Get qualified advice from an Independent licensed personal financial consultant/planner

Agree im sure there are some good qualified planner here that can assist u.

Looking forward for more expert to give more advise

---

Added on May 14, 2012, 2:13 pmYep, waiting for them to give advise

This post has been edited by LifeIsNotEasy: May 14 2012, 02:13 PM

May I know if you bought the Accord new and how old is it now? 2 years? Is it in good condition? If it is in good condition, continue to drive that car. You should not have bought it in the first place but since you have bought it, just keep it and move on. Don't think about it anymore. Don't change to a smaller car to save perhaps rm200 to rm300 per month because the biggest loss already incurred. Try to keep or improve your income. You are quite good becos u think ahead and are aware of your expenses. u will be fine.

p/s i am not an expert. just my opinion. hope it helps with your decision.

This post has been edited by PradaLee: May 15 2012, 08:08 AM

Yeap the car is new, 2years+ bought in 2010
Loan for 5 years.

Personally, i think the below is "prudent" enough gua - please correct me, with logic and reason, if i'm waaaaaay off

BTW, in my humble opinion, gold & commodities are a bit of pelik creatures - buy low, really make a killing (case in point, ProphetJul ) BUT... don't know when the prices will actually soar heheh. Thus, i think of it as "trading".

Personally, i think gold is NOT at historical nor inflation (3%pa) adjusted lelong prices, even with the recent dead cat fall / cliff jumping.
Before any gold bugs come with pitchforks , please note that i said HISTORICAL yar, as in historical data.
Future - gawd knows, i'm not omniscience.


As for "mostly in cash nowadays" and "pasting hunting FDs rate", may i suggest doing or looking into an Asset Allocation / rebalancing?
I mean, if U are holding like 80% to 90% cash/Fixed Income instruments (of your total investment /investable assets), i think U are losing out a heckuva lot to inflation, especially if just FD. Bonds / Bond Funds pun at least better

FYI - i was like 60%+ in Fixed Income and forced a rebalance, mostly into REITs / Properties late last year and earlier this year (broke up my "forced rebalancing" into 2 chunks).
Imagine FD or flex mortgage "giving" 3%pa to 4.4%pa VS REITs 6% to 9%pa (ignoring capital risk - er.. calculated risk lar, k)
Thus, perhaps a bit of investments "diversify" into other asset classes MAY be good.
However, ultimately it's your choice & comfort level - no right/wrong per se

Just a thought

PS:
When i mentioned i was 60%+ in Fixed Income and then rebalanced mostly into REITs, please note that investments/investable assets to me EXCLUDES
a. emergency buffer (about 10 months' to 12 months' average expenses)
b. home (even though i rent out 2 rooms to friends)
c. and of course "fake assets" like cars, Picasso, comics collection, etc )

This post has been edited by wongmunkeong: May 15 2012, 06:49 PM

Thanks, see quite well diversified. Saw quite a number of things I dont like(personal dislikes). No wonder, it kept you so occupied, so much research needed and frankly my brain freeze just looking at it. However, later, after perusing it, when im free, dont mind me asking a few questions.That is if i dont freak out.

However i dont think I can handle so diversified a fortfolio not to mention the amount of research needed. Prefer to take it easy, concentrating mostly on family and recreation nowadays. Thats the reason mostly hibernating.

This post has been edited by magika: May 15 2012, 07:04 PM

no lar - i just categorized my own stuff like that, thus easier for me to know any time like:
a. Basics
Fixed Income %, Biz Equities %, Real Estate Equities %

b. Intermediate
via Cash or EPF - thus, if i hit a certain "via cash" invested, i can retire earlier than 55 AND at 55 get another load of bon-bons (EPF + EPF mutual funds/stocks unlocked)

c. Detailed
Fixed Income: Cash (Free flow) %, Cash (time release >=55, thus can't touch for reallocation now), EPF, Bonds funds%,
Biz Equities: Stocks type %, Trades %
Real Estate Equities: REIT type %, Physical Property type %

I'm just "crazy" that way hehe - if i don't know, my mind will keep wondering and i'll get stressed out (i worry about my loved ones' future and mine mar).
At least, with one glance at my "management cockpit", i can get big picture and detailed summary picture, and "manage by exception" by going into deeper level if earlier level looks iffy.
eg. (a.) triggered my oh-oh - holding 60% Fixed Income investment assets
Then i looked at (b.) & (c.) to see where/how i can move which Fixed Income from / to which sub-Asset Class, to balance things out or opportunities.

