What is the probability of you getting these events?
What is the probability of you not getting these events?

At your age, probably you need accident and permanent disability protection. Probably can get these for a fraction of your present premium.

I would love to say 0% man but I'm not the one who is deciding hehe

Bwhahah - had a good laugh at your great response, my lunch nearly flew out of my big mouth
God's plan may not be our plan .

Insurance(s), imho, as long as it gives U a peace of mind (please also check for ACTUAL coverage heheh, not "agent say wan") and it's but a small % of your net income, i think it's good enough until one's backside gets itchy and want to tweak further for better cost vs coverage effectiveness.

Just a thought (and slightly choking down my food)

This post has been edited by wongmunkeong: Apr 20 2012, 01:19 PM

one must not challenge the one above hehe

So would you think 10% for life insurance is a fair enough?

Hm... let me recall my younger (and dumber days )... yeah i think it's about 10% +/- of my net income and bonus only that i did for myself 3Ds (death, disease, disability) + medical.
Mind U - i had a wife who decided not to work + parents and a dog to support
Thus, fair enough gua.

IF want to be statistically / numbers changgih, i'd suggest calculating (for life / income replacement) thus:
1. Pick an amount U want per annum, to cover expenses
2. Assume X%pa returns
3. Calculate lump sum amount needed to generate (1.) based on (2.)
eg.
Say i want $80Kpa if i kaput for my loved ones to keep on with their lifestyle
and i assume they know how to buy bond funds and REITs, thus assume 6%pa returns in terms of dividends on average
Thus, i'd need $80,000 / 6% = $1.33M coverage needed excluding inflation, for lump sum to buy bond funds and REITs.
I'd tweak it a bit by:
$1.33M LESS all my investment assets i'm currently holding = $Y, thus, i only need $Y lump sum to buy the extras
Like that, can be "more sure" lor

------
These days.. erm.. my insurances cost me about 5% to 6%, of my net income, including coverage for my little girl's 3Ds + hospitalization & my mum's hospitalization.
BTW, i'm planning to be self-insured by or before 55 / retirement age.

Please note that what may work for me may not work for U ar (peace of mind and stuff)

This post has been edited by wongmunkeong: Apr 20 2012, 01:46 PM

First thing u must do after retirement is stop buying 1st party insurance for your car in order to be fully self insured.

1) Low probability of things might happen to your car too.
2) People should stop over value their cars than their own Life.
3) Can take public transport where there is an insurance coverage, drive on your own only there is no accident to happen ( low probability time )

BTW, many people do not know there is the third side of a coin. i.e permanently disable

Just my view only.

This post has been edited by SKY 1809: Apr 22 2012, 10:02 AM

this guy is really caring.
are you the eldest in your family?
I can see warmth in your words bro

Whoops - you're right bro
Adjusted English should be "self insured for 3Ds (death, disease & disability)".

Can't escape from "the legal requirements" like motor insurance and stuff, mar.

The law needs you to buy 3rd party only

Not necessary has to be 1class, after all Life is covered with a 3rd class insurance.

If u do not work, how your car is going to work.

Yup yup 3rd party or comprehensive lar, still need car insurance due to "the law".

Eh - car can work even if i don't work mar.
Drive to buy groceries or mengurat that 60 year old hottie leh

3rd CLASS Financial Planning if you plan JUST BECAUSE U NEED TO COS THE LAWS FORCE U TO DO SO.

Well, 3rd class or 4th class, there are things which are forced upon us by law, thus, one can't by-pass it mar. Any how, it's a very small amount comparatively, thus i didn't bother to plan that

I don't know about U but i just do the best i can with the resources, info and personal logic i have at hand, and if/when i learn better, tweak as it goes along lor.
Any detailed pointers would be good

I may be under a rock or something, but i've not seen personal and even company level financial planning with "totally unchanging financial plan" for several years, let alone umpteenth years. It is tweaked as it goes along - even within quarters. Perhaps the companies' i've been with financial planners and my own financial planning is 4th class gua.

