methinks.. that's how children are spoilt silly

er.. true but yr example of a CHILD Vs a MAN MARRYING is a bit too different right?
A man marrying is supposed to be a provider, protector & guide to his new family unit right? Buy him a house?
If he was a real man - i'd think he'll take that as a kick in the nuts leh - as if he still needs such things from his parents.
Then again... (not accepting handouts) maybe that's why i'm not filthy rich up to now lar heheh

This post has been edited by wongmunkeong: Apr 6 2013, 02:52 PM

somebody doesn't seem to understand the term investment, where probabilities can be 60%win 40%lose, or even better odds due to asset allocation control + filtering for good businesses/properties + buying at a good value

Maybe not "over leveraged" wor if his "Dividends (Business): RM35000/month (average)" comes in like clockwork or that amount is a prudent % of his average takings, ie. viewed in terms of (debt payment / income)

However, his D/E i think is waaaaaay over 1
This "over leverage" U mean?

Well, IMHO, it depends - if our bro keeps saving & investing, hits multi-millionaire by mid 30s or 40s, U still think he NEEDs any insurances to cover medical, critical illness, disability or death by then?

This post has been edited by wongmunkeong: Jul 26 2013, 08:26 PM

GymBoi, car loans are usually calculated "flat"
VS
FD and other investments, calculated at per annum compounded basis

"Flat" rate:
Interest: 2.5% *loan amount * years of loan
Then this interest is added to the loan amount and divided by number of months of the loan

Per annum compounded basis or AKA "reducing balance" if loan:
Interest: %/12mths * amount still owed on that month

Bottom line: Usually "flat rate" is about the equivalent of 2x to get reducing balance.
ie. your 2.5% flat rate should be about 5%pa compounded.
Thus, your FD is NOT making more than what U are paying in car loan interest.

er.. the above would be clearer with pen/paper or Excel (i'm too lazy these days)
hope it's clear enough for U to think it through

This post has been edited by wongmunkeong: Jul 28 2013, 04:55 PM

Housing loans are based on "reducing balance", not flat (or those that i've checked out lar, who knows there may be some weird lender around ).

If Excel is your game, take a look at the Excel in the ZIP file: https://forum.lowyat.net/topic/1577849/+697
Look for worksheet "MODDED Brian Goh's MortCalc"
A version i modded from my buddy, Brian Goh.
Just enter the data in the YELLOW CELLS to see the results (payment per month, pay till when, etc)

Note - use at your own risk yadda yadda yadda

I'd say it depends...

If cannot handle the cost, die die hold the house?
Children may not even want to live there
AND - if one can't even manage oneself's current financial situation, how lar to pass on to children?

It depends lor - should not die die "hold" if one can't handle it.. until repossessed / bank lelong meh?

Just a thought

- deleted -
Pink stated it.. i missed it.

This post has been edited by wongmunkeong: Sep 9 2013, 03:23 PM

coffee tongkat ali +hot kuci mamas (nicole tynn)

Eh - on serious note, personally even short term bond funds... i'd think not lor
unless one is crazed with 1 year's living expenses in emergency fund, then can 50% FD/Money Market, 50% short term bond funds
else.. bond funds a bit more dangerous than FD lor - $250K insured per person per bank wor

This post has been edited by wongmunkeong: Sep 9 2013, 03:36 PM