Investment Guide to Investing the Smart Way

Investment happens to everyone all the time. Whether it’s ringgit, time, energy, work or romance, investing the right way could give you better chances of digging out the best in your investment. Here are some tips on proper investing management so that you can have yourself laughing all the way to the bank.

In our daily lives, like it or not, we invest in a particular something. Call it procurement methods for shopping or releasing stress on the TV, but initial part of the investment takes more than just a rough decision or idea. In monetary terms, investing the correct way is important so that we avoid as many losses as possible.

Many still have a vague idea of how to invest properly in Malaysian Property. The preliminary stage is so important that we have to weigh factors surrounding a particular investment. For example, emergency funds, Return on Investment (ROI) and balance usage to maximize profits. No matter how rough of an idea or how vague of a subject we know about, there is always a way to do it correctly – Proper planning.

Malaysia Home Loan takes you into the realm of Investing the Smart Way by providing you these tips:

1. Investment Planning – Define goals and needs
As emphasized, defining and outlining your goals and needs would probably be the first – When we’re not talking only about skillful investment management. Ask yourself questions like this example:

a) Do I need to buy this house?

b) Do I have enough funds (household income) to support this new house?

c) What about future plans like saving for children’s education or retirement?

d) Will this be an asset or a somewhat-liability?

e) What other external sources of income do I get? Is the flow of income steady?

2. Investing Factors – Weighing common possibilities

Looking far ahead can save you a lifetime of trouble. Before you start (investing) throwing money into a particular product/item, always weigh factors like:

a) Age

The elder you are, the higher your risk. (Being in Debt after retirement). If you’re particularly young, you know that you still can stretch that amount of money further.

b) Income level

Your income level influences the type of investment you can bear. Check the size of your wallet before making any drastic decision.

c) Occupation Perks

If your job offers you retirement plans, you may not worry so much about retirement. However, again, understand your plan properly before you take action.

d) Investment Maturity

Is your investment a somewhat-liability or an asset? As time pass, will it benefit you more, will you break even or will you lose money?

e) Wealth Tolerance Level

Should you invest in this particular item/product, how much can you stretch your monthly budget so that you’re still able to have money to live your life as usual?

f) Gauging Risk Levels

Different investments have different levels of risks. For example, bonds and equities have higher risks as compared to savings and fixed deposits.

3. Investment Risk – Determine your Risk Profile

Gearing up for war isn’t as simple as barging into your armoury and randomly select a gun to shoot. It takes more than just planning to practice Smart Investment Techniques. Identify your Risk Profile by evaluating yourself based on this set of questions:

a) How do you see yourself (attitude wise) towards money and risks?

b) Are you willing/prepared to accept higher risks for greater returns?

c) Are your goals and objectives short-term, mid-term or long-term?]

d) What is your current financial situation?

e) Are you ready to accept changes in your life in the value of your investments?

4. Investment Strategy – Being Prepared with your Investment Strategies

Knowing what to do, when to start doing it, how to do it and so forth could help reduce your risks.

a) Set aside some money for emergency funds – NOW.

b) Set short term financial goals to reap profit first.

c) Cover short term monetary obligations.

d) Diversify investments.

e) Growth-oriented investments.

f) Set a lower financial tolerance level – Look into short term investments or something that requires less investment if you cannot afford.

g) Plan for retirement (if you’re somewhat middle aged) or plan for family (if you’re in your early years)

We hope you enjoy this edition of Investment Guide.

The mortgage and financial consulting services are offered to you FREE of charge without any obligations. Kindly contact us or email to consultant@malaysialoan.com.my if you need any enquiry. Thank You.

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