock exchange should be more active," he said, hoping that the bond market would also benefit from the buoyancy.

He said that most of his savings are in these accounts, leaving a small amount for land purchases and other investment items like paintings. If the chances come along, he sees himself as an art speculator, placing bets on abstract artists who are likely to be famous later. When their works are recognised, the prices of the works should increase.

Risks are involved, but Nattapol said he is moderate in terms of risk taking.

"There is a saying that those studying in engineering are risk averse while those in arts fields are risk takers. As an economist, I prefer to be in the middle lane."