Read Before You Invest: Personal Investing Tips for Seniors

Chew Hock Beng

Before I could provide a few pointers on how to avoid common mistakes and making unwise decisions, I would like to highlight a few key areas that you should consider before investing.


Because Personal investing for Seniors can be complex!

So should any seniors be investing?


retirement-planning1However the following pointers might be helpful.

  • Know how much funds you have.
  • Know how much you need for your daily and medical needs and for any outstanding financial commitments you have.
  • Set aside funds for your basic needs before investing.
  • The less spare cash you have, the less risk you should take in investing.

So if you really want to invest, then you should seriously consider your options before investing. So before making any investment decisions, ask yourself this 3 critical questions!

  1. What do you WANT?
  • What is your investment objective?
  • How much returns on investment do you need to meet your objective?
  1. What do you HAVE?
  • How much do you have to invest?


  1. What can you LOSE?
  • How much are you prepared to lose?


Let me share with you what some of my seniors and mentors on their views on  personal investing.

Be aware and mindful that the more you WANT, the more you must be prepared to LOSE!!!

Allow me to explain further.  

Know your investment objectives.

For example, are you investing to earn a regular income? Are you investing to preserve your capital sum? Or are you investing to grow your capital?

Know your investment time horizon.

Simply put, ask yourself how much time do you have to invest to achieve your financial goals. Generally, the shorter your time horizon, the less risk you should take with your investments.  If you need your money in a short time, do not invest in products that will put your capital at risk or that will impose penalty charges for early withdrawal. If you have more time for investing, you may wish to consider taking up products with different investment periods so that you can have access to funds at different stages during your retirement years.

Know your risk profile.

How much fluctuation and risk can you tolerate in your investments as the market conditions change? This is known as market volatility. So do not place all your eggs in one basket.  And diversify your investments to reduce risk. Hence, set up an asset allocation based on your risk tolerance and preference is critical. One suggested portfolio for seniors who are Moderate Risk Takers could considered a 40% Equity and 60% Bond composition. Another option could be 20% Equity & 80% Bond asset composition. The reason for having the equity allocation in the asset mix is to counter the risk of purchasing power of the retirement dollars. It also take away some market risk. As for the Bond allocation, it serves to protect the principal. We need the money to outlive our life expectancy.

Personal investing for seniors is not simple and easy. It’s always at your best interest to engage someone who is qualified to advise you accordingly to what you want to do with your hard-earned monies! Always provide accurate information about yourself, your financial situation and investment objectives to them so that any appropriate retirement recommended are suitable to your individual needs!

One last thing, constant monitoring the performance of your investments to ensure that they continue to deliver the returns you expect and meet your needs.

I hope this sharing could benefit you.

We will share more on the retirement planning and investment asset allocation method in our upcoming event on how to construct and build your retirement portfolio without losing your sleep. Please register your attendance HERE as seats are limited.

See other event here.

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