Proceeded from http://forum.lowyat.net/topic/368156/+2500

It is impossible to have any investment that can earn you Rm800 per month consistently with a 5K capital.

For forex issue, please read this.
http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=1976

I disagree
Although selecting the good unit trust company is important.
Selecting a right UT which suit to individual risk appetite is the most important and which is always the one dictates how well your invested money is doing.

Under a good unit trust company, there is a fund register 20% gain from last year performance, there is also a fund register 30% losses since launched 2 years ago. Some even 40-50% since first day launching, even come from a big reputable and good UT company.

The key to success of a investment is always the right investment, not timing. Althought timing does help, and sometimes very important.
Timing a unit trust is just like timing a stock goes up and goes down and your earn between from it. This is very difficult and most people won't able to do it in real life.
There is a good unit trust or fund that has been register hefty gain since start 10 years + ago, which you don't need to time the market at all to have a 200% gain over the last 10+ years.

Although timing can maximise the profit, it could minimise the profit as well. It works both well.
Try to time the market, is like try to more clever than the market.

Although sometimes, we can time the market, as it doesn't need rocket science or specific analysis to know the market is too high, just like bond is going up non-stop for the last year or so until now, which common sense does tell us bond price is a bit high now.
In ordinary market condition, timing the market is always a bad practice, and may minimise your profit instead maximise it.

Invest in UT is about long term investment. It is not advisable to invest long term based on TA alone. Long term investment is all about fundamental issue.

No offence, it is too late to talk about this.
What concern whatever TA, or fundamental POV is where we are going now.

We can look back and put tons of theory and TA on it, but this doesn't address what we are most concerning now.
Everytime we make investment, is what next. Not looking back on what system pointed out which is signal this and that. No offence.

If this has been posted during 2008, to signal high so that people get out of market, I congratulated.
If this has been posted during early 2009, signal bottom has been formed and guide people to buy, I congratulated.

Often TA or a lot of TA tehory doesn't address top or bottom was formed after market trend has been formed later on, aka too late.
It doesn't address the current issue.
Just like now, I ask where is TA currently pointing to which direction?
This is the answer we want.

The correct way to prove a TA works or not, is posting now what TA is pointing us to.
Then we look back after 6 months or so, and this process repeating, only then the validity of the TA has more credibility.

We can have tons of TA theory out there to prove 2007-2008 was the market high and 2008-2009 was the market bottom.
As look back is easy, going forward is not.

Investors just want this short answer for any TA.
Then we can evaluate how good the system is, after commit in real life investing.
No point looking back to say how good the system is.
A system can be foolproof for years but can stumble with unpredictable market trend.

Forward testing is not reflecting the real situation out there, although you can key in many variable as we wish.
When the signal changing direction it may prompt you to sell, but the do you sell?
Also, signal can change within weeks as well due to unpredictable market movement.

I don't mean to criticise, just blindly believe any TA is always a bad practice. TA is the one to guide and give clue how the market trend. It doesn't predict the future market trend.

Also most TA is based on indices, and even index surge to all time high like KLCI to surpass 1500, it doesn't address still large portion of stocks especially 2nd liner stocks are underwater.
Unless one is trading in Index ETF, Index future, then the TA only applicable.

Also, index doesn't represent every stocks out there.

Anyone with some mathematical skill can always create different kind of TA by using historical data as reference to prove the validity of TA.
Just like we know the result of 2 x 3 = 6. So it is not difficult to create a system to find out the answer (?) of 2 x ? = 6. Because TA being created by looking back what had happend and based on pattern it showed.
Anyway, I don't mean to criticise about TA, as any TA is always good to give some indication. But blindly believe any system is always a bad practice to start with (other may disagree or not, never mind, just my pov which I would like to highlight)

This issue is a bit OT with this topic, so I think better post this kind of issue elsewhere.

Cheers.

This post has been edited by cherroy: Oct 10 2010, 10:33 AM

Without understanding of individual financial situation, recommend a forced insurance saving plan or insurance endowment plan, is not a right way to do.

