My my, what rude words. You are asking him to PM you, if you are not promoting, just write the info you wish to help in the forum for the benefit of all. And also you are implying you work in a bank, and by giving some information on the so called savings plan, you can affect your bank's profitability? Most bank/insurance post details of such plans on their website, what is so secret about it? In fact most banks/insurance have better profit selling savings plans than deposits. I pity the bank that hire you. 

if u disposed within 2yrs, rpgt is 30%, 3yrs, 20%, 4th years, 15%, after 5th years is 5%.
better invest for long term n less tax charge. 

Hey bro, u provide him with the old rates le...

@ khinfai: The current RPGT is 5% for the first five years. As announced on the recent budget, the RPGT for year 2012 will be 10% for the first two years, then 5% for Yr 3 to 5, and 0% thereafter.

And RPGT will only be imposed on the gain on disposal.

Disposal price
less: acquisition price
chargeable gain

less: schedule 4 deduction
higher of rm10k or 10% of chargeable gain

less: exemption

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Added on October 24, 2011, 9:53 am

If u want to get more knowledge on financial education. go get an accounting professional programme. i would recommend ACCA. u will learn everything about money. from tax, business, accounting, managment, and money work flow/. 

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Added on October 24, 2011, 9:58 am

yea. first resident is exempted under ss8 schedule 3, but it only applicable for malaysian residence which is his "private residence"you must make election in writing during submission of returm for rpgt to the IRB. 

I agree with u. U may save the bullet on future higher chargeable gain. but a residence only can get once in a lifetime. thats why u only get exemption from RPGT if u make election to the IRB. otherwise, u are still taxable if chargeable gain arises.

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Added on October 26, 2011, 12:36 am

Sorry sky, maybe i provide the wrong information. I know recent budget has amended the tenure of RPGT to reduce specualtion on property market. Based on the information i provided is 2010 budget. hehe

Each spouse means husband and wife will be entitled to get one exemption once in a lifetime. Thats mean if they are married couple, they can get 2 exmption under this Act. 

Monthly RM3000.00
Loan RM1000 (car & house) end 2017/2018
Family RM1000
Credit Card RM500
For me only RM500 (saving, gadget and etc).
Saving (RM0)

Now, thinking want to buy property.
Invest in property more good I think.
What do you think?.

If you only save, then with the low interest rate you get, sooner or later it get eaten up by inflation. You need to yield at least above the current inflation rate of 3%-5%.

For me I practice the following...

1 month Expenses in Cash form in SA - For Daily use

6 months Expenses in e-FD form (1 Month-Auto renew) - For emergency Use

The rest in investment, that is well diversified across equity, bonds and others. So if 'kena' 1 bad investment got another 9 other investment to backup. If you are conservative (scared to lose), put a majority of your investment in bonds and only some in high quality equity. With careful portfolio management, you can lower your investment risk substantially by diversification.

So far works well for me. 

No advisor here per se but a calculative bugger . Hey, get ye hands off me money!
BTW, being er.. suckered by insurances with participating / whole life is one of my main reasons for learning PFP (Personal Financial Planning) and bouncing ideas/experiences in forums.

-------------
Just to share my experience with "whole life" vs term life, both 3Ds (death, disease, disability) from the same insurance company, Prudential. Please note - not against Prudential or any other insurance companies, they are there for a reason AND BUSINESS.

