Retirement is a time that needs to be prepared carefully so that one day we can still live worthy. For the generation that will face retirement must immediately prepare it well.
Not long ago, an investment company Capital Group conducted a survey entitled ‘Wisdom Experience’. Survey that saw the investment changes made by Baby Boomer generation from age 53 to 71 years, when entering retirement.
Performed APCO Insight in March 2017, it found five rules in the investment that are considered important for Baby Boomer. The rules are also important to understand for other potential investors.
As quoted Business Insider, Sunday(7/1/2018), the following rules:
1. Invest In Long Term
As many as 92 per cent of Baby Boomers think that they need to invest more to ensure retirement.
Four out of five believe it should invest consistently with a specific strategy. Then, 32 percent said they would change their strategy depending on market fluctuations.
The same thing also mentioned Warren Buffet in an article in the New York Times during the 2008 crisis. “In the long term, the stock market will grow well.”
2. Pay attention to what is invested
As many as 94 percent of pensioners say they want to understand what they invest. While 78 percent think that a simple investment with low risk is better in the long term.
3. Investment on Various Things
As many as 85 percent say that diverse investment is essential for a safe retirement. In other words, it should not invest all of its money on one type of investment like Bitcoin.
4. Protect Yourself from the Market Slump
About 80 percent said the importance of protecting investments and reducing the risk of losses when the market plunges. While 30 percent hope to know what to do in the face of such circumstances.
5. Saving More Early and Often
Meanwhile, 79 percent suggest to set aside monthly income for savings. As many as 60 percent of respondents also said the importance of investing since young.
Although young investors think that investing early on is very tedious, it can be more profitable.