Those so called "forced saving plan", you cannot get money out from it even you have emergence usage.
You will lose a lot of money if you pre-mature cancel/withdraw the money.

You will "die" because of no cash during emergency or period you really need the cash time.
Those "forced insurance saving plan" is not going to help you a single cent, in those situation.

The initially starting point of "forced saving" should go to FD/saving account, and not to insurance saving plan.
Insurance saving plan is a long term commitment, and shouldn't be commit if one is not ready for it.

Wow, insurance forced saving plan, got a lot of sensitive or insider info, this is first time I heard it. I am noob.
So must secretive one!

Wah, banks really scare people to withdraw money a few hundred or a couple of thousand from bank account to commit into saving plan which can affect their profit big time!

So far I know,
Banks got its own insurance subsidiary company. :
Even banks do get commission from selling third party or associated company insurance.

For investment part, we only talk about the investment method, aka the particular investment product issue discussion (like stock, properties, UT or whatever, which there are specific topic around which can join in the discussion ).
There is never a issue like, ok, I have saved 50K, I should invest in stock or properties, or which. There is no answer and pointless discussion if in this way.
That's why you see little discussion on this.

It is individual preference, choice of risk exposure. Nobody can advise on it.
It is same with the question what dinner should I take today. Only you knows.
Any investment may potential yield losses, instead of gain.

Some may prudent in spending and save a lot in FD, while he/she doesn't even know what is stock market about. So money sitting in FD is "right" for him/her.
Nothing wrong. There are many old generation people just prudent in saving and keep the money in FD, in the end of day save a couple of hundred thousand for their kids overseas study.

While another person may more adventurous invest in derivatives market, as long as the person is understanding the risk being taken, then it is fine.

Which is better? There is no answer of which is better than the other.

Financial management is about how to manage the available money, while investment part is about individual preference.

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Added on October 21, 2010, 4:40 pmFor investment part, we only talk about the investment method, aka the particular investment product issue discussion (like stock, properties, UT or whatever, which there are specific topic around which can join in the discussion ).
There is never a issue like, ok, I have saved 50K, I should invest in stock or properties, or which. There is no answer and pointless discussion if in this way.
That's why you see little discussion on this.
It is irresponsible to put a recommendation for others, like hey, bro, you should invest in UT or stocks.

It is individual preference, choice of risk exposure. Nobody can advise on it.
It is same with the question what dinner should I take today. Only you knows.
Any investment may potential yield losses, instead of gain.

Some may prudent in spending and save a lot in FD, while he/she doesn't even know what is stock market about. So money sitting in FD is "right" for him/her.
Nothing wrong. There are many old generation people just prudent in saving and keep the money in FD, in the end of day save a couple of hundred thousand for their kids overseas study.

While another person may more adventurous invest in derivatives market, as long as the person is understanding the risk being taken, then it is fine.

Which is better? There is no answer of which is better than the other.

Financial management is about how to manage the available money, while investment part is about individual preference.


This post has been edited by cherroy: Oct 21 2010, 04:40 PM

UT is not necessary can generate 8% pa, it can yield you a loss as well.

Car is the worst spending and one of biggest culprit why people have not enough money left each month.

Actually, it is an excuse and modern people get use to it.
It is not totally a "must".

In the old day, when I was students and graduated, no everyone after graduated buy car to go to work one.
Most ride motorbike, only after few years saving enough significant downpayment, only buy car.

Now we see even student drive car to school as it is a "must" as public transport is poor.


It is not about drive or not drive alone, having a car mean monthly commitment on car loan, maintenance, insurance, road tax, even parking fee is not cheap etc.

If really want or 'must' own, take the smallest and cheapest car option.

My advice, don't buy car if can.

