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> Personal Financial Management V3, It's all about managing your $$$

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Smurfs
post Feb 20 2014, 07:50 AM

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QUOTE(wongmunkeong @ Feb 18 2014, 08:52 AM)
no expert here yar, just curious.
When U mentioned "30%mutual funds & 60%stocks"
U meant 30% bond funds or equity funds?
IF U meant equity funds.. er. then one would be 90% into equities (30% +60% stocks)?
Very aggressive indeed.

that 10% in FD - what if market collapses within 6 mths or 1 year.
how would one take advantage with monthly i keep my Fixed Income (FD or Bonds IMHO) at only 10% monthly?
Based on Kaiserwulf's "game" criteria:
Say you have RM 7000/mth to invest.
How would you allocate your investment(s) and in what frequency?
Other info: You have house loan at BLR-2.4% and car loan at 2% p.a. Your family is well provided and don't ask you for anything else.

My personal additional assumptions: mortgage = FlexiMortgage +do NOT have EPF a/c +not a biz owner.
IF biz owner, i'd suggest own biz be part of "Equities excluding REITs or Properties" if my biz is in trading/services

I would:
A. $7K - channel 50% to build emergency buffer, 50% for investments.
Once emergency buffer hits 6 months expenses or 8% of my net worth (keep topping up bit by bit if it is too far from 8%), 100% will be channeled to investments

B. Investments
1. Asset allocation of:
a. Fixed Income: 1/3 - to hold dry powder for FEAR / major value buys
b. Equities excluding REITs or Properties: 1/3
c. Real Equities (REITs & Properties): 1/3

2. Sub-asset allocation:
a. Fixed Income:
11.11% to local cash equivalent in FlexiMortgage
22.22% to local developed bond funds. Heck if BLR goes up, may even move this portion into FlexiMortgage
Note: since FI is just to hold dry powder for usage, local bond funds & FD/MM is good enough. Dont want to complicate things

b. Equities excluding REITs or Properties:
20% in Developed Markets ETF like URTH (including US) or a mix of ETFs like VEA (dev mkt exUS) +SPY (US)
13.33% in Emerging Markets ETF like a EEM or mix of CIMBA40 (ASEAN) +CIMBC25 (China)
yes yes CIMBA40 has SG in it, which is a Developed Mkt.
Again - point is not too nitty gritty, "close enough"

c. Real Equities (REITs & Properties):
REITs: Based on value hunting in SGX (0% tax on dividends for individuals) & MY (local expertise mar)
Criteria: net DY% >=7%pa & Price/NAP <=0.9 & D/E or leverage <=33% (buy for DY%)
OR Price/NAP <0.7 & D/E or leverage <=33% (buy depressed price for flipping)
Properties: Based on value hunting similar to above reasoning.
3. Execution:
With the Asset & sub-asset allocation done +specific vehicles identified, i would execute once every 4 or 6 MONTHS.
Why 4 or 6 months?
a. More cost effective purchases of ETFs, yet "timely" enough as done at least 2 to 3 times a year
b. Forces a review of Asset Allocation & sub-allocation at least 2 to 3 times a year

If AFTER the new injection of funds, any of the Equity classes or sub-classes varies 20% or more, FORCE a rebalance.
eg. 20% is for Developed markets, thus
if Developed markets hit <=16% force buy to hit back 20%
if Developed markets hit >=24% force sell to hit back 20%

If AFTER the new injection of funds, both Equity classes varies 40% or more, FORCE a VALUE BUY - spend down Fixed Income % down to 10% and bump up Equities & Real Equities equally.
IF DONE - do not buy into Equities anymore until Fixed Income rebuilt back to approximately 33.33%, then Execute as usual biggrin.gif

Why?
Approximately every year, about 10%+/- fall is expected
Once in 4 to 6 years, about 20%+/- fall is expected
Once in 8 to x years, major falls is expected (think 1997-1998 ASEAN currency crisis, 2008 credit crunch)
Statistics from statistical & equities company - sorry, can't recall which/where

Whew.. that's it.
All logical criticisms & suggested solutions are welcomed. The above is actually part of my "possible" Trust's asset management rules tongue.gif

Just a thought  notworthy.gif
*
one quick question to u bro WMK ,

"Once emergency buffer hits 6 months expenses or 8% of my net worth"

Why 8 % and not other figure like 5 / 6 %of the net worth ? i thought normally is just 3-6 months of expenses. Care to elaborate more? Use percentage of networth as a guideline to build up emergency buffer is something new to me. notworthy.gif
wongmunkeong
post Feb 20 2014, 08:09 AM

