KParam77, mfa may be a senior member since 2003 and with 2K+ posts... in other topics or threads. LYN has many threads / topics, most of which doesnt fall into Mutual Funds. Click on his name by the left side, U'll see he mostly post in my ex-favorite gaming console, "Playstation"

This post has been edited by wongmunkeong: Jun 24 2011, 08:35 AM

Bro MFA.
1. $100/mth is enough PER fund for DCA


HOWEVER...
2. since U want to use the $ in 3 years time (ie. use it up right?) for marriage OR study loan,
may i know what's yr %pa U are paying in interest for your study loan?
AND your expected total amount for marriage costs?

look, we've got 2 things to compare here:
a. capital + returns on investment / fixed income VS amount expected to be contributed from your seed of $5K to marriage cost
eg. U want your $5K to grow to $8K to cover a $20K total cost, balance covered by other things?

b. returns on investment %pa VS your study loan %pa charges

Fixed D %pa is widely available - do the comparison to (a.) & (b.) cool?

Bond Funds are mutual funds that invests solely in Bonds and similar vehicles for fixed income. The average returns pa ranges from 4%pa to 8%pa. Mind U, i've seen 11%pa+ before for Public Mutuals but that is EXTRAordinary. I'm talking about normal average.


Keep in mind still - your 2 to 3 years doesn't favor Equity Funds due to the reasons i mentioned earlier.

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Added on June 24, 2011, 12:52 pmWei Bro BoneScythe, trolling the Sales Agents here ka?
Dont lar set an ambush & bushwhack

This post has been edited by wongmunkeong: Jun 24 2011, 12:53 PM

I'll bite

Personally, i'd need to know 2 more variables:
a. The time horizon for retirement = XX years

b. The time horizon for children's education = YY years


Your 1st Q
Assuming Mode of investment is DDI monthly.
Do you recommend this 2 to combine and go into 1 fund?
Or 2 separate fund? Retirement 1, and Child Education 1.

Ass-U-ming that XX years & YY years are at least 6 yrs away:
+ I'll combine these 2 "reasons" into the same mutual funds (if i'm limited to mutual funds only).
Reasoning = $ is $ and since the timeline is far enough, why complicate things with different accounts (mutual fund accounts)?
+ However, i'd do at least 2 to 3 mutual funds for Asset Allocation & Sub Asset Allocation reasons, not just 1 fund.
Reasoning = obviously to reduce single Asset risk while maintaining expected returns.


Your 2nd Q
And now assuming mode of investment is 1 time off. 50k per 1 time off.
Do you recommend this 2 to combine or separate into 2 fund?

Ass-U-ming that XX years & YY years are at least 6 yrs away:
+ Same response as above


Realistically however..
+i'd never do a lump sum $50K UNLESS it's like less than 20% of my net worth
+i'd have better things to do with a lump sum of $50K cash than give PM 2.75% of it + the (Govt 26%*2.75%) of it
+i'm not that lazy to do DDI except to take advantage of Agent's Investment / Pink, ie. investing at NAV. I'd rather do Value Averaging every quarter or 1/2 yearly

This post has been edited by wongmunkeong: Jun 24 2011, 03:18 PM

No seafood here, just a lemming like Groo, the Wanderer
Opinions are like noses, everyone has one

If U have access to ASB, i'd suggest maxing that out first. Free $ UNLESS U worried that the Gov is doing a Ponzi Scheme lar (ie. raising a new fund to pay for older funds)

Bro - the AVERAGE CAGR for 10 years's performance plus shows the average PM equity fund performs only about 8%pa+/-.

At 20%pa... please dont do another 2007 / 2008 PCSF-style expectations management on fellow forumers

This post has been edited by wongmunkeong: Jun 26 2011, 06:56 AM

Even local funds, it depends on when the 5 yrs returns ends, thus probability-wise, 20% is on a highly unlikely side, on average.

eg. try running the FP Advisor with 5 different ending periods say 2006, 2007, 2008, 2009 and 2010, all with 5 years returns.
ie. 2006 and 5 years back
2007 & 5 years back
etc.


