Financial Planning

So this time I want to discuss the distribution of financial post for myself. I thought about this since I graduated from college because in college I was only looking for money to pay for college and daily needs.

But in my early career, I think this is the best time to start a real life where there is no time limit. I started to learn both from the books I read about how to save and invest, listen to seminars on YouTube, various kinds of content, YouTube that discussed this both domestically and abroad and listened to podcasts on this subject.

Everything I learned from zero, I am not studying in the socio-economic department, my parents never taught and talked about financial issues, as a result, I also learned from zero on this matter.

Why do we have to save besides conventional savings? If I think the first is to diversify financial products, so the money we have we put into financial product post items like deposits, mutual funds, stocks, etc.

The second is to fight inflation, the average of the last 10 years is 5.5%. That means our money depreciates or falls in the value of its money by 5.5% every year. Can also be interpreted by price prices rising by 5.5%.

So from which financial products can fight the inflation rate? Here are the types of financial products that are circulating mostly:

1. Savings

This is an ordinary saving that we use every day if we save banks in general. With a given return is usually 0-2% per year. This proves that if our money is only placed in a regular savings account, it will not be able to keep up with the inflation rate

2. Deposits

Deposits have various tenor such as 1,3,6,12 months with a return of 5-7%. Some banks can activate this product online, some are still offline. This financial product is able to fight inflation even though the margins are thin.

3. Government Bonds

The last 2 years the Indonesian government is very intense in issuing state securities to be offered to the public. Almost the same as deposits but the tenor is 1-3 years with return returns of 6-8.5%. This financial product has a better performance than deposits, but the tenor is quite long.

4. Mutual funds

Products are formed from a group of people who collect public money to be channeled to financial product products, those who manage to put the money in any product. The group is led by an investment manager. There are approximately 4 types of mutual funds:

A. Money Market Mutual Funds: The money is invested in bonds with a duration of <1 year.

B. Fixed Income Mutual Funds: The money is invested in both government and private bonds

C. Stock Mutual Funds: The money is invested in the capital market, usually this product explains in the fact sheet related to the issuers of any listed company purchased.

D. Mixed Mutual Funds: The money is invested from points A-C

The returns given by mutual funds vary depending on the performance of the investment manager. In 2008, stock mutual funds have returned -53% due to the crisis in America, and equity funds have also provided returns of 97% in 2009, a revival from the crisis.

Many types of mutual fund owners like Schroder, Batavia, BMP Parimbas, Manulife, Bahana and others. To have a mutual fund product, we must have RDI first.

5. Stocks

To have this product, we also have to have RDI as well as a savings and disbursement system using funds from a securities bank. It is recommended to use securities that already have online trading facilities such as Mandiri Sekuritas, Phillips (IPOT), Mirae, BNI, BCA, etc.

The return given by this product cannot be predicted depending on what the marketplace and industry are on the rise. We must be able to read the current situation both at home and abroad such as sector finance, mining, agriculture, consumer goods, property, commodities, and others.

There is no time limit for this product, so we are free to save or withdraw funds. This product is very suitable for long-term investment.

6. Peer to Peer Lending (P2P)

The ease of this product is to lend our personal money into a platform, then the platform will channel to people who need loans. Famous platforms in Indonesia like Amartha, Modalku, Koinworks, Investree, Friend money, Akseleran, and others.

Usually, these borrowers are included in the micro finance sector, SME ’s, some are for personal loans. Return given is in the range of 6-15%. Some platforms provide a fact sheet for data related to who the borrower is, how the track record is, what the profit will be, etc.

If you are interested in this product, make sure that you have been monitored by the Financial Services Authority (OJK) to be safe.

7. Gold

This product is an old product of investment, but now the system is more modern with a platform that includes such as Bank Syariah Mandiri, Pegadaian, E-Mas, Tamasia, etc. with a gold savings system.

Even though gold is not necessarily the price will always experience a positive increase, in the last 10 years, for example, the gold price has stagnated at USD 1100, which reflects the value of the goods can be eroded by inflation. But if it is withdrawn from 20-30 years, the price of gold will increase significantly. This product can still be an option for investing.

The point is we have to invest if we want to secure the money we have in order to fight inflation, it would be even better if we could do business with the money we have. Do not let the money we have only remain silent in conventional savings! Good luck in choosing the right financial product for you!