That is the answer to the question of "Can FD beats the inflation?"

If your question is about "Should I still put money in FD? Do I look stupid if I do that?", then it has to be answered differently.

well said. Reason is there to be used as a sales pitch, any salesperson can attest to that. But the devil is in the details, past performances is always a good yardstick to gauge the authenticity of any investments.

An Indian expat colleague noted to me once that the FD rates in India hovers ard 12 - 13%. Go figure

Guess what the inflation rate there must be

I can't resist but to ask you....

Should I still put money in FD? Do I look stupid if I do that ?

That's why they love to buy gold. Until the govt curb them...

@showtime- I keep money in FD actually as it is most liquid (other than the stuff I keep in my wallet). And some money for my soon to start house renovation

I share with you a story of an old man i knoe... he never trusted properties, never trusted stock market, never trusted anything but cash (and FD). He was debt adverse and risk adverse.

When he retired, he realised he had way less net worth than his friends. His friends who owed banks when young had cleared their mortgages, made money from bull runs and had good interest growth in UTs. All debt free but he was in last place.

Btw, he gaji tinggi type. Retired de.

There is no straightforward answer my friend, but let me try to make it simple for you.

Say if you have RM 200,000.

You probably want to keep 25% in blue-chips such as major O&G firm, local banks, nestle and etc. Then you probably want to rip some money from the REIT market, say another 25%. Then you say to yourself, "I think I am comfortable to expose half of my money to risk, where should I put the remaining 50% then?". Options for you could be insurance, FD, bond funds or just continue to let them rot in your saving account.

And all these are influenced by factors such as what is your current age, your next-5-year plan and etc. There isn't a single answer that is suitable for everybody and yet those salesman are selling the same product pitching in the same tone to everyone. Screw them.

Oh ya, if you are a Malay, try ASB and ASB2. To me those are no brainers unless you think Msia government is going bankrupt soon.

If you start off investing thinking that investment can makes you a millionaire in 1 year, then my advice is you better put your money in FD. Always start small cause we all learn from mistakes. It is very dangerous if you don't know much and yet you are greedy.

Read more investment related materials, build your guiding principles and investment style and follow it through and adjust as you go along.

Oh ya, while you are learning, it is not a bad option to put your money in FD first. No matter how, it is better than our ordinary saving account.

This post has been edited by td00164306: Apr 17 2014, 03:46 PM

He does get his peace of mind all the while and made it to his retirement. Doesn't he?

Life is never a race of wealth. While it may be important to most of us, but there are also people who are happy with what they have right now and furthermore he is already a high-earner

@ kaiserwulf and td00164306

Was pulling your leg, didn't know you guys wrote so lengthy. Anyway,

He was sad actually... but he dint say. Cos his colleague also high earner ma same 1. Tapi they ada few biji rumah. Total cash also lebih.

OFC for sure not go home hungry la.

So guys, time to revive this thread.

25 this year.
Got my emergency fund.
Investments totaling about 150K.
No debts.
Living with parents, will purchase a home only when i find a good deal.
Earning 4k+
Car paid off.
Parents are all set for retirement.

I've been diligently pumping in my money into stocks every 3 months.
Any better ideas on what to do moving forward?

This post has been edited by Hapeng: Apr 25 2014, 12:34 PM

With 4k+ a month, how did you manage to set a total investment of 150k at the age of 25? In pumping money, do you mean Dollar Cost Averaging at a 3 month basis?

Why need to be every 3 months? Invest stocks then just leave it there for years to grow?

oh I've been saving, took out a PTPTN loan, paid off with 20% disc etc.
i'll have about 8-10k every 3 months, i'll pick out stocks.

lol one lump sum = less fees.
if i see stg i reli like then i'll just pump in.

yes less fees but fees commission is only 0.15-0.25% bro. And don't forget the power of compunding.
If you trade $10,000 you let it grow for 5 years with 8%/annum :
If you trade $10,000 every day for 5 years with 0.027%/day :

This post has been edited by leonhart88: Apr 26 2014, 10:43 AM

lol guys i dont need a lesson on how often to trade and on compounding..
im asking is there anything more i can do, or im missing out on.

Stocks - worldwide selection or MY/SG only?
Funds - worldwide / developed vs emerging? or just MY?

"Tax relief" or tax impact investments such as PRS for your age and tax bracket explored?
Explored usage of EPF A/C1 for mutual funds or direct KLCI stocks and EPF A/C2 for mortgage repayment (thus cash flow into other investments)?

Generally, i think U are ahead of the curve based on your age unless U happen to be working with investments-related stuff lar. U save well, U have built-up buffers AND U are into equities.
Now - to optimize and to explore the world.

This post has been edited by wongmunkeong: Apr 26 2014, 02:18 PM

Only investing in mY so far. Will think about venturing into the US in the near future.
Funds - worldwide.

Yes I've started and contributed the RM3000 for the year, anticipating the bonus RM500 from gov.
Thanks for the advice on usage of EPF, will look into it but I've been working for about 1.5 years only, not much EPF yet.

I have a stable job, looking into other opportunities/biz on the weekends.
My next goal is to try help my family get their finances in order. Budget, investments etc.

Thank u sifu.

hehe - no sifu here, i'm just L-earner with capital L.

U seem to be where i was when i was 29-30 - i'm a slow learner & coach-er .
It's heartening to see another fellow like U getting head & heart straight at a good age - there was another fellow around here too from Ipoh. Only noticed 2 so oomph!

Keep at it - with a structured asset allocation & sub-allocation in mind.
After awhile, U may find that at times - whole bleeding world also susah to find value stocks or ETFs, OR just too bleh to buy into them in chunks of $20K to $50K.
When U hit that - perhaps look into stocks-related biz or trading with a small % of your investable assets (eg. 5% to less than 10%).

Saw your property thinggy.
Me - not too good at properties. Made just 20% to 25%pa on mine after disposal and including all expenses.
Thus focusing only on paper stuff until kaka happens in local LANDED properties. Gave up on joint-management thinggy and stuff..

Just a thought

LOL wth..
started working 22.
assume savings started at age 7.

Haha.. Your ang pau money were huge sum..