Unit Trust Game Rule #3

Asset Allocation

I think this is not only limited to Unit Trust, but any investment instrument as well.

The allocation in UT mainly has 3 categories, Equity fund, Balanced fund and Bond fund.

An investor need to review his asset each year to determine if re-allocation is required, due to needs change and age change.

The simple rule of thumb, when we are approaching retirement age, we will need to reallocate high risk instrument to a lower risk instrument. Same go for child education plan, when we approach the time for withdrawal for the kids, then, we should start re-allocating the fund into a lower risk instrument, to warrant the return gained in previous years.

Everything doesn't run away on the principle of 'financial planning'.

Have you start thinking and plan for yourself and your beloving one ?

How Much is Needed for Retirement ?

Have you ever got the 'courage' to calculate how much you need for to live until the 'last day', without depending on others to support you .... but only on your early days saving ....

Have a look the screen capture. By only saving the money for a day 3 meals, you need about 550K ... so, ask yourself, have you ever save enough just for 3 meals a day for 23 years ?

Don't forgot, you need money to pay your electrical bill, water bill, other utility bill, medical bill ... did you plan enough for your old age ? Put aside a few minute to think about it ....