For some of us, getting started with investing is like learning how to swim. It’s something you have to do eventually, though prospects of drowning (especially at the shallow end) can be terrifying.
At the very least, getting your feet wet would be a good thing. Some of us can be content with staying away from the pool and just focus on saving money. It’s safe and amicable, but if you have financial goals to achieve – enough money for a comfortable retirement, for example, or to send your child off to a good university – learning how to financially breaststroke would be highly useful.
Starting early is good, too. Quite a number of Malaysian millennials are looking into it already. According to Mohd Sedek Jantan, head of investment and business at Standard Financial Adviser (StandardFA) Sdn Bhd, millennials are now very open to investing.
He points out that 30.85% of the 6,632 StandardFA clients are aged 35 and below. A quarter of them are joint account holders with their parents, while the rest are individual clients.
“The average investment amount from millennials is far smaller compared to older generations. They normally invest around RM1,000 to RM5,000. But we see this amount increasing consistently over time, as they become more stable financially and develop their careers,” Sedek says.
Nevertheless, getting started with investing can be daunting, and often we’re not too clear over how we can invest in different financial stages in our lives. What do we invest in when we have little to spare? When we have more income at hand, where do we put it?