I understand your sister is very enthusiastic to earn her commission after the prep talk by her upline and colleagues
but have you all checked the fine print that about payment..... the savings must be paid till what age maximum

you do understand that once no job, the payment..... the savings still has to be paid unless surrender with penalty
http://news.yahoo.com/1-2-graduates-jobles...-140300522.html

you are aware that insurance co uses your payment..... the savings to invest (refer net investment income)
http://www.bnm.gov.my/files/publication/dgi/en/2010/L1.pdf

Koniciwa fellow forumers.
Since most of the postings here are in the vein of:
1. How am i doing (savings vs expenses based on net income)?
2. Will i have enough in X years time for a $YYYK home/car/imported spouse /etc.?
3. How much death insurance should i have?
4. How much will my EPF be?
5. How much will my mortgage be if the loan is $xxxK, interest is y%pa and term zz years?
6. What is my Asset Allocation and Net Worth based on.....?

"To help those who help themselves", attached is the "cleaned up" (another version) of my older ZIP postings with a bunch of Excel files.
Instructions:
a. Please install Excel's Analysis Toolpak (google it or search about it here or Fund Management topic please if you're unsure how to install)
b. For Excel beginners: Play with the variables in YELLOW cells - i worry about U fiddling with formulas, thus, yellow cells are non-formulas
c. For Excel intermediate/advance: Go ahead and play with all cells

Hope these help and as usual - USE AT YOUR OWN RISK.
These are just simulations and calculations not gospel truths and, in addition, i'm only human, prone to make mistakes


Attached File(s)
 To_Share___PFP___cleanedup.zip ( 380.98k ) Number of downloads: 223

thx for the info, any others good suggestion??

Need your opinion on my current dilemma:

Took a personal loan years ago and now the balance is RM 17,+++ with 4 more years to go. Have funds saved around RM 20,+++. Should I use the funds and make an early settlement of the loan which would entitle me around RM 1,300 discount or should I just leave the fund in ASB and continue servicing the loan until finished?

Effectively you have the choice of investing $15,700 today.
You have the choice to save this amount in company A for an annual return of 2.1% for 4 years and at the end of this period, the company will return to you $17,000.85.
On the other hand, you can save this in ASB where the return is very much higher, perhaps, 3 to 4 times that of company A.
Therefore, leave your fund in ASB and continue to service the loan over the next 4 years.


-------

Here are the mathematics:


If today you were to invest $15,700.00 at a rate of 2.01%, you would have $17,000.85 at the end of 4 time periods (e.g. weeks, months, or years). In other words, a future value of $17,000.85 is equal to a present value of only $15,700.00.

What does this mean to you? Well, if you had a choice between taking an amount higher than the $15,700.00 today and taking the $17,000.85 at the end of 4 time periods, you should take the money today. By doing so, you would be able to invest the higher amount at 2.01% for 4 equal time periods, which would end up giving you more than $17,000.85.

Read more: http://www.investopedia.com/calculator/FVC...x#ixzz1t0HHaVJu

http://forum.lowyat.net/topic/1577849/+1249
and a few other threads/topics, use LYN's search function and also Google's

Dear all, need some advice...

Is it feasible if i get a housing loan of 300k - 350k on a shared loan? I started work just over a year... It is for own stay as planning to get married in the future, so i would live in it around 10-15 years at least... it is also a partial investment as it is a new launch unit and will be located to less than 2km near to a future LRT station... Since its a new launch, within these 3 years im just paying slight interest before the vp... below are the breakdown of my current income and expenses...

INCOME (Self):
1. Salary : RM 3000
2. Fixed Allowance : RM 300
3. Variable Allowance : RM 1300 ~ 1650

INCOME (Partner):
1. Salary : RM 2500
2. Variable Allowance : RM 200 ~ 300

FIXED EXPENSES (Self + Partner):
1. Insurance : RM 260 + RM 160
2. Gym membership : RM 175
3. Telephone bil : RM 150
4. Car noan repayment : RM 550
5. ASB savings loan : RM 631
6. PTPTN loan repayment : RM 300

VARIABLE EXPENSES (Self + Partner):
1. Food : RM 800 ~ RM 1000
2. Transportation : RM 500 ~ RM 600
3. Others : RM 500 ~ RM 600

The rest will be to our savings... So our income after EPF and tax deduction will be Min/Max -> RM 6497/6897... Minus expenses Min/Max -> RM 4026/4426... so monthly we have around RM 2471 to spare... last year my partner have 7 months bonus while i have only 2 months... so that is extra RM 1700 monthly if divided... but not taking that into account as its a bonus...

