- 5 months ago
Feeling overwhelmed by all the investment options out there? From ASB to stocks to the ever-volatile crypto market, it’s tough to know where to put your hard-earned money.
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00:00the way i see it i'm young and i'm investing for retirement if you're investing for retirement like
00:04me and you're in your 20s right our retirement is probably 30 years away how old you are and
00:09what you're investing for matters as well because i don't have time to recover anymore i'm not
00:13working anymore hey guys welcome back to the money goal my name is emir and i have yasmin with me
00:23today yes how's the investment going very good actually okay but more questions today more
00:29questions today um about investment again actually so um i think a lot of people out there would want
00:37to know when you finally have that extra cash to grow right like everyone starts shouting advice
00:45about like oh you know do crypto or do stocks or do asb which is kind of like the position that i
00:51was in before right until there's too many things to invest in there's so many options yeah there's
00:56so many choices there's so many options and there isn't necessarily like a right or wrong
01:01exactly choice to make right so i guess what i want to figure out today with you is what's right for
01:09people out there okay and what is that dependent on okay so um i guess i would classify investments
01:18into okay one is the extremely low risk so things like asb uh money market funds fixed deposits those
01:26are very low risk investments right and then there are the higher risk ones like gold um stocks i would
01:33say they're a bit more high gold is considered i would consider higher risk than asb for example for
01:38sure right because asb it doesn't fluctuate at all it's fixed right fixed deposits it doesn't fluctuate
01:41at all whereas gold it can fluctuate so stocks gold i would consider higher risk and in crypto is probably
01:46the highest of risk right so if you think about it logically the higher risk you take on the higher
01:53potential returns you should expect yeah of course then there's no point for me taking a high risk
01:58investment with asb level returns because then i may as well just invest in asb right that's a risk-free
02:02rate yeah right um so people then need to first decide uh that's why i'm not sure when you signed up for
02:09your first investment whether they ask you like you know they ask you a few questions to determine your
02:13risk yeah exactly right yes so people who do it through like apps like robot advisors and stuff
02:19they will get that done for them but if you're doing it yourself you need to figure out what's
02:23your risk tolerance so how much risk are you willing to take um if you're not someone who is a risk
02:29taker if you're a more risk averse person then you should go for lower risk investments like asb
02:34for example right but a caveat to that i would say is a lot of people in malaysia i notice at least
02:40when i speak to like my followers my friends family they tend to be a bit more risk averse for
02:45some reason i don't know why uh maybe it's a cultural thing um which i mean it's fine right
02:51everyone is different but i would say people need to take on a bit more risk malay in the malaysian
02:55context at least i think a lot of people are very complacent with asb for boomies and for non-boomies
03:02they really like fixed deposits like they will throw the entire net worth into fixed deposits which is
03:06again okay but we need to consider taking on a bit of risk to get potentially higher returns
03:12because at the end of the day if you're getting let's say three four percent from your fixed
03:15deposits after inflation you're not really getting much anymore yeah and what was the first thing
03:21you invested in so for me my very first investment was asb yeah how old were you i was i think
03:2919 when i got my first job yeah so i did asb first because that was the simplest so i didn't have to do
03:36any research or anything literally just transfer money there and it's done so i think it is a good
03:40starting place for a lot of people um especially if you don't have an emergency fund so asb is an
03:46investment but in a way it could also serve a purpose as your emergency fund right you could
03:51invest 50 000 in there and if you really need the cash for an emergency you can just take it out
03:57right which is why i started with asb first as well but after you know over the last few years
04:03at least most of the money now goes to stocks actually yeah that is my preferred investment so why
04:08the transition um i like to take risks right i wanted the highest uh returns return exactly
04:16yeah the highest potential return so it's not guaranteed right stocks could underperform asb
04:21historically stocks has not underperformed asb historically stocks has been over the last 10 years
