fd is still vulnerable to inflation,not 100% risk free

The interest of FD offers is less than 4%. Thus, it's not a very good type of investment. Even EPF gives 4.5% and ASN/ASB is definitely higher than that.

Stitchy®

At the time of recession,prices of most investments will be falling.So,one has to change the strategy from looking for best return to protection of capital.Under such circumstances,FD offers a risk free alternative where your capital will not be eroded.

I totally agree that during normal time,FD is not a good choice.

How about investing in your children, although your returns may not be in monetary form but its something to always think about right? Can't always be too money minded.

How to invest in your children? Don't worry about this early ... you'll get this responsibility once you get married.

Stitchy®

From a book that I read, buy a house for each kids when they are born. Make sure the house is far away from city centre so that it is cheap now but it will worth a lot 10 to 15 years from now. When the kids finished form 5, if they can study, sell the house and use the money to pay for college education. If the kids cannoty study, let them keep the house so that they can rent the house out and be a land lord. It is a lot easy to survive if you live and own your own house.

Dreamer

This post has been edited by dreamer101: Feb 6 2006, 07:43 PM

Not worrying about investing for your children or retirement from the beginning is a mistake.

Time and compounding are amazing. A person who just graduates and puts aside 2000 a year for the first 4 years (total investment of 8000 RM) can stop putting money aside and in 30 years will find their 8000 investment to have turned into over RM 113,0000 ringgit if they managed 10% each year.

If however, another person decides to put money aside for their kids/retirement 20 years after they start working, and even if they put 5000 a year away for 10 years (total investment of 50,000) they will still have around only 92,000 RM. Less than the guy who put away his money early.

This post has been edited by jsm: Feb 6 2006, 05:41 PM

How to do an effective compounding investment? Recommend some ...

Stitchy®

Investing in our children is good. But If you think like I invest $$$ on my children. Next time they will give me back $$$...I will say think twice before you do this.

I used to teach quite a lot of children/ teenagers.....I will say not many of them will take care of their parents one.....just my 2 cents.

Yes that is right. In terms of housing investments, I think there is potential for growth especially in the areas between Cyberjaya/Putrajaya and KL City Centre. The prices are still cheap and it might increase over the next few years. Even several places in Shah Alam are worth investing in.

Simple
- find a mutual fund that has good 5, 10 year returns (e.g. >5%) and start putting money away immediatley each month for a few years.
- use the rule of 72 to see how long it takes for your money to double (e.g. if investing at 5% a year, divide 72 by 5 and you find your money doubles in 14 years, if investing at 10% a years, 72/10 = 7.2 years to double your money)
- wait and invest further if possible

To be honest, when investing into your child's future, it is not about the $$$ returns but rather the satisfaction of giving your child a proper education and at least a good head start in his life.

Of course when talking to children and teenagers, what is on their minds? The responsibility and future commitments are not in their minds. Its filled with studies, education and probably future education and of course not to forget the usual stuff such as music, fun and romance. You cannot bank on what you see at that level and then conclude that they will think like that in the future.

I was once a kid/teenager and my thinking then is completely different from my thinking now.

I'm definitely want to give my kids proper education ...

Stitchy®

Another thing I guess is to find a mutual funds with a low management fees ...

It's kinda absurb even before you start earning, part of your earnings already went somewhere else ...

Management cost has quite alot of influence in the earnings of a mutual funds when it comes to long term investment

Most mutual funds (overseas at least) report their returns after considering management fees. If the management of one fund is very cheap (e.g. 0.5%) but they manage to make a return of only 5% on the fund, I will rather buy the fund that has management fee of 3% but manages to return 10%.

I personally never look at the management fees but only look at the return on my money.

No, it is too close.. I am thinking more along the line of Kuala Selangor or Ipoh. Remember, you are looking for something that is not worth a lot now because it is too far and the infrastructure is not there yet. It is 10 to 15 years investment. The house has to be less than 100K now and hopefully worth 200K to 300K in future.

Dreamer

http://www.marketwatch.com/news/print_stor...57}&siteid=mktw

For oversea investment, lazy portfolio like above URL makes a lot of sense to me.

You want to give your kid a proper education but what if that is NOT their calling in life?? Maybe, your kid is a good cook or painter or singer?


Dreamer

When investing mutual fund, timing also an important factor especially equity type of mutual fund since it goes up and down together with the stock market.

FD can be classified as the most conservative type of investment but still carrying mainly 2 risk -> inflation and devaluation of the currency just like the financial crisis during 97-98.

how bout the maybank premiervalue savers???

the staff told me wont affected by inflation....

1 month RM200 min, RM400 also can

but 5 years later only can take out money....middle also can but willl rugi a it...

is like a unit trust fund....but not 100% unit trust...

i think those who has may bank account should consider it...put inside the normal saving or i account damn little interest...

the cons is this investment need 5 years...

My brother opened a PremierInvest fund before. I took the policy to my financial planner to evaluate and he said that this fund or policy is stupid. The protection and investment is low as compared to investment-linked insurance policy and mutual fund/unit trust.

So, I have no idea about this. I let my brother to decide and he terminated the policy after heard the advices of my financial planner.

Stitchy®