Ladies and Gentlemen, member of the press,

I am new here
May I ask you all the following questions. As LYN has very vast pool ppl from all kind of backgrounds, so this is going to be a good pool of
information sharing.

I want to learn if my existing financial status and net worth is healty, lousy, etc.

So I want to share my info and hope you can share your info too. Please follow the format. At the end of the sharing, you can add your comment/advice.


Age: 28
Occupation: Service Engineer
Marital Status: Not Married but got gf.


Asset(s):

House (2 stories)-
RM220k Outstanding Loan: RM 98k 15 years more

Car (Japanese car)-
Market Value: RM 60k Outstanding Loan RM 45k 4 years more


Liability (ies):
Study loan: RM115k -borrowed from my uncle and he say when he need money will ask from me, any moment(cash)!
Parents, sorry ah pa and ah ma to call you all liability

Insurance:
Life: RM20k

Investment:
Bond: RM20k
FD: RM 220k

Cash in hand
RM10k

Seems like you got a lot of money in FD. Other than that, seems normal life of being laden with debts just as the banks have planned all along.

Age: 28
Occupation: Shop Assistant
Marital Status: Not Married but no gf.

Asset(s):N/A

Study loan: N/A, parents pay.

Insurance: Medical Card

Investment:
FD: RM 7k

Cash in Bank - RM35K
Cash in Hand - RM1.2k

Age: Unknown
Occupation: Electronic Engineer Associates
Marital Status: Single and no GF


Asset(s):

Control property - 4, market value RM490k.
Bank owe me RM10k
Undisclosed amount of silver


Liability (ies):
Loan 380.4k (4 X property) for 30 year
Owe mom RM14k

Insurance:
Life: S$1200 pa

Cash
RM28k

Date as of today.

wow what type of service engineer so rich 1?

Interesting...young man/woman working in Singpore... why cannot reveal your age?

Your house and car should be filed under liability, unless you are earning rental from your house.
Your total liability i counted (68K+45K+115K=258K)
Your asset is at 250K, (unless you're dead, then add 20k lol) plus value of house at 220K, so you have 490K. Networth at 232k?

Not sure if this is the correct way to count though.

IMHO, its highly commendable

If you have 220k in FD why not pay back your loans to save on the interest? The miserly interest from FD won't be more than the interest you're incurring from the loans.

My exect sentiment..... or use big part of the $$$ to invest in higher yield vehicles. But the most logical move is to clear your existing liabilities 1st

(1) He has over 100k worth of study loans that MIGHT be collected so he has to prepare for that?

(2) He prefers to have some cash in hand for emergency and possible investments?

(3) Marriage provision

incredible. you are future tycoon.

1. assuming the house when u initial purchased is 220k, outstanding loan 98k, so
220k-90k = 130k DOWNPAYMENT.

2. BOND = 20K

3. FD = 220K

4. CASH = 10K

TOTAL = 130K + 20K + 220K + 10K = 380K

You 28, service engineer, assume u graduated at 23(the earliest), working experience = 5 years.

RM 380,000/60 MONTHS = RM 6333

RM 6333 excluding all your expenses.

this is very healthy, but, i think it is bullshit more than anything.

Maybe he inherited some of the cash. But I would definitely use the cash to pay of the debt. No use keeping so much in FD if the interest you get is lower than the interest you pay. Keep 6 months as emergency (about 36K) and the rest pay down debt, even your uncles "cash on call" debt

Suspect you purchased your house 5 yrs ago, now should be about to exit lock in period.
Refinance your current house with flexi loan, then put your FD under your flexi loan to knock off the interest, ONLY IF they new loan rate is HIGHER than your FD rate. I would say, if your FD locked in ages ago, there may be slim chance FD rate higher than new loan rate.

Another one would be, pay off your car loan first before your house loan, because the interest rate for car loan is generally always higher than house loan. go for early settlement and ask them to calculate how much u need to pay back. (even without the FD, may unlocking equity in house to pay off car loan, to save on interest component, if u have no intention to use the equity for other purpose.)

