X
theAsianparent Malaysia Logo
theAsianparent Malaysia Logo
EnglishMalay
Product GuideSign in
  • Becoming a Parent
    • Project Sidekicks
    • Pregnancy
    • Losing A Baby
    • Conceiving a Baby
    • Adoption
    • Labour & Delivery
  • Ages & Stages
    • Baby
    • Child
    • Pre-Teen & Teen
  • Parenting
    • Parenting Tips
    • Marriage, Relationship & Sex
    • Viral News
  • Health
    • Illness
    • Allergy & Syndrome
    • Vaccinations
    • Give Health A Shot
  • Breastfeeding & Nutrition
    • Breastfeeding
    • Healthy Meal Tips
    • Formula
  • Education
    • Preschool
    • Primary School
    • Middle School
    • Special Education
  • Money Parenting
    • Tips for Parents
    • Tips for Toddlers
    • Tips for Older Kids
    • The 5 Personas
  • Lifestyle
    • Money
    • Contests & Promotions
    • Holiday
    • Spirituality
    • Home
  • TAP Recommends
  • Press Room
  • Products
  • Awards
    • Parents' Choice Awards 2023
  • Advertise With Us

Investment tips for parents

3 min read
Investment tips for parents

Want to make sure you have enough money for college tuition and retirement? Follow Einstein’s advice and start investing early.

investment tips for parents

A wise man once said, "The most powerful force in the universe is compound interest."

You might be tempted to think those words came from someone who’s made billions selling stocks, bonds, and real estate. The truth is, it was Albert Einstein who made the observation.

For young couples who are at the early stage of their careers or who may be thinking about a family, now is the time to also be thinking about saving for retirement and college tuition.

“It is important to make investing a high priority, so that you can enjoy long-term benefits,” Samantha Fraelich said, a certified financial planner.

“There are things that every person needs to know, in order to be successful in their investments. But the most important thing to know is that, even in this current economy, you can still be successful. If you make your investment decisions correctly, it will be worth it in the long run.”

Here are five tips from a parent, for parents beginning their investing journey:

1) Start investing when you’re young - Although these are rocky times it’s important to remember that retirement (and college tuition payments) will be here sooner than you think. Take advantage of the current market and view it as a buying opportunity. Keep investing consistently and don’t worry about the day-to-day market fluctuations.

2) Keep your portfolio age appropriate – Keep your portfolio diversified to protect against market fluctuations. Investors with 35-45 years before retirement can afford to take more risks now because they have time to ride out the ups and downs of high growth investments. For those who are 15-20 years from retirement or who have children who are about to go off to college should consider reducing their investment risks by re-balancing their portfolio. They should place more emphasis on low-to-medium growth opportunties.  Those who are at, or near, retirement age should re-balance their portfolio and move to a more conservative investment strategy.

3) The power of compound interest – The golden rule to accumulating wealth is to start early. Time is an investor’s biggest ally. Let’s say that at age 24 you start saving $5,000 a year at an annualized return of 10 percent. By the time you reach 55 you’ll have $1 million. If you wait until you are 34 to start saving, you'll only earn $357,000. And if you want until age 44, you'll have just $107,000.

4) Dollar cost averaging  - There are times when it seems scary to invest.  An investment strategy that is used when the market is particularly volatile is called “dollar cost averaging.” This strategy calls for a person to invest a specific amount at set periods of time. An example would be to invest $100 monthly for 10 months regardless of market conditions. By doing so, some shares (if you’re buying stocks or mutual funds) will be purchased when prices are low and some shares will be purchased when prices are high. By employing the dollar cost averaging method investors lower the total average cost per share thus giving the investor a lower overall cost for the shares purchased over time.

5) Don’t be afraid to ask for help - Seek out a certified financial planner who can explain your options in more detail and provide you with information about an investment strategy that you’re comfortable with. Although the economy may be shaky, it is important to keep investing and to do so wisely.

 

This article was written by Kevin Woo, a father to three girls.

