Prepare the Old Age Welfare

Each person would want to live in a comfortable level and quiet in retirement. In reality, public awareness to prepare for their retirement is still low.

Approximately 9 out of 10 people was not ready for retirement, so says a survey conducted by HSBC in 15 countries involving 15 thousand respondents.

The survey results show that low public awareness and lack of preparation was made for retirement. For that we need to prepare for retirement funds since a young age. Why do we have to prepare it?

Because not all companies provide retirement benefits for its employees. Many private firms do not provide retirement benefits for employees, while you are working in government enterprises, the value of pension funds do exist, but that would be obtained is also very little that we as individuals still have to prepare as well as people often regret in his old age , because the young and productive period not think to prepare for retirement funds.

Some people have a dream of the future retirement still go to work, but to be employed again by a company is not easy, especially if someone is not adequate expertise, not to mention the high level of competition the world of work.

There are also some people want to kill time by trying to self-retirement, but if someone started a business in old age, would be very risky to do business than in her younger years.

1. Regular savings
You can set aside some money from the salary or regular income to put into savings. How much should save regularly for a certain period should be calculated first. Start with a minimum of 10 percent to a maximum of 30 percent of regular earnings. Or you can consult on financial planning on this. Later, these savings will continue to grow until it reaches a large enough amount. The advantage of this saving is that you do not need to sacrifice time and thoughts, so they can stay focused on your main job.

Once able to discipline on a regular basis to allocate funds for the savings, it's time you invest. It is important we understand some types of investment instruments available. Several alternative investment instruments that are legally regulated by the government already you can use today, such as deposits (banking instruments), retail bonds, stocks, so mutual funds.

Deposits are investment instruments with interest rates or the lowest rate of return. The required initial investment of about Rp1 million rupiah. Deposit period is generally one month, three months, six months and 12 months.

Ownership of shares is a letter to a company that went public. Shares can be obtained at the time of IPO (Initial Public Offering) or in the secondary market. Initial investment must be spent relatively diverse, differ in nearly every securities firm starting from Rp5-10 million for retail investors. Investors have the opportunity to obtain long-term benefits of corporate profits in the form of dividends and capital gains from rising stock prices in the future.

Mutual fund is a container that is used by investment managers to collect public funds of investors to invest in various financial instruments in an investment portfolio. Mutual funds are investment instruments that have limited risk with the relative rate of return is greater. Initial investments of mutual funds in which cheap enough to only Rp 100 thousand to 200 thousand you can buy a mutual fund by buying units of mutual fund products.