No probs in bouncing ideas - i think this is what a forum is for anyway and plenty of sifus here to share share / bounce ideas with U (i'm a "L"earner investor with a capital L)

This post has been edited by wongmunkeong: May 15 2012, 07:23 PM

Do you actually diversify your investments into every detailed category that you stated in the Excel, e.g. bonds, stocks, REITs, mutual funds and etc? Seems you have a big EPF account for different investments as well? Also, the expected return % is based on your experience?

Hope to learn from you

Yup, i'm in all those sub-asset classes, either via cash or EPF.

Er.. i've actually 2 more categories but didnt list it hehe, physical property type.
The 2 categories i left out are in my list for "preparation"/structuring my categorization before planning and execution - looking for opportunities now for those type of properties.

Bro, please note that i'm a bit "anal retentive" when it comes to sub-asset classes.
One may do well or better just by focusing on Asset Allocations and methodologies getting into the big 3 basics - Fixed Income, Biz Equities, Real Estate Equities.

The % returns is based on conservative experienced estimates - discounting crazy runs.
eg. crazy as in:
a. if bought and held good stocks/equity funds, from 2009 to 2012 April 03, where KLCI hit a historic EOD high of 1,606.63.
b. if bought in 2006/2007 and sold Dec 2008 / 1st Qtr 2009., OR bought 1995/1996 and soled 1998 where KLCI plunged 80%+

The commodities and gold are my "newest" experience (2 years), thus, i'm ultra conservative on the returns, especially now at more than 200% of historic median (since 1970s), even if inflated 3%pa.
The rest i've been buying/selling stupidly without structured approach for more than 15 years.
BTW, mutual funds - equity & bond funds, are based on Public Mutual's statistics i've seen + experiences/tracking of held equity & bond funds from BHL (yes, THOSE years), Prudential, Ambank, Southern Bank (now telan by CIMB liao).

BTW, i'm still an "L" (learner) plate investor and trader, as there are so many other options and methodologies to explore, like ForEx, Commodity Futures, Options, etc. Thus, please do take my opinions/sharing with BIG DOLLOPS of SALT

Just a thought

PS:
Methodologies (simple English = entries/management/exits) are usually 2nd thought to some "investors".
To me, one must "couple" the right sub-assets to the right methodologies, based on one's reasoning / experiences.
eg.
a. How often does the stock market collapses? ie. plunge MORE than 20% or 30%
Answer - er.. less than 50% of the time, heck perhaps even less than 1/5 of the time?
Thus, for Biz Equities, i allocate at least 50% (closer to 60%) of my planned savings (cash & EPF) into PROGRAMMATIC investing (ie. value + dollar cost averaging) via equity funds and direct stocks.
Why?
My simple reasoning - fear (of getting into Equity market when it "looks high" / still falling?) and greed (woo fell so much, sai lang! or woo can climb higher momentum mar) hard to control, thus programmatic investment methodology (entry/exit)
Case in point - people who looked at end 2010 and went, aiya so high liao.. scared lar.. then fast forward to 03/04/2012 EOD KLCI, it was a historic high of 1,606.63

b. When should i buy rental properties / REITs?
After filtering, i'd buy them when the rental yield OR dividend yield (VALUE) is worth my time lar
Rental / dividend yield is my main purpose mar
Equity / capital growth is secondary.
Thus, about 80% of my REITs and properties is opportunistic or value based methodology.

c. When should i be in cash, bond funds, flexi mortgage and up to how much %?
er.. to me, fixed income is for holding unused $ for investments (excluding emergency buffer lar) AND to have at least 23%+ around to go after lelong prices/value when (not IF) SHTF.

