Funds for Retirement

The following question and answer by Sheikh Yusuf Talal DeLorenzo attendees of the Dow Jones University Courses on Islamic Investement.Question:: is it okay to put money away for retirement? if so, do you recommend any specific type of funds?Answer: Yes, it is OK to put money away for retirement. In today's world, where the extended family system is the exception rather than the rule, it is important that people provide for their retirement years. It's fine to trust in Allah. But the Qur'an tells us that once we have decided on a course of action, then we should trust in Allah. The best sort of funds for retirement investments are Islamic funds based on the DJIMI. These are good for the reason that they include only Shari`ah compliant stocks, and are broad based and diversified, and therefore likely to remain stable and profitable. Be sure, however, that the fund you invest in has a Shari`ah Supervisory Board to monitor its holdings, ensure that its cash balances remain minimal, watch over the deduction of impure income from dividends and other sources, represent your concerns to corporate management, and see to the distribution of impure earnings among the poor and needy.