Monday, 12 April 2021
Written by MYTHEO Team
Money that looks after your legacy
In most cases, individuals tend to start their investment journey in their 30s or 40s. Why? Mainly due to the risks that they might shoulder, having saved up and built a capital along the way. But what about those in their early 20s or much later between the 50s and 80s? Should they be excluded just because they don’t have enough to start or are too old to even bother?
In short, no. Simply because anytime you invest, you’re creating a nest egg that looks after your legacy. Coming in a wide variety of forms like stocks, bonds, funds, and more, each form of investment provides your future self and your future generations a much more financially comfortable future.
But where and when do I begin?
Age groups aside, we first need to understand that there is no real perfect time because investments play off a different book, we need to take a look at how much we have to start and compare it to our risk appetites. But risk is all around us, and what we can do to mitigate this risk is to arm ourselves with financial knowledge like seeking the advice of a financial advisor or even a family member who is well versed in this field. There’s no harm in asking. But what about your starting capital? Small gestures like saving up RM100 monthly or cutting down on unnecessary daily spending that doesn’t bring you any passive income should be considered. It’s simple, assess your risk, get educated, and build your starting line.
How would you do it?
You can start your journey by understanding what type of investment stream is right for your risk appetite and focus. That and also understanding that diversifying your portfolio can help you yield better results. MYTHEO intelligently combines three types of streams, with different weightages based on your profile, to build an optimised portfolio that is aligned with your risk appetite and focuses.
The Growth stream is usually made up of diversified equity ETFs which tend to yield higher returns. If you’ve got a high-risk appetite and can hold out for a longer investment period, then this might just be the right one for you.
The next stream relies on Income where you generate your income through investments that offer dividends or interest payments. While it tends to yield lower returns, if you’re risk-averse, this stream might just be more comfortable for you.
Finally, there is an Inflation Hedge stream where you can invest in assets that are resilient when there happens to be a decrease in purchasing power of a currency such as property or even gold. This helps to protect the real value of your assets and mitigates your risk when the market gets inflated.
With MYTHEO, structuring and diversifying your portfolio by combining an optimal allocation of the above three streams affords you the opportunity for a great start in taking care of your future.
So, what happens after that?
Remember, Rome wasn’t built in one day. So, starting from zero knowledge today isn’t going to turn you into Warren Buffett tomorrow. Building your portfolio is going to take some time and doing it by yourself can prove to be quite costly. Balancing your portfolio, waiting for markets to open, and even identifying the right moves to make can be considered a full-time job. Isn’t there a better way?
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MYTHEO is a digital investment management app that helps you develop your personalised investment portfolio through logical investment reasoning. With our automated rebalancing system to help prime your investment positions, your portfolio will be diversified through a wide variety of global ETFs to help you disperse your risk. You could sign up, and monitor your investments at the tap of your phone anytime, anywhere, and leave the rest up to MYTHEO. With a starting amount of RM100 and the habit of saving regularly, you could begin taking care of those you care about in the future, today.
Your actions in the present are powerful, invest in a moment with MYTHEO.