-

This post has been edited by Pink Spider: Feb 4 2012, 01:14 AM

No seafood here bro - just a worker ant sharing view and bouncing off some ideas/views.
What to do - my little girl's in SG . U know the saying - idle hands/mind are the devil's tools? I'm keeping busy heheh.

I took the liberty to add $50 or $500 to your xxx+ or xx,xxx+ and assumed:
a. Yr balanced fund = 50% 50% split fixed income & equitiy
b. Yr travelling/petrol and entertainment = 50% 50% of $450


I'm assuming U & yr parents are staying around Klang Valley, where cost of living is high.
Thus, U may want to concentrate more on "income" for now, as it's the most easiest to boost at your age (new-ish to the workforce or biz). Always concentrate on giving value - your income will eventually follow (ie. U will be like a value stock, which market price will eventually catch up ). It's tough for a single income earner to take care of a family on less than $4K net IMHO. It's incredible U can actually save & invest nearly 20%pa of your nett income.

Hm.. are these mutual funds EXCLUDING EPF investments? If so, you should have a total of about $2M to $3M easily, which is enough for an OK-lifestyle, assuming your personal inflation (dependent on LIFEstyle or lifeSTYLE) doesnt hit more than 3-4%pa on average.

If these mutual funds are INCLUDING EPF investments, fret not.
Keep in mind that we've not added in yr income growth AND EPF per annum addition. I'd need more details to simulate OR U can hunt down one of my old postings in Personal Financial Management OR Fund Investment Corner, where i uploaded a ZIPPED Excel file with EPF simulation with withdrawals for mutual funds. Drop me a PM if U cant find it, i'll send it over.

Asset Allocation-wise, U seem overweight in Fixed Income and totally no REIT stocks / Property investments. Personally, i've been overweight too in Fixed Income early last year to mid last year+, but even then it was about 60%+/-, not at 80%+.
If this is a planned short-term overweight, it's good.
If it's unplanned - be aware that Fixed Income assets, IMHO, should be used as "ammunition accumulation/holding", not as a growth tool.

eg. Assume i hold & plan
Fixed Income 40%,
Biz Equities (Biz, normal stocks, Equity Funds) 30%
Real Estate Equities (REITs + Properties) 30%

Now market collapses - Biz Equities fall by 50%, thus my holding will fall to 15% (30% *50%) yar? But i still have my Fixed Income generating $ and as a spare ammo to buy into a fallen market - think LELONG / CHEAP SALE
Note - U may or may not want to do "hard core" Asset Allocation rebalancing or a mixture. Personally, i only do "hard-core" forced rebalancing IF my Equity classes runs 25%+/- from my planned. Other than that, i continue stupidly on using value averaging + lelong/opportunity buying

Phew - a bucket load of kaka eh. Just some point of views yar, not gospel truths.

Below is the Excel in ZIP format for your "what if" play
 PinkSpider.zip ( 6.76k ) Number of downloads: 42


This post has been edited by wongmunkeong: Feb 4 2012, 01:24 AM

Wow u still replied at this hour

1. My 18K bond funds are my "reserve", partly as "emergency fund" (I dare to take A BIT risk by putting it in MYR bonds as currently my parents still got a bit $$$ which can pay for their food and medical costs for 3-4 years. After that $$$ goes dry I'd have to cover 100% of household expenses) and partly as "reserve ammo".

2. Asset allocation - yes I'm slowly increasing my equity allocation, esp. on Emerging Markets as I'm having virtually zero exposure here. Taking it slowly cos during 2010 I got burnt badly in EM and Asia Ex-Japan funds.
Targeting 25%-50% of my "Investment Funds" in equity, currently it stands at about 36% I think.

3. My balanced fund is not really balanced, it's a conservative mixed assets fund, 70% in fixed income + 30% in equities (high yield shares + REITs). So far it's yielding me 6-7% p.a. consistently.

4. Yeah, my investments are all by cash. As I believe that EPF alone is NOT sufficient to guarantee a comfortable retirement, I dun plan to withdraw my EPF, even to purchase properties/invest, I'm treating it as a safety buffer as it's legally bound to pay 4%++ annually. (am I right?) I'd do some SLIGHTLY HIGHER RISK investments by myself to supplement my EPF savings.

Thanks for the encouragement.

This post has been edited by Pink Spider: Feb 4 2012, 01:51 AM

Heheh - like i said, no girls (little or big) to keep me occupied, thus i'm running a muck.

Er.. EPF doesnt guarantee 4%++ leh. It's 2.5%pa minimum - eek!
http://www.kwsp.gov.my/index.php?ch=p2faqi...ac=620&expand=1

Anyway, it's still got the stability factor there. Probably will withdraw some to buy into high-yield blue chips in future.

U could always fork out a bit money for girls.

Tata and goodnite Wong Seafood, thanx for the late night chat.

Hi Wong,

Thank you for your time and patient to explain to me Really appreciate it

I understand your point of that 8% only for the 1st year and should be okay for long term. However, I'm still noobie in investing, I wouldn't risk the confirmed 4%-5% by EPF with something that's I'm not sure will even make it 8% to break even with the EPF interest. Anyway, I still have a healthy amount of saving which I can pump into investment every month (equity and gold) without the need to go into my EPF fund.

REITs does sound suitable to me as I'm too lazy to go around search for good properties or doing the whole land-lord thing. Definitely interested in REITs, however will do some more fact-finding before diving into it. Any good recommended REITs that I can keep an eye for ? I don't even have an account for stock trading......