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QUOTE(Smurfs @ Feb 20 2014, 07:50 AM)
one quick question to u bro WMK ,

"Once emergency buffer hits 6 months expenses or 8% of my net worth"

Why 8 % and not other figure like 5 / 6 %of the net worth ? i thought normally is just 3-6 months of expenses. Care to elaborate more? Use percentage of networth as a guideline to build up emergency buffer is something new to me.   notworthy.gif
*
8%+/- (ranges from 7% to 10%) was the % on my net worth i calculated based on:
if i were to retire at 50 or 55 or 60
AND to have 3 years' living expenses in "emergency fund", which by retirement will be my living fund 1yr +2yrs emergency fund,
THUS i wont be forced to sell investment assets at the wrong time to fund living needs.

Note:
IF one's home (non-investment asset) makes up for more than 50% of one's net worth
AND one lives frugally,
then this % should be lower.

However by logic, if one's home is a big % of one's net worth,
one's expenses to maintain that home is also more,
thus need more emergency buffer if wall/roof/etc collapses or fly off.

Just a thought notworthy.gif

This post has been edited by wongmunkeong: Feb 20 2014, 08:13 AM
wongmunkeong
post Feb 20 2014, 08:12 AM

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Just sharing:
For those that likes "collecting" long term dividend paying stocks that has kept increasing its dividends payout for 25 years. Note - US stocks thus 30% tax on dividends for "aliens" smile.gif

25-Year Dividend Increasing Stocks
http://www.dividend.com/dividend-stocks/25...sing-stocks.php

hint - wait for the prices to fall, thus DY% increase to hit your NET requirements before buying in (duh tongue.gif)
sonicbull
post Feb 20 2014, 08:45 PM

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QUOTE(kaiserwulf @ Feb 18 2014, 08:00 AM)
Just curious... Why want to pay for 4.2% house loan when you get 6% or more investing in other stuff (as you mentioned MF and stocks)

Separately, is it wise to pay off 2% car loan when it penalizes you when you opt for early settlement.

Others any comments on his choice?
*
my calculations are based on RM7k monthly income but haven't deduct the loans yet.
sonicbull
post Feb 20 2014, 09:13 PM

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[quote=wongmunkeong,Feb 18 2014, 08:52 AM]
no expert here yar, just curious.
When U mentioned "30%mutual funds & 60%stocks"
U meant 30% bond funds or equity funds?
IF U meant equity funds.. er. then one would be 90% into equities (30% +60% stocks)?
Very aggressive indeed.
My apologies, the 30% & 60% I mentioned could be mixture of equity, bonds, money market and ETFs. Also maintain a balance portfolio of 75% equities & 25% bonds.

that 10% in FD - what if market collapses within 6 mths or 1 year.
how would one take advantage with monthly i keep my Fixed Income (FD or Bonds IMHO) at only 10% monthly?
It should depends on individual risk appetite and investment skills. For me, with the 75/25 portfolio I mentioned above I will evaluate my investments whether to keep or sell. To put 10% in FD laddering is when I already have 3-6 months emergency funds in my savings account. Why FD for me? Treat it as "lock" savings and can earn more interest than savings account.

Other ideas on what to do with the cash:
1. Open PRS & enjoy tax relief at the same time
2. Open ASB/ASW account
3. Transfer into own EPF account
4. Save money for business capital
5. Learn skills & acquire knowledge/certification
6. Go for holiday for inspiration? Chinese saying: "Travel 10,000 miles is better than reading 10,000 books"

Be prudent, creative & discipline with your money icon_rolleyes.gif


sonicbull
post Feb 20 2014, 09:19 PM

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QUOTE(crest @ Feb 18 2014, 08:53 AM)
Hi guys, i found this a good read for our personal finance management from Li Ka Shing, HK richest man. do read up wink.gif

http://e27.co/li-ka-shing-teaches-buy-car-house-5-years/
*
Thank you for sharing! rclxms.gif I've read and I'm allocating my income & expenses now based on his teachings.

Based on % term from monthly income allocation by the HK tycoon:

30% - expenses
20% - treat friends/spend money on building network
15% - Buy books & attend courses
10% - go for holidays
25% - Savings

My expenses now is standing at 69% rclxub.gif
wongmunkeong
post Feb 22 2014, 02:42 PM

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QUOTE(kaiserwulf @ Feb 19 2014, 09:08 PM)
Your CAGR each year is better than WB!

