The article has highlighted from a survey by Bursa, only 12% of investor in age group 20-29, 59% for those 40 years and above. And it also stated “ People shy away from investing because they feel there is a high risk attached and they do not have enough money and don’t know how to invest. Clearly these reasons show a lack of knowledge and can be addressed by education”.
I was totally agree with above opinion, especially for the young group who do not learn how to investing, wealth accumulation, risk management, retirement plan… etc during their school, no education specialize on investing and how to use the money to work for us. Therefore, people will have there own bias when they making a decision on investing.
For instance, in the stock market, they tend to follow the rumours, media report without own analysis on the fundamental, economy movement, world’s economy impact, financial report interpretation and the economy cycle….and more factors. I would like to share with you Robert Kiyosaki 6 Rules For Investing as below:-
1) Have a Plan
à Always Ensure you or your financial advisor draws up an appropriate investment strategy in line with your financial status and align with your risk tolerance.
2) Don’t put your eggs in one basket
à Obvious advice but many people fail to follow it. If you have put all your financial eggs in one asset basket – property, what happen if property market collapses.
3) Build in appropriate timeframes
à There is an old saying “ When the tea lady starts to invest in the stock market, it’s time to get out.” Means : when the share market is so high that everyone starts to clamber on board, it has probably reach its peak.
à 2 ways successful investment planning :-a) Buy low Sell high – extremely hard to do
b) Choose good investment and stay with them over long term
4) Avoid high risk investments
à These refer to risky business venture, highly speculative stock, too-good-to-be-true proposition that promise usually high return.
5) Avoid borrowing for your investment
à Borrow to invest can be fraught with danger.
6) Stay with the traditional and known
à The best and surest investment are Fixed Deposit, Bond, Retirement Plan Scheme.
Work out the optimum mix for your investment portfolio and have a safe plan to work with and you can’t go wrong.
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