Thanks again





This post has been edited by neo-spider: Feb 4 2012, 09:54 AM

You're welcome Neo-Spider - hope it helps.

Er.. i wouldnt say "confirm 4%-5%" for EPF. Guaranteed is only 2.5%
If you're the risk mgt type, U might want to consider whether U can take out from your all your EPF when 55 given that Gov usually taps EPF's funds (ie. our money) for all sorts of stuff, even tak logical ones, without our say. Thus, there may be some hazzards to EPF's "real $ available for withdrawal" and the Gov may just push that age further OR change the withdrawal to some annuity thinggy rather than lump sum when U reach retirement.

Personally, 1/3 of my net worth is tied to EPF, thus i'm taking out as much and as fast as possible to sorok into Properties (a/c2) and Mutual Funds (a/c1). The $ sorok-ed into Mutual Funds is not 100% safe from EPF's hands in my opinion, as it may just REVOKE all investments into mutual funds from tapping EPF and force a "recall".

REITs? Try here:
http://forum.lowyat.net/topic/1993103/+102
http://mreit.reitdata.com/

BTW, pls repeat after me - Stock INVESTING, not TRADING
Just a thought

This post has been edited by wongmunkeong: Feb 4 2012, 10:07 AM

Hi Wong,

stock investing, not stock trading

Stock Investing, Not Stock Trading

STOCK INVESTING, NOT STOCK TRADING

STOCK INVESTING, NOT STOCK TRADING

Thanks Man

Well, got a lot of reading to do, the more I google, the more things I realize I don't know about

Gotta start somewhere right, good thing its a long weekend

Thanks for the help again

I support it... Stock INVESTING, not TRADING

---

Added on February 5, 2012, 9:28 amI just start saving RM200 monthly into bond fund... as i am worried the risk on the equity fund and it also expensive.

Any advice on the equity? Probably I can load another RM100 monthly if feasible to invest in equity. Interest with Kenanga Growth Fund...

This post has been edited by techie.opinion: Feb 5 2012, 09:28 AM

the important is, how u understand abt the fund objective. not all the equity fund has same invetment objective/strategy.

some fund focus on capital growth and dividends second. some focus on dividend and capital growth comes second.

u must chosse which fund is match with ur own objective.

also ur risk tolerance.

Kenanga Growth Fund's returns are crazy...wonder how they achieved it

I'm also not dare take on too much risk, but equity exposure is necessary to offset inflation in the long run...for the risk-averse, 1/4 of ur total investment in equity should be good enuff

Thanks.

I'm also not dare take on too much risk, but equity exposure is necessary to offset inflation in the long run...for the risk-averse, 1/4 of ur total investment in equity should be good enuff

[/quote]

hi all,
just need some POV on my financial situation. i know i might be criticized of my ignorance on savings and high CC debt but i'm willing to hear your advises to learn from it. Here is my situation:

Salary: RM5,500 (Net)

Commitment:

Money for Dad : RM600
Insurance: RM300
Phone bill : RM 120
Petrol for Car : RM 400
Credit Card : RM 2300 (RM 1650 balance transfer-3 credit card which all ends in Sep 2013 and balance is minimum payment for another credit card)
Gym : RM165
Car maintenance : RM 200-300 (in every 3 months use credit card most of the time)
Eat/Entertainment/Misc :RM 1200 as i eat lunch and dinner outside (nobody cooks at home)

Currently I'm saving RM500 per month but I need to travel for holiday in March and April. I will be able to start saving for emergency and investment from May onward. I'm planning to start investing in order to get RM 50K in 3 years (for wedding and house down payment). Any suggestion how to achieve it?

I'm starting to learn on mutual funds and etc. hope i am able to come out of the debt and start learning how to earn from investment. I would want to be debt free by end of 2013. Hope this info is sufficient. Hope to hear your feedback on this. Thanks in advance.

how bout starting a business in night market...i heard they r profitable

Credit Card : RM 2300

is it total debt or every month payment amount?

so long u work u don't have saving?

Don't know what to do?

Invest in yourself (education in financial).

---

Added on February 6, 2012, 2:52 pmYour earnings is not bad, I believe is more than 80% of all working adults in Malaysia (if not 80% should be at least 70%).

Your problem is not uncommon. Just need to get financial-health-check and a program to recover.

This post has been edited by AskChong: Feb 6 2012, 02:52 PM

Rm 2300 is the balance transfer amount i'm paying every month plus another Rm 650 minimum card payment. Yup i have not been saving all this while as my expenses always exceeds my income hence my credit card usage. now my outstanding debt is about rm 52k (RM 10k owe my dad and rm 42k my credit card ). I'm trying my level best to put some money aside for saving at the same time pay off my debt. worried this is going to effect my mortgage loan application for my future house. all my debt will be settled by end 2013 if i stay strict with my expenses which is going to be very though. Just would like some opinions on how to manage this plus make some savings for future.

Yes, I like your...

Yup. I totally agree. I just need to manage it well. Just struck me how ignorant i am to financial planning. hope my problem helps enlighten others too.

You are good. Can save 40% of your income.

I advise you start investing in YOURSELF first, in Money Skill.

---

Added on February 6, 2012, 3:02 pmLook like better to Payout AIA loan (3 years left and high fixed rate). Then, may be you can consider to refinance for BLR-2.x% and invest it (if you know enough on investment, to gain 7% return is easy).


This post has been edited by AskChong: Feb 6 2012, 03:02 PM