Malaysian ringgit hits 16-year low on political uncertainty
Malaysia by far the worst performing currency due to declining commodity prices, the slowdown in China and the growing likelihood of an interest-rate rise in America have combined to make 2015 a miserable year for emerging-market currencies.
With the ringgit down 20.79% year to date against the US dollar -better than only the Colombian peso, Turkish Lira and Brazilian real among Bloomberg's basket of emerging market currencies - an improved export performance could help shore up confidence in the local currency.
For now, to answer the question of how much lower the ringgit can go, the bearish of currency forecaster polled by Bloomberg are looking at the ringgit hitting 4.6 to the US dollar by the year end, 4.85 in 1Q2016 and 5.10 in 2Q 2016.
At its weakest point, the ringgit hit 4.8850 to the greenback on March, 31, 1998 - about six months before the since rescinded capital controls and 3.80 dollar peg was put in place. It is worth noting, however, that forward rates are more bullish than the most bearish of the ringgit bears.
How much should you saved and invested?
When deciding how much you should put aside to save or invest, there are many factors to consider, including your age, disposable income and liquidity needs.
Age will help determine not only your asset allocation (younger investors should have higher equity allocations than older ones) but also how much money should be put toward future goals like buying a home or retirement. For example, because younger individuals have lower wages, investors in their 20s or 30s can generally afford to put away smaller amounts than an investor in their 50s with little retirement assets.
Disposable income is independent of all your costs that need to be paid out in order to survive. You can spend it on toys or stash it away in savings. The amount of disposable income you have will determine how much fun you can have now, and how much fun you can plan for later in life. (Keep reading about this in Increase Your Disposable Income.)
Liquidity means how fast you can convert your assets to cash. Your level of liquidity will generally determine what kind of interest rates you will receive or how fast you will be able to access your own money. If you were to place your money in accounts that will tax you for taking money out, or will only let you take money out after a large length of time, then you would have a very illiquid financial stance. The amount of personal liquidity that you maintain is up to you, and should be decided before you begin to invest. As a rule of thumb, you are advise to keep six (6) to nine (9) months of income in emergency fund in case of job loss.
HOW TO GROW YOUR MONEY?
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