04:26i would say maybe 10 11 a year which is a lot higher um so that's what i'm aiming for so one
04:31thing as well is the way i see it i'm young right and i'm investing for retirement and okay this is
04:36another thing that you need to consider what are you investing for if you're investing for retirement
04:40like me and in and you're in your 20s right our retirement is probably 30 years away 20 30 years
04:47away lah so because we have a long time horizon we should take on more risk for potentially high
04:52returns the reason for that is because okay let's say i'm 29 now i invest today tomorrow the stock
04:58market crashes because you know whatever reason right stocks drop 50 i still have a lot more time
05:04to let it recover i still have 20 more years to let it recover compared to someone who is 60 years old
05:10who has already retired if their retirement fund drops by 50 tomorrow they're kind of screwed right
05:16they're kind of screwed so how old you are and what you're investing for matters as well oh that's
05:21really interesting because i would have thought that um if you're investing really early in your
05:27life yeah and for example if you're investing for retirement and you're um yeah i i would have
05:35thought that you would be essentially looking at it kind of like a long game yeah so just do it low
05:41and slow i suppose oh no it's actually the other way around i see yeah that's interesting yeah because
05:46when you're older you can't take the risk anymore right right like i have two million ringgit to
05:50retire at 60 i can't risk this going to one million tomorrow because i don't have time to recover
05:55anymore i'm not working anymore right so that's pretty much the difference yeah i see and it works
06:00in a similar way so some people they tell me i want to invest money but this money that i'm investing
06:07supposedly is for a holiday next year so if that's you you have a one-year time horizon you can't
06:13really invest in stocks yeah because stocks can do anything in a one-year period right it could drop
06:1850 in one year so if you invest in stocks for something that you need in one year's time
06:23it could go very well for you it could go very bad for you so for that reason essentially if you're
06:29investing for a shorter time frame you need to stick to lower risk investments yeah and when you
06:34first started investing in asba yeah did you understand like what it was that you were doing
06:40necessarily uh not to like undermine not to undermine your knowledge of it but then i think
06:46like at 18 19 years old i mean we've talked about this before i didn't i didn't know anything you know
06:52i mean so that's why um i would i guess naturally gravitate towards something that's low risk exactly
06:58yeah it's simply just because i lack the knowledge it's similar for me so i didn't know much about it
07:03but i think probably similar for you as well it's because it's something that my parents told me
07:07so they always talk about oh asb you know very safe very simple just put it there yeah that's
07:11probably why i put it there first as well i didn't know that much about it back then but i knew that
07:16i was just looking back at dividend history and stuff it was paying out six seven percent a year
07:20so i thought okay not so bad my parents told me about it returns looked okay so i just put my money
07:25there i see yeah well i was thinking that maybe you could like break down um the three that i
07:31literally just mentioned so that's asb stocks and then crypto right crypto okay so
07:36i have crypto as well uh but i don't allocate such a big percentage to it the reason for that is
07:42because okay i know some people do uh like they will go 50 percent even like 80 percent of the
07:47portfolio in crypto they're basically all or nothing and they really believe in it right that feels
07:52crazy today it does feel crazy yeah i know but now they're doing really well because bitcoin is at
07:55like a 120 000 yeah but i mean that's in hindsight if i knew this 10 years ago yeah of course then we
08:02would have all put it exactly exactly yeah so in hindsight it would have worked well but i would still
08:06not do it just because i'm not comfortable taking on that amount of risk so yes i have a long-term
08:11horizon but my risk tolerance is not at that level and another thing to me is that um maybe i'll get
08:19some hate on that a bit of a divisive comment but we're not i'm not entirely sold on bitcoin
08:24right on crypto as a whole like when we're talking about investing into companies like many companies
08:30we know that they will be around for the next 50 hundred years so even if they're not around
08:33there'll be a replacement which is essentially what the smb 500 does right it replaces bad
08:38companies with good companies whereas if you ask me would bitcoin be around and useful in 20 years
08:43time i have no idea yeah i have no idea it could be a million it could be zero well also because
