Yeah no record.

I think it's because I'm not obliged to pay yet cause I just graduated in December. The last payment of the loan I received was just in October.

I haven't actually receive their letter requiring me to pay the loan yet.

Do you think this is my problem?

i think so.
or no record, u dun ever need to pay back.

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Added on January 10, 2012, 7:53 pmaik....
no people advice kah?

This post has been edited by tech3910: Jan 10 2012, 07:53 PM

hi,

I am in the early 40, reccently face some dilema on which loan need to setter first on my home loan?

Loan A-
Balance around 190k, mthly instalment RM1600, left 12 years +, currently tenant out for kindergarden purpose, so every month generate rental income of RM1200 to cover the instalment, balance need to top up around RM400.

Loan B-

Existing house stay by me, balance around 30k, monthly instalment RM768, left 3 years+

My question is, in coming Feb/March, i will have some cash to come in result from sold off an old house, but i doesn 't quite clear which one need to setter off first.

Let say i have 70k to clear off the instalment. In my plan 1, i willl pay-off the Loan B(30k), and pay off 40 k for loan A because after all i need not to pay the instalment any more, but the cons is that the bal interest charge was not that much , is around 2-3k, On alternatively, i come out with plan 2, pay back 70k for loan A, and it will reduce the interest drastically, and reduce the tenure as well, but the cons is that i need continue to serve the instalment for loan B.

Plan 1- clear-off loan B, have more COH
Plan 2 -reduce the amount of loan A, less COH, but reduce interest charge in long term.

Need some advise on Personal finance on above matter, which plan i need to use in order to get better return on personal management /investment, especially under current uncertainty economy?

This post has been edited by youngman28: Jan 12 2012, 12:51 PM

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.)

1-2, Loan A, Pb Home Loan, Int= BLR-2.2, just re-finance last year
Loan B. AIA Fixed Term Home Loan, Int=6.15%

3 , Had been actively in equity market before, had quit couple of year, currently hold nothing on hand. Interest in REIT, had some investment in unit trust ( thro EPF), currently used FD, Unit Trust and GIA as investment tools.

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

What I have:

Income
=====
6,000 pm (After income tax and Socso)

Cash
===
FD: 85,000
Unit Trust: 10,000
Saving Acc: 15,000

Home
====
Already paid 68,000 downpayment. Now, waiting to pay monthly instalment starting mid 2013

Car
==
Using Dad's car.

Thinking of spending my money wisely. Age 30. Single. How?

This post has been edited by VictoryBlue: Jan 15 2012, 01:49 PM

rm85k in FD at age 30, good. i think u already spending wisely too.
how much ur monthly instalment will be? still got 1 yr to start the paymnt.
ur other commitmends?
any plan to buy own car?
saving acc shud hv ur monthly expenses X 6. can be increase to time to time if ur monthly expenses increase.
any insurance?
any plan for ur marriege?, i think no prblem for u since already hv sufficiant amnt in FD.

at last how much u can safe montly.

spilt it by 40% in FD and 60% in unit trust. or 30%/70% since u still young. or other saving/investment as u wish.

make user u very well undrstand abt investment and also the involve riskk too.

just my 2 cents.

I don't agree on that, unless you have VERY BAD job security. It's a waste to have 6 mths worth of expenses sitting there earning nothing, I'd suggest put in FD or money market funds instead.

can split the 15k into 3 FD, 1 month tenure with maturity +-10 days apart from each other. You are sort of covered just in case you need the fund urgently with money earning some interest.

this is what im doing

What I did last time was, I have 4 FD certs, each having a gap of 3 months from each other, e.g. Jan-12 then Apr-12 then Jul-12 then Oct-12

---

Added on January 16, 2012, 12:32 pmActually, I have less than 5k in saving account. All money in about 5 FDs.

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Added on January 16, 2012, 12:35 pmYes, I have up to 5 FDs

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Added on January 16, 2012, 12:38 pmI am thinking of buying another property for renting and investment. What you think?

This post has been edited by VictoryBlue: Jan 16 2012, 12:38 PM

in my savings account only got enough cash to sustain myself for 1.5 month

hi there

ill be turning 25 this year with a networth of around 360k. im having a dilemma on whether should I be buying my own home at this point of my life.

100k in stocks
30k in FD for emergency funds
50k in savings account
160k valued investment property with 120k mortgage
80k in my online trading account
60k in other businesses

atm i am paying rent of around 1.7k and i see myself getting married in the next 2 years or so and would like to get a house of my own. The problem is my income is not really secured as I am basically self employed, however im pretty sure that I can make ~10k average a month in a bad year.