This post has been edited by wongmunkeong: Jun 26 2011, 09:48 AM

Sis, when U buy into something AND there's a cost, U straight away LOSE. Thus, U gotta wait for the value to catch up OR U can do value averaging (if it's a good company or fund).

eg. U buy PM Equity or Balanced funds, straight away U lose 5.5%
Thus, your $100 becomes $94.50.
For $94.50 to get back up to $100 (break even), it has to grow 5.82%

Assuming that mutual funds grows by about 8%pa on average, that will be about 8.73 months time just to break even
simple calc: 8% / 12months = 0.666667% pm
5.82%/0.66667%pm = 8.73months JUST TO BREAK EVEN in a "normal market" (excluding inflation summore! )

Bottomline, U should treat invested $ as gone for at least 5 years, thus psychologically and financially, U don't need to rely on it and can let it ride.

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Added on June 26, 2011, 9:23 pmWelcome to FEAR and GREED

Should be doing the opposite - if U see cheap sales bargain in Ikea or Isetan, what should U do? Buy Buy Buy!
If later, someone offers U 50% more for those stuff U bought on sale in Ikea or Isetan, what should U do? Sell! Sell! Sell!

This post has been edited by wongmunkeong: Jun 26 2011, 09:23 PM

Heheh - if ppl start jumping down from 14th floor, i'll start buying in more (add more ammo into hunting down value).
Blood on the street literally

No turning back in "that sense" gua

This post has been edited by wongmunkeong: Jun 27 2011, 07:06 PM

Yeah but people, being people - the majority fears sales & chases higher highs nearly 80% the same time - good for "fools" like us .

I can still recall my friends/family calling me nuts going heavily into stocks, REITs and mutual funds end 2008 and 2009 (i split 50% of heavy ammo between 6 months "just in case 1997-1998 scenerio happens mar).

This post has been edited by wongmunkeong: Jun 27 2011, 07:49 PM

Aiya - RM millionaire = USD$327,064.74+/- only lar OR EURO$230,246.28+/-
Mana cukup retire unless i go live in a small hut up a mountain
Still slogging ahead (i owe, i owe... off to work i go...)

BTW, we're all millionaires - in Viet Dong, Ind Rupiah, etc.

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Added on June 28, 2011, 7:58 amaiya - was good end 2008 and 2009, however ammo not much lar then compared to now, just got divorced (2008) and U know lar the most expensive part of a local Chinese guy's life = marriage & divorce

Now, heheh - me too parking $ in bonds & Mortgage1 a/c but backside getting itchy lar - my "cash & fixed income" Assets is currently more than 2X (near 3X) my equities (stocks, REITs, investment properties, equity funds). If what BoneScythe "predicts" is coming +/-, oh lordy lordy.. such a long wait..

This post has been edited by wongmunkeong: Jun 28 2011, 02:48 PM

Indo Rupiah $1,000,000,000 = RM354,739.34 "only" lar. U definitely billionaire

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Added on June 28, 2011, 11:37 amMost bonds, i keep only a "wee bit" in cash / mortgage 1 (i treat it like FD) accounts for buffer, in case Murphy (from Murphy's Law) decides to come for a visit . I dont usually spend much monthly - thus, easier to save for financial freedom. To put it blunty, i'm generally a skint-flint / "kiam-siap"

This post has been edited by wongmunkeong: Jun 28 2011, 11:41 AM

Yeah, looks like it when i was in Jakarta earlier this year - seems to be a huge gap between the haves VS the have NOTs, much less middle-income than Klang Valley.

I'd most probably become a have NOT in Jakarta if i move there... but.. but.. dang.. lots of hot women (cewek!)

This post has been edited by wongmunkeong: Jun 28 2011, 12:57 PM

FYI - in M'sia, from my readings (dunno accurate or not now), pre-nuptials are worth sh*t

+ not 50% net worth kaboom, more like 58%+/- coz i was more concerned on creating a stablized environment for ex, for the sake of my daughter, AND it was my choice to "cut loss" (heheh - ever the investor & trader eh ).

