Retirement Fund Shrink? There’s The Solution!!!

” The market slowly recover from the crisis…”. Many of people face huge lose in this crisis, and some even take out a part of their retire fund to cover for the effect from economy crisis. Because of this crisis, it does affect to many people retirement plan, it cause delay of retirement age, or insufficient of retirement fund. One of the friend of mine, he worked so hard until the retirement age is near, but this economy crisis destroy all of his plans and dreams. Now he have to work harder and think how to save his retirement fund. So, what we going to do to increase the retirement fund?

Concepts To Save Your Retirement Fund & Life

(A) Highest Norm: Protect Your Asset, Low Down The Risks

If you were invested in the market and affected by the economy crisis, now what you can do is “Protect Your Current Assets”, today our topic is try to low down the risk and invest in those products that can help to protect your assets.

(B) For Those Who Retired, First Low Down You Monthly Expenses

Recommendation for those who are retired, if you want to save your retirement fund::

(i) First, calculate your current assets after the economy crisis

(ii) If your current asset not much, please do not think that want to win double back by invest in those high risk investment

(iii) Try to low down monthly expenses, then only invest in those products which can help to protect your assets, and earning stable income for the rest of time.

(C) Going To Retire: Consider to Increase Retirement Fund

For those who are going to retire soon, try to calculate your retirement fund, and think that it can long for how many years of your retirement life? Some people might prefer to save their money into bank, they think that is the safest way to protect their money, but do they think that the interest rate that giving to them is enough to withstand for the inflation? The interest rate is 0.5% – 2.2% annually, but Malaysia inflation is as high as 6% – 7%. Does it make sense to you? So, You might choose to invest in those products which can help to you to have the “2nd Retirement Fund” and protect your assets.

For Example, invest in gold. Invest in gold is always the token to protect the assets for those who are going to retire or already retired, it always can bring some earnings from it. According to past 10 years gold price statistic, it is stable and average returns as high as 14%. You might invest directly through bank and don’t need to keep the gold, and there is another financial tools for the retirement people.

Thinking of Financial Independence

Hi everyone, below are 4 scenarios. Which scenario you fall into?

**CLICK THE PICTURE TO ENLARGE

 

 

 

 

 

 

 

 

 

 

 

 

 

Manage Your Investment’s Risk

There is various of investment tools and products in the market, and each of them have the different level of risk. So, before you make a decision to invest in certain market, you have to consider:

(i) Returns of investment you desire

(ii) Risk level that you can endure

 

Q: Is the investment always contain risk?

A: Risk = % of loses in an investment. As an investor, you can’t avoid from risk, but you can control or minimized it. This concept is, when you deal in an investment market, use the calculated risk to help you to make money but not lose. Different investment market contain different level of risk. Normally, for those investment that contain high level of risk, it will bring higher returns compare to those low risk investments. For example, the returns of investment in stock / shares is higher than invest in Unit Trust, because the stock / shares market contain high risk than Unit Trust. So, you have to know the risk level that you can endure before you invest in a certain market. If you are able to endure high risk, you might use an Aggressive Investment Strategy to earn higher returns. On the other hand, if you only can endure low risk, then you might only invest in those markets which are more safe and earning stable returns. So, please consider carefully before invest, choose the investment with the risk level that you can endure, and earning better returns.

Q: What kind of risks i will face in investment?

A: Below is the risk that frequently face by investor:

1. Mismatch Risk – The risk that an investor has chosen investments that are not suitable for his or her circumstances

2. Inflation Risk – The returns of investment is lower than inflation rate, it will cause to slow down your purchasing power.

3. Interest Rate Risk – The risk borne by an interest-bearing asset, such as a loan or a bond, due to variability of interest rate.

4. Market Risk – The risk of an investment will decrease due to the change in value of the market risk factors.

5. Market Timing Risk – Missing out on beneficial movements in price due to an error in timing. This could cause harm to the value of an investor’s portfolio because of purchasing too high or selling too low.

6. Non-Diversification Risk – Investor will face the risk when they are only focus or depend on one investment market only.

7. Liquidity Risk – The risk stemming from the lack of marketability of an investment that cannot be bought or sold quickly  enough to prevent or minimize a loss.

8. Gearing Risk – You use loan to invest, but the returns of investment is lower than your loan.

9. Legislative Risk – The risk that legislation by the government could significantly alter the business prospects of one or more companies, adversely affecting investment holding in that company.

So, did you learn something through these Q & A?