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 Personal financial management, V2

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hurtedheart
post May 2 2011, 12:23 PM

On my way
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Junior Member
663 posts

Joined: Feb 2009
Can anyone advise what sort of investment tool to go for? I have fd, unit trust, gold investment. I am confused with which tool to use for investment looking at the current KLCI index and gold price etc.. Currently I have accummulated 10k in my savings a/c.. as a result of the aforesaid problems.
Thanks in advance
hurtedheart
post Sep 1 2011, 03:23 PM

On my way
****
Junior Member
663 posts

Joined: Feb 2009
Hi everybody, appreciate your kind advise on the following...

My monthly expense:
Food: 300
Parking: 100
Petrol: 300
Astro,Telekom,TNB: 250
Maxis: 250
Total: 1,200

Still can cut the above expense??? Seems like all are fixed shakehead.gif

After deducting the above from my salary, I have RM1,500 left. Currently I have the following & their allocation are as follows:
FD: 32% (stopped since 2007)
GIA: 24% ( shakehead.gif stopped since early 2010)
CASA: 6% (stand by for investment)
REITS: 13% (enjoy dividend payouts half-yearly)
Unit Trust: 25% (bond: equity=60:40)
Total: 100%

Is this allocation good? Which 1 needs improvement? Thanks ...

hurtedheart
post Sep 1 2011, 04:26 PM

On my way
****
Junior Member
663 posts

Joined: Feb 2009
QUOTE(wongmunkeong @ Sep 1 2011, 03:41 PM)
Ah - a fellow techie  rclxm9.gif
Bro - dont worry, PROPER investing has methodologies to it, just like research, analysis, design and development. Once developed, deploy, track & tweak / minor upgrades tongue.gif.

If U wish to learn investing (not trading - trading's anothe whole different kettle of fish), look into these areas in sequence:
1. Asset Allocation
2. Stocks, Bonds, REITs/Properties
3. Mutual Funds / Unit Trusts, Equity Funds Vs Bond Funds, Domestic Vs Local Funds

Methodologies /  Approaches
4. Dollar Cost Averaging
5. Value Cost Averaging
6. TwinVest
7. Value investing Vs Growth Investing
8. Trend analysis

That about sums it up in a nutshell.
In addition to the about, learn basic money management, AKA budgetting - telling your $ where to go, what to do and for how long tongue.gif. This is the "fuel" and the 8 things above, the "engine" / system.


Added on September 1, 2011, 4:00 pm

May i take a stab at this? Please note, just my POV k, no right/wrong yar.

Reducing costs:
Astro - needed? If it's for your retired parents, ok. If it's for U - er.. U got time to watch all those reruns and stuff? tongue.gif
Maxis - whoa, U in the marketing/brand comm/pr/sales line? If not, $250pm is humungous (compared to my $20 to $30pm lar  blush.gif)
Food - this is purely eating out? How about eating in / tah pau from home? FYI - i'm a voracious eater (ie. 2 plates of food for lunch), thus my eating out cost will nearly kill me if i eat out always + the time to eat out (travelling, parking, stress, heat, etc.) is not too fun either.

Investment allocation
FD: Once U've built about 3 mths to 6 mths living expenses, FD is jus to store ammo for investment.
Thus, er.. why the %? Another POV? Can share?

GIA: General Insurance? Or apa ni? Sorry - blur on the 3 letter word  sweat.gif
If it's insurances - these aren't investment lar, it's for coverage UNLESS U are a multi-millionaire and using insurance to pass on inheritance without taxes and for credit shielding. If so  notworthy.gif

CASA: One of the very few four letter words i dont know. Trust me - i swear a lot tongue.gif
What's this ar?

REITs: Bond Funds : Equity Funds
Looks to be 13%: 15% : 10% of your POV

Thus, in pure asset allocation sense, it's:
REITs: 34.21%: Bond Fund: 39.47%: Equity Funds: 26.32%
The above looks quite good by itself.
However, U may want to consider EPF as a type of "bond funds" since its returns & fluctuation is near similar to one.
Thus, if U include your EPF into the "Bond Funds" portion, will your Asset Allocation go totally out of whack based on your personal risk & returns appetite?
*
May i take a stab at this? Please note, just my POV k, no right/wrong yar. - POV = Point of View?

Reducing costs:
Astro - because I am staying with parents (no rental) thats why i contribute to part of the house expense + my parents dont know how to make payment online
Maxis - ditto, my own bill only cost RM50 the most

Food - eating out on weekends & lunch

Investment allocation
FD: POV=Point of View? or what??? my turn to sweat.gif

GIA: opss.. GIA - Gold Investment Account (Public bank), I don't buy any insurance

CASA: opss.. Current Account / Savings Account

REITs: Bond Funds : Equity Funds
POV=Point of View? or what??? my turn to sweat.gif again

Thus, in pure asset allocation sense, it's:
I don't know..thats why I am here. The allocation I mentioned is EXCLUDING EPF

This post has been edited by hurtedheart: Sep 1 2011, 05:00 PM

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