Hehhe - out of proportion from your own baseline or mine? U can ignore or change the % shown there
My personal opinion for my planned asset allocation (held and allocated $ to buy) is:
Fixed Income: 3yrs living expenses OR 33%, whichever higher
THEN
split half to equities + another half to REITs / Properties
Make it your own.

In addition, the "how the asset is invested" is my own view coz i'm too chicken shit to do 100% value/trend AND too much of an optimist to do 100% programmatic (DCA / TwinVes)

This post has been edited by wongmunkeong: Sep 5 2011, 07:06 AM

well, personally i also dont buy into asset classes buta.
i allocate the ammo
then only buy in based on value (50% of ammo)
+ programmatic TwinVest (retails equity funds) & DCA (agent's equity fund investment at NAV) (50%)


Of course there are others who disagree and says plain asset allocation (+ good assets selection) should be the only thing as market is efficient lar.

No right/wrong.

Yup - can be considered short-term investor
heheh

IMHO, very fine line between trading and investing.
Methinks it depends on the reasons for "getting in" - either based on pure price/volume movements OR additional things like fundamentals of pair countries' Debt/GDP ratios, economic outlook, etc.

Of course there are others that "trades" foreign currency fixed-deposits too

G' morning folks.

As one of our fellow forumers prompted me for an Excel to evaluate (numbers only ar, not qualitative) & track properties, i've updated the Excel worksheets with 2 new worksheets and sharing this here with sample data to see if it's useful to U too.

As usual, yellow cells = variables for U to enter.

Same caveat as my other shared spreadsheets:
a. Use at your own risk
b. Agents and sale flers - please do not use these bulat bulat on your customers. Please learn, modify and make better. I've purposely left them UNPROTECTED.
c. All feedback and constructive criticism is appreciated, NOT b****ing and playing self-appointed policeman without bringing solutions / better ideas to the table.



Attached File(s)
 To_Share___PFP.zip ( 372.83k ) Number of downloads: 162

Whoa.. U are earning part-time $1.3K basic /month AND your parents are taking care of your cars, tools, petrol?
Nice...

What to do with the $1K?
Go have fun lar since investing isnt your cuppa + with BoP (bank of parents) juicing U up.
I'd definitely do that if i was in your shoes.. then maybe later (much MUCH later after the booze, women and food gets too much or samey samey), regret/feel a bit uneasy for "leveraging" on BoP rather than stand on my own 2 feet even though i can afford to).
Life's too short to worry

Your mileage may vary

whoa.. bro.. 39.59% of net income saved & invested EXCLUDING EPF & bonuses?!
U should share your "how to manage $" with us, especially when U've a family

Personally and logically, i think this is a misleading thought.
Spending NOW, FUTURE earnings, on depreciating assets or non-essentials, is how to get killed financially in the long run OR being a slave.

Using your example, the buyer of the MyVi will be able to invest the difference of $700pm!
Imagine one's savings & investment injected with ADDITIONAL $700pm, that's $8,400pa and at simple 8%pa compounded, one would have $121,687.12
eg.
PA extra injected $8,400.00
$8,400.00 9yrs compounded: $16,791.64
$8,400.00 8yrs compounded: $$15,547.81
$8,400.00 7yrs compounded: $14,396.12
$8,400.00 6yrs compounded: $13,329.74
$8,400.00 5yrs compounded: $12,342.36
$8,400.00 4yrs compounded: $11,428.11
$8,400.00 3yrs compounded: $10,581.58
$8,400.00 2yrs compounded: $9,797.76
$8,400.00 1yrs compounded: $9,072.00
$8,400.00 0yrs compounded: $8,400.00
Total $121,687.12

Hmm.. i'd take the MyVi and the EXTRA $121K pls
BTW, i'd think the extra maintenance cost for the Honda Civic would add to the illogical-ity of it - it's like stabbing yourself a few more times when U are already bleeding.

This post has been edited by wongmunkeong: Nov 11 2011, 01:19 PM

Nicely put bro Gark .