I will be starting rebalancing portfolio after my upcoming wedding. Your sharing is very insightful. Trying to keep cashflow and reserves right for this since I am paying for marriage solo!
*
If you're interested in statistics (CAGR, Sharpe, Sortino, etc.)
Attached Image

from:
http://mebfaber.com/2013/09/26/how-does-a-...rategy-perform/
timw90
post Feb 28 2014, 06:44 PM

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Hi WongMunKeong,

Just finish reading through V2 and I must first say thank you for all you effort in helping others in such detailed manner. It has been a great help for me to gauge myself and help me learn.

I myself is a Wong biggrin.gif . 24 this year. Now its my turn to ask for yours and other member's advice. Here are my latest expenditure.

Gross Income: 2600
Net (After EPF): 2300

Food: 350
Fuel & Parking: 200
Medical Insurance: 200
Entertainment: 50

Medical Expenses: 400
-This is killing my wallet atm. Had an accident half a year ago and have been undergoing treatment till now sad.gif. Recovering and hopefully to clear this in 1 or 2 months time.

Total Left: 1100

I have 30k in FD atm (started last year Dec). 10k in Savings. 5k in ASB (Just found out about this last month). No house loan. 2nd hand car fully paid.

My plan now is to wait till this Dec and put all 30k into ASB. I saw you mentioned to have 6 months emergency in FD. However is it okay to put all savings into ASB? Is ASB liquid enough to be emergency fund? My plan is to hopefully max out ASB by age of 30. Then will look into stocks or property. Maybe marriage too.

Any advise to help me be better at my financial management? Any advise is welcomed.

Thank you!


max_cavalera
post Feb 28 2014, 07:07 PM

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sorry wrong thread tongue.gif

This post has been edited by max_cavalera: Feb 28 2014, 07:08 PM
wongmunkeong
post Mar 1 2014, 09:07 AM

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QUOTE(timw90 @ Feb 28 2014, 06:44 PM)
Hi WongMunKeong,

Just finish reading through V2 and I must first say thank you for all you effort in helping others in such detailed manner. It has been a great help for me to gauge myself and help me learn.

I myself is a Wong biggrin.gif . 24 this year. Now its my turn to ask for yours and other member's advice. Here are my latest expenditure.

Gross Income: 2600
Net (After EPF): 2300

Food: 350
Fuel & Parking: 200
Medical Insurance: 200
Entertainment: 50

Medical Expenses: 400
-This is killing my wallet atm. Had an accident half a year ago and have been undergoing treatment till now sad.gif. Recovering and hopefully to clear this in 1 or 2 months time.

Total Left: 1100

I have 30k in FD atm (started last year Dec). 10k in Savings. 5k in ASB (Just found out about this last month). No house loan. 2nd hand car fully paid.

My plan now is to wait till this Dec and put all 30k into ASB. I saw you mentioned to have 6 months emergency in FD. However is it okay to put all savings into ASB? Is ASB liquid enough to be emergency fund? My plan is to hopefully max out ASB by age of 30. Then will look into stocks or property. Maybe marriage too.

Any advise to help me be better at my financial management? Any advise is welcomed.

Thank you!
*
Koniciwa timw90,

You're too kind - it's just an interest +killing time while growing my thinking by practice smile.gif.

Anyhow, just quickies before i dive deeper yar (rushing quite a bit these days thanks to my bosses):
1. ASB is only for bumiputeras wor - U can invest into ASB meh? ASM?

2. Assuming ASB or ASM, 30K in FD - i'd suggest U split it between ASB/ASM +foreign equities.
AFTER U put aside >= 3 months' average expenses as emergency funds.
eg.
$30K less [ ($1200 mthly expenses -$400 coz this is just temp)* at least 3mths] = $27K+
thus, take $27K and divide into say
ASB
Developing Mkts like CIMBC25 (China biggest 25 listed in HK ETF), CIMBA40 (ASEAN ETF)
Developed Mkts like URTH ETF or VEA ETF or mutual fund like CIMB Principal Global Titans

The above is assuming U do have EPF yar - which, in my humble opinion acts as "bond funds", thus i didn't suggest bond funds above as investment asset allocation. BTW, if U want - U can even throw in some REITs from SGX (0% tax!) or KLSE REITs (10% tax) for dividends.