Full flexi loan also allows your to draw down anytime to repay your uncle on cash call.

very healthy net worth position for a 28yo. Next big spending to consider is wedding. But seriously, if you are the risk taking type, consider to have higher return investment, still young and can afford to be dangerous.

If risk averse, consider to repay debts only if the cost of the credit is very expensive, e.g. credit card, personal loan, else usually property investor will say borrow as much as you can, wisely.

If you own 3 houses in Subang, the market value will 1 million plus...

This post has been edited by arsenal: Sep 11 2009, 01:08 PM

pls, the world is bigger than u think, i have engineer friend who bought 300K house within 3yrs of working with CASH, 2nd house in another 2yrs later. another friend may not be that capable but owning 3houses with loan but more in FD/share.

for TS case, we do not know whether he was working part time b4 and for the past 5yrs if u invested well from 2004-2007, u might have make a sum from stocks, probably he cash out n put in FD. that was just my assumption based my friends' experience.

afterall, if TS keep his expenses low, he doesn't have to earn 10K/m to get wat he has now.

Very rich friends you have there 36 months of saving and investing coming out with 300K

me 27 yo

financially fit for now !

I assume u know O&G engineer can make alot of money if u r very very hardworking...

@santaclaus,
do respect here is not Kopitiam.
U can always ask for clarification on 20K for insurance, in this case, I assume is policy value. it was not mentioned under liabilities.

This post has been edited by yewkhuay: Sep 11 2009, 06:05 PM

Rich parents kuah..... lets get real in M'sia nobody makes RM300k during their 1st 3 yrs of working (put things in perspective - the starting pay of an engineer is RM3k)

yes, i wonder too, 36 months, CASH in buying a house. who on earth buy a house with cash even though u really have that much of cash in ur pocket?

an fresh grade with 3k start is consider LUCKY.

come on la, u think everything in oil and gas came with huge figures? petronas will spend 20 milion usd to buy and build an oil rig and platform, but, it does not mean it will hire any normal fresh grad with 6k salary.

maybe ur friend is a department manager once step into the oil and gas company. so, i think the gm or director is rather dumb by hiring fresh grad on this post.

anyone agree with me ?

one more thing, dont always say ( MY FRIEND THIS RICH, THAT FRIEND THIS RICH ), if that is the case, proof me the wealth.

what i learned is, the real rich people will never tell u how rich is him...................................

This post has been edited by cactus1: Sep 11 2009, 02:28 PM

their job with their current income sounds fishy and bullshit to me, even if they restricted themselves spending a single cent every month, unless those dream guy making big money behind the scene. Etc : black market

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Added on September 11, 2009, 2:29 pmthe bold part, i kept in my heart for ages, finally you burst everything out. god damn


This post has been edited by [LinkZ]: Sep 11 2009, 02:29 PM

That is the price today in JB.
10 years back, how much is the houses in Subang?

1 house only 200k..:P:P

@yewkhuay,

Thanks, I like polite people.
Ok, clarfication. Thats the total Insured sum. I think its very little right? But I dont quite trust insurance. What can I do next?

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Added on September 11, 2009, 6:11 pm1) Correct

2) True.. and partially dont know how to invest and dont know when i want to stop working immediately.

3) Very pandai lah!


U can read my mind is it? yeeeeeeeeehhaaaa

This post has been edited by jacboy: Sep 11 2009, 06:11 PM

as u mention , rich ppl never tell u how rich they are, perhaps this fren of mine got other income that i don know. Probably only he can do it coz most of the time he is oversea and he never own any car or luxurious watch or phone, stay in sister place , can consider he save up >90% of his nett income. I m not in O&G business, i reserve my comment on how much they can earn. Just be open with what ppl wanto claim they have earn n save up, it is always better to ask HOW than say NO WAY.

My example of mentioning this fren is not to lift my status , but to indicate that there are ppl out there that can earn n save up alot. If I bought 300K house with cash , i will say so.