1. 1999 - bought a $150K coverage 3D "whole life" participating insurance from Prudential.
Monthly premium $300

2. 2001 - as my ex did not want to work anymore (ie. no salary/income), i had to cover more in case i kick the bucket ahead of time.
The extra to cover was $750K. I checked with my PRU agent my options and the most cost effective was term life, $310

3. Imagine if i did the "whole life" to cover $750K, what would my additional premium be monthly?
Simple calculation is $750K/$150K *$300 = approximately $1,500 extra per month
VS
$310 for term up to 55.
------------

Another experience - AIA. Bought when i was 19 going to 20 (1992)
1. "Forced savings" - what to do, younger & stupider + sold by a relative.
2. Was given the hoo hah about 6%pa returns, critical year 10th or 11th year and i won't need to pay liao.
3. 12 years down the road, when i called AIA to inquire about "needing or not needing" to continue monthly payment, i was told i need to continue paying.
Ok... how long more? AIA said 5 years.
Ok... 5 years more then for sure i don't need to pay anymore right? The sum is big enough to generate $xxx based on y%pa to cover?
No - not for sure.
Hello...?! This was during a bull run in the 1990s (pre 1997/1998) for those who are too young to know. FD was hitting 12%pa!
and my "investment" didn't even hit 6%pa? Wonder fool - the fool being me. Forced savings / investing my arse
-------------

a. Thus, which would a logical human being choose to use for covering / transferring risk - term or whole life/participating?
Mind U, the main idea is risk management for me, NOT transferring $ / inheritance by-passing taxes and stuff like the super-rich.

b. When i reach retirement age, why the heck would i want life insurance as i DON'T have a working income?
My plan is to be self insured by then as generally, all the premiums paid if i continued on will be as good as self-insuring + insurance companies expenses & profits

c. SKY 1809, for a person stating that most of the posting shared here (mind U, it's our POVs and opinions, not 100% gospel truths) are "Most likely it is to cover up their inadequate knowledge in this area", please share your calculations & reasoning lar.
+Stating items like "dunno when will die" and other stuff is not a good enough reason for me to pay 5X more for coverage than required. I'd rather take that $ and invest it myself.
+BTW, do U actually know how insurance works and that insurance companies are in it for a profit?
+Actuarial science and probabilities - at the end of the day, all the insurance premiums we pay are, at the end of the, nearly / actually self insuring AND the insurance companies' profits and operation costs.
+Are U the super rich portion of the rakyat that actually uses insurance as a savings and transfer of wealth vehicle?
+I think U are smarter than the average Joe since U seem to be active in the Stocks topic - have U actually sat down and calculated the costs of term insurance (say a block of years up to 55 or 60) VS cost of participating/whole life insurance? Take the cost difference and compound them at 6%pa only (bond funds - simple) and...?
+Given limited resources for average Joes like me (of course others may be playing at another level lar, like U), i need to allocate my resources AND be able to have enough coverage to transfer risks that i cannot absorb for now... UNTIL i build up my pile of assets. So, do U mean that term insurance is not good for that? Why? Coz it is "gone" and "wasted" unlike "cash balance" participating/whole life insurances?
+Do U know the ridiculous amount of % they give us for the first 5 years for our "investment"/"participating" portion of our premium?

Again, i've no bone to pick with U but the way U state things like "dunno how long will live / die" and thus "insure like heck"?
Using Steve Jobs as an example? U gotta kidding me dude - that fler can MORE THAN SELF INSURE. 
Bottom line, in my opinion, experience and actual execution - term insurance, IN GENERAL, is the best bang for the buck to cover average Joes like me.

Share your real numbers and experience - pls dont use dunno when kaput and stuff. Those sounds like FUD (Fear, Uncertainty, Denial) - where super sales people use to CONvince when logic can't prevail. Mind U - i'm not assuming you're an insurance agent yar. I just want to know why / where U coming from, thus expand/learn from your experiences/views - not just the example U already gave

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Added on April 11, 2012, 2:34 pm
Bro - IMHO, insurance is to cover your risks and transfer them to another until U can cover it yourself.
Please do not be bull-kaka-ed into thinking insurance is for investing and savings... UNLESS U have several deca-millions and are doing estate planning (to bypass certain laws/rules/people).

Then again, U may prefer to pay for the "privilege" like some people, it's your money, your life, your choice - no right/wrong. 

Let me make it clear from the start - I am not "picking a bone with you". I am here to provide fellow forumers more information, and let them think and decide for themselves.