Some (if not most) of the younger generation these days have similar attitude as some Greeks and Americans - "i'm special" coupled with "i deserve it now" instant gratification - bad mojo of combination
Mind U, i think even in the older generation pun ada lar but seems to be more prominent these days. Look at them press or airwaves advertisements - "U deserve the best.... now" kinda message. Selling the dream but leading to "debt slavery"

This post has been edited by wongmunkeong: Nov 11 2011, 01:27 PM

Sh... yeah, we need "dreamers" like those to "power up" the economy. If everyone like us, hangus man

True - if one can afford it and it is one's priority, why not buy buy buy with credit even if 9 years, right JasonToh? Heck, if an Audi A8 cost only a low % of one's networth / earning power and one is a Quatro enthusiast, gambate!

Only thing i may serong a bit would be:
a. whether one can take the extra $700pm and earn 8%pa.
Can lar with a bit of effort - ASB also already how many %

b. CAPEX expenditures like cars will attract maintenance.
Thus, cant forget that portion of extra cost as well, which wasnt factored into the difference of $700pm.

Reminds me of my 1st boss' saying:
"Coal with enough pressure & heat becomes diamond"

Mind U, dont lar over-pressure until bleeding from nose, eyes & ears

Okok back to reality - this principle (enough stress to get better/stronger) is scientific in the athletic world where muscles are broken down during heavy training and during rest, body rebuilds muscles stronger to adapt to the stress. I guess it's the same with our mind/brain and spirit too. Gambate!

end of 2cents opining

Bro, dont J. I recommend 1 nice show for U to watch, "The Joneses" (http://www.imdb.com/title/tt1285309/). Nice comedy to keep the green eyed monster away long enough until YOU become the one that's envied.

Trust me - feels like "sacrifice" for the first few years, then it becomes a game of optimization and finally it feels good to be debt free + plenty of $ generating assets & cash available on-demand.
Try visualizing this and see how U feel
Everything paid off
+ at anytime U can cough up $50K to $100K+ for a vehicle no issue IF U wish to
and still have spare for any family emergencies
while hearing the people around U moan about not enuf and yet going after that new iPhone4S / Samsung 10.1tab / BMW3
good or good

This post has been edited by wongmunkeong: Nov 12 2011, 09:00 AM

He's saving and investing more than 10% - add up his monthly mutual funds investments & savings

Bravo Mr Vivo - if most of the new generation are like U, we should be good unlike the spending crazed folks in more "developed" countries
BTW, if you've got other ppl economically dependent on U, U may want to hit an emergency fund of 6mths expenses and more. If not, 3 months is good enough IMHO

This post has been edited by wongmunkeong: Dec 13 2011, 05:59 PM

IMHO, it depends on how much time & headache can be saved IF U drove Vs the additional cost of $176pm, which is about 8% of your net pay. That is, i'm assuming, yr job does not require U to drive

If driving saves U like 2 hours of time and less headache, U then have to judge for yourself whether time & flexibility is more important than that amount or % of $.

Personally, i'd drive if the additional cost was only $176 but my net salary is not $2.2k pm
In addition, i think U missed out a major cost - vehicle maintenance & repairs. That will pump your average cost way above $176 - heck, even changing the 4 tyres may kill U. Hhehe - i still remember my first car at $1,400pm net salary, my younger and dumber days. Should have stuck to public transport.

---

Added on December 19, 2011, 7:30 amMy financial plans:
-Save up at least 12 months of emergency funds since I'm freelancing

You've got a good head on yr shoulders

-Pay back PTPTN in 4 years
Good "want" though U may get better mileage investing the $ into something that can get U more % than PTPTN's interest rate
ie. Pay what U owe based on PTPTN's scheduled payment, not finish it fast IF U have the discipline and know how to make at least 2% on average per year more consistently. Then in a further future, say 10 years, U can use some of your investments' returns to "one-hit kill" your PTPTN debts.
Note - i'm assuming your PTPTN scheduled repayment is supposed to take 10yrs or more, not 4 years

-FD/Bonds/Unit trust
What about REITs (like buying stocks in Properties and getting rental dividends)?
After that, normal stocks will be the next baby step.

