Just check my EPF and also liquidate the position in share margin to take profit and repay the share margin yesterday, so this is my update:

Monthly Income: RM5,500 (Gross EPF & Tax)
Monthly Estimated Expenses: RM5,000
Expected Yearly Bonus: RM11,000 (about 2-month year end bonus of which I have been rewarded in the past year)
Expected Yearly Dividend Income: RM10,000
Expected Yearly Savings: RM24,000

EPF: RM70,000

Assets:
Unit Trust: RM2,500
Shares: RM200,000
Cash: RM7,000
House: RM100,000 (the house is fully paid and its market price is estimated to be RM200,000, shared 50% with my brother)
Land: RM300,000 (market price)
Total Assets = RM609,500

Liabilities:
Car Mortgage: RM41,000 (another 48-month installments)
Total Liabilities = RM41,000

Net Assets = RM568,500

I pledged my RM200,000 shares portfolio to get the share margin of RM300,000. Now I am holding the RM300,000 facilities open ready for any opportunity in post-election.

By the way, I plan to buy a house for my own stay near my work station (I am currently working in KL and staying at PJ) after clearing the car mortgage 4 years later. Too bad that my salary increment would not be a lot because I am working in a NGO, hopefully with the return from share investment, what I can save plus EPF in the next 4 years and can outpace the price appreciation in property.

Just check my EPF and also liquidate the position in share margin to take profit and repay the share margin yesterday, so this is my update:

Monthly Income: RM5,500 (Gross EPF & Tax)
Monthly Estimated Expenses: RM5,000
Expected Yearly Bonus: RM11,000 (about 2-month year end bonus of which I have been rewarded in the past year)
Expected Yearly Dividend Income: RM10,000
Expected Yearly Savings: RM24,000

EPF: RM70,000

Assets:
Unit Trust: RM2,500
Shares: RM200,000
Cash: RM7,000
House: RM100,000 (the house is fully paid and its market price is estimated to be RM200,000, shared 50% with my brother)
Land: RM300,000 (market price)
Total Assets = RM609,500

Liabilities:
Car Mortgage: RM41,000 (another 48-month installments)
Total Liabilities = RM41,000

Net Assets = RM568,500

I pledged my RM200,000 shares portfolio to get the share margin of RM300,000. Now I am holding the RM300,000 facilities open ready for any opportunity in post-election.

By the way, I plan to buy a house for my own stay near my work station (I am currently working in KL and staying at PJ) after clearing the car mortgage 4 years later. Too bad that my salary increment would not be a lot because I am working in a NGO, hopefully with the return from share investment, what I can save plus EPF in the next 4 years and can outpace the price appreciation in property.

hi noprogambler,

  yesterday you got rm500k at stock, why today left rm200k? so yesterday you juz put rm300k extra as margin.

You can leverage on your land or property rather than using margin. Margin also not easy to calculate, let say you have 200K and the margin is 1.5x, and your stocks drop 100K, how much you need to top up? It's not so simple and direct. One thing also I found that your EPF value is kinda of a bit low, based on your current pay.

thanks sky 1809,
 
  Me no much cash better dont play margin...later IB margin call i left single underwear.

Hi Everyone,


   Anyone can share the experience their success or failure playing margin during/after 2008 Financial Crisis ?

You can leverage on your land or property rather than using margin. Margin also not easy to calculate, let say you have 200K and the margin is 1.5x, and your stocks drop 100K, how much you need to top up? It's not so simple and direct. One thing also I found that your EPF value is kinda of a bit low, based on your current pay.

Yah I also felt a little bit risky on share margin, that was why I liquidate the margin position yesterday. From thereon I think I'd not fully utilise the margin, at least not 100%, because the closer to the 100% of margin, the lower the buffer to defend from being margin called. If I used 100% of the 1.5x margin, the buffer for the portfolio is only 6% to 7%, whereby if I only used 50% then the buffer could be a lot higher on 40%. I also only plan to use the margin after the market correction, by then the risk of being margin called would be lower.

Yah my EPF is low, because I have low income in my previous 6-year jobs. Just change job a year ago with some salary adjustment so the pay is now up to RM5,500. Hopefully with this pay scale my EPF amount would increase by RM10,000 per year. Anyway, I don't count on EPF because I don't trust EPF.

Have you heard of margin calls? If not better learn up.

If later margin calls, you have no physical cash to back up, the IB will fire sale all your shares at very unfavorable price.

But u do not have a Plan B. i.e having enough liquid  assets such as a house with some standby loans.

Land is worst illiquid asset, can see and cannot touch, as far as your share margin  is concerned.

<shudders>... visions of 1997-1998.. 

Er.. I think we've gone off topic for quite awhile now?!

But u do not have a Plan B. i.e having enough liquid  assets such as a house with some standby loans.

Land is worst illiquid asset, can see and cannot touch, as far as your share margin  is concerned.

Er.. I think we've gone off topic for quite awhile now?!

Land can plant Palm Oil or COW..during weekend. Sure earn money one.

U do hope Jib gor to give you some free cows  to milk

Land can plant Palm Oil or COW..during weekend. Sure earn money one.

Well, if we want to discuss about liquid assets and risky loans, etc.. perhaps we could do it on another forum thread and not this?

Then again, like I said, this particular thread is more a 'show-off' thread than anything else

So, where and who are the rich fellas these days?!