Since when you started your savings habit? Or you don't have savings habit at all? What is the benefit of savings? Saving  provides a financial “backstop” or "backup" for life's uncertainties and increases feelings of security and peace of mind. Once an adequate emergency fund is established,  savings  can also provide the “seed money” for higher return investment tools such as bonds, mutual funds / unit trust funds and stock. There are few simple ways to start your savings habit. 1. Save First, Spend Later You start to save a small portion from your monthly income, example 10% to 30% from you total monthly income. 2. Spend More, Save More This is how you save the while you spend. Example, you plan to save all the RM20 notes from your wallet, each time you see there is RM20 notes, you keep in your piggy bank. Every time you spend your big notes, if the balance you get are RM20 notes, you keep its. You will surprise after few months, and y...

Last week, a client asked me this, "I heard there is a financial crisis in every 10 years, do you think it is good time to top up or to buy more unit trust funds right now?" What do you think? Crisis? or Opportunity? Invest more? Sell off all? Or to hold back and wait? I answered my client, "Yes, everybody is talking about the mega financial crisis in every 10 years circle, but the problem is nobody knows the exact date of this crisis." I continued, "If the crisis happened in last week, local stock market slump down to 20% in a week, your unit trust portfolio dropped 15%... You know that the unit trust portfolio is for your retirement plan in the next 15 years, and the money you putting in unit trust funds is 40% of your the total cash in your hand. What would you do at this point of time?" "To sell off all for cutting lost? To top up more while the unit price is low or to hold back to wait...?" "Do you see this is an c...

There are 8 benefits to invest into unit trust. 1. Affordability In Malaysia, everyone who has reached age 18 can invest into unit trust for their own name as first holder. As unit trusts are a collective investment scheme, the investors can start with an investment amount as low as RM1,000, even some company can accept the low initial amount of RM500 for a new account. Investors can start their investment through Cash Scheme or KWSP Scheme. 2. Diversification The funds in a unit trust are invested in a wide range of assets, this reduces the overall risk of the portfolio. This means that the poor performance of any one asset in the fund is not likely to have a major adverse impact on the portfolio as a whole. Never put all eggs into a same basket. 3. Professional Fund Management Unit trusts fund managers are approved professionals in a highly regulated industry. Their license, background and expertise ensure that decision making is struct...