Inflation is another risk? how so? lower than you losing money in other investment right?

hmm.. where to get the material? is it available online?

This post has been edited by CrossFirE: Aug 7 2012, 02:47 PM

Yup, just pop over to ambank or public mutual websites + google the rest (sukuk, etc.)

Mr wong need your input on this thread.

http://forum.lowyat.net/topic/2463131

Cause it was cost to our earning... What 10 cents can do before and now for simple comparison...?

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Added on August 13, 2012, 2:51 amStill we can see 5 cents... But hard to find 1 cent nowadays...

This post has been edited by techie.opinion: Aug 13 2012, 02:51 AM

Hi all, let's share your idea/ opinion.
If i have cash to settle my house loan balance which is around 140k. Should I use my 140k to settle the house loan or is it better to invest that 140k let's say in public mutual or gold etc.
My problem is that, I don't have confident that the investment interest (earn) that can be higher than the housing loan interest (pay).
What do you guys think?

U've already answered your own Q bro.
Since U know what U don't know + unwilling to learn and overcome, then just pay off lor
IF U are willing to learn, do, learn and overcome, then put aside some for learning, hands-on execution "tuition fees" and actual accumulation of investment assets.

Just don't be house-home rich but cash flow / investment poor.
ie. net worth millionaire but 99% of that is due to home.. which cost $ to maintain/upkeep. Ouch.

Yar yar - someone just shouted out "but U can sell / refinance the home & unlock the $". Ahem - sell then? live where? still gotta buy something else
Refi? gotta pay back wan lar unless one intends to do a reverse mortgage like in the US, to finance old age.

Just a thought yar, no right/wrong paths.

That's because too little knowledge in investment, cash management, wealth planning..

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Added on August 14, 2012, 4:40 pmPerhaps you can suggest something...like what to invest with..

This post has been edited by konnf: Aug 14 2012, 04:40 PM

er.. U already know what U don't know or limited knowledge of.
Why don't U start there first? Or hint hint - checkout my signature, learn about money management, risk management THEN only types of investments & investment methods.

What you are asking "What to invest with" is akin to askin "What kind of martial arts to do"
It depends.... heavily on oneself (attitude, risk/reward level, knowledge, financial goals, etc.).
Start with the basics as shared above.
U can't invest properly if your basics are poor, like U can't do martial arts properly with slow speed, lousy stamina and weak strength as a foundation.

hi cynthusc...me got question...where do you get this idea ( 'My advise to you would be to first start a savings plan by putting away an emergency fund (about 6 months salary) to cope with any emergencies you might have' ) meaning just puttin 100% our salary into the bank and how are we gonna survive....

*my apologies asking you dumb question since i dont have financial knowledge...hope you can answer

I'm not sure where you read about putting 100% salary into the bank ... the most basic of financial planning is always the emergency fund ... how many is up to u .... 6 months salary is kinda hardcore although it's good to have ... some say have 3-6 months of EXPENSES is good enough ... by the way emergency fund does not mean your iphone rosak suddenly need new phone or car breakdown or what ... emergency fund is used when say *touch wood* anything happen then you can't work ... tat time if u no savings ppl really going to ask u "how u going to survive" ..

So for simplicity sake ... if you save 10% per month ( 90% is your expenses ) ... then you need to have about 270% - 540% of your income ...which means u need about 2 - 4 years to build your emergency fund No1 ask u to save 100% of ur salary fren ...

Btw I'm also a newbie in financial planning If I'm wrong pls correct me too .. but I think this is basic ...

edit: give another example if you're very discipline .. save 50% of your nett income .. then you need to have about 150% - 300% emergency funds ... means in 3 to 6 months time you already have your emergency fund So saving hard is the key .... now that I learn about all this .. I feel stupid looking back at my Altis,my smartphones, my dslr, etc .... should have just settled with a proton ....

This post has been edited by GymBoi: Aug 15 2012, 12:50 AM

Spot on young grasshoppah (emergency buffer = x months' average expenses; it's how much one keeps/not spend that makes one rich, not how much one makes & spends), you're on your way to financial freedom

Don't worry lar GymBoi, ALL of us did stupider things in our younger days. U and your Altis, smartphones, DLR, etc. VS. my major "duh!" settling for a wrong partner and paying to cut-loss + test trading KLCI futures. I think "nearly equal" lor

Gambate!

This post has been edited by wongmunkeong: Aug 15 2012, 08:07 AM

save hard and then do what? invest? or buy more things?

most of the books for personal financial management will always state the same thing

SAVE and INVEST wisely

er.. balance savings and spending --> build emergency buffer --> invest to hit specific financial goals like wanted lump sum to finance:
a.retirement lifestyle - other than eating alpo
b. yearly travels
c. children's growth
d. parents' medical and well being
e. charities
f. etc.

Not much of an imagination or will have we? There are "bigger things" in the world than "me me me" leh

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Added on August 15, 2012, 9:22 ambro - missed out one more, giving back (estate planning)
The basics will always be the same, the killer is the different specifics that works well for each individual.

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Added on August 15, 2012, 9:30 amSomething to share on insurances - thoughts of a trained actuary and CFA:

http://www.investmentmoats.com/budgeting/i...mple-insurance/

Opinions from a trained actuary: Stick to simple insurance
Posted by DrizztAugust 15, 2012

In my insurance blast these few weeks, we talked about a particular trained field of mathematicians who assist in valuing the risks of insurance products, how they don’t seem to buy whole life insurance and investment linked policies.