1) "One of the biggest mistake made in this forum...advise people to buy just enough term insurance" - there is NO right or wrong (or which is better/worse) - there are pros and cons associated with (i) buy term and invest the rest  (ii) buy life. Different people have different needs. For some people who are savvy with investments - it will be better for them to buy term insurance. For people who cannot invest properly on their own or need "forced savings", life insurance MAY be more suitable.

2) "Even in their  professional exams, insurance is taught to be unimportant" Have you taken CFP or CHFC examinations before? I was a licensed CFP - just for my personal interest in financial planning (did not bother to renew after a few years as my current occupation only need CFA & professional accounting certification). Insurance is a FULL module for CFP certification: http://www.fpam.org.my/fpam/certification-...ation-syllabus/. The Risk Management and Insurance Planning syllabus cover: http://www.fpam.org.my/fpam/wp-content/upl...-2010-FINAL.pdf

3) This use of "Can any advisers here tell me when is their exact time to leave this world ?" and "may receive a call from God along  the journey." - sounds Familiar. I think one of my colleagues got a cold call from an insurance agent/(aka financial planner) talking on "contract with God and etc." - my colleague gave the agent a GOOD scolding and the few of us at his office were 

4) I AGREED with "your financing planning is geared towards the goals of that particular  individual per se, and not for own self interest of the adviser . Often Goals needed to be motivated to be achieved, and not setting many roadblocks to kill them." It's human nature to "take care of self-interest" - I do not blame advisers for trying to earn more commissions/fees but I believe consumers can be MORE EDUCATED in their financial planning/literacy to know/evaluate what is suitable or not for themselves.

5) For myself, currently I only have medical insurance (so far, I have only taken a short-duration term insurance to cover my first mortgage loan in my younger days - just in case, I am gone and my wife may have not enough $$ to pay off the loan). It's a long and complicated story how one should handle risk management/insurance planning (my family and I believe in self-insurance - I make sure my family will have enough $$$ if I am gone). Nevertheless, what is applicable for me may not be suitable for others.  There is still a NEED for life insurance for people who do not know or do not want to spend time/effort to manage/invest their own money and need to have "forced savings". What I do not like about life insurance is the commission/fees/charges earned by the agents/insurance companies. Yes, insurance companies/agents hate me for that.

The debate on "Buy Term and invest the rest" vs "Life insurance" will continue to linger...(this post is getting too long)

P.s. the following links are written by someone who is well-versed in insurance (he was CEO of one of S'pore largest insurance coy for 30 years). Yes, he is trying to sell his book but his blog has valuable info on insurance in Singapore (M'sia is not that diff.) - caveat: he can be controversial at times.

http://tankinlian.com/admin/file.aspx?id=170
http://tankinlian.com/admin/file.aspx?id=589

Eh, Sky, don't lar Mr Mr. Me thinks we're from the same generation 
BTW, FYI - i did claim for my ex's hospitalization and surgery before (cyst in the ovarian tubes + fibrosis), thus don't "pity" me hhehe.

Thanks for your prayers and i wish U & your love ones well too. Well, of course make noise here & there lar - we talk, we bounce ideas, energy right? 

Ok, down to the discussions & opining

1. BTW , I have not come across any pure term insurance of 50 years or more . If u happen to find one, I am sure it is going to be more expensive than  Whole Life non par. Max term pure life is about 35 years or so, and just slightly cheaper than Whole Life Non Par.