For RM 2471 to spare, taking a loan of 350k for 35 years would be RM 1613 per month... Since we're still early in our working years, commitment is lower now... but at the same time, in 3 years time when its completed, our income will increase... so is it advisable to take on such huge loan at this stage? im 25 this year btw...

This post has been edited by mango27: Apr 25 2012, 09:37 AM

I would like to hear some advises for mango27 too

anyone know or have ideas how to re-shorten personal loan?

Hi Mango27,
May i bug U for your current rental cost? Hheh - need more complete data to simulate better and bounce ideas with U here.
I noticed U are not staying in your own home (aiming to buy or not buy, thus your post), but no rental costs?
OR is it lumped into the "Others: $500 ~$600"?

BTW, i've also noticed that your "free money" is about $2,071 after taking the minimum $6,497 and LESS maximum costs U stated above for Fixed & Variable Expenses, quite a bit off from $2,471 U stated U should have to spare for paying off a home loan. Heheh - sorry ar, i'm using the least net income VS most variable expenses for prudence sake

This post has been edited by wongmunkeong: Apr 25 2012, 08:56 PM

memberiii,

Thanks for the input.......Yeah im guessing I should use the money for investments such as ASB or others. Appreciate it mate!

What should I do best with 60k cash in hand?

Note: I am eligible to invest in ASB.

Thinking to spend in gold a bit and invest in unit trust. Which fund?

Commitment:

Rental: 550
Car Loans @ 2.87% interest: 641 monthly
140k housing loan: BLR-2.1 29 years (tenanted property @ 650 monthly)

This post has been edited by techie.opinion: Apr 25 2012, 08:38 PM

---

Added on April 26, 2012, 10:34 amNow staying with my mom.. No rental cost.. Hehe.. Others is for entertainment etc..

I have enough to pay off home loan.. But is it wise to do so? A 35 years loan interest would cost around 300k.. Even if pay of early to 25 years still would cost around 200k.. Not so good of an investment I would say.. its a condo so appreciation won't be much. So would investing in asb better?

Also now my expenses is low cause still young. Driving a 9yo paid off car. So it would last me for another few year then new commitment comes. Then other thing like marriage and etc need big amount of money. Thus the dilemma now.

This post has been edited by mango27: Apr 26 2012, 10:36 AM

May i take a stab at this?
Hm.. let's go by the numbers first shall we (based on attached ZIPped Excel file which U can play with to see "what if"):
 Mango.zip ( 276.31k ) Number of downloads: 42


Please keep in mind, i'm taking your "higher" expense variables and "lower" net income just to be prudent
% of net income

VS

1. Spending on "Feel Good" is about 16.55% of your net, which IMHO, is a wee bit too high
2. NOW you're doing well with 41.59% savings & investment
3. WITH HOME your savings & investment will drop to $964 or 14.84% of net income - impact, please see 2nd part of opinion/feedback
4. WITH HOME your net income % allocated to monthly loan repayment + fixing + cukai pintu/tanah is about 26.75%, which is slightly high for comfortable level
5. However, since your partner & U are just starting out and can see increments coming in by the dollops, should not be a prob if U decide to buy a $300K home


Savings & Investments extrapolated to 01/01/2025 based on 7%pa growth

VS

a. Please note that i did not extrapolate how much EXTRA per year you'll save, just to keep it simple.
If U wish to simulate, please change cell C3 of "NetSalarySave&Invest-NoHome" and "NetSalarySave&Invest-WithHome" worksheet

b. There is a variance of about $290K between both scenarios, about 64% difference.
Note: I did not include the worth of your house into the scenarios since it's a home, not investment/rental property, making U $ or easily disposed

c. As U anticipated earlier.. whoa.. buying a home MAY not be a good idea in terms of growing investment returns


IMHO, bottom line:
+Buying a home is NOT an investment per se UNLESS... maybe if there is a huge property market crash when U buy and U intend to rent out a few rooms heheh.
The main objective of buying a home is to have a place to be yours, grow roots, etc. and totally be yourself.

+Since you've thought it out well (location of your $300K home) and reasoned it well + we didn't include ANY bonuses nor average increments... it is safe enough to consider buying.
Combined net income for the loan & operations of the home looks ok - 26%ish excluding net income growth AND bonuses.

