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Seven Tips for Investing Success
01 Start Investing
Today
Procrastination can put a big dent in
your retirement investments.
02 Consider the
Impact of Inflation
Most people tend to forget about the
effects of inflation when investing for retirement. Even a low rate of
inflation adds up over the retirement years and shrinks the buying power
of your investment.
03 Make Informed
Decisions
Do you spend more time researching the
purchase of a new car or cell phone than in choosing your retirement
plan investments? It is important to take enough time to understand what
you are investing in so you make the right long-term decisions. You
should also review your asset allocation (the mix of stocks, bonds, and
cash in your portfolio) once a year to make sure it's still suited for
your needs.
04 Don't Spend Your
Retirement Investment When You Leave a Job
If you take a cash distribution from
your retirement plan when you leave a job, you will lose a substantial
portion of it to taxes and penalties.
05 Be Sure to
Collect Your Match Money
If your company offers a match based
on your retirement plan contributions and you are not participating, you
are missing out on extra money. Your employer will make this
contribution for you if you participate in the plan and you meet the
match requirements. This match contribution will help your investment
grow faster.
06 Take Advantage of
the Power of Compounding
Invest as much as you can, even if you
can't afford the maximum. You don't have to contribute RM5,000 every
year to start building assets tax-deferred. Even RM100 a month can make
a big impact over time.
07 Invest Regularly
It's important to view investing as a
process, not a one-time event. Often, one of the reasons we don't start
investing sooner is because, after paying bills and spending money
elsewhere, we don't think there's anything left over. By using an dollar
cost averaging, you protect yourself against buying too much when prices
are high and help reduce the temptation to sell at a bad time. | |
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