But there is and er.. bro, i said term up to 55.
My bad - up to 55 to me means my 55 years of age/old (er.. 35 years from 20?), which by then i'd have no salary income, thus should be having enough assets to cover/self-insure.
And.. slightly cheaper?
Good lord - bro, 5 TIMES cheaper AND i was using my "younger aged bought in whole-life policy" to compare against term life, from the same insurer wor.
If that's "slightly cheaper" to U.. dang man, i envy your cash flow and assets, a whole different level

2. And for term insurance , one needs to cover 5 years instead of 50 years if he could foresee he could die within the 5 years period.
So why buying a 50 years term then ? the yearly premium would be high as Whole Life Non Par, could be a waste, right ?

er.. personally, i don't think anyone can forsee the future mar, thus i really don't understand this portion. Sorry yar - caffeine's running low in my veins 

3. And Pure term life ins normally do not pay upon major illness unless upon death. And to cover permanent disability , at higher diff pricing. Health insurance is another branch most of the time, but could be purchased with a Life Insurance.

But but.. i found it and from the same insurer AND it's 5 times cheaper than my whole life participating insurance which i bought 2 years before wor.
How can this be? Perhaps your insurance agents have been er.. giving U non-options?

4. Honestly, u think buy term insurance and invest the rest works most of the time, as there is a guarantee for returns for non Malay ? At at what risk factor , buying  Bonds no risk at all ? What about Greek Bonds ? Lehman  Brothers mini Bonds got near zero value. and hope to get 12% for FD again. Many got nightmares for putting money into Koperasi just cos someone preached better in term of returns tan the banks.
Heheh - ok.. guarantees. Nothing is guaranteed other than death and taxes (or so they say).
Did i say buying bonds = 0 risk?
Greek bonds? woooo scary.. bro, check out simple data lar - PBOND, AMBOND, etc. for the past 10 to 15 years. sigh.. dont lar talk only about black swan stuff. Probabilities bro, probabilities. Heck, we ARE talking about the biggest probability-based industry right, INSURANCE. 

I stated FD getting 12%pa during 1990s as a comparison to the shockingly bad insurance "returns" i got from my AIA whole-life insurance lar. Aiyo - U understand the comparison usage boh? I did NOT state the 12%pa FD returns as an aim for future OR bonds.

5. BTW, US treasury is paying very little , could be less than a life insurance , but it is still an asset allocation tool too.
Definitely - i totally agree with U on this. Heck, i'm stupid enough to plonk $ into annuities for the FD-ish returns + tax relief + as a sub-asset allocation, with a bit of insurance thrown in. Thus, need no buts here 

6. So long on paper, u could not foresee a claim , then it is a waste , right? Then why buy car insurance then, how many % chance of an accident happened to u ?
And all the calculations based on one important factor , death ( if not purchased with permanent disability ) .
Bro - when did i say insurance is a waste? I stated it's a needed item for managing risk by transferring the risk to a pool (insurance companies) UNTIL one can manage the risk / self-insure. Thus... huh? on this statement of your 

7. How sure everyone u talk to is so lucky as u ?  It could be someone so unlucky like me.
Heheh - my dear Sky, are U sure i am lucky? Everyone seems to be luckier than "me" in everyone's view.
Have U ever thought about why some "seems" luckier?
Perhaps they actually aren't, learned + researched, planned ahead and executed a plan? Being prepared to handle risks WHILE growing assets, health, etc?
Bro - i am, since birth, badly asthmatic and my only my father worked, low level Govt servant. Thus, how "lucky" do U think i am? Health-wise, i've been in/out of hospitals due to asthma and boyish "indestructibility" (or so i thought when younger and severely dumber lar ).

That doesn't mean i or anyone like me should be plonking my hard earned $ blindly into whole-life participating insurances when there are other options right?
BTW, let me be a ******* and state the obvious - NO AMOUNT OF INSURANCE WILL HELP IF ONE IS UNHEALTHY OR BROKE. Note - broke - how to pay for insurance premium? Or pay the insurance premium and suffer no healthy food/ shelter / etc?
8. And btw, it is your plan , and make sure it works well for others too.
Do not disappoint their family members in time to come.
Dude - it is my own plan for myself, why should it work well for others too? I'm just stating the options, which, most insurance SALES agents dont bother. Note - i do NOT SELL insurances, investment vehicles, etc. for a living. I'm an eKuli - an IT guy doing all sorts of work thrown at me by my bosses. Yes, i AM learned and qualified to sell investment vehicles but that is for my loved ones and my own "savings on costs" and learning/usage of data.
Thus, i am calling a spade a spade truly from my heart and mind, WITHOUT any hidden agenda.