And, like all properly planned "cut losses", it worked out well for all parties so far

Er.. 2nd marriage? Must look properly and test cow cow first on all important aspects - pre-nups wont save my daughter & i wor

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Added on June 28, 2011, 8:34 pm unfortunately not, have gotten much better.. erm.. schwing! in before signing on the "entry" dotted line and AFTER signing on the "exit" dotted line
All the sordid details shall be taken to the grave with me - alo PG18 forum lar

This post has been edited by wongmunkeong: Jun 28 2011, 08:36 PM

That one = financially free ++ (ie. much more than needed for targeted lifestyle) lor, not just millionaire - to me, that's many steps ahead of a "millionaire"

Heheh - well, if U dont have a crystal ball to see how high is high & how low is low, IMHO, better to have a 3 to 5 years' plan of continuous Dollar Cost Averaging or Value Cost Averaging with fixed committed / allocated amount per period. Reason for 3 to 5 years = it's about a smallish cycle (boom/bust) IMHO

Then again, U can do lump sum with Trend analysis (semi-crystal ball?) which does work well on during Recovery-->Accumulation phase er.. it worked well for me, your mileage may vary.

This post has been edited by wongmunkeong: Jun 30 2011, 08:22 AM

1. EPF --> PSBF (bond fund) lump sum every 3 mths
treat PSBF as a holding of $

Then every month,
2. PSBF --> PSF or any other Equities
the amount is up to U, thus U can do DCA or VCA or trend or???

Note
a. U do "lose" extra 0.25% by doing so BUT if U treat this process as a long term methodology, what the heck is 0.25%? hehhe.
b. U may want to register for Public Mutual Online to execute 2. easily. Ignore your agent also can

My apologies - i forgot to mention that U can't do DDI using EPF AND U can simulate a similar methodology yourself. I thought my example was quite straight forward.

Hm.. i guess you'll be needing the help of an agent.

This post has been edited by wongmunkeong: Jun 30 2011, 07:23 PM

ah.. so.. friend & non-advisor agent? ok ok. Let me take another run at this (pls bear with my manglish)

When you've done step 1., you'll be having like a stuffed purse.


2. PSBF --> PSF or any other Equities
the amount is up to U, thus U can do DCA or VCA or trend or???

Step 2. above is when U SWITCH from PSBF (bond fund) to an equity fund
either online or via your agent through forms - i'd suggest online (Public Mutual Online).
You control the amount to SWITCH.


Ok. an example yar.
EXAMPLE
Jan 2011: EPF --> PSBF $5K
Apr 2011: EPF --> PSBF: $7K
Jul 2011: EPF --> PSBF: $6K
Average: $6K per quarter, thus $2K per mth

Thus,
if U want to do monthly DCA, then U switch $2K per month to your targeted Equity fund
FYI - i'm doing this every quarter but for a combination of DCA + VCA approach, not plain DCA.

Note:
a. Of course U continue with EPF --> PSBF quarterly to refill your purse /cache

b. The example above is used as most people do not know how much they can take out on average every quarter.

c. If you know the EPF formula in-depth, you'll know that whatever amount of $ U didnt take out earlier (say $20K), is NOT exactly available for the next round of taking out.
eg. say i didnt take out $7k in Apr above, but took out only $5K
The common logic will ass-u-me that on the next round in Jul, i'd be able to take out $6K +$2K which wasnt taken out in Apr. Ngek! Wrong - due to EPF's formula, it doesn't work that way. Simulate it in Excel & you'd "see it clearly".

whew - i hope you're not more bwhahaha

This post has been edited by wongmunkeong: Jun 30 2011, 07:52 PM

My bad, i thought you were experienced in mutual funds .

Yup, you're entitled.
BUT....
heheh there's ALWAYS a butt somewhere..

It's an illusion to sucker people (my bad, i'm a cynical fler ) as the NAV per unit drops EXACTLY the amount of dividend spat out AND the some of the dividend is TAXED summore! duh...

EXAMPLE
On the 31st of Aug, XXX fund's NAV is $1
On 1st of Sep, dividend spat out $0.08
On 2nd Sep, NAV will be $0.92 +/-whatever movements of the stocks the fund is holding (assuming equity)

U get $0.08 less tax, in yr bank a/c OR reinvested, remember MINUS tax then reinvested , at NAV
Unlike stocks, like PIE paid out 9% as dividends but didnt drop 9%


This post has been edited by wongmunkeong: Jun 30 2011, 09:14 PM