Car liabilities is quite huge to start with, monthly payment for smallest car can be around Rm300~400, but you need to take into account of insurance, petrol, maintenance stuff, easily another Rm300-500 per month easily which is quite norm. So if commit to buy a car, almost half of 1800 gone first. Left you around 900, which you not yet feed yourself, self expenditure etc.

Car is one of worst culprit why most people don't have enough money left each month.

This post has been edited by cherroy: Dec 12 2010, 11:15 PM

There is a transportation called motorbike.


It is an exponantial factor, you spend first then no saving left for investment purpose that can generate you passive income, even FD also is a passive income generator.

We have motorbike that can be used as transportation as well. Not necessary between public transport and car only.
I don't know why people never consider this option.
In fact, motorbike is more effective in traffic jam time, more time saved.

Saving 20-30k, even pathetical FD rate at 3%, still generate you Rm900 pa, equivalent to about Rm80 per month to pay off your bill. As time pass, those saving and passive income factor can replicate and compounded even bigger as compared spending all to loan repayment each month with little saving left.

One with figure going up (saving), one with maintaining at zero (spend all), for sure, as time goes, the gap will be widen.

By then the passive income become substantial, which at that times, only thinking of changing new car also too late, which financial situation become more comfortable.

This post has been edited by cherroy: Dec 16 2010, 09:45 AM

Yes, if one could afford it, no problem.
or
can get a second hand Kancil, which cost no more than 10-12k.

Just throwing some option.
Yes, in Penang, Motorbike has little problem vs KL.

Life is full of risk everywhere.
Yes, risk of motorbike accident is high and can kill, so does car as well.
Driving a car won't save a person from fatal accident as well.

Life is never perfect. It is about give and take.
I won't disagree for safety reason, get a car as compared to motorbike.

It is about how individual balance their life with available disposal income.
As I had seen many had spent beyond their ability in the first place.
Just graduated, with less than 2K income, then must/think to buy a 50-60K new car

There is no such thing of bank into personal account. EPF won't allow this as well.

Also, please do not do this. It is risky by bank in any investment money to any person Personal account.

Even you want to invest in xyz mutual fund, the money should be deposited or bank in into xyz mutual fund, not to any person name.

2. It is not normal.

Mutual fund is managed by mutual fund manager already. Why you need somebody to manage.

Wealth adviser, is to advice, not to manage.

To get a person money and manage, you need SC approval for that.
If not, it is deem illegal in the first place.

Just like mutual fund company got SC approval to manage your money, aka to invest.

No one can take other money to invest or manage on behalf simply.

No agent can act on behalf, except those fund manager, company that are SC approved to carry such a task.

Bank in/deposited into a person personal account is fishy to start with already.

Do you know mutual fund charge 5-6% service charge for that already?
Somemore standing instruction to a person personal account...

Even nowadays, buying shares in stock market, you don't bank in into the broker company account, but a separate trust account, which technically company cannot touch those money for their company operation side one.

Personal account??

Mutual fund manager is already the role take your money and decide what stock to invest on behalf on you.
You take another person that charge you again to choose which fund to invest. Setting aside the legal issue of the agent first, you are paying double charges...

Wealth adviser only advise what to invest, which fund is suit to you, they never decide for you, their role is not on this and also not allow to do this either.

This post has been edited by cherroy: Dec 29 2010, 11:14 PM

Your car loan is eating you a lot.

Quit gambling.

If talk about rental yield, most residential net rental yield is kinda quite low across.

Only commercial properties can fetch good yield, but commercial properties is totally different ball game with residential properties.

Car loan is too excessive resulted little saving.
Car is a liability, get a smaller car, RM1000 monthly payment is too much.

Saving is too little, resulted little opportunity for investment that can provide extra passive income.
The second house is crucial, if it is an investment that can yield passive income and cover the loan, then it is still debatable.

With another family adding, this will put the budget even into more stress.
So need to reduce the expenses side.

A household income of RM7000 should have more comfortable zone and more saving. Cars are the main culprit.

This post has been edited by cherroy: Mar 15 2012, 05:51 PM