08:48something like bitcoin i mean crypto in general is not it's not something tangible exactly exactly
08:54yeah there's there's no real use for it other than people thinking that it should be value
08:59so that's why i wouldn't put that much into crypto but having said that i do have some money and i do
09:05believe that most people should have at least a small allocation towards crypto so my thinking is
09:11it's very simple actually my thinking for bitcoin is i don't think it will be relevant in 20 years time
09:20but just in case i'm wrong i'm gonna put some money there i'm gonna put five percent that's the only
09:25reason why exactly yeah okay um five percent there ten percent there also because i mean it has been
09:29performing well over the last 10 years again no guarantees that this will continue in the next 10
09:33years i think it's highly unlikely that it's going to give this amount of returns moving forward but
09:38again i also don't want to just completely dismiss it right so i want to have some money there
09:42and there are research uh that's been done in the past as well where they show that having a five
09:48percent bitcoin allocation in your portfolio it actually increases your returns by a lot
09:54but you only take a bit more risk because it's only five percent yeah so i see yeah yeah yeah so if
10:02you think about it that way if you think about it more rationally than to me yeah five ten percent
10:05is fine to me yeah no sorry actually i forgot that you asked about comparing these three things
10:10but okay that's crypto that's a crypto right so the majority of my portfolio is in stocks uh for the
10:14i was telling you earlier i want to try maximize my returns so anywhere between eight to ten percent
10:19that's what i'm expecting from stocks every single year um that's how i want my money to grow i think
10:24for people who are young people who are in the stage of trying to build your wealth uh this is where
10:29you want to be because yes five percent asb is good uh three percent four percent from your money
10:35market funds from fd is good it's just that when you don't have a lot of money when you're only on
10:41let's say a portfolio is 10 000 ringgit five percent is 500 which is good it's a start but
10:47you're not really building wealth it's going to take you a lot of time to get there whereas stocks
10:51you can get double the returns um not every time but historically that's what it's been so that's why
10:56most of my allocation is towards stocks because i feel more comfortable investing in it compared to
11:01bitcoin and at the same time i want to maximize my potential uh returns considering the risk yeah so
11:06that's where i'm at um for asb i still have money there so i think asb is a really good product i
11:11think money market funds fixed deposit are still good but i have these investments as sort of my
11:16emergency fund sort of my safety exactly i was telling you because like i said i don't want to go
11:22or you shouldn't go all into stocks you shouldn't have zero savings and invest everything into stocks
11:27and crypto because one day if there's an emergency or if you need the cash you don't want to be forced
11:32to sell your stocks yeah not because it's bad to sell your stocks it's just that you don't know
11:37when an emergency can come and if it comes when the stock market is down 50 it means you have to sell
11:42at a 50 loss which is not what you want to do basically don't put all your eggs in one basket
11:46exactly exactly yeah so what i invest in stocks and bitcoin is money that i don't expect to use or need
11:53for the next 10 years at least okay at least yeah so if i put 10 000 ringgit in my broker i'm expecting
11:58not to touch this money for the next 10 years yep money that i am not so sure about so like i'm okay
12:04to invest it now but maybe i might want to use it for a down payment on the house in the next five
12:09years i'll put into asb yeah so right all of these things they play a part in your portfolio like you
12:14said there's no right or wrong way to do it it really depends on you and what your goals are
12:18exactly exactly okay right so yeah i guess you've kind of answered my question which is um a question
12:26that i wanted to ask which is about diversifying exactly very important your portfolio yeah so like
12:31if you could just do it a bit like numerically like how would you split up like in terms of
12:38percentages right so like i would do of like a salary of your salary yeah right now okay of how much
12:43you invest right yeah okay okay so of how much you would invest so let's say it's a thousand
12:48ringgit a month or whatever it is right i would do five to ten percent crypto depending on how much
12:53you want to put into that so let's just say 10 for me uh i would do 20 into asb and then everything
12:58else stock oh yeah so it's like 10 20 and that's quite hefty and 70 yeah i'm very heavy into stocks
