Bank dividends

Why do you invest in dividend stocks instead of relying on the banks' fixed deposits for retirement??

Just now when I went to the bank to withdraw money

I saw the interest on the bank's fixed deposits. Currently, the interest for Maybank is 2.6% per year.

To be honest

You invest and you don't invest.

#The amount you need for retirement is far off.

For example,

Assuming you have reached retirement age today,

You have also paid off your house and car.

Your children have also grown up.

You need to cover the daily necessities of the two spouses, fuel, insurance, and some miscellaneous expenses.

#Let's not talk about traveling.

#Because that is the retirement life one desires.

We will consider a basic retirement life.

If you need rm5000 a month.

Then it would be rm60,000 a year.

If you invest, assuming you buy similar high-dividend companies like Maybank, RHB Bank.

#Usually, the dividend will exceed 6% per year.

Of course, it depends on the price you buy at.

So when you retire.

Assuming you have RM1,000,000 in high dividend stocks.

Then basically your retirement life should have no major issues.

If you want to have a passive income of RM10,000 per month.

Then you would need RM2,000,000.

Of course, this is quite challenging.

Because you would need to save more.

But if you rely on fixed deposits and the 2.6% interest to retire.

This would be a very difficult task.

Because if you want a monthly retirement income of RM 5000.

You will need RM 2,360,000 in fixed deposits.

If you want a retirement income of RM 10,000.

You will need RM 4,720,00 in fixed deposits, which is much more difficult 😂😂😂😂

So you really need to learn to invest in stocks with high dividends.

Of course, you should look for undervalued dividend stocks.

Otherwise, you can only earn dividends and not the price difference.

But when your funds have reached a considerable amount.

At this time

#The price difference is not so important anymore.

Because you have enough to retire on with your dividend income.

The time to accumulate wealth

and your investment return on investment also differ.

Assuming you will invest

If there is a 10% return on investment per year

Then if you save RM 1000 per month, the average return on investment is 10% per year.

By the age of 24, it can accumulate to RM1,061,000.

If you start saving at 25 years old.

Then at the age of 49, it is possible to achieve assets of 1 million.

Of course, the prerequisite is to learn about investment.

But if you only make fixed deposits.

If it is 2.6%.

Then it would be RM393,000.

It will be about 600,000 less.

You have to save RM2600 every month unless you work hard.

Only then can you accumulate 1.02 million.

This is the power of compound interest.

Don't tell me that 10% is difficult.

Really focus on learning about investment, 10% is achievable.

Because it is logical.

#Not to get rich overnight

Double your earnings in a year 😂😂😂

Like when I was deceived by the money game.

Saying you can earn 13 times in a year.

So I got on the bus like that 😂😂😂😂

Lost so much that it took two years to pay off the debt 😂😂😂

I just reminisced with my wife about those days, it was really tough 😭😭😭

So don't be greedy in life

Being down-to-earth is more important

Work hard to make money and have a side business

Or you can start a business with confidence ❤️❤️❤️

But be mindful of the risks.

Don't mess around.

Accumulate step by step, slowly.

#You will see your funds and assets slowly accumulate.

At that time, your confidence will grow stronger.

Invest more in the stocks of those lesser-known good companies in the stock market.

Pay less attention to popular stocks, avoid following the trend, and avoid chasing the peak.

This way, you will greatly reduce a lot of risks.

Look for stocks with high dividends because the risk will be lower.

I will have the opportunity to share more of the knowledge I have learned with everyone.

The above does not constitute any buying or selling advice, just sharing experiences.
Investment involves risks, so please pay attention to safety.