Also the property prices now are just so high that if I were to get a nicer condo around klang valley it would cost around rm5-800k. With 10-20% downpayment + renovation etc i am looking at forking out 150k-200k @ 10% downpayment which as you guys can see is a huge chunk of my finance. I would have to withdraw a large amount from my stock account + savings + FD just to get my first home.

The way I look at it, my cost is not only the 150-200k but also the opportunity cost of being able to generate more from investing in stocks, businesses etc

But, i do feel that I have to get my own house sooner or later and better now than later right???

Also i am not sure if malaysians can get income tax breaks from mortgage interest payments... maybe someone can help explain abit about malaysian tax law involving mortgage/property

any insight would be much appreciated

Income tax - a home's mortgage is not tax deductible unlike US' tax.
However, your investment property's "interest charged" portion of mortgage can be used to offset your returns from that property (among other operational costs as well).
Note - this is what i read / understand & practice. I may not be 100% correct . Please grab your favorite tax consultant and prod him/her.

Your POV as to buying a home and also losing "opportunity costs" in investments - U are one of the few people that shares my view. However, if U want to have a base for your partnership/family if U will, a home to call your own and wont be evicted by your landlord, then perhaps that itself may over-ride opportunity costs. I understand the WANT to have a "nicer" place and stuff but the hit in opportunity cost is painful. Why not let ratios help decide how much "home" to afford? Then later, say 5 years time, as your wealth grows, then buy another home and rent out the older one?

eg.
a. At least down payment of 20%
b. Monthly mortgage should be less than 20% of your net income to be really affordable (in your case, since it fluctuates, take the median OR the lowest for prudence)
c. Thus, play with (a.) to help achieve (b.) then U'd have some logical guidelines, not written in stone rules yar

Just to share - i've bought my 1st home and renovating it to the hilt (my requirements lar) thinking i'll be in it for at least 10yrs+ or life since good location, sizing, etc. Guess what - i moved out in less than 5 years later. All that renovation costs....

Please note the "nicer" a home is, the more cost to maintain too
eg. comparing PJ SS3 single storey vs Setia Alam double storey, plumbing, fixing and renovation services for similar items were much cheaper for my SS3 house. Contractors tend to "value" the place & home first before giving one a quotation - note that i do get several quotes.
However, if U have a trusted contractor, then no issues.

Just a thought

This post has been edited by wongmunkeong: Jan 20 2012, 08:04 AM

-deleted-

This post has been edited by neo-spider: Feb 6 2012, 09:06 AM

Whoa bro - you're saving 42%+ of your net salary? If that's true, congrats - very good head you've got on U.

In addition, if your mutual funds are NOT via EPF (ie. your EPF isnt in your data shared) and all those investments are in cash...

IMHO - you're doing well for a "normal salary earner".
Just one thing U might want to "watch out" for - your Asset Allocation is severely lopsided towards Fixed Income class, low on Biz Equities (Biz, normal Stocks, Equity Funds) and no REIT stocks / Properties, though U have Alternate class of Gold.

Another possible "watch out" - if you're not in a serious relationship yet and if U get into one AND/OR if U get married, don't ignore your financials though U may only save less. Speaking from my own younger and stupider days yar, please ignore if you're more "well adjusted"

Definitely a future MULTI-millionaire.

Excel in ZIP file for your simulation
 NeoSpider.zip ( 5.95k ) Number of downloads: 39


This post has been edited by wongmunkeong: Feb 3 2012, 10:09 PM

Hi Guys, I would like to increase my financial potential. I am a greenhorn at this though, so go easy on me.

Just turned 24,Currently Australian student into my final semester-Start working probably June this year. Working part time now at Subway. I will break down my income in two countries: Australia and Malaysia.

Australia:

Income per month: 1400 Aus
Allowance per month: 1700 Aus-from parents
Total per month: 3100 Aus

Expenses breakdown(monthly):
Rent-500
Phone-30
Internet-80
Food-750
Transport-free(bike) or friend's car
Church-480 tithes
Reserve: 500 per month(bank only allows this amount maximum) for savings which has interest of 7% p.a.
Extra: Any extra which amounts to probably 600 to 700 will go into my other savings which pays 5.8% p.a. The reason I can go over 500 is because the interest is lower so there is no maximum monthly deposit.
FD: I really need advice on this. The saver I am using now pays 7% p.a. which is more than the 5.7 p.a. for term deposits(which is FD here). However for term deposits they state that is it 5.7% p.a. for two months, interest paid on maturity. Does this mean I will accumulate more with it since its two months?