-Getting a credit card and start building credits in a safe manner so that I can borrow loans from bank in the future
Good idea since U are self-employed.

My questions:
Since the only debt I have is PTPTN right now, I am planning to clear my PTPTN loan in 4 years. Meaning $900 per month. I didn't request for 1% interest rate because I calculated that if I can clear it in 4 years, I end up paying less for interest. Plus, it helps discipline myself to save up $900pm and after 4 years, the $900 can be used for other places like investing/business.

1. Is allocating $900 into settling ptptn in 4 years a wise decision?
2. Or should the money might be better investing in other alternatives and paying PTPTN by the minimum amount (and request for 1% 10 years plan)?
3. I'm 25 next year, isn't investing earlier better and will yield more returns? So settle debt first or invest first?
4. If so, what is the ratio that I should put monthly into ptptn repayment:investment?
5. Should I use the avalanche method, paying $900pm for 2 years, then slow down as I might want to look into buying a car/property/marriage?
Generally my point of view for these is shared above already

6. Since I don't have EPF, should I allocate some money in there myself? Or should the money be placed somewhere else?
Ah - this is the WATCHOUT part which triggered me to respond/share share.
U dont have EPF, thus in effect you're "not saving automatically" 11%+12%=23% of your income
U've stated that U are aiming for 20% savings - that 20% savings are for lemmings like me, workers with EPF contribution (at least 23%) AND THAT 20% (mine's 30%+ hehe) AIM IS ON NET SALARY, thus in total, a common worker saves >= 30%+/- of gross salary
(EPF by self >=11% + EPF by employer >=12% + cash savings xx%)
Thus, U may need to aim/plan higher.
Having shared that POV, U may not want to pump it into EPF but into bonds (ASB if you're a bumiputera) or bond funds. Risk and returns are similar (not exactly the same yar) to your $ in EPF and U can do whatever U like, whenever U like to that $, unlike $ in EPF.


7. Should I dump all my emergency funds in FD or bonds?
Personally, i'm doing a mixed - 3 months of expenses in staggered FD + the rest in bond funds.
Logic: Thus far, i've not needed to touch more than 2 months' worth of expenses for emergencies - touch wood.

8. Is it possible to use investment as a way to auto-payoff ptptn?
er.. no idea but read my earlier thoughts on "PTPTN payoff early"

Just a thought yar - in the end it is U that must be comfortable/hungry enough to plan, execute and track what U think is right for U.

This post has been edited by wongmunkeong: Dec 19 2011, 07:31 AM

May i suggest calculating your dad's cash flow for the next few months, then using that as a basis for decision?
eg. If his cash flow is good / recovered within 1 or 2 months, heck, why not do credit card for the flexibility.
However if his cash flow isnt good for at least 6 months+, then U may want to consider re-mortgaging the car

Serong a bit:
Any thoughts of taking a top-up mortgage loan or remortgage a property? I mean, IF the amount that is worried about is big enough to warrant it, mortgages are the lowest interest charged BUT one does have to pay the legal fees and the lock-in periods.

In addition, what about "soft loans" from relatives, say at a good 6%pa or 8%pa at daily rest? Win-win situation as relatives with FD lying around making 3%+pa will get double or more + your dad saves $ on interest AND the $ is kept within the family circle.

Just a thought
Merry Christmas to all, and to all a blessed new year.