Partner Stories
Cara Membantu Anak Anda Mengimbangkan Antara Belajar dan Bermain
Cara Membantu Anak Anda Mengimbangkan Antara Belajar dan Bermain
Tips Penjagaan Kulit Bayi Baru Lahir Dengan Betul, Ibu Kali Pertama Wajib Tahu 5 Perkara Ini
Tips Penjagaan Kulit Bayi Baru Lahir Dengan Betul, Ibu Kali Pertama Wajib Tahu 5 Perkara Ini
Zaman Kanak-Kanak Yang Seimbang Dalam Era Digital - Pasti Boleh!
Zaman Kanak-Kanak Yang Seimbang Dalam Era Digital - Pasti Boleh!
Tanya Pakar: Bagaimana Untuk Memilih Sabun Pencuci Tangan untuk Anak-Anak dan Amalan Mencuci Tangan Yang Betul
Tanya Pakar: Bagaimana Untuk Memilih Sabun Pencuci Tangan untuk Anak-Anak dan Amalan Mencuci Tangan Yang Betul

Got a parenting concern? Read articles or ask away and get instant answers on our app. Download theAsianparent Community on iOS or Android now!

img
Written by

Kevin Woo

  • Home
  • /
  • Kewangan
  • /
  • Investment tips for parents
Share:
  • The 3-minute rule to create stronger bonds with kids according to a psychologist

    The 3-minute rule to create stronger bonds with kids according to a psychologist

  • 6 Ways parents can make their babies smarter

    6 Ways parents can make their babies smarter

  • Give Health A Shot Campaign: Bridging the Awareness With Vaccine Preventable Disease Education for Families

    Give Health A Shot Campaign: Bridging the Awareness With Vaccine Preventable Disease Education for Families

  • Rambut Anak Lambat Tumbuh, Kulit Berkerak? Atasi Dengan Minyak Rambut Baby Yang Selamat Untuk Si Manja

    Rambut Anak Lambat Tumbuh, Kulit Berkerak? Atasi Dengan Minyak Rambut Baby Yang Selamat Untuk Si Manja

  • The 3-minute rule to create stronger bonds with kids according to a psychologist

    The 3-minute rule to create stronger bonds with kids according to a psychologist

  • 6 Ways parents can make their babies smarter

    6 Ways parents can make their babies smarter

  • Give Health A Shot Campaign: Bridging the Awareness With Vaccine Preventable Disease Education for Families

    Give Health A Shot Campaign: Bridging the Awareness With Vaccine Preventable Disease Education for Families

  • Rambut Anak Lambat Tumbuh, Kulit Berkerak? Atasi Dengan Minyak Rambut Baby Yang Selamat Untuk Si Manja

    Rambut Anak Lambat Tumbuh, Kulit Berkerak? Atasi Dengan Minyak Rambut Baby Yang Selamat Untuk Si Manja

Get advice on your pregnancy and growing baby. Sign up for our newsletter
  • Conceiving a Baby
    • Adoption
    • Pregnancy
    • Labour & Delivery
    • Marriage, Relationship & Sex
  • Baby
    • Baby Names
    • Ages & Stages
    • Parenting Tips
    • Breastfeeding & Nutrition
  • Health
    • Fitness
    • Allergy & Syndrome
    • Illness
    • Healthy Meal Tips
  • Education
    • Preschool
    • Primary School
    • Middle School
    • Special Education
  • Lifestyle
    • Home
    • Money
    • Holiday
    • Contests & Promotions
  • More
    • TAP Community
    • Advertise With Us
    • Contact Us
    • Become a Contributor


  • Singapore flag Singapore
  • Thailand flag Thailand
  • Indonesia flag Indonesia
  • Philippines flag Philippines
  • Malaysia flag Malaysia
  • Sri-Lanka flag Sri Lanka
  • India flag India
  • Vietnam flag Vietnam
  • Australia flag Australia
  • Japan flag Japan
  • Nigeria flag Nigeria
  • Kenya flag Kenya
© Copyright theAsianparent 2023. All rights reserved
About Us|Team|Privacy Policy|Terms of Use |Sitemap HTML
  • Tools
  • Articles
  • Feed
  • Poll

We use cookies to ensure you get the best experience. Learn MoreOk, Got it

We use cookies to ensure you get the best experience. Learn MoreOk, Got it

theAsianparent heart icon
Kami ingin menghantar anda pemberitahuan untuk berita dan kemas kini terbaru mengenai penjagaan dan kesihatan bayi.