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Added on September 11, 2009, 6:23 pmthen i think is best for u to tell insurance agents wat u do not trust in insurance and see if they can clear ur doubt, since u plan to do something about it. there are a few insurance thread here, u might wanto go through some of them.

This post has been edited by yewkhuay: Sep 11 2009, 06:23 PM

Just a question..
Can we add our EPF money to sum up our net worth?

How I wish I could Then I would be making much much more money

If Jacboy is an expat in a foreign coy earning in USD, euros or pounds, he could have easily saved rm100k p/a. O&G is another industry that pays well, some 24-25 yr olds can easily make 20k-30 p/m.

So lets not accuse when we dont know the whole truth. And just bcoz you dont know any yuppies who earns that much, it doesnt mean there isnt.

So ppl, be mature n keep an open mind.

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Added on September 11, 2009, 9:06 pmU r right, but having 400k in the bank is hardly rich. Buy one cash car and house, u'll left with nothing.



This post has been edited by Pai: Sep 11 2009, 09:06 PM

@hazairi,
Yes U probably can take into account the total monies available in ur EPF fund but that's really untouchable. When I make calculations, I just 'overlook' the EPF and well, when I turn 55 I guess that's just what I'll call bonus *smiles*

@yewkhuay,
So when U gonna start introducing these rich fwens of urs to me?!

@jacboy,
I don't think U really wanna make comparisons with us; you'll realise it'll be quite wide; those who declare they earn millions probably are living their "dream". The most affluent group probably wouldn't wanna disclose much information here

From what you've mentioned, cash @ RM10k might not be sufficient; I always believe in keeping at least 6-8 months [of expenses] liquidity for emergencies. You may also want to boost up your insurance; I notice U aren't covered for Critical Illness + Hospitalisation [but perhaps ur office covers that for U *shrugs*]

OopSs... I just saw the RM220k FD - well.... okie forget I even mentioned the above. You certainly are rich !

@Pai,
Eh.. RM400k can't even get a terrace house @ Puchong these days man! The last development by Island & Peninsula which was sold out was going from RM480k and yet people were lining up like no body's business. Goodness gracious - so many rich & free people around

This post has been edited by tinkerbel: Sep 11 2009, 11:13 PM

Looking for rich boyfriend?

she is too rich to have anyone qualify to be Rich BF for her...

@jasonhanjk,
Rich is not a criteria in a bf/husband. It would of course be a bonus if he were *grins*

@yewkhuay,
Eh.. jangan cakap macam ini; my networth has certainly dropped plus not to mention, I've been spending too much and haven't saved up much in the last 1.5 years *siGh*

Hehe.

It's nice to know some rich friend, at least we think the same and discuss mostly on the same topics.

Yes..Net Worth = Asset (EPF, Cash, FD, Car, Non-liquid asset etc) - Liability (home loan, hire purchase, cc debt etc).

u mean after u join discussion in LYN more frequent u became a bigger spender ?

@jasonhanjk,
Just cause u know them doesn't mean U may have common grounds and discuss the same topics. Then again, u probably know better cause I ain't rich

@yewkhuay,
Er.. no but sis got married last year and i took the family for holidays then too. And this year, well, i'm still spending too much plus I'm not unemployed, just in case u haven't been updated as yet!

u mean u r unemployed ,right? u told me wat...waiting for fully extended story...

must be downpayment paid..and also not to mention some 'startup money

@tinkerbel

I ain't rich yet but I always consider myself to be a rich person. So most of my friends are going the same path as me. Know one in Melaka for example, he finally owe the bank 1 mil.
That is when I congratulate him.

congratulate him for "Owe the bank 1mil" ?

Yes.

If one can owe the bank 1 million and repay timely every month, how much do you think his actual income would be?

pls explain further on the debt tht ur fren is having, and by having a mil debt and able to pay back doesn't mean he has a good net worth, it takes one recession that hits ur fren to wipe out everything he has.

Hi:
Just a stupid question here. Does FD means fixed deposit? RM220K, what is the rate bank offer you?

First I like to ask you, do you understand the difference in good debt and bad debt?

