Next year >100k got 3 categories. 100k - 250k is 24% tax

http://www.malaysiandigest.com/opinion/484...cy-changes.html

Patient bro. By 2020, potentially you pay only 20% like sg. But gst increase to 10%

http://m.thesundaily.my/node/229981

Q1. Are you happy with your current returns ?

It is all about risk and return. Your current portfolio is very conservative except for your USD.

I would set a target for my desired return first. If I am happy with 4%, then throw everything into FD. If I am only happy with 8%, then I have to take higher risk.

So, all depends on your return expectation


Q2. Are you going to use the above investment as down payment for your house ?

If so, then you have to keep your funds liquid. That would determine which type of investment you need now

7% is still 7% whether it is in RM or forex

Eg. S$10k x 7% = S$700 ==> RM30k x 7% = RM2.1k

Bro, your interest rate concept is wrong. House loan is reducing balance, while car loan is straight line.

So, car loan interest is roughly 2 time the quoted rate. If the bank say is 3.5%, then the effective interest is around 7%. House loan is always cheaper than car loan, personal loan and the like

Your plan is not a good plan.

Somebody must complain the BNM. And I nominate our wong seafood

Compare like to like :

Car loan :

25k, 3.5%, 5 years
Total repayable = (25,000+4,375)=29,375

House loan :

25k, 4.6%, 5 years
Monthly installment = 467.21 x 60 = 28,032.79

So house loan is cheaper than car loan, despite what the interest suggest. Because for house loan, your interest is calculated on reduced principal every month. So, interest is more at the beginning, while less at the end. On the other hand, car loan interest is calculated fixed at 25k for the whole 60 months

Bro, use flexi loan and you will have a lot of flexibility. Your above 2 concerns will be solved.

1. Higher downpayment ?
Flexi loan allows you to dump your excess cash into the current account to reduce the amount outstanding, thus reducing your interest expense. While the excess cash can still be withdraw out for your own use later (if you can find some investment with good return for example). That is the beauty of flexi loan.

So, take as much loan as possible (90% LTV) with the bank. Then dump in your extra cash into the current account later to reduce interest expense, while still be able to use it when you need money. If you pay higher downpayment, then your cash will no longer be available to you

2. Shorter loan term ?
Again, flexi loan will take care of your concern. Interest is calculated on daily basis based on your balance outstanding. So if you have extra cash, dump everything into the current account. It has the same effect of paying more instalment as a shorter loan term.

So, take loan term as long as possible in flexi loan. Then deposit as much money as possible into the current account. That will save you interest. And you may pay off your loan sooner



By getting flexi loan with as much LTV + as long loan term as possible, it gives you the flexibility to pay lesser interest and at the same time allows you to withdraw the excess money when you need it. And the extra money you paid into your current account will be available for use for a longer period also.

However, flexi loan is of no extra advantage for people who has no extra cash to dump into the current account. For this category of people, there is no difference for them to take conventional fixed loan

Yes.

With flexi-loan, you take 405k loan at 30 years. When the accounts are in operation, then park your remaining 255k inside the current account. Your interest calculation is effectively on principal of 150k, not 405k.

If you take conventional loan, you have to pay interest on 405k irregardless. The 255k is your separate fund which you have to think how to make good return on it

Another way of viewing the flexi-loan is a "low cost reducing-balance overdraft" (where the overdraft facility is reduced by the monthly instalment amount). The interest rate is housing loan rate (4.xx%) compare to overdraft interest rate of 7.xx-8.xx%. The fund is ready for you to jump on good investment opportunity at anytime. If you cannot find a good opportunity, you are still paying less interest expense as your balance principal is already reduced.

Compare to conventional loan which you take high LTV, you have to pay interest on a full loan, while feel the pressure to look for investment opportunity to cover the interest expense which runs on daily basis

This is the ultimate aim of everybody

Just wondering have you achieved your financial freedom ? What is your vehicles to generate passive income ?

How about yours specifically ?

Good way of saying "fxxk off, I won't share with you"

Bro, its Friday lah. Just joking, why so serious ? Blame you ? For what ?

From your avatar, you must be heavily into stock ? Brexit vote count right now affecting the uncertainty of the whole world's market. Chill man ! It won't be the end of the world

There are 2 or 3 people who achieved financial freedom in the 40s or early 50s here. Can't remember their nicks, but they are in the retirement planning thread.

I have a number of my friends who retired in the 50s. And I know some who can afford to retire, but choose to continue to work. I am one of these people.

The elderly in my family mostly live beyond 70s close to 80. Some >80 years old and still healthy. Assuming the "design" of my body is similar, I still have at least 20 years, or maybe 25 years to enjoy my life if I take care of my body well

Many young people now live the YOLO life style. If they do their financial and retirement planning early instead, they could realistically achieve financial freedom in the 50s. After that, still have maybe 20-25 years to enjoy life. Plenty of time

I will also leave it at that, because one either plan early, or one doesn't. And that determines one's retirement with financial freedom a reality, or a far fetched dream.

Yes. Agree. No money for enjoyment is very difficult. But some people did it that way. Especially women

Just like to add on what lowya posted :



Note that he is talking about "income producing assets" which will generate income which pay for the expenses. It is a process, instead of a final result. One got to start somewhere and slowly accumulate the assets. As such, initial years will be harder, and it gets easier as years go by

If one starts early maybe in the early/mid 20s, when he reaches mid or late 30s, his passive income could be of sizeable amount by then. At that stage, the retirement planning will be easier and he may take stock of his financial position and decide to allocate part of the passive income for early enjoyment.

To me, nothing comes easy. The most difficult part will be to take the first step to plan, and then stick to the plan faithfully. It is easier said than done, but I have seen quite a few achieved their goal. The common character of these people is they have the required discipline and determination to put their plan into action

Haiyo, both you two old birds know he lacks the knowledge, but still want to push on

LYN is not short of such people over the years. He is not the first one, and won't be the last

A simple NAV calculation also can argue until his father come out. I won't be surprised the grandfather and grandmother will appear later

Readers will know who is trolling lah

NAV calculation is maths, which is based on universal accepted formula and usual practice. It is not an art where it has "perceived value" or "beauty" in the different eyes of the beholder

It is used widely by mutual funds, ETF etc for its market price and people trade billions based on this value. It is used by the accountants to value a company. And listed companies like Reits used it to revalue and reports to the stock exchange. Properties value are supported by licensed valuer's report. Some used more than 1 valuers and take the average. NAV calculation is accepted by the regulators around the world.

However, some people look at it as something superficial and can arbitrarily put a value and include his father's asset in the calculation of NAV

By having this type of opinion in this forum, if it is read by someone who has just some financial knowledge, he will not only "mempersiasuikan"himself but also the regular readers here

Both ? "They" are the same person !

From the writing style and the content (the lack of), most probably they are the same person. Because everybody ignored supersound, he has to register a dupe

Just for the background, that kengyan is the dupe of supersound, who thought all insurance and UT agents are con man. Most of us knew he is a tin kosong

My take for you is to spend some time reading the relevant threads which interest you. There are a lot of info here for new comers. Then if you don't understand a specific investment, you can ask the sifu here