Total savings so far for both saving accounts: 3552.
Been saving regularly for 6 months(500 a month), the 52 dollars is interest paid from the 6 months. The rest of the money I have taken out to spend on a Hong Kong trip, drumset, and few concert tickets which I have been looking forward to after my hard earned work. Again, correct me if I am spending too much.

Malaysia:
FD: 10200
Savings: 50
Amanah Saham-1000
2nd Amanah Saham-5000
Investings/Shares: 6000

All accounts have not been touched since 3 years ago so I am not sure about the total plus interest.

Spendings in Malaysia: Zero-no commitments or loans,etc.

1) What do you think about my financial position at this age of 24? Am I below or above the average? Reason being I think I am a bit too low as I see all the people posting here having like 100 k at 25. But among my friends I am pretty well off with most of them only having 1000 dollars in savings at 24. Maybe I am mixing with the wrong crowd lol.

2)What recommendations would you advice for a higher earning potential? I am open to any ideas as I know most of my money is just sitting there doing nothing.

Thanks guys!

Thank Mr. WongMunKeong .

Yes, the mutual funds are not via EPF cause I don't think they are a good deal. I mean typical EPF interest is about 5%, plus the 3% service charge when you buy the fund, means you need the fund to at least increase by 8% before you break even. Correct me if I'm wrong.

The fact is I'm not a crazy money saver guy, I don't spend much money socially (drinks, clubbing etc) but I have all those recent gadgets (HTC sensation, Ipad 2, xbox360, ps3, computer, big TV etc). It just that bonus from my current company is quite good to cover all those crazy expenses these few years.

I was not doing so well in the investment last year due to massive drop in Public Mutual Equities, manage to switch to bond before I was bled to death but still lose some money there. Luckily the bond was performing quite well last year (about 8%) to cover the lost in Public Mutual Equities. So currently looking for alternative place to invest the money. What do you think about buying properties in 2012? Or Foreign FD? Just to diversify a little bit.

Thank you.

Eh, no Mr Mr here to me pls. Surname = Wong, not Mr.

Ah - these savings / fun spending are inclusive of your bonus? Still good leh - it's near my own personal level of cash savings inclusive of bonus and you've got age/time & growth on your side. I'm a geezer comparatively

Well, your logic of EPF --> Mutual Funds needing 8%pa to break even isnt too right.
Note that that's just for the 1st year, U should take long term into consideration. Please note i'm NOT advocating U should move yr EPF into mutual funds k, just going to share some return i myself managed to eek out.
Below are snapshots of Equity funds i hold in Prudential SmallCaps + Public Sector Select Fund (PSSF)
& Bond fund Public Select Bond Fund. Please note i'm my own agent for Public Mutual, thus take the PSSF returns with a pinch of salt due to lowered cost of entry. For PSBF, agents dont get any of the 0.25% commissions (if i'm not mistaken).

Take a look see - worthwhile?
It's not ALL profits yar as U can see from the "untouched-up", other than amount and units lar, snapshots.
Take special note of Prudential's SmallCap which i paid FULL service charges. In those days, i think it was about 6%++.
Worthwhile? It depends on your own selection and methodology i guess. Heck, if U can handle gold's wild runs, this is sup sup water for U i think





U've just got introduced to Asset Allocation indirectly by your bond funds saving the day due to their exceptional returns these 1+ year .

Properties? It's always a good time OR bad time to buy - it depends on your expertise in the area + target market. This is where specialization can eek out some great deals even in a high market. Personally, i'm not an expert in properties though i do have investment real estate. Just bought based on cost VS rental yield returns + location for easier land-lording.

I'd suggest U look into REITs as a start for diversifying into Real Estate asset class since REITs throws out dividends regularly and has upside potential due to its underlying properties going up in value and/or people chasing the REIT's stocks up. No issues of landlording nor lump sum locked-in BUT not much leverage (which can be a good or bad thing).

Foreign FD? not my cuppa unless my daughter identifies which country's Uni she's targeting - she's a wee bit too young to do that yet though hheheh. Reason = i'd rather own the assets generating the $, than just the $.

Phew - just a (many?) thought.