How many times do people need to get through this kind of stuff before they learn?? Someone that had never posted before (newbie) registered and start claiming something that is too good to be true. But, they cannot explain what it is and you must PMed or call them.

You get this kind of post at least once per month.

Dreamer

It is okay. We have all been there before. We need to be careful about what we recommended so that we do not ended up be scammed plus getting our own reputation spoiled.

Dreamer

This post has been edited by dreamer101: Sep 10 2006, 11:39 PM

The richest person that I know ride a Cefiro and live in a medium sized single storey bangalow. Sam Walton drove an old pickup truck.

People that are very rich do not have to sell anything to you. And, the last thing they want is more attention and get their family robbed and kidnaped.

Dreamer

http://forum.lowyat.net/index.php?showtopic=326577&st=40

1) Read my thread on our discussion on insurance.

2) You are confusing two different things here. Selling insurance versus buying insurance. People who sell life insurance makes a lot of money on commissions. So, compare to MLM, selling life insurance is a lot more profitable. As for buying life insurance, most people buy the wrong kind and wrong amount of life insurance. They are making life insurance agent rich and getting very little in return.

Dreamer

This post has been edited by dreamer101: Sep 12 2006, 09:00 PM

Insurance is not an investment. The return is less than FD.

Dreamer

Leekk8 and Luqmanz,

1) Just use a bit of common sense here. Insurance folks take your money and charged you commision to buy unit trust to be included in the insurance. This is what happening in those investment linked policy.

Let me ask you a simple question. Why are you paying insurance agent high commission to put unit trust inside you insurance when you can do it yourself to begin with??

2) In general, unless you meet an insurance agent that is very knowledgable. They cannot and will not separate the insurance portion from the investment portion. You really have no idea how they calculate the return since you have no idea how much you are paying for insurance and investment.

3) You do not know how to calculate retrun so how do you know what are their assumptions??

4) Insurance companies make a lot of money eventhough the agent commision is around 141% to 170% of the first year premium for each policy. Guess where they get their money from?? You, of course.

5) If you really do the calculation and they tell you exactly how much each portion: insurance versus investment. You will know and find that the return is worse than FD. Please noted that you do not pay commision when you buy FD.

Dreamer

My simple guide to life insurance

Life insurance is an insurance. It is used to protect against of the
risk of lost of income. For example, let's say A is the bread winner
of the family. If something happen to A ( for example die in an
accident), you will not longer have income from A. The family still
need to survive. Life insurance can provide/replace some portion of
the income so that the family still can survive. In some
circumstances, A will suffer some form of disability and can no longer
work, life insurance provide some compensation to help the family to
survive too. Please noted that in Malaysia, the protection against
disability is limited to what is specified in the policy. In advanced
countries like USA, they have disability insurance that pays as long
as you cannot work regardless whatever the cause is. This kind of
disability insurance does not exist in Malaysia. In summary, life
insurance is used to protect against the loss of income and
disability.

So, does life insurance makes sense to you??

1) Do you have dependents?
A) If you are single and have no dependent, it really does not make
much sense to buy life insurance.

B) If something happen to me, I would like to leave something for my
parents. Is your parent depend on your income for survival?? If answer
is no, why buy life insurance?? If you want leave something for your
parent, why not give your parent the money now?? Save the money from
insurance premium and give to your parent now every month.

2) If you are home maker and makes no income, why buy life insurance??

3) If you are married and your family depend on you to provide income,
in general, you should buy life insurance.

4) However, it may NOT be worthwhile for you to buy life insurance if
you have a lot of savings (more than 200K). In general, life insurance
in Malaysia get very expensive for payment greater than 200K.

All my comments does not necessary apply to medical insurance. Do your
own research to find out what is right for you. If your insurance
agent cannot explain to you why you should buy life insurance, why are
you buying??

The very complicated and complex thing about insurance in Malaysia is
that we do not have pure term life insurance. All insurance product in
Malaysia is normally a combination of life insurance, disability
protection and medical protection. In most cases, unless your
insurance agent is good and you do a lot of research, you really have
little or no idea what you are buying. I am not qualify to tell you
what you should buy and how much to buy in each circumstances.

The bottomline is you need to know is

1) what are you protect against??
Life, disability, medical

2) What is the likelihood for each risk at your age??