This post has been edited by wongmunkeong: May 16 2012, 11:41 AM

Taken this from: http://tankinlian.com/FramePDF.aspx?ID=643

It can be extremely rewarding. Here is an example that I have quoted often.
If you save $500 a month over 35 years and earn an yield of 2.5% per annum on the life
insurance policy, you will get around $300,000 as cash value at the end of the period. If you
invest the same money in an exchange traded fund that is invested according to the Straits
Times Index, you are likely to get about $500,000.
By investing in the life insurance policy, you will be giving away $200,000. You can get an
accident or term insurance policy to cover $300,000 by paying an annual premium of $360 or
less. Over 35 years, you will spend only $40,000 (including interest lost), but you can save
$200,000.
So, by making the right investment decision, the consumer can be better off by $160,000 and
get 30% more than the $300,000 offered by a poor yielding plan.

---

Added on May 16, 2012, 11:30 amThe risk of buying something you are not familiar with and what more with your retirement fund.

http://www.youtube.com/watch?v=tC1Ajdse9Uk

This post has been edited by MGM: May 16 2012, 11:30 AM

You very brave one, assurance agent come and flame you..

Just to share as part of PersonalFinMan, if want to flame , try on Mr.TanKinLian.

Thanks for sharing.

Any recommendation for short term investment apart from FD? Says need to use the money within a year or earlier.

Er.. for less than 1 year, i usually sorok in my Flexi Mortgage lor.
Currently no better idea (low fluctuation / capital near guaranteed + low / zero cost + high enough returns).

Hopefully other forumers knows better & shares - i also want to learn/know

This post has been edited by wongmunkeong: May 16 2012, 01:46 PM

Hi guys,

I am in dilemma and need some your point of view. I am single guy aged nearly 35 this year. Working in private company and have very low commitment (don't have a girlfriend yet). I just bought a single storey corner house and I live alone. Sometimes I always thinking that it is such a waste buying big house but live alone. As a single person, I don't have a problem to pay the house every month but I started to think to sell the house and buy a small apartment to suit my lifestyle instead. Should I sell the house and move to smaller apartment? Your point of view is much appreciated. Thanks!

hm.. do U like the location of your current home?
If U do, why sell your home and buy an apartment?
The legal costs itself should be about $6K to $15K to sell & buy, assuming it's a "normal sized" house and apartment.

How about an alternative - where U rent out your rooms? Preferably to people U know or friends' friend.
Be a live-in landlord .
Thus, they pay like half the mortgage (mine pays more than half hheheh )
Then later, when/if U get hitched, U already have a home mar. Mind U, your future half may not like your home's location though hehe.

If U do not like the location of your home, then by all means - sell and buy another, keeping in mind the costs of transactions.

FYI - i'm staying "alone" in a double-storey house since my ex took my girl to SG and my mum went back to her own place.
Thus, i can understand your situation.

No right/wrong, just a thought -

This post has been edited by wongmunkeong: May 17 2012, 09:11 AM

What is your bigger plan? Since your commitment is low, bank is happy to lent your money for investment.

Will you consider to rent-it-out and buy a small condo for yourself to stay?

Bro, looking at the data you provided, firstly trying to see how much you allocate for each class, however only notice expected returns. mind elaborating on allocation ?

er.. 1/3 or 33.33333333(into infinity)% for each of the basic:
1. Fixed Income
2. Biz Equities which includes small % of trades in gold/commodities/stocks/futures
3. Real Estate Equities

The snapshot i shared was in detail, which i roll up to the 3 above classes above.

As for my personal Asset SUB-Allocation, it looks like this


Note:
I use these "detail" to multiply by my current held investments to ascertain where i am, in terms of expected $ pa & pm, thus can literally "see" how much more to go to hit my "basic" financial freedom - ie. when the expected returns are >= my expenses.

Again, these are my own "mad scientist formulas/approach" - may not work for anyone but myself yar.
Just note the main concepts - Asset Allocation & Sub-Allocation + reasons shared earlier, absorb what is useful / fits, discard what isn't/doesn't fit (Bruce Lee and the Tao of Jeet Kune Do )

No right/wrong - just a thought