Hehe - touch wood, thus far, my plans are similar or in-line with God's / Nature's / etc.'s plans for me and my service to my loved ones.

I pray too that U do find good options (insurances, stocks, bonds, properties, exercise routines, good food, etc.) that works well holistically for U and your loved ones too 

1) "very shallow thinker" - I do not know Mr Tan personally but I only know him from the Internet: http://en.wikipedia.org/wiki/Tan_Kin_Lian Yes, he was a Loser in the recent S'pore presidential election. He was CEO of NTUC Income (1977-2007, a whopping 30 years), growing the assets from SGD28 mln to SGD17 bln (at 2.4 exchange rate: MYR40.8 bln). What impresses me is that: he dropped out school (due to poverty) and yet can become a FULLY-qualified actuary in 10 years (I certainly cannot do that (you call me DUMB-dumb but I am "swallower" than him)- if you know how difficult it is to become a full credentialed ACTUARY, let alone on a self-study basis after 'O'-level (SPM)). To call a such person "very swallow thinker" - I really do not know how to what to say to you. Yes, he is trying to sell his books. To me, he is not doing it for $$$ (yes, he lost his election deposit) but I am certain he still have millions. He may be doing it for PUBLICITY but I do not think he has ILL intentions.

2) For your "googled" article/information on Nikko Securities, it is just a small part of the BIGGER picture (I have friends who had worked in Nikko and I know the fiascos). Anyway, your information provided is IRRELEVANT for what Mr Tan has recommended as a potential form of investment: STI-ETF index/tracker funds. Do you know what is STI-ETF and its history? ETF are exchange-trade funds ( http://www.sgx.com/wps/portal/sgxweb/home/...securities/etfs ). STI-ETF tracks/mimics the STI index. In S'pore, there are two of them: one by State Street (they are "BIG") and the other by Nikko Asset Management - they  bought the ETF mgt from DBS Asset http://www.dbsam.com/Pages/default.aspx (he got it wrong - calling it Nikko Securities, they were related in the past).

Why I say that the information is irrelevant is that STI-ETF funds are funds that purchases the constituent stocks in STI and the assets (shares) are guarded by trustees (that'where British trustee laws are useful) - even if in the VERY, very unlikely case that the managers go BUST...the assets are under the trustees unless the trustees have been "sleeping". Anyway, another irrelevant point is that Nikko Asset Management is independent of Nikko Securities... http://en.nikkoam.com/about
http://mobile.bloomberg.com/news/2011-09-0...kko-asset-s-ipo

As for Omega Securities, do you know what happened then? Do you know John Soh and what he did then? Better keep my BIG mouth shut - it is totally different as compared to STI-ETF INDEX funds. PLEASE do not confuse fellow fourmers. Thank you.

Bro Sky,

Not Sifu here lar, more like Groo - the Wanderer (heheh - always searching and sometimes, by chance stumble onto something good ).

True true - BMW vs CanChill hehe.
Hmm - yeah, i think i've been barking up the wrong tree when U pointed out Whole Life Non Participating (yet not term), and not Whole Life Participating. Something for me to kacau my insurance agents now - kamsiah 

But i sure like the view... bad for investment / net worth building though - know the saying when blood rushes off to other body parts, the brains don't work well

Anyhow, instagirl.net, nice assets... er.. asset allocation    - the Q is...
20% cash, 20% in fixed deposit, 30% in share market and 30% in property.
why 40% in cash/near cash form? no bonds/bond funds as a diversification and more returns than cash & FD?

Just a thought.

