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Normandy Advisory Services Sdn. Bhd (Licensed Investment Advisor)
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Save regularly and invest wisely so that your returns will help to combat sharp rises in inflation. In other words, regular savings help us to prepare for higher risks. Inflation, a driving force behind many economies, reduces ones purchasing power drastically as shown in Table 1. The purchasing power of RM1000 today will be reduced drastically in the future.

Most investments in any markets rise and fall in a cyclical nature. Our hard earnest savings will go through periods of bear and bull markets prior to retirement. Regular accumulation of wealth is therefore essential, the benefit of dollar cost averaging. Dollar cost averaging is a safer way of accumulating long-term capital with minimal risks.

Enjoy the benefits of diversification. Depending on your risk tolerance, there are a variety of investment choices for your selection. In the unit trust industry alone, there are more than 70 funds with more new funds expected to be launched in the near future.

As the local market matures, there will be more new investment instruments available. Spreading out your investments will help you counter market movements as the saying goes "do not put all your eggs in one basket."

To achieve attractive retums, one has to take on some degree of risk. Risk is inversely proportional to time in general. Youngsters who are planning for their "golden" periods, can certainly afford to be more speculative than older investors. This means you are unlikely to put large portion of your money into bank fixed deposits compared to a person who is about to retire and cannot afford to risk losing his or her money in speculative investments.

In most cases, it is hard to get rich without taking any risk. Just imagine a growth company that has no new product development - it would be eventually left behind by its competitors. What should you do when your risk goes wrong? To anticipate unpredictable downturn, you should constantly assess whatever new risk that is associated to your investments. Do not be afraid to take some level of risk exposure.

You never know what will happen in the future. You should make plans for yourself and anticipate future uncertainties. You should devise a plan that is well-structured and that will help improve your eventual lifestyle in your twilight years.