I think my post not clearly illustrated and created misunderstanding if not reading it properly.

Depositor A with 10K FD in one account : split to 1k+2K+3K+4K total 4 receipts only
Depositor B with 20K FD in one account : split to 1K+2K+3K+4K+10K total 5 receipts only
Depositor C with 30K FD in one account : split to 1K+2K+3K+4K+10K+10K total 6 receipts only
Depositor D with 40K FD in one account : split to 1K+2K+3K+4K+10K+20K total 6 receipts only
Depositor E with 100k FD in one account : split to 10K+20K+30K+40K total 4 receipts only
Depositor F with 1m FD in one account : split to 100K+200K+300K+400K total 4 receipts only
Do the math for the next level........

The above combinations allows withdrawals in multiple of 1K or 10K or 100k with minimum split receipts

@danmooncake
Monthly FD maturity dates has the following downsides:
The money hold back for the following months FD placements losing out on better interest income.
For small time depositor, the deposits are split to even smaller amount, thus he may not grab promotion rates which requires a large deposit amount.

I think ngaisteve1 is talking about instead of placing 20k in FD earning 3.x%, might as well use the money to cover up the flexi loan account Interest at 4.2%.
His rm20k "yields" better in flexi account than FD account. A sensible move indeed.

You may want to consider Real Estate Investment Trust (REIT). Here are the poisons:

1) Dividend yield better than FD rates on average. Some counters as high as 7 to 8% pa. But on average, i would say 5.5%.
2) Very liquid. T+3days to cash out.
3) Low entry and exit costs.
4) Very transparent. REITs are listed in Bursa Malaysia. You are crystal clear of your investment value any time, any day.
4) Low entry capital. Few thousand riggit to "own" a small portion of rental properties like MV or Starhill. How nice.
5) stable price movement and not volatile as compare to stocks market.
6) Regulated by Securities Commission (SC)

There is a risk of capital loss though but no as high as if you buy the real property directly.
Unlike real property, you can cash out the investment within days if your gut feeling tells you the rental properties market is coming down.

I'll let other members here to list down the disadvantages of REITs.

This post has been edited by aeiou228: Nov 9 2012, 12:47 PM

REITs in Malaysia have not been tested by such severe market crash, thus no precedent to qoute. There wasn't any REIT during the stock market meltdown in 1998 if I'm not mistaken. I'm sure panic selling will definitely put on downside pressure to the prices of REITs. But the lower the price the higher the yield as mentioned by Bro gark above. Which REIT bargain hunter wouldn't jump in to buy IGB (MV & Garden Mall) and Pavillion REITs when the divident yield above 10% ?

After crisis, how fast your REITs ( the price ) correct itself back to the average market divident yield ?

I guess so. That's why it got the characteristic of minimum price volatility. As dividend yield is determined by rental income, If REITs prices increase within a short period of time, the dividend yield drop, more selling than buying.

I would agree with you on this. Must check the gearing before jumping in.

Which city in Malaysia you are currently residing in ? I may have some info you needed.

In that case it is not possible to do that. The bank needs original identity documents and to witness your signature in person.

That's pretty clear hints already. Cancel the appointment to save your precious time unless you really interested in long term investment link product.

Based on your calculation, your assumption is if you have a ready cash of rm47,439.00 to settle the either by installment of by full-settlement right ?

For the full settlement, you had omitted to factor in the potential FD interest income for the next 15 years for the RM8250 20% discount.

This post has been edited by aeiou228: Nov 18 2012, 12:13 PM

Good point, smart guy. What other instruments that gives better return then FD but as liquid and secured as FD ?

Interesting. Two questions.
Since you are a investment planner, without doubt you know how to calculate EFFECTIVE YIELD, can you please provide the forum the effective yield for the above ?
As for the risk is near 0, can you please substantiate it ? Protected by PIDM ?
Thank you.

in that case, how do you quantify "deposit 25k over 6 years and get rm6,500 for 30 years" gives higher return than FD ?

I did not google or use a financial calculator, but just at the glance with brief mental calculation, I guess it was way below FD return of 4% p.a ( assuming fixed rate for 30 years), correct me if I'm wrong.

Aik ?? you throw the ball back to me pulak ?? I can give you the compounded cash value for 150K FD x 30 years easily (assuming fixed rate for the sake of calculation) but since you don't know how to calculate the effective ROI of HLB income building, how are we going to engage in a more meaningful and intelligent debate in this matter ?

If I give you the compounded cash value of 150k x 30 years FD, how you are going to compare it with HLB income builder ? Compare the final cash value at year 30th??
How do you get 950K ?? Is it for real ??

This post has been edited by aeiou228: Nov 21 2012, 02:01 PM

I'm sorry bro, I can't comprehend what was written on the above bold words. Is that a new term for interest rate ?
Anyway, how can 0.04567 be higher than FD rate of 4.6%

Where are these 4% and 6% derived from ?

What about the following year (second year)?

I don't know how PRS works but for the tax exemption benefit, I doubt you can enjoy it again for the second year with the same RM3000 balance brought forward from first year.
I guess only additional fresh fund in second year gets the tax relief for the second year. The 1st year deposit no longer entitle to claim tax relief. With that in mind, you may not achieve the above returns.

How do you get the 20% return in 5 years on a deposit of RM3000 if:

1)Tax benefit is just for the 1st year.
2) PRS ZERO return for the 2nd to 5th years ?

This post has been edited by aeiou228: Nov 26 2012, 06:54 PM

Press print screen button once > patse it on Paint > crop it > save as jpg file type on the desktop.

Attachment > choose file from desktop > add this attachment > add to post.

I don't need the calculation, just wonder where the return comes from, from 2nd years onwards when PRS zero return.
Assuming you only invested rm3000 for the whole tenure of 5 years.

This post has been edited by aeiou228: Nov 26 2012, 08:02 PM

My opinion is, I don't think IRD allows you to claim 5 times tax relief with single initial rm3000 investment.