Yup yup - it all depends on one's goals / mini goals, a huge % in cash may be great or it may not.
All in all, asset allocation (which can be dynamic, static, core-satellite), IMHO, is a way to get enough returns for the types & gravity of risks one is willing to take (optimum risk/reward based on individual's wants?)
VS
diversification within an asset class, for "protection" from being overweight on a certain sub-asset (cash, stocks, etc.) and hitting a wall when kaka happens.

Just a thought 

IMHO, "low risk" can be achieved even in "normal stocks" of good companies when i buy right at point of heightened fear - ie. ppl start cursing & swearing off stocks, old German multi-millionaires driving onto incoming trains,m etc.
eg.
a. Public Bank in 2009 1st quarter was about $7.50 to $8 (a 3 year or so low). Bought, sat on it, monitored every day end until mid 2011 and sold half. 72% net / 23.67%pa net

b. LPI in 2009 1st quarter was about $9, also a 3 year or so low). Similar to above, 125.35% net / 42.54%pa net
I was "lucky" as i've always been ready to buy these 2 (filtered for about 10 good companies on KLSE) and when kaka happened and market price = lelong, woo hoo.

-------------
It can also done similarly with REITs - based on market value (which is human sentiments + some financial basis) is way under the net assets per share + the REITs' business is still running as well as it has for several years and throwing out good gross dividends 8%pa to 11%pa.
eg.
a. Tower REIT, similar to the above, 56.48%  net / 19.19%pa net
b. BSDREIT, bought 4 times throughout 2011, currently held 100%, with net profit ranging from
Net / pa net
34.38% / 33.98%
34.38% / 47.90%
34.37% / 53.27%
17.76% / 101.47%

Again "lucky" as i've been eyeing TWRREIT since a year or two after REITs started. As for BSDREIT - liked the DY% and just went in bit by bit and.. whoa.. lucky gua.

-------------
Bottom line, IMHO, buy good stuff during sales (lelong).
Just like ah sohs (oo i'm one now ) going nuts on that milk powder selling 25% below normal market price of the last 1 to 3 years heheh. I'm one of those that stocks up milk powder, vacuum packed brown rice, dry food, soaps, shampoos during a "good sale". Definitely will be used, can keep and now cheap, why not?
Similar thinking i use on good stocks, REITs & properties.
Simple as stone but it works (of course i don't sai lang put 100% of my net worth in lar).

What works for me (a simple lelong / value buy), may not work for all. Some needs more data/statistics/economics/etc.
Just a thought 

True, it the new stocks/equity funds + REITs (and eek SGX REITs) i bought in 2011 and now can be termed as "high" risk by some. To me, it's a calculated risk and i've just use a small portion % per se on them, again no "sai lang" / "show hand" craziness.

Personally, i believe in boring investments - like "ho hum.. ok.. looks good enough, put my allocated % in lor".
In addition, there are always uncertainties, even crossing the road or driving. That won't stop me IF i know i am able to drive safe well enough (ie. not drunk and no hot woman doing crazy things to me while i'm driving ) AND most also pick the time of day to drive (less cars best hehe). Yeah yeah, no 100% guaranteed like some BS from insurance/gold agents, but in life there's no 100% other than death.... and taxes can be "optimized"
Right or right?

Just a thought 

Heheh - got ar.
However, IMHO, to live life / invest / whatever, totally or heavily based on "black swans" or low probability kabloeys may not be too good an idea for the long run gua.

BTW, i've got a 2 buddies (1 guy + 1 gal) who does only fixed deposit. Both were going.. nah stocks/equities.. from 1998 all the way till now.
Yeah, they may not have lost anything other than to inflation.
However, another POV, if their FD amount is significant, it doesn't matter if they only need lie 10% of the interest to live on during their retirement

No right, no wrong. I've not that "significant" amount thus FD will kill me in the long run hehe.
Thus, i need to be a hunter & farmer VS their farmer approach only.

Just a thought 

Ah.. but WB's cash holding is how many % of his net worth and invested/invest-able assets?