13:05but again this might not apply to someone like you for example if you're just starting out and you want
13:10to build that emergency fund first then you might want to switch that location between stocks and asb
13:14so you might want to go more into asb first until you have one year's worth of your expenses for
13:19example saved up there and then you move back into stocks and go heavier there yeah i mean for
13:24me right now i'm obviously not i'm not playing with crypto like okay not yet no are you not tempted
13:29at all um no not really um but maybe maybe i that's why i say not yet okay uh because i'm not
13:39entirely sure like where my mindset will be in like maybe like a year's time yep um but obviously i
13:45yeah i've got asb and then i've got like the stocks okay so you just started i just started
13:50and honestly it's quite a nice um bridge of the gap uh between something so high risk like crypto and
13:59something that's super low risk um like asb yeah because um because i didn't think that like i would
14:06do anything that's like more high risk than than asb yeah exactly i mean whatever yeah exactly you
14:13didn't want to invest in stocks and now you have and now you're considering crypto even yes it's
14:17good progression exactly so that's why i was thinking um i'm sure there are lots of people
14:22like out there who like me just didn't want to like take the next step yeah just didn't want to
14:29take the next step but now that i am here it's actually a lot more comfortable than i thought
14:34exactly um it's but at the same time yeah i should probably stop checking on the app like every
14:42single day i mean even though it is sort of like medium risk ish um i don't think it's that big of
14:50a step up from from asb yeah yeah from the low risk stuff that i was doing that's actually one thing i
14:55wanted to mention so i know a lot of people who don't want to invest in anything other than asb
15:01fake deposits and stuff because they think they're not comfortable with the risk which i think is fine
15:06again but no one says you have to start with a hundred thousand ringgit right you don't have to
15:11start that big you can always start with however much you're comfortable with and then just see how
15:16you feel about it so if you're comfortable with 500 ringgit just put 500 ringgit leave it there for a
15:20few months and then maybe you're down 10 just see how you feel about it and if you get more comfortable
15:24you just add more money in yeah so i think the key is really just starting with whatever amount you're
15:29comfortable with and then just go from there yeah but i think at the same time as well i think there
15:33are people who feel like oh if i don't put in a certain amount then like what's the point like
15:39it doesn't really count yeah so honestly if you don't if you put 500 ringgit it's not going to
15:43change your life 500 is never going to turn into a million it's never going to happen right but it's
15:49just you getting used to it because before this even for you you never thought you invest in stocks
15:54because you thought you know what if i lost money you know i can't i can't imagine the feeling of
15:59losing money yeah but 500 ringgit if you're down 50 and you think 50 is nothing to me then you know
16:04you actually have to restore and invest more yeah so you won't feel much but it just gets you in the
16:08game at least you have to just start yeah yeah all righty okay well i've got some um questions okay for
16:16you from from our viewers and listeners okay um so the first one that i've got is
16:21my friend convinced me to buy into a crypto coin that was about to explode okay i didn't understand
16:28it but i threw in a thousand ringgit anyway a week later it dropped 40 and i panicked sold everything
16:34and took the loss now i know i didn't lose money because of the market i lost it because i had no
16:40idea what i was doing yep so what are some tips to avoid making emotionally driven investment choices
16:46number one don't follow uh whatever your friend says i think blindly following advice is probably
16:51the first mistake there um we have this saying because i trade a lot right uh you can't borrow
16:58conviction which means if someone is so fully into let's say bitcoin for example right they believe in
17:05it so much and they tell you to do it when the price drops 50 they are okay because they're so convinced
17:11by it but because you're borrowing their conviction you can't hold on to that loss because you don't
17:15believe in it that much so first things first don't blindly follow any investment advice even
17:20whatever i say right um don't do that and then number two only invest in what you know what you
17:25understand i will only do that yeah so this happened to me as well uh even when i was just starting
17:31out i put money where i didn't understand it because i thought you know i was reading online as
