Start work late = have to work harder, save harder, eat cheaper, drink/club lesser

its all relative

he work like a dog earn 10K save 1K

i work easy earn 5K save 1K

my "profit margin" is way better

I see. Is he a fund manager?

This thread is a bit show off .

But since I am an anonymity, I would like share my information .

Age: 30 (Single)
Monthly Income: RM5,500 (Gross EPF & Tax)
Monthly Estimated Expenses: RM4,000
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: RM4,000 (2% dividend yield of the shares portfolio of which I have been receiving in the past years) <-- this should be RM10,000, forget to count in the 2% DY on the RM300,000 shares bought through share margin
Expected Yearly Savings: RM30,000 <-- should be RM24,000, with additional 2% DY on the RM300,000 shares bought through share margin, forget to build in the share margin interest

EPF: RM60,000

Assets:
Unit Trust: RM2,500
Shares: RM500,000
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 = RM902,500

Liabilities:
Car Mortgage: RM41,000 (another 48-month installments)
Share Margin Facilities: RM300,000
Total Liabilities = RM341,000

Net Assets = RM561,500

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.

HI GARK,

    when IB want margin calls? can colleteral land or house with a specific date to payback?

i personally think that play with margin risky as you may not know the market cycle unless you have the same amount of cash pledge/standby in case of margin call..

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.

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.

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.

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.

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?!

@SKY 1809,
Yes it is linked but should we want to delve further into it, why not start something fresh so that people do not lose out and get lost!

So what if I'm lacking in financial planning knowledge/short-sighted - it's my life and not yours [in other words, none of your business!]

LOL!

er.. i'm having one heckuva forseeable pains getting to $8M within 10 years leh bro.. U sure no probs kar?
In theory or practice?
Can share some insights?
Other than usual live well below yr means, invest the rest and have good risk management i mean.

Wherever you go, people still eat and shit, same as investments. There is no wrong to talk about investments, because people also want to be financial freedom, same as what you and I trying to achieve.

Just that we should advice people do homework and know what they are going to invest instead of speculating.

As I am not good in economy and also not a good top down analyst, I am not sure if the market is at the peak now. But I am now looking for few companies' shares which could be quite cheap in my opinion, I may continue to buy/hold those companies' shares regardless of the market sentiment.

When wet market aunties are talking about shares, then the market is peaking.

FYI to beginners in stock investing, cheap doesn't mean the price itself is low.  Learn about market cap, P/E ratios etc before evaluating a company on it's price alone.

Would you invest in a stock at a price of RM10 and P/E of 10 or a stock at RM20 and P/E of 5, considering both companies sell the same product with each having market share of 50%?