One of those decisions is choosing to invest your money in the stock market, rather than leaving it languishing in a savings account. Regular savings accounts typically pay very low rates of interest, whereas investing your money in the stock market can lead to much higher returns.
The good news is that investing is not as complicated as you think. You don’t need to be an active trader or continuously monitor the markets to invest. And regardless of your age, financial knowledge or attitude to risk, there should be an investment strategy to suit your needs. All you do need is spare cash and a long-term horizon.
When investing, you can be very hands-on or completely hands-off.
For those who don’t want to pick their own stocks and monitor their performance you can tap into the expertise of professional fund managers. A popular product in Singapore is an investment-linked policy (ILP) that uses your premiums to buy units in an investment fund. Some of these units are then sold to pay for insurance, while the remainder stays invested.
The good thing about investing is that it is suitable for any stage of life, from young savers looking to build up a nest egg to those in retirement, wanting a regular income stream. Whatever your financial goals, investment products can help you achieve them.