I managed to get into contact with a US investment professional David Merkel. David is a trained life actuary as well as a CFA. He current managed his own fund, Aleph Investments, and talks about investment mainly in the domain of bonds and insurance companies at The Aleph Blog.

So I pose this question to David:
When I know that you are trained as an actuary it got me curious. They say that actuary assess the risks of insurance products to find value for consumers, at the same time evaluate the probable risks of the product.
What kind of insurance does an actuary actually buy for his and his family? Insurance are often sold with economic bias so what better way to know then find out from people that use actual data and determined it through quantifiable methods.

I heard that actuaries often buy only term life insurance only and that investment linked and limited whole life policies do not make sense. At the same time, it would seem that the way you can claim critical illness is such that most of the time you can claim it, you are almost very disabled or near death. In such a scenario wouldnt [sic] a pure death and tpd [sic] term life be suffice?

David’s reply was as follows:
This is my opinion, given my dealings among actuaries. I could be wrong. Actuaries avoid complexity in insurance products. Why? In general, complex products hide high profit margins. Products that are easy to analyze, like term life insurance, are competitive, and profit margins are low.

The same is true for savings products, like deferred annuities. Actuaries tend to buy simple products that cover basic needs.

Also, they tend to use insurance as catastrophe cover, because they know that having insurance companies pay on a lot of small claims is expensive on average.

There is an exception to all of this. If you are so rich as to need to stiff the taxman, buying cash value insurance policies can make a lot of sense. In that case, wealthy actuaries with clever tax advisors buy cash value life insurance. Death benefits do not pass through the estate.
Actuaries are generally conservative, and avoid insurance products that are not easily analyzed. That should be true of most insurance buyers.
I think that’s why my AIA insurance agent kept selling to me that his well heeled clients buy a lot of endowments.

We wonder whether many of us are in the same situation.
Whatever it is, the common myth in a person not knowledgeable in insurance is cheap equals lesser benefits. This sort of debunks it since guys factor in multi factors in their computation. Then again I could be wrong since there may be some important factors that were assumed, which could be gravely wrong when put into practice.

This post has been edited by wongmunkeong: Aug 15 2012, 09:30 AM

so bro Wong are you practicing ''Buy term and invest the difference'' currently?

Wow. So I grad 25 years old- have ptptn loan. 4 years to save for emergency fund. Already 29. I also need to save for wedding fund- no girl want to marry guy with no money. Add 1 more year 30. Then we save for house deposit 20k+7k fee. This 1 need 2 more year. 32 years old. After that kids come in, taking about 1k/mth. 34 years old. By this time new car needed (old one given by parents)- need to save deposit. PTPTN by now still have a while to pay for. Around age 40+ need to save for kids tertiary education. The boss man give me increment a few hundred a year only.

When do I start saving for investment then? Is the conclusion I need to join BN to get the financial freedom I want?

death/disease/disability + medical insurances? Yup
And no, no endowments - not mega millionaire yet, thus can't afford to take 2%+ to 4%+/- returns for long term locked-in "investments", unless there is a tax relief tagged to it ('ala PRS and/or annuities)

Y ar bro?

I thought I already gave a good example ... hmm ... what about like this ... can I also say that no girl will want to marry a guy with :

1) No savings
2) Save only 10% monthly
3) Get only few hundred increment a year - No offense but if you're getting few hundred increment a year .. there's definitely something wrong with your boss or you ..

My advice ? Cut down expenses, get a better job Ok I know it's easier said than done .. I'm also just starting lol .. but that's the way it is .. think harder about it ... like I said if you can somehow save 50% (Which is know is crazy too) then you only need half year to build your emergency fund ... Again this is also just advice You can always get the girl you want and your latest gadgets and Audi A4 and all if you find a way to do it ... but please share your secret too I'd like to not save and get everything as well

This post has been edited by GymBoi: Aug 15 2012, 09:52 AM

The conclusion is to live BELOW your means, not live WITHIN your means.
Make $100, spend $100 = live now only
Make $100, spend $70, save $30 = balance of now and future

Is it everyone else's fault or one's own responsibility for one's current and future lifestyle?
Your boss-man's responsibility is to give U an opportunity to make a living, NOT make U wealthy.
It's your own responsibility to make yourself wealthy.
Graduates these days with such thinking.. sigh.. anoneh, when i started working, diploma only and $700pm.
U think U have it hard? Plenty of others have it harder - think Syria, parts of Africa, even rural parts of Malaysia.

I just bought a whole life policy insurance with saving plan last year.I think i've made a mistake whereby i didnt do much research on insurance by the time i bought it because everyone around me is buying whole life policy.

Yes everyone including my family , friends and colleagues so i ASSUME there is NO problem since no one whining about high premium or whatsoever.

But until few months ago i read a books regarding personal finance and the author encourage us to ''Buy term and invest the difference'' with is quite NEW to me.So based on my understanding :

1) Pay lower premiums,get the same cover (payout is same)
2) i'm investing myself with the leftover money which i believe i can grow my wealth better than those saving / ILP plan after compound interest.Let's says i park the money in low risk investment like bond fund / or REIT

but there are also disadvantages too whereby :

1) If i terminate the policy now all the premium paid will be burn off.
2) Term insurance covers up to age 70, so have to assure that after 70 i will have to self-insured

Thats all i know...Bro Wong feel free to give some comments