I guess this is what he is trying to do....

http://www.iproperty.com.my/reviews/miland...7/coverpage.asp

@jasonhanjk,
Er.... good debt and bad debt; debt is still debt! Also, U didn't elaborate the reason Y ur friend's owing the bank RM1m hence how'd we know if U were being sincere or sarcastic; I really thought it was the latter

@gavin_lim,
Yes..FD = Fixed Deposit and I believe interest rates on FD's fixed by BNM so it's thereabouts.

IMO, if the guys can borrow 1mil to buy properties today, 1Mil net worth is only a matter of time. As long as one stays prudent in managing their reserve, that is........

Anyway it is too early to judge whether it is a good debt or bad debt because it is still not the end of the investment and not for us to judge too. But what is the good thing is he got enough qualification while bank is willing to issue him 1 million debt.

@tinkerbel

Ahh, yes. Most people only think that debt is just debt.

I have to tell you this, there are a few individual out there will know their difference. If the debt you are borrowing will generate income for you, that is good debt.
Likewise borrowing money to buy an LCD screen to show off, that I would consider a bad debt.

Now, he owns some property and one of them is a oil palm plantation.
If he would to go through a recession, his net worth might be down, but that wouldn't break him.

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Added on September 13, 2009, 5:01 pmYou got any debt to equity ratio that you use?

This post has been edited by jasonhanjk: Sep 13 2009, 05:01 PM

tht's d reason y i ask for explaination on what kind of debt he owe bank before I assume anything (businessman also have millions of debt that generate $$ for them...), and yes, i know what is good debt n bad debt. I myself have few 100K debt tht generates income for me but I do not think i need to be congratulated. as long as u have debt, there are variables that can turn bad.

jasonhanjk,

<<If the debt you are borrowing will generate income for you,>>

To be precise, POSITIVE CASH FLOW. If the income is not big enough to cover the debt payment, it is NEGATIVE CASH FLOW. NOw, it may or may not work out for NEGATIVE CASH FLOW situation.

<<one of them is a oil palm plantation.>>

By the way, given that bank typically only loan people 30% of the plantation value to buy palm oil plantation, it is usually NEGATIVE CASH FLOW. No, I am not saying that it is NOT a good deal. But, a person need to have enough reserve and other cash flow to fund this.

In my brother-in-law's case, he refinanced and mortgage his house to buy Palm Oil Plantation. The interest rate is low enough now and the yield of the Palm Oil Plantation is high enough for the calculation to work out. It is STILL NEGATIVE CASH FLOW. But, he has other business to generate cash flow to finance this.

Dreamer

Guys,
How is the net worth of a company owner calculated?

@dreamer
Thanks for the claryfication.

So your bro-in-law still needs some time to turn it around so it generates more income to exceeds expenses?

jasonhanjk,

???

Income from Palm Oil Plantation is fixed as per CPO's price with slight variation. Let's call this as Y

Payment to loan is fixed. Let's call this as X.

I just tell you that X is greater than Y.

<<so it generates more income to exceeds expenses?>>

The only time that this will happen is when the loan is paid off in 5 years. In this case, X = 0. You get pure Y.

Dreamer

@dreamer

I always make sure my property cash flow positive, treating it as a business.
That's the reason I always take 30 years loan.

Buying oil palm plantation to me is a business too, if it's run down due to lack of management by the previous owner. It may require the owner some time to turn it around to make sure cash flows in.
So your bro-in-law took a 5 years loan only?

jasonhanjk,

1) My uncles and cousins managed the Palm Oil plantation. My brother-in-law own a share in the company. So, this cannot be done unless you have someone that know how to manage this and you can trust them.

<<So your bro-in-law took a 5 years loan only?>>

2) I think he took a 10 to 20 years loan just in case. But, he will pay this off in 5.

Dreamer

Good to hear that. Another 5 years it's an income generator without the expenses to repay the loan.

If the 1 million is borrowed for investment in property that generate net positive cashflow and safely paid by your tenant monthly.
You should realised that, every month you are getting nearer to be come a millionairs, not to mention capital gain at the end of the process.

