* risk is directly proportional to the amount of return
LOW RISK; LOW RETURN = savings account, time deposit
LOW RISK; MID RETURN = treasury bills, treasury bonds
LOW RISK; HIGH RETURN = lotto J
MID RISK; LOW RETURN = does not exist
MID RISK; MID RETURN = mutual funds (balanced fund, money market fund, bond fund)
MID RISK; HIGH RETURN = mutual funds (equity funds), uitf
HIGH RISK; LOW RETURN = does not exist
HIGH RISK; MID RETURN = does not exist
HIGH RISK; HIGH RETURN = stock market, business
Depending on your risk appetite, you can decide on your potential investments.
Wealth Accumulation = Aggressive Investor
- if you want to save up for early retirement (meaning you don’t have to work for a single day)
- if you want to put-up your own business (saving for capital)
- if you want to save up for your dream wedding
- if you want to save up for a house down payment/amortization
- if you want to save up for a car down payment/amortization
- if you want to save up for post-graduate studies
* money you can afford to gamble
Wealth Protection = Conservative Investor
- if you want to save up for retirement (60 years old)
- if you want to save up for your child’s college education
* money you can’t afford to gamble
