Ad: Financial Guide for Doctors - Unit Trust

One thing they don't teach you in Medical School is how you plan your finance; investment, loans, mortgage, credit cards, stocks, savings, unit trust, insurance, property etc. We learn non of these and often we relied our parents advice.

Picture: http://www.chicagonow.com/own-your-legacy/files/2013/06/save-money1.jpg

Of these, one thing, I want to point out, as a junior doctor is now it is a right time to save your money every time we receive your monthly salary. According to your needs and expenses, always set aside a fixed amount from your monthly salary for saving.

If we save consistently, in a fixed amount, no matter how small, we can accumulate much at the end of the day.

The money accumulated may not make us rich, but it can act as a financial safety net. For example, you may need extra cash if someone you love may be hospitalized (God forbid), money to start up your first clinic, to start a mission or charity projects or to add to your retirement fund.

However, when you set aside your monthly saving and you put inside the bank, you must be aware of that your hard earn money will eventually depreciate. For example, our hard earn RINGGIT depreciate around 6% annually.

That means, if you put your money in a fixed deposit which gives around 3% annual interest, you end up losing around 3% yearly.

That is the next better option is to invest our monthly saving into a Unit Trust.

Okay, the disclaimer is that my mum is a certified unit trust agent. Should you want to invest, please call 016 2096338. Support support!

:)

How Unit Trust works is when you buy a fund, the fund manager (who is an expert with the stock market) will  pool your money together with the money from the thousands of people like you who buy the funds.

With that huge amount of money he will invest in various stocks in a way which according to his expertise, you trust that he/she will make a handsome profit out of it.

So you will earn whatever profit he/she make and the fund manager will cut a small fee from you.

It is however, not without risk. Should the fund manager loses money in his/her investment, you will lost your money too. However the risk is minimized because he/she invest in many many stocks. Some make money, some lose money. Hence, the overall, the profit will make up with the losses.

Hence, generally if you invest in a good fund, you may get a steady 10-15% annual profit. Some lousy funds, you may earn less.

Yes unlike buying stocks, unit trust may give slower return. But it is less risky, and you can concentrate in your work more instead of watching for stock price daily.

 So how your saving works:

You can use a compound interest calculator to calculate.

Say you put aside RM1000 monthly for saving and put in to a unit trust fund which gives average 10% interest return.

In 10 years you can save up RM 204,051.34

In 30 years ( when you retire), you manage to save RM 2,096,742.12!

So, ask yourself how much you can save in a month, calculate your saving using the compound interest calculator and decide.

Call up my mum 016 2096338 to discuss which fund is suitable for you. And start saving! For a start, invest in a low risk fund with a steady return.

Yes, it is a free advertisement for her! :)