To me, good debt generate positive income to your pocket (the income u generated from the investment using debt > cost of borrowing), on the other hand, bad debt takes your money from your pocket...

for eg, if u borrow at BLR-1% (Overdraft rate) @ 4.55% to invest, whilst your annual return of your investment is fixed at 10%p.a.(assumption), meaning u r generating a positive net return of 5.45% (10-4.55%), so it will consider a good debt. Successful businessman often borrow to invest, by using other people money to maximize their income.

Correct me if i am wrong.

Precisely.

It doesnt take a genius to end up as millionaires in properties. As property investors, patience is a more important than the brain......

The quest now is how to get there fast enought to enjoy it.
Anyone can help to share some experiences to increase the speed of generating wealth?

before learning how to earn more, MUST LEARN HOW TO SAVE MORE.

Trying very hard to put that into practice.

Yo Mr Jacboy, Pls use wisely towards ya financial management. No ppl can hav such big big monies. Dun waste it by putting FD. N btw, y ins 20k? Die then 20k? Pls ensure ur life is well protected before doin any investment such as buy enuff ins to protect urself, if anythin do happen to u then ins co will pay. To me i will buy ins enuff to cover all my liability first. Then plan extra monies either in investing or do business. Plan well fren.

His achievements is commendable - imagine how much tax he has to pay on top of what he has managed to save-up,....

Thanks for the flattery words... yes, over the years I paid over 50k of tax... heck to IRS..

I think if every property also gain in prices decently while you can get a tenant to cover the installment, there would be nobody working anymore. All become speculator like whats happening in US right now.

Investment is something you do with your extra money, not straining your financial. If you dont have a place to stay at all, then by all mean, buy a house if you can afford it rather than paying rent.

One thing to remember. Many people trade shares too but not all are earning money. That something people tend to overlook. Investment is no guarantee to make money. Make that clear...

Read the spoiler.


http://forum.lowyat.net/index.php?showtopi...&#entry27229977

the first 'm' is the hardest to reach.. the rest gets a little help from its inertia..

hahaa.. how true. say, you're not a malaysian, are you?

if you're a malaysian.. you'll loose more than that hefty tax.. you'll probably loose you social security(you'd contribute but won't get anything from it). and which state are you at? don't forget to factor in the significant sales taxes as well..

i got slapped 8.25%(sales tax) at where i was back then.. ebay wasn't born yet.

it's nice to see a guy spotting this fallacy.. (that prices always go up)

1. it's true that alot of us would like to see appreciation of price in practically all classes of assets that we invest in.

2. unfortunately, this can't hold water in perpetuity.. (even if the argument is based on inflation, etc.)

3. if you read/remember history way back enough.. you'd realized that inflation is just a flimsy arguments. the lost-decade in japan was attributed by deflation, not inflation.

4. properties are good investment(period).. but is it because their prices always go up? not necessary. it is because they're good hedge for inflation? only up to a point.

the best thing is for you to keep a constant vigil.. because what makes money yesterday may not be a money making asset today (there're economic shifts, political shifts, social/demographic shifts, psychographic shifts, etc constantly at shift)

Guys - follow the thread starter - here is mine, just take look whether the allocation makes sense and what else can be done thanks


Age: 40+
Occupation: Engineer
Marital Status: married with 2 kids
Income per year: 500K

Asset(s):

House -
RM700k - all paid up

Car (two Japanese car)-
Market Value: RM 130k total Outstanding Loan RM 40k 3 years more

Liability (ies):
None

Insurance:
Life: RM40k (premium per year for family)

Investment:
Bond: RM15k
FD: RM 110k
Government bond/UT: RM145
Share - Msia: RM130k
Share - US: RM400K

Cash in hand
RM90K

EPF
RM840K

Dreamer, who is ur bro in law ? i am in palm oil too. refinrey. which platation he in ? if location wise, i can buy the fruits from him.

i owned palm oil plantation too, about 40 acres in teluk intan, are you trying to say i am a silly person to buy ?

