It’s important to make investing a high priority so that we can enjoy long-term benefits. For young couples who are at the early stage of their careers or who may be thinking about having a family, now is the time to start thinking about saving for retirement and college tuition for their generation to come.
Here are four tips for parents to begin their investing journey.
- Start investing when you’re young – it’s important to remember that retirement will be here sooner than you think. Take advantage of the current market and view it as a buying opportunity. Keep investing consistently and don’t worry about the day-to-day market fluctuations.
- Keep your portfolio age appropriate – Investors with 35 years before retirement can afford to take more risks because they’ve time to ride out the ups and downs of high growth investments. Those who are 15 years from retirement or who have children going to college should consider low-to-medium growth investment.
- The power of compound interest – The golden rule for accumulating wealth is to start early. Let’s say that at age 24, you started saving RM5,000 a year at an annualised return of 10%. By the time you reach 55, you’ll have RM1 million. If you wait until you are 34, you’ll only earn RM357,000!
- Don’t be afraid to ask for help – Seek out to a certified financial planner who can explain your options in more detail and provide you with information about an investment strategy that you’re comfortable with. Although the economy may be unstable, it’s important to keep investing and to do so wisely.
At FWD Takaful, we have the best solution to magnify your wealth towards achieving your future financial goals with FWD Invest First Plus. Talk to our agent today and discover the financial stability for your future and generations to come.