After preparing financial plans for retirement such as setting retirement age and forecasting your lifespan, checking your savings in different sources, calculating your insufficient savings, evaluating your expenses after retirement, then it’s time to set your investment plans. Besides monitoring the amount of money, take a look at your investment style whether it suits financial products because each investment asset varies according to individuals.

1. Easy-going style

If you want to invest simply and easily and you’re the first jobber, you should focus your investment on Provident Fund as it’s a good savings source for a salaryman. You can continue to save your money every month and your company also makes a contribution to that.
 

The good thing about Provident Fund is to encourage long-term investment for retirement. If you keep following up the performance, news and analyze the progress, you’ll see continual growth. Even though the investment situation may vary or fluctuate, it won’t be difficult if you need to adjust port investment in Provident Fund. That’s because there’s an Employee’s Choice that facilitates you to choose the suitable policy that matches your risk level. After retirement, you can still keep your money in Provident Fund or receive your money on an installment basis, or transfer your money to Retirement Mutual Fund (RMF).
 

The negative side is Provident Fund consists of many conditions and some exceptions depending on each company such as adjusting port investment twice a year or fee and service charges are needed if you want to change some conditions.
 

Additional to Provident Fund, RMF also fits those who need an easy investment because it supports savings for retirement, and offers a tax break if you invest under the criteria.

Good point: if you have income and must pay tax, you’d better start investing in RMF as you will have a chance to create long-term profit, and get tax benefits regarding the tax base. For example, you have to pay a 15% tax base and you invest in RMF at 10,000 baht, your tax refund will be 1,500 baht. 

Negative point: RMF has a time frame so you can’t withdraw the fund before the deadline. If you break the condition, you have to return your tax deduction and pay the fine to The Revenue Department. Please study detail before investing.

2.Venturesome style

Investment in high-risk assets can be part of your financial plans for retirement. However, that doesn’t apply to all cases. You need to consider diversification and investment proportion. For example, if you’re interested in stock investment, focus on stocks with strong fundamentals and pay dividends consistently. For local and foreign investment funds, you may split your money to buy the gold bars and gold funds.

Good point: Investment in high-risk assets will have a chance to get high profit. If you make money from selling it, you’ll get a tax exemption. Besides, assets like stocks or gold have high liquidity.

Negative point: Investment in high-risk assets is likely to face big loss as well. If you don’t follow up on the news, your port investment may be failed. And once you get dividends, 10% withholding tax will be charged.

3.Passive income style

Passive income is an investment to grow continually income by monthly, quarterly, or annually. Income includes dividends and interest. Those who invest in this style should focus their investment on assets that generate regular dividends and interest.

If you prefer stocks, invest in the one that offers you consistent dividends. If you like Mutual Fund, select the fund that has dividend payment policy or Property Fund, Real Estate Investment Trust (REITs) including Infrastructure Fund.
 

Passive Income investment that offers interest includes cash deposit at the bank, Government Bond, or Private Sector Bond.
 

Good point: You get regular income. This style suits those who need a sum of money to pay their expenses.

Negative point: It needs some time to create secure income (Passive Income). If you need higher income, you need more money to invest accordingly. In the period of the market downturn, asset investment may not generate Passive Income. 

Whatever style you are, you should start step by step by checking yourself, your risk, and your goal including the financial management method. Asset investment varies to each individual so choose the one that suits your style to get profits at a satisfactory level and achieve your financial goal with little effort.