in your bro in law case, i will say, refinance and buy palm plantation is not a very wise move. Dreamer, you have to understand that an acre of palm plantation will only generate you about 1 tonne of fruits in about 20 days. 1 tonne, before expenses is about rm 400 nowadays.

some other big player, which they allocate from 1000 acres of land is due to they have the positive cash flow and most importantly, they have their own refinery factory.

by the way, palm oil industry in malaysia is a long story. will talk unfinished.

regarding JASON,
I do agree completely with you that if you make good use of debts, it will generate you more income. GOOD DEBTS are important. for the persons that do not understand GOOD DEBTS, they are just some conservative people, with no business mind.

one more thing, if you want to make huge sums of money with good business prospect, the only solution is OWE THE BANK.

owe the bank?

or you can be the bank.. raising capital via equity or debt papers.

wow, ur monthly taking is about 42k. i think u are not engineer, u are the director of the company. so, u must know one of the director of UNISEM. I think u earn more than him.

is this a US' portfolio?

pool, u've got significant earning power. I think the above doesnt tell us 2 things which is quite crucial, which are :

1. how much can you save every month?
2. What kind of return u wanna get from your portfollio?

But have to say I look your portfolio with utmost admiration especially when your car is less than 30% of your annual income. A lot of ppl would have easily gone for Beemer X6 etc with that kind of salary.

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Added on September 16, 2009, 3:47 pmu right, the above statement is a falacy. The real statement should be :

that prices always go up OVER long term when it comes to real estate

This post has been edited by Pai: Sep 16 2009, 03:47 PM

1) rm 250 k per year
2) i do not mind 30% for high risk/high return

Car? ooh - i go for need, not want. i have a pick-up for weekend excursion/off-road and thats all i need and of course bring me to work KL downtown. my line of work does not require me to see customer so no reason for me to buy luxury cars.

Basing on Pool income, and his EPF,
The duration of time he has, he could have being easily 10x richer from his existing position, if he has actually work properly on his investment, nevertheless with that sort of income, he may have alot of work to do other than sitting down thinking about the way to invest.

Apart from that, I think he is quite a heavy spender, not on car maybe.

Very very impressive, I was wondering whether u set up a fund for ur kids' education need (may be in the insurance I supposed )? how old are they btw?

now tht i have a bigger target to work on, 500K p.a at age of around 45...

a6meister,

<<i owned palm oil plantation too, about 40 acres in teluk intan, are you trying to say i am a silly person to buy ?>>

A) Palm Oil plantation in general will make money. The question is whether it is MORE or LESS. Of course, the answer is DEPENDENT on how much you pay for for the plantation?? I guess it is probably aound 25K to 30K per acre.

<<you have to understand that an acre of palm plantation will only generate you about 1 tonne of fruits in about 20 days. 1 tonne, before expenses is about rm 400 nowadays.>>

B) I do not know whether your number is correct or not. But, it is HIGHLY DEPENDENT on age of the tree, hybrid or not, type of land..

C) Plus, those lands are in Selangor. Hence, the chances of being converted to housing estate or factory lot is MUCH MUCH higher beside the Palm Oil income. The lands had appreciated by about 10% in the last 2 years but he is not selling.

Dreamer

I'm wondering why no one sabotages the trees, or pays employees to do that. It can't be as simple as "hand over 25-30k, wait for returns" can it?

Ultimately, you need to treat this investment as a business, buy, keep & sell.

Another faster way, buy, rent out for positive cash flow, add installation to increase cash flow, re-finance with a drop in cash flow, use the money and buy a second property.
Now you have 2 property generating cash flow.

wodenus,

If you take the time and effort to READ some of my posts on this subject, I SAID that you need SOMEONE that know this business VERY WELL in order to invest in this.

In my family case, my uncles and cousins managed the Palm Oil Plantation for us. They have been in this business for at least 20+ years.

Dreamer

Well excuse me if I don't read all your posts before replying anyway yea, if you've been doing it for 20 years, you have a pretty good chance of making money at it