3) What is the cost for each option??

4) What is the maximum pay and deductable in each situation??

Insurance is used to protect against the situation where you do not
have enough resources to cover. You need to buy just enough so that
when the bad thing happen, you are coverred. But, you should NOT buy
so much that it costs too much to you.


Dreamer

That is called term life insurance. In Malaysia, you need to shop around. Some term life insurance costs a lot more than those with a little money back.

Dreamer

"bank is a place where dumb people put their money inside to let the wise people use them for investment and become richer."


Liangko,

How do you know you are wise?? For example, I know that I am a dumb person as far as playing Malaysia stock market??

"To be wise is to know when you are dumb or you do not know enough!!"

Dreamer

Michealwong,

Normally, you will not buy something until you know how much it will cost you. So, why didn't you ask first on all the possible charges before you buy?? This is the lesson that you should learn. And, this is a cheap lesson. One of the lesson that I learnt costs me 50% of all my savings.

Dreamer

P.S.: From "Rich Dad's Guide to Investing", the first rule rule of investing is to make sure that you DO NOT lose money. This was spoken by Warren Buffet too.



Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
Warren Buffett


This post has been edited by dreamer101: Sep 24 2006, 06:56 AM

http://iamfacingforeclosure.com/1/why-i-am...ng-foreclosure/

Interesting housing investment failure story.

Dreamer

Led,

Then, offer an alternative and prepare to defend your recommendation in this thread.

Dreamer

Outsider,

Be constructive. Offer an alternative and be prepared to debate the pros and cons of your investment idea on this thread. Then, we all can learn. I had read 8 of the Robert Kiyosaki's books. What idea will work in Malaysia??


Dreamer

Leekk8,

So, when you invest on unit trust, you lose 5% to 7% immediately due to service charge. Then, every year, you lose another 0% to 1.5% due to annual maintenance fee.

The FD is looking better everyday.

How about this idea?? Buy a good blue chip bank stock that pays dividend yield of 6%. You lose some money on commission to buy the stock but you gain dividend yield of 6%. You do NOT have to sell the stock to make money. If the stock goes up, fine. If not, you still collect dividend.

Risk: the bank may have a lot of bad loan if economy goes bad. So, pick a bank that is very well managed.

Dreamer

Ky_khor,

Latest book/study/research show that over the history of US stock market (50 to 100 years), high dividend and value stock give the best return. Growth stock usually do not do very well in the long run. So, this is NOT limited to Malaysia stock market.

Dreamer

P.S: The book is "The Future for Investor" by Jeremy J. Siegel

http://www.jeremysiegel.com/index.cfm/fuse.../page/books.cfm


This post has been edited by dreamer101: Sep 27 2006, 10:14 AM

You are essentially gambling and taking a lot of risk at the same time. Some people can do it and do it well and most cannot. The risk level is so high that it only takes one bad day to bankrupt you.

Dreamer

Apis,

There are different level of risk. In stock (unless you do option), you put in 1K and the most that you can lose is 1K. This is not the case in FOREX.

Let's be honest here. If we are not greedy, why do we invest/gamble any money??

To make your USD 1K in one month, how many trades did you do per month?? What is the size of your trades?? Your exposure to loss is definitely more that USD 1K. It is more like 10 to 20 times that.

The risk of losing (A) 1X your principal is different from the risk of losing (B) 10 to 20 times your principal.

In (A), you lose money. In (B), you go bankrupt.

Leekk8,

The risk is more that losing 2K per month. It is probably 10 times more than that. We are talking about bankrupcy here.

Dreamer

Mobiusone,

Another word, it is gambling. Some people can do it and most don't.

Dreamer

Apis,

Good for you. You have the discipline to limit your loss. This is NOT for everyone. Even just on normal stock trading, I was too greedy and I lost half of my life savings because of that. It was a very expensive lesson.

Dreamer

Cherroy,

IMHO, there is only one stock worth buying in the whole KLSE. Everything else is pure speculation. But, then again, I admit I have NO idea how to invest in Malaysia stock market. With 50% of the KLSE owned by GLC and GLIC, government action affects everything. I do not know how to read/forecast government's action since it is not business driven.

Dreamer