Yes as you say yourself over the long term and with higher investment amount, you will not get 20% constantly. Good for you to get 20% CAGR for the past few years, but stating that high income with low risk is not correct. Stock market is high risk, you may be lucky to flip several coins in a row to get outsized returns but that does not mean that you will get the same flip year after year. Stock market is high risk and high gain, the risk is measurable by votality, so it is not an implied risk. By stating your view, you might inadvertently encourage people to think that stock market is a free lunch, which it is not, it is dangerous and required loads of hard work to make it work. It is not for everyone, especially those with low tolerance for risk.

If you start investing in the 2000's 20% CAGR is not a problem until now, my investment gains more than doubled when I start investing in 2006 until now, but as you say the higher amount you have you will feel the constraints. But who knows on the future, anything might happen, so taking 8% long term view on equity and 4% withdrawal rate is prudent financial practice. Since you are a student of Graham & Buffett, you should be familiar with the quote 'margin of safety'.

...threw my fresh cash equal to a new toyota hilux value as 50% downpayment for my first car...

Hey shifus. With 3500 income monthly, I do 300 x 2 bond fund and 600 on savings. I am trying to allocate for equity funds but wondering where to get the money to allocate for it.

Is 300 / fund too much per my income?
Should I break down the 600 into more funds?
Reduce my savings amount from 600 to 300?
Reduce expenses to allocate more for funds?

What is your investment & saving % by salary?

300 or 600 is insignificant for investment and not cost effective. Go save enough up to RM3k or above before you start to invest, and most importantly get yourself an emergency fund just in case you lost your job.

For me it's simple, when I have a 6-month salary size of emergency fund, I'll pour all my savings and bonuses into investment portfolio, and normally my month savings is around 30% of my monthly currently salary.

I need some opinion too ^^

I'm currently work for 6 month already (fresh grad), and start to accumulate more money. I'm planning to park my money in eFD first as I'm no good in any investment yet (No experience).

My salary is around 2.6k. I consider myself lucky as I don't have to buy a car so no car loan, but I have to pay a lot for my parent's insurance and living cost, so only can save up to 600+ ....

I just start to learn this financial management and plan to put my money in FD. I think putting in 3 month term is much better than putting in 12 month term so I can generate more money from interest, is this correct?
So the interest can keep growing every 3 month I deposit (600x3) instead of deposit my monthly save money every one year. Need opinion from you guys =)

I need some opinion too ^^

I'm currently work for 6 month already (fresh grad), and start to accumulate more money. I'm planning to park my money in eFD first as I'm no good in any investment yet (No experience).

My salary is around 2.6k. I consider myself lucky as I don't have to buy a car so no car loan, but I have to pay a lot for my parent's insurance and living cost, so only can save up to 600+ ....

I just start to learn this financial management and plan to put my money in FD. I think putting in 3 month term is much better than putting in 12 month term so I can generate more money from interest, is this correct?
So the interest can keep growing every 3 month I deposit (600x3) instead of deposit my monthly save money every one year. Need opinion from you guys =)

I suggest you to save an emergency fund with a size of up to 6-month of your monthly spending, i.e. RM12,000 and put this amount into FD. About allocation of the FD, you could divide RM12,000 equally into 2 portions and put each into 1-month roll over and 3-month roll over.

Anyway, in my opinion, with such a small amount of FD (RM12k) and such a small difference FD rate between 1-month and 3-month, if I were you I would put all the emergency fund into 1-month roll over FD. The purpose of putting money into FD is for liquidity and not  for long term for 3-month/12-month. If you want to earn more return, you should aim on mutual funds, equities or properties but FD.

I share mine experinec 

Beginning i only can save rm100-rm500 per month, from e-FD , then move to UT for period of 3 year using DCA method.  I take 2 year reading/study and followup lowyat stock exchange topic once my saving reach monthly rm2-3k  i started to invest in stock,leaving my UT saving intact.
Every investment venture ,  investor dont like to see paper loss investment especially in single egg basket saving. Investing in stock is high risk will get high profit also high loss, noting is guarantee. Furthermore no experience in stock, you likelihood paying for tuition fee.

Is good to hv habit saving, then 1st get to understand about stock or open a trading account with simulation you get a try and feel how it works before jump to uncharted sea by your ownself.
is my 2sen. , other sifu can give other point different view.

Share with u my method...

With 12K, I split:
3K for 3 months
3K for 6 months
3K for 9 months
3K for 12 months

When the 3 months FD mature, renew to 12 months
When the 6 months FD mature, renew to 12 months

So that u will have a 12-M FD maturing every 3 months

Share with u my method...

With 12K, I split:
3K for 3 months
3K for 6 months
3K for 9 months
3K for 12 months

When the 3 months FD mature, renew to 12 months
When the 6 months FD mature, renew to 12 months

So that u will have a 12-M FD maturing every 3 months

hi pink spider,

  I different from you, i share mine...heheh...different ppl different way.
  For me e-FD is emergency money so made no different 3,6 month 12 month mature.

with 15k: 3 split
rm5k 10th of the month
rm5k 20th of the month
rm5k 30th of the month.

renewal every month.

  my sen of emergency fund.

Yes I know this method, but that would be quite a hassle to work on this .

My point is when emergency incident happen and you may need to use the 12k immediately, you would need to take all $ out irregard they are put in 3, 6, 9 or 12-month roll over. If you put in 1-month roll over, the max penalty of losing is just 1-month FD interest.

Anyway, I don't want put more emphasis on interest earns from the FD, to me FD is an  tool for liquidity purpose, not a tool for growing capital.

Hey Felix kitty

I had thought of that too

In addition to FD, I also have 2 months worth of net salary in a money market UT fund. Thus, I'm comfortable with the 3 months gap between FDs.

I suggest you to save an emergency fund with a size of up to 6-month of your monthly spending, i.e. RM12,000 and put this amount into FD. About allocation of the FD, you could divide RM12,000 equally into 2 portions and put each into 1-month roll over and 3-month roll over.

Anyway, in my opinion, with such a small amount of FD (RM12k) and such a small difference FD rate between 1-month and 3-month, if I were you I would put all the emergency fund into 1-month roll over FD. The purpose of putting money into FD is for liquidity and not  for long term for 3-month/12-month. If you want to earn more return, you should aim on mutual funds, equities or properties but FD.

isnt it better to dump the rm12k emergency funds into the housing loan which is flexible? can withdraw with notice to banks within a few days or some have atm card to withdraw anytime?

isnt it better to dump the rm12k emergency funds into the housing loan which is flexible? can withdraw with notice to banks within a few days or some have atm card to withdraw anytime?