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 Personal financial management, V2

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vgodmax
post May 15 2012, 08:33 PM

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179 posts

Joined: Jul 2008


QUOTE(wongmunkeong @ May 15 2012, 07:19 PM)
laugh.gif no lar - i just categorized my own stuff like that, thus easier for me to know any time like:
a. Basics
Fixed Income %, Biz Equities %, Real Estate Equities %

b. Intermediate
via Cash or EPF - thus, if i hit a certain "via cash" invested, i can retire earlier than 55 AND at 55 get another load of bon-bons (EPF + EPF mutual funds/stocks unlocked)

c. Detailed
Fixed Income: Cash (Free flow) %, Cash (time release >=55, thus can't touch for reallocation now), EPF, Bonds funds%,
Biz Equities: Stocks type %, Trades %
Real Estate Equities: REIT type %, Physical Property type %

I'm just "crazy" that way hehe - if i don't know, my mind will keep wondering and i'll get stressed out (i worry about my loved ones' future and mine mar).
At least, with one glance at my "management cockpit", i can get big picture and detailed summary picture, and "manage by exception" by going into deeper level if earlier level looks iffy.
eg. (a.) triggered my oh-oh - holding 60% Fixed Income investment assets
Then i looked at (b.) & (c.) to see where/how i can move which Fixed Income from / to which sub-Asset Class, to balance things out or opportunities.

No probs in bouncing ideas - i think this is what a forum is for anyway and plenty of sifus here to share share / bounce ideas with U (i'm a "L"earner investor with a capital L) thumbup.gif
*
Do you actually diversify your investments into every detailed category that you stated in the Excel, e.g. bonds, stocks, REITs, mutual funds and etc? Seems you have a big EPF account for different investments as well? Also, the expected return % is based on your experience?

Hope to learn from you smile.gif
vgodmax
post May 16 2012, 01:34 PM

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Joined: Jul 2008


QUOTE(wongmunkeong @ May 15 2012, 09:09 PM)
Yup, i'm in all those sub-asset classes, either via cash or EPF.

Er.. i've actually 2 more categories but didnt list it hehe, physical property type.
The 2 categories i left out are in my list for "preparation"/structuring my categorization before planning and execution - looking for opportunities now for those type of properties.

Bro, please note that i'm a bit "anal retentive" when it comes to sub-asset classes.
One may do well or better just by focusing on Asset Allocations and methodologies getting into the big 3 basics - Fixed Income, Biz Equities, Real Estate Equities.

The % returns is based on conservative experienced estimates - discounting crazy runs.
eg. crazy as in:
a. if bought and held good stocks/equity funds, from 2009 to 2012 April 03, where KLCI hit a historic EOD high of 1,606.63.
b. if bought in 2006/2007 and sold Dec 2008 / 1st Qtr 2009., OR bought 1995/1996 and soled 1998 where KLCI plunged 80%+

The commodities and gold are my "newest" experience (2 years), thus, i'm ultra conservative on the returns, especially now at more than 200% of historic median (since 1970s), even if inflated 3%pa.
The rest i've been buying/selling stupidly without structured approach for more than 15 years.
BTW, mutual funds - equity & bond funds, are based on Public Mutual's statistics i've seen + experiences/tracking of held equity & bond funds from BHL (yes, THOSE years), Prudential, Ambank, Southern Bank (now telan by CIMB liao).

BTW, i'm still an  "L" (learner) plate investor and trader, as there are so many other options and methodologies to explore, like ForEx, Commodity Futures, Options, etc. Thus, please do take my opinions/sharing with BIG DOLLOPS of SALT  sweat.gif

Just a thought  notworthy.gif

PS:
Methodologies (simple English = entries/management/exits) are usually 2nd thought to some "investors".
To me, one must "couple" the right sub-assets to the right methodologies, based on one's reasoning / experiences.
eg.
a. How often does the stock market collapses? ie. plunge MORE than 20% or 30%
Answer - er.. less than 50% of the time, heck perhaps even less than 1/5 of the time?
Thus, for Biz Equities, i allocate at least 50% (closer to 60%) of my planned savings (cash & EPF) into PROGRAMMATIC investing (ie. value + dollar cost averaging) via equity funds and direct stocks.
Why?
My simple reasoning - fear (of getting into Equity market when it "looks high" / still falling?) and greed (woo fell so much, sai lang! or woo can climb higher momentum mar) hard to control, thus programmatic investment methodology (entry/exit)
Case in point - people who looked at end 2010 and went, aiya so high liao.. scared lar.. then fast forward to 03/04/2012 EOD KLCI, it was a historic high of 1,606.63

b. When should i buy rental properties / REITs?
After filtering, i'd buy them when the rental yield OR dividend yield (VALUE) is worth my time lar laugh.gif
Rental / dividend yield is my main purpose mar
Equity / capital growth is secondary.
Thus, about 80% of my REITs and properties is opportunistic or value based methodology.

c. When should i be in cash, bond funds, flexi mortgage and up to how much %?
er.. to me, fixed income is for holding unused $ for investments (excluding emergency buffer lar) AND to have at least 23%+ around to go after lelong prices/value when (not IF) SHTF.
*
Thanks for sharing.

Any recommendation for short term investment apart from FD? Says need to use the money within a year or earlier.

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