Gentlemen,

The reasons are:

I) The moonies are KWSP, hence I am limited by the type of funds I can choose. Pure foreign ones are not part of the menu.

II) Future KWSP withdrawal shall be via Fundsupermart, where all the actions are nowadays. More choices at lower fees. Here's looking at you pinky.

I have never use cash money to buy UT because the Sales Charge are just to expensive to begin with.

For cash, my moonies goes into my paying my commercial properties and PRS where I can take advantage of the zero sales charge and tax relief.

There, my investment profile at a glance.

Xuzen

With regards to point II), what an irony such comment is coming from a Public Mutual UTC. ;p

FYI, I plan to contribute towards KWSP untl age 70 or death, which ever comes first. Incidently 70 y/o is the max allowable by law.

This pot of money shall be for my old age use. I do not intend to retire at 55, I am looking at 65 or 70 if health permits.

I have multiple streams of income, and I do not have to rely on my main income (my work) to survive my daily needs. That is why I have good opportunity to save. Hence cash-flow is not an issue with me for the time being.

In case you want to know, my multiple streams come from renting of my shops, my current full time job as a manager, investment income from dividend yielding stocks and some nominal cash-flow from my financial advisory work.

Also, even though I kena tax at the highest tax bracket, I do not own a fancy car, I still drive a MyVi to work and the other vehicle I own is an old Toyota Liteace van.

So, there.... always spend less than what you earn. I advise my clients so, and I walk my talk as well.

Xuzen

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So, what do I do with all these extra cash-flow that I have.

Saving? Done.

Insurance? Done.

Education plan for kid? Done.

My wife and I have decided to use our extra cash for donation such as Hospitals, orphanages, house of worship and schools.

I am not here to brag, please don't think of it this way. I only wish to inspire and to tell folks here that financial planning works. Just be patient with it.



This post has been edited by xuzen: Mar 4 2013, 12:00 PM

Yes, you need to have the necessary license. I have both the capital market and financial advisory from Sec-Com and BNM respectively.

I have said many times, one cannot claim to be a financial advisor nor financial planner or equivalent title without the necessary license. That would be a chargeable offense.

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Yes, I am in my early 40's. I started to be serious in personal financial planning in my mid thirties. All in all my planning is less than 10 years and I can personally vouch that Financial Planning is tedious, boring and a pain in the arse, but it works! Imagine if I have started my financial planning on day one I receive my pay cheque...

Funny enough, with the extra cash initially my wife and I thought it was fun to buy stuff and spend lavishly on dinner and luxury goods. But I can tell you the novelty wears off very quickly.

Now, we turn to charity and somehow, the joy of giving to others unconditionally stays much much longer with us.

Xuzen

I was born into a christian family, but I am not a practising one. I am agnostic nowadays.

Agnostic = I believe in the concept of GOD, but I could not care less about him/her/it/whatever.

Xuzen

If you are severed by your company and you look for a job; you may be dissapointed i.e., your mindset may still be looking at the same kind of activity in the same industry.

However, if you change your mindset and tell yourself to look for an income; perhaps your mind my think outside the box and see further horizon.

Let's take me, I worked in pharmaceutical industry as a sales rep when I first graduate from uni for five years.

Then I took over my dad's kedai runcit for the next ten years, when he passed away.

Now I am in the DIY goods distributor/stockist as a General Manager.

See, three different unrelated industry.

I was not thinking in terms of job or career, I was thinking along income, and my income was used to invest into purchasing positive cashflow assets to create passive income and multiple streams of income.

Hope my answer can give you some guidance.

With respect to giving to charity and getting good things back, well here is some little advise.

When you do charity, you get a lot of chance to meet good people, people who you can network and create profitable relationship. Sometimes I get to meet future clients during such activities.

When you meet people outside their formal role, they are at ease, they are more susceptible to listen to you.

Xuzen

When I actually focus on it, it took me less than ten years to achieve financial freedom.

And I am just a regular salary working person, I am nothing special.

The pre-requisite ingredients are: Have a sound plan then discipline, discipline and more discipline.

Xuzen

Rental income as defined under Income Tax Act Sec 4(d) makes up 1/3 of my total aggregate income.

Advisory Fee and dividend combined is roughly 1/4, the rest is employment income.

Xuzen

I will top up when there is a dip in the market.

I will have a shopping list of stocks.

