sweet

a good explanation on the non-fixed price funds. just to add that its not at all a bad thing. one can use it to one's advantage. if you buy when units ' price is lower, then you will earn in capital gain when unit price goes up. but then again, how often does this happen with asn3 and other non fixed price PNB funds? i ask this because i do not monitor their daily prices. and another question - for an existing investor - what happens when unit price is high? how can you lock in your gains/profits? because once price drop, your value drop along with it. is there any way to prevent this?

This post has been edited by doneright: Jan 4 2013, 09:22 AM

Yes more. Bout 265K. But just realised that i have space for another 20K. So will top up in Feb.

This post has been edited by cybermaster98: Jan 4 2013, 09:55 AM

how is that possible bro? mind enlighten us

Space for 20k more? Interesting
Never knew such thing exist after maxing out on 200k

not include principal he put in to max out 200k

The ASB limit of 200K refers to the amount of cash you can physically pump into the account. It doesnt include dividends and bonuses. Say you pump in 200K first. After about 5 years, your total account balance swells to about 285K. Then you withdraw 50K. This 50K is taken from the initial principle you pumped in. So now your actual invested amount becomes 150K with the remainder being your dividends. Your total balance now is 235K but u still can pump in 50K because in reality you have not maxed out your account yet.

In short, when you withdraw from your ASB account, ure actually withdrawing initially from your principle and only when that is depleted, will you withdraw from the dividends. Dividends are calculated based on the TOTAL amount in the account but based on daily rest.

This post has been edited by cybermaster98: Jan 4 2013, 01:44 PM

dividend calculation will be based on 235k right? if so, this is very interesting. one can have 300k in his own asb, but none is his money, purely dividend

am i right?

Quick question.
I took a 50k ASB loan from Maybank back in 2008 or 2009 (10 years term). Now I can afford to pay off the loan (about 30k remaining, current interest is 5.6%).

As far as I know it is better to settle the loan, but I've been getting different answers from the few people that I talked to about this (just small talk nothing deep)... one side agrees with me while the other says it's better if I just top up my ASB instead of paying off the loan because I'd get higher dividends...

some people dont like to have debt. but some also think good debt is not a bad thing at all...

the best if to calculate both scenario. then you'd be making a choice backed by fact rather than by emotion

my 2 cents

Yes dividend calculation is daily rest based on the total available balance in the account. And yes after some time, you can withdraw all your initial 200K and leave only the dividends earning from earlier dividends. But of course to reach 300K in dividends alone will take a few years.

Ive calculated if i leave the entire amount of 285K in the account untouched, i would end up with approx RM 1.54 mil in 20 years assuming a yearly interest of 8.9% per annum.

This post has been edited by cybermaster98: Jan 4 2013, 03:42 PM

let say i wanna open ASB account, i would like to invest 50k from my saving account, just put lamsam 50k or deposit it every month (let say 10k per month) any different?

If me I'd take 200k ASB loan for 20 years, take 16k from your 50k to pay the first year of the ASB loan installment. Then leave it on autopilot for the next 20 years. Balance 34k can use for UT, AHB, etc... If anybody thinks this isn't a good idea do share your thoughts

50k lumpsum will give you more return as the dividend is calculated on average minimum monthly balance.

i have 14k
i plan to use it on march this year for car downpayment
better to put it in ASB or fixed deposit?

UT and AHB...dividen almost the same? how to calculate?

i've maxed out my asb by taking asb loan.. so my initial 200k is in form of cert..

say total dividend earned is 50k, so i expanded investment limit to 250k.. then i withdraw 30k.. can i later re-invest 30k back to my asb account? since u said, i will deduct from initial principle?

Not sure how it works if your 200K is from loan but if its a cash investment, and u withdraw 30K now, yes later you can re-invest 30K back.

simple, FD 3 months tenure.

you also can invest in shares on bursa malaysia. the risk is higher

If you plan to save it for a while till this March,
Of course the answer is fixed deposit, choose three month tenure,
ASB fore sure, is better but in order to gain the dividend return, you need to wait till end of this year in order to get it.