This post has been edited by wongmunkeong: Apr 22 2012, 11:55 AM

Dear all Gurus and sifus of Financial management,

Wish to ask any other option other than below suggested by my sister:
The story goes this way..Yes, my sister lately going to get exam for Insurance agent under Hong Leong. She asking us (Myself, Herself and another sister) to save the money we pay to our parent to buy the "Saving Plan", calculation as wat i can recall is something around RM15k per year, paying 6 years, then following year will get RM 3K+ each year. In addition of tat, got those other coverage la..those with 6 digits figure wan la..

So my question is this a better way rather than giving the money to my mum? main point is my mum can hardly save if we pay cash to her.

Looking forward on your experience sharing...

Thanks in advance,
Aliluya.

Effectively, you will be paying premium thus:
Year 0 $15,000
Year 1 $12,000 ($15,000-$3,000)
Year 2 $12,000 ($15,000-$3,000)
Year 3 $12,000 ($15,000-$3,000)
Year 4 $12,000 ($15,000-$3,000)
Year 5 $12,000 ($15,000-$3,000)

#$3,000 being the payment received from the 1st year.

Assuming that you can compound these @ 3% per year in your FD,
The cash flows for each of these payments compounded @3% at the 6th year are:
Year 0- Year 6 17910.78
Year 1- Year 6 13911.28
Year 2- Year 6 13506.10
Year 3- Year 6 13112.72
Year 4- Year 6 12730.8
Year 5- Year 6 12360

Total cash accumulated at end of 6th year @ 3% interest rate = 83,531.70

For this, what are the benefits the insured get?
1. Insurance for protection
2. $3,000 yearly. This $3,000 yearly translates into 3.6% return on the sum accumulated of $83,531.70.


What do you think of such deals?

Dear all dai lou, my friend particular as follows:

working in MNC,
monthly salary net 4.5k,
bonus net 19k,
house commitment 2.4k/4 name,
shop commitment 3k/3 name with rental income supported
car loan installment per mth 660
cash on call 40k, installment 1.2k per mth (is this wil goes to ccris report?)

am i stil eligible for 250k financing for shop lot?

You didn't give your details, how to know? Above are your friend's right?

I had to read twice then it hit me
Friend's data but asking whether jinchuan815 (poster) is eligible for 250k financing for shop lot pulak.
Aiya - Kaka, a bit serong English ok gua, we're not all Oxford or Cambridge English.. mine's OxFart

Ok ok jinchuan815, from what i understand, your friend's eligibility depends on:
1. net monthly income
2. MINUS all monthly debt repayments
3. and last but not least, the market value of the shoplot

The data U shared is not clear enough
a. monthly salary net 4.5k
OK clear

b. bonus net 19k
er.. consistently $19K per year for several years? It's in the EA form?
If so, use the EA forms as supporting evidence to the financier

c. house commitment 2.4k/4 name,
anoneh - how much is he/she to pay monthly?
The financier won't care divided by 4 or what

d. shop commitment 3k/3 name with rental income supported
anoneh - how much is he/she to pay monthly?
The financier won't care divided by 3 or what

e. car loan installment per mth 660
Ok clear

f. cash on call 40k, installment 1.2k per mth (is this wil goes to ccris report?)
Yup, this lessens the amount he/she can get as loan for his shoplot (see 1. 2. 3. above)

This post has been edited by wongmunkeong: Apr 24 2012, 08:23 AM

HAA, basically i just learn from rich father books series, others books i found out too boring for me to continue~~

i have highlight some note on the book, everytimes i get temptation, i will read it again and again to cold me down, but so far, start working one year till now, only save 10k++

Kiyosaki's "Rich Dad" series of books?
Concepts are ok but you may want to watch out for the details/action-able items
http://www.johntreed.com/Kiyosaki.html

Very popular books. After reading RDPD many years ago and decided that was my last. Wonder how is his real estates fare when US property bubble burst? I think he actually make more money from talks and books. Many wannabees in the local scene too.