They usually have at least 2x D/Y of 12Mth-FD; PER < 10 or at least the lowest in among peer.

Then I will look for TA for buy signal; such as RSI at oversold, touching the lower limit of Bollinger band and when the Fast MA cross the Slow MA from the top.

To be a little fastidious, sometimes I bring in the big boys such as the CAPM and SML formula to calculate the my long position (When I use to have more time, and to make sure I apply what I learn in my academic studies)

Xuzen

Slightly less than your assumed figure, I.e., around 45%.

Xuzen

Think of your personal income in business term. It will bring your mind into better perspective.

In Biz, there is a fix cost and variable cost.

Biz people always want to keep their fixed cost low so that profit is maximised. In the same vein, keep your personal fixed expenses low. That means, keep non-cash generating expenses as low as possible.

Trim away the wants until your excess return is able to pay for it. What I mean in simple term is for example you scuba dive, buy the additional dive watch by using the dividend, not from your salary. Your salary is used to buy more dividend paying stocks.

Don't look at me being a GM and say that I beat your ass, look at percentages. Don't look at absolute term. Look at my ratios instead.

Actually, I have no idea how to use VCA.... sorry.

Xuzen

I understand DCA. Personally I don't use DCA on my own portfolio because I have a set parameter to enter and exit.

DCA is a very good mechanism for those who do not possess the technical know how to enter and exit a investment position.

However, no matter what way you use, academic studies shows that up to 90% of the excess return from market is through proper asset allocation, not timing the market.

So, you are better off doing proper asset allocation than to time the market.

Xuzen

No, not at all. I don't buy/sell.

Since I am at the accumulation phase, I buy more than I sell.

What I am trying to achieve is to buy at the low or during the downtrend since my I am a defensive/dividend type investor.

I don't really care much about capital gain, to me that is a bonus. But I am more concern with dividend which I reinvest. I build my wealth this way.

Xuzen

1. NAV is irrelevant to my decision making when making an entry or exit of a fund.

2. I have written this before, the parameters that are important to me for choosing a fund are:
i) Its ROI, its standard deviation, its correlation with its benchmark, its beta wrt the benchmark.

ii) My entry point is when the fund benchmark hits the bottom of bollinger band or RSI is oversold or when Fast Moving MA cross the Slow Moving MA.

iii) My exit point is when I need the money. I.e., when I am 65 or 70 y/o and no longer have an active income.

JPB, I know my decision wrt the fast moving MA is reverse than the prescribed method because I am looking at accumulating dividend type stocks. I want to buy them when their price is low so that the D/Y is high.

If you are chasing capital gain, then the reverse is true, because you want to ride on the wave.

On the other hand:

There is an easy way, very easy way to make sure you buy low; sell high.

Set a fix ratio btw bond and equities. One easy way is to take 100 - your current age (e.g. 35 y/o) Hence it is 65% equities: 35% bond.

Do DCA onto those asset class according to the ratio. Should the market move up and your ratio change from 65:35 to say 70:30; then sell your equities portion to buy into bond to maintain 65:35 equilibrium. This way you will always sell high, buy low.

Xuzen

Look at post #681 of page 35 of this thread.

I can find those info because I am a UTC agent myself and I have access to fund house internal data.

I can find those info because I read The Edge Financial Daily.

I can find those info because my goggle-lism is strong.

Xuzen

This post has been edited by xuzen: Mar 10 2013, 05:10 PM

Poor poor poor Pub-Mut, one bad apple PCSF and it affect the whole company as a whole.

This serves a very important lesson to other fund houses:

I) Don't launch too many funds if you cannot get good fund managers.

II) Prepare to manage less funds that you can manage well. It is the quality, not quantity.

III) One fund kaput, the market will look at you as a weakling, jaguh kampong etc.

Xuzen

I am scared of those leng-lui consultants wan, very aggressive wor.

I shy-shy type. They scare me.

Xuzen

For Pub-Mut,being the jaguh kampung that they are, only their local funds are worth looking at.

PISEF, PIDF, PFSF

Xuzen

This post has been edited by xuzen: Apr 7 2013, 02:52 PM

Come come to AmInvest, Eastspring, Kenanga, OSK-UOB, Pheim, RHB where the sales charge for bond fund is at an all time low of ZERO sales charge.

Thank you Public Mutual for making it easier for investor to make a decision.

Xuzen.

Resigned to join Fundsupermart izzit?

Xuzen