17:35well i was just reading online seeing seeing what people are investing in put my money there
17:39it went down i sold it and then lost money lah basically yeah whereas if you're more confident
17:44like i am now in u.s stocks s&p 500 if it drops i don't really mind i'll just buy more
17:49um that's basically the difference lah yeah all righty okay the next one i started putting in
17:56100 ringgit a month into asb just to do something adult okay after a year my motorbike broke down and
18:03i didn't have emergency savings but i could cash out on my as on my asb it wasn't a lot but it helped
18:10me survive without borrowing okay how can beginners use asb as a low risk first step
18:15into investing and saving yeah i think this is a really good uh example of what i was telling you
18:20earlier which is why i said when you're starting out uh put in asb first for this exact scenario
18:25right at least when you need it for an emergency you can access it immediately and you're not losing
18:30any money right the asb price doesn't drop anything like that so i think this person is doing the
18:35right thing uh it's fine for them it's an emergency right they had to withdraw it to pay for
18:39their bills or whatever it is um just top it back up i think it's fine just keep building up again
18:43and as soon as you can or as soon as you feel like you have a nice enough cushion then you can
18:48consider other things but for now i think it's fine they're doing well okay and last submission
18:53i bought shares in a company i loved use their app all the time so i assume they were doing great
18:59okay turns out liking the product doesn't mean the business is making money the stock dropped and i
19:04learned the hard way that brand doesn't equal profit yeah what should first-time stock investors
19:09research before buying into a company okay this is such a tough question actually but first of all
19:15um i've actually read a quote before where warren buffett said um you know or i asked you this
19:20before you know warren buffett um invest in companies that you like i honestly don't know whether
19:24he actually said that or not but i believed it and then i realized it's not true you can't invest in
19:30companies just because you like it exactly just because the products are good doesn't mean they're
19:33good of course if you're talking about iphone then that is a very good example of you like the
19:37product the company does well but there are a lot of brands where the product is good they just don't
19:41make money um honestly speaking if i just keep this short the easy answer to that is don't invest in
19:49individual stocks because there is no one thing that you can do to decide there's just so many
19:55different elements you need to look at you need to see whether they're profitable right now
19:59how are they going to do in the next few quarters and you need to follow up every single quarter
20:03whether they're delivering or not so it's a lot of work there's no one thing that you can do
20:07so my advice is as usual invest into etfs invest into things like the s&p 500 you have 500 different
20:13companies it honestly doesn't matter if one company doesn't do well it doesn't matter at all
20:18which is what i do exactly exactly yeah so i'm just not answering that question but honestly i think
20:23this is the right way to go about it yeah all righty well that's it for the submissions
20:27so do you have any last like tips and tricks for no i think the people out there invest um if you're
20:35not sure i think a lot of people don't want to start investing because of this exact issue i don't
20:40know what to invest in there's so many options if you are so confused by it just start just start
20:46even if it's just asb even if it's not the most optimal way for you to invest um at least just start
20:52and it's similar for when you want to start investing into stocks when you want to start
20:55investing into crypto there are a lot of information out there there are a lot of things that you can
21:00confuse you but just start small yeah yeah and i think for me as well just like as a first time
21:05investor i wouldn't go so gung-ho gung-ho and like invest in like crypto yeah um start low and slow
21:14right yes it's a great way to start and then if you're feeling a bit more like risky um move on to
21:21to stop which is where i am right now and honestly i don't regret it at all it's been like a couple
21:26of months now exactly so maybe the next time we talk you'll be like oh yeah i'm invested into
21:29yeah i'm in crypto now i'm like a crypto bro now but yeah all righty cool nice talking to you
21:35yes man thank you maybe next time you will really be invested in bitcoin and you'll be asking me
21:39so which crypto do i invest in all right i hope you guys learned something from this um thanks
21:44for watching we'll see you in the next one
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