The saying “it takes different strokes for different folks” would not exist if it did not have any bearing.
It is our very nature as individuals that dictates for us the need to find things that are suited for us specifically, and not just because it happens to be popular at a given time.
That holds true when it comes to the types of investments we devote our funds into. It is crucial that we choose an investment that fits our lifestyle in order for the investment to show any returns.
Here are a few suggestions for investment options for certain people, and see if any of them catch your fancy:
Savings
Ideal for: children, students, or first-time employees
It is always a good idea to start a savings account at a young age. While there is no right age to actually begin saving, there are certain advantages to beginning young.
If you are a student, or have a child you wish to educate on certain financial matters, a savings account is a great way to start a sound financial future.
First-time employees should also make it a habit to set aside at least 10% of their monthly paycheck into a savings account and watch it grow along with their professional lives.
Fixed Deposits
Ideal for: first time investors
Fixed deposit accounts are essentially savings accounts that pay interest over time.
This works in a way wherein you put your money in a bank, and you would not have access to that money until after a predetermined time that you and your bank have agreed upon.
Once that time period elapses, you earn interest. This is great for first time investors as it is a safe and predictable method of investment.
Though most banks offer lower yield when it comes to fixed deposits, this method allows you to see money grow in your bank account especially since you have no control over the cash until your tenure ends.
There are many different types of fixed deposit accounts options available including those that are Sharia-compliant.
However, it is vital to make sure that you are comfortable with your regular budget whilst having allocated the right amount for savings and knowing how much flexibility you need when choosing the right tenure.
Shares
Ideal for: the business savvy and other professionals
When you buy shares, it means you are essentially buying small portions of a company.
This means you would also get a portion of that company’s earnings. This is an investment that would work for people who not only have an eye for business, but also have a genuine interest in it.
Those who like to watch for market trends, and are always on the lookout for new companies, would thrive financially in investing in shares.
This method of investment is also suitable for non-business professionals who want to learn about the economy at large as well as of the exciting companies listed.
As long as you are involved and dedicated in analyzing the market, larger upside can be made over short period of time.
However, diversifying your portfolio is key. It’s always wise to make sure that you spread your risk across several different types of investment.
Property
Ideal for: future retirees
Investing in property takes money—and some time—before returns are reflected, but it is usually worth it.
For those preparing for retirement and have money to invest, it’s time to look for promising pieces of property. This is ideal for pretty much anyone with resources and are preparing for retirement early on.
REITs
Ideal for: retired folks
Apart from owning rental property, you could also invest in large-scale, income-producing real estate through real estate investment trusts, better known as REITs. But how do they fit into your investment portfolio?
The investment comes through the buying of shares and investing it to buy real estate that is rented out to gain profits.
It is a safer way to invest due to its less risky structure as the risks is shared by more shareholders and investors. This is perfect for retirees who want passive income as the capital appreciates coming in through dividend yield payout.
There are other kinds of investments, but the main point stressed here is that there is an investment option that suits you, and it is just a matter of weighing the potential benefits of the investment option to the strengths and weaknesses of your own personal finances and financial habits.
By finding the sweet spot that allows you to maximise your investment opportunities, you can start securing a more financially sound future for yourself today.
CompareHero is the leading Malaysian financial comparison platform, aimed at helping Malaysians save time and money. Visit http://www.comparehero.my/ here.
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