-IF consider buying now, before getting married, be wary of "joint" purchase.
er.. sorry to be a wet blanket.. your current squeeze may not turn out to be your future partner/spouse.. then how ar?
awkward like heck man + may be forced to sell at a loss

Hope some of the ideas/items above + the Excel is of use
Just a thought

This post has been edited by wongmunkeong: Apr 26 2012, 01:05 PM

1. Ya i know that.. Was thinking that im still not married and not much commitments yet, so this is the only time i can afford to spend.. but once all the commitment comes in, it will be reduced... heck i dont even have a credit card yet... i still prefer to spend what i have... a home loan totally change that...
2. Its more on savings rather than investment... i havent even saved enough for the emergency funds of 6 months salary yet...
3. I cant find the "2nd part of opinion/feedback" you mentioned
4. I guess this cant be helped due to the crazy property price nowadays... 10 years back i wouldnt imagine i would buy a house >200k...
5. Hopefully... if Msia economy doesnt crash...
64% is a significant difference by the end of the 40 years loan tenure, i'll be so much "richer" if i dont own a house... and according to your simulation, its like you're suggesting ASB is the best investment option... I feel it to, but is it ok to put all eggs in one basket? a golden basket...
I have been following the property thread for quite some time now.. There are 2 type of extreme there, one so convince that bubble will burst anytime now and another is "if dont buy now, in future fresh grad would not able to buy anymore" type of ppl.. thus, creating a sense that as if if i buy a house now, im rushing to it.. So after your analysis, i give me great relief.. btw, im not in dire need to buy a house since i wouldnt mind staying in the house i am at now after marriage due to that my mom is a widow, so its good also if i stay to accompany her.. so its still a win-win situation if i get or dont get a house.. but like you said, its better to have a place of my own.. and it could yield some rentals if im not staying...

btw, you been of great help... taking time helping a stranger to plan for life... you should get a award for that

Hi Mango27.

Whoops, my bad. 2nd part is suppose to be the "Savings & Investments extrapolated to 01/01/2025 based on 7%pa growth", there U can see the "holy smokes!" difference of impact the home loan does to one.

You're one of the very few folks i've come across which actually doesn't worry about "buying a home", using the logic of cost benefit analysis. Sometimes, rental makes a heckuva lot of sense. Buy in a collapsed property market is a no brainer but at the current situation... In addition, people can speculate properties going sky high summore OR collapse.. it doesn't matter - just build up your assets to be able to buy value lar right? Unless one has crytal balls...

Please note that U don't need to "dump" everything into ASB.
U have plenty of choices like REITs, stocks, bond funds, equity funds, etc. Even SG, AU, HK, US REITs & stocks via online direct OR online via HLeB, CIMB, etc.
U are right - don't plonk everything into 1 (ASB) basket, especially if U have EPF at the mercy (literally) of the Government.
BTW, buying a property to be a landlord may not be that fun/easy, especially if the renter is so-so (may not get great renter even via extensive filtering mar)

Just a thought

This post has been edited by wongmunkeong: Apr 27 2012, 08:37 AM

Some ideas.


For gold, the best is:-

Physical Gold: UOB Kangaroo Nugget 1 Oz (The lowest spread rate between 3-4%, can pawn and sell back to UOB)

Paper Gold: UOB Gold Savings Account (The lowest spread rate of only 1.15%)


For *Unit Trust, recommended unit trusts are:-

Non-Syariah: Kenanga Growth Fund (One of the best performing malaysia equity fund over the years; low volatility against KLCI index, higher sharpe ratio, lower sales charge via Fundsupermart 0.88% - 2% versus Public Mutual 5.5%)

Syariah: Kenanga Syariah Growth Fund (The best Malaysia Islamic equity fund over the years; low volatility against KLCI index, higher sharpe ratio, lower sales charge via Fundsupermart 0.88% - 2% versus Public Mutual 5.5%)


Additional Suggestion:-

Invest RM27k to pay downpayment for a double storey terrace house (freehold) at Pelangi Semenyih Phase 2A, with an estimated ROI of 30 - 35% within 3-5 years (link: http://forum.lowyat.net/index.php?showtopi...43&hl=semenyih)



* Kindly check morningstar.com for the said unit trust details




This post has been edited by izzudrecoba: Apr 27 2012, 11:10 AM

Well done... Yes, I am looking tu buy house for stay in KV for sometime already but still could get the right one with location and cost...

Hi learn2earn8, thanks for your reply and pointing out some highlight to be clarify clearly with my sis. Appreciate it.

Wondering any others who might share on how or perhaps any other alternative way of saving plan more suite my parent?

Thanks.

hey wongmunkeong
just wanted to say thank you for the revamped excel files
these are very helpful with my numbers