This post has been edited by wongmunkeong: Dec 25 2011, 07:19 AM

Top-up mortgage loan is only applicable if he has an existing mortgage.
ie.
Say loan was $500K for a $550K property (90%).
Paid down loan to $400K already now + property now worth $600K
He can try to get bank to give him a top up loan of $140K or less ( ($600K *90%) - $400K )

Your dad's right in the sense that it may not be worth "risking" a property + legal fees for like $50K loan.
However, if he uses some sort of flexi mortgage, like those from Standard Chartered, Alliance & UOB, he may churn/cycle the $ for business cash flow when needed.
Flexi mortgages - U can knock down the principal amount any time/any amount AND re-draw the extra payments any time / any amount via cheques/ATM/online.
When U pay extra / knock down the principal amount, say $100K, U dont pay interest on that $100K UNTIL U re-draw it
eg (simple example only, not spot-on actual mathematically same with banks).
On top of the monthly payment, i plonk in $50K additional on Jan 1
Then later, I took out $20K to buy stocks on Jan 31
a. My mortgage interest calculated from Jan 2 to Jan 30th would be less $50K *x.xx%/364.25 days (mortgage interest charged) *28 days
b. From Jan31 onwards, my mortgage interest calculated would be $20K *x.xx%/364.25 days (mortgage interest charged) *xx days

Credit cards debt (i'm all to aware of them - had profound experience with it earlier) - unsure how it works nowadays but the concept is similar
This was how it hit me in my younger & dumber days:
1. Say end Jan statement U owe $10K, paid $6K
2. Now, the $4K owed attracts interest + U get hit with some fees or other ($5? $10? $50?)
3. In addition, any additional amount U swipe on the credit card in Feb will automatically attract interest straight away
Due to the above, my effective rate of interest was about 20%+pa! Those days lar - nowadays unsure whether as bad, better OR worse.

Since we're serong-ing a bit, how about tapping EPF A/C2 if your dad has a mortgage?
Do monthly withdrawals - there is a purposefully loophole in which i think the Gov left in there for people to use that amount for OTHER reasons than strictly paying off the mortgage. The yearly withdrawals is a different animal altogether.

Note - please check with your friendly bank & epf officers for exact T&C, i'm just a working ant with (some painful) experience

This post has been edited by wongmunkeong: Dec 27 2011, 02:23 PM

Just some personal thoughts (not God's truth yar & i may be wrong ) on iCap:
1. I think a lot hinges on Mr Tan TB, thus risk at single-point is higher than other "fund houses" - read as Mr TTB is human and if anything happens to him... (choy choy choy but it's my $ if i invested in iCap wor)

2. It is an closed-end fund, a different ball game VS open-end fun
Fund houses like Public Mutual, Prudential, ING, OSK, etc. are MUST buy your units back when/if U choose to redeem.
iCap trades on the market - just like any other stocks, thus the craze of demand/supply will affect one
Having said that, the craze of the market may also work to one's benefit if market craze is fear + U are buying

3. Google about iCap and Moolah (a blog: http://whereiszemoola.blogspot.com/)
U'll notice some discrepancies on what Mr TTB said and what iCap did
eg. Said optimistic/bullish tapi net position = sold off pulak

Again, please note that these are just my limited point-of-view yar - heck, i may be seeing just the trees and not the forest (or was it the other way round?.. i need my cuppa coffee..)

Rickk, your fuel consumption = 1km using 1 liter?! Assuming RM1.80 = 1 liter of petrol?!!
If it's true, shere's something very wrong with your car's fuel burning if true. It's usually a sign that there's something majorly wrong with the car - better bring it to have a total checking at a service centre. Safety first bro

My manual 19yr old Wira 1.5 averages 10km to 11km using 1 liter
My mum's 10yr old auto Wira 1.6 averages 8km to 9km using 1 liter

Bro - not enough info for each Loan A & Loan B to help analyze leh
1. What type of loan?
Norm? Fully flexi-morgage?

2. Interest rate pa?

3. Other alternatives - your personal level as an investor (eg. bonds / bond funds, general stocks & equity funds, REITs, etc.)

Attached is a PDF for your easy viewing.
I've attached the Excel file in ZIP format if U wish to muck around with the variables in the yellow cells

Please note that i've purposely counted all of the savings/returns to the maximum time-length of your loans (being Loan A) for proper valuation / eyeballing in terms of time-value of $.

Hope these helps - note, use at yr own risk, i'm NOT paid for this, just sharing


Attached File(s)
 Book1.zip ( 5.13k ) Number of downloads: 46
 Book1.pdf ( 59.71k ) Number of downloads: 78