3. er.. $ in ASB as emergency funds? i'm unsure how fast U can get to that $ - if within 1 day, ok gua.
Personally, i've about 2/3 of my emergency funds in cash equivalent (flexi mortgage) +remainder in bond funds.
Why?
Coz my flexi-mortgage = immediate cashout if needed & its rates are at 4.x%, which is quite near average long term bond funds' returns of 5%-6%.
That 1/3 in bond funds is just "hope" to beat my 4.x% and yet can get out within 4-5 working days.
er.. note - i've 1+ year's emergency buffer, thus most probably wont even touch that 1/3 (touch wood tongue.gif )

Just a thought notworthy.gif
timw90
post Mar 1 2014, 10:44 AM

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QUOTE(wongmunkeong @ Mar 1 2014, 09:07 AM)
Koniciwa timw90,

You're too kind - it's just an interest +killing time while growing my thinking by practice smile.gif.

Anyhow, just quickies before i dive deeper yar (rushing quite a bit these days thanks to my bosses):
1. ASB is only for bumiputeras wor - U can invest into ASB meh? ASM?

2. Assuming ASB or ASM, 30K in FD - i'd suggest U split it between ASB/ASM +foreign equities.
AFTER U put aside >= 3 months' average expenses as emergency funds.
eg.
$30K less [ ($1200 mthly expenses -$400 coz this is just temp)* at least 3mths] = $27K+
thus, take $27K and divide into say
ASB
Developing Mkts like CIMBC25 (China biggest 25 listed in HK ETF), CIMBA40 (ASEAN ETF)
Developed Mkts like URTH ETF or VEA ETF or mutual fund like CIMB Principal Global Titans

The above is assuming U do have EPF yar - which, in my humble opinion acts as "bond funds", thus i didn't suggest bond funds above as investment asset allocation. BTW, if U want - U can even throw in some REITs from SGX (0% tax!) or KLSE REITs (10% tax) for dividends.

3. er.. $ in ASB as emergency funds? i'm unsure how fast U can get to that $ - if within 1 day, ok gua.
Personally, i've about 2/3 of my emergency funds in cash equivalent (flexi mortgage) +remainder in bond funds.
Why?
Coz my flexi-mortgage = immediate cashout if needed & its rates are at 4.x%,  which is quite near average long term bond funds' returns of 5%-6%.
That 1/3 in bond funds is just "hope" to beat my 4.x% and yet can get out within 4-5 working days.
er.. note - i've 1+ year's emergency buffer, thus most probably wont even touch that 1/3 (touch wood tongue.gif )

Just a thought  notworthy.gif
*
ASB. Lets just say I have the privilege of being a sino kadazan. icon_rolleyes.gif

All those foreign equities you mentioned above are stocks? cos I have no idea what you are talking about haha. I have just started reading up on stocks and have not master the language yet. Was introduced to Public Mutual. After reading about it, realize that their service charge is quite high :S so I thought why not read up on stocks yourself.

So even for ASB, you would not recommend putting all eggs into that basket? and I do notice the trend that people are investing outside of the country now. Is it true that the market in other countries are better atm?

Thanks again for your time smile.gif
wongmunkeong
post Mar 1 2014, 02:46 PM

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QUOTE(timw90 @ Mar 1 2014, 10:44 AM)
ASB. Lets just say I have the privilege of being a sino kadazan.  icon_rolleyes.gif

All those foreign equities you mentioned above are stocks? cos I have no idea what you are talking about haha. I have just started reading up on stocks and have not master the language yet. Was introduced to Public Mutual. After reading about it, realize that their service charge is quite high :S so I thought why not read up on stocks yourself.

So even for ASB, you would not recommend putting all eggs into that basket? and I do notice the trend that people are investing outside of the country now. Is it true that the market in other countries are better atm?

Thanks again for your time smile.gif
*
Ah.. so des ka. U are like my Portugese colleague - access to ASB thumbup.gif

Those ETFs are stocks, listed on KLSE (CIMBC25 & CIMBA40) and US (URTH, VEA).
U can google about ETF to learn what are Exchange Traded Funds.
In a nutshell - ETFs are like mutual funds BUT
a. they are listed on stock exchanges, thus can be bought/sold like stocks

b. lower cost to buy - buying stocks cost about 0.5% or less of the "value" received if U buy >= RM2.xxx per transaction VS mutual funds' 1.5% to 5.x% on NAV (think ETF's price as NAV for simplification)

Note - the only downside i see is this, every purchase must be >=RM2,xxxx per transaction else the cost of brokerage is > 2%. However, there are some brokerages like HLeB that offers cash account (ie. U must have exact or more $ than purchased) 0.1% or $8, whichever higher - something to that effect. Poke around.
For US listed ETFs, whoa.. if i do via HLeB, need to buy about USD8K per transaction to make the cost as a % worthwhile. Using OptionsXpress in SG (can open from MY without going over) is cheaper tongue.gif

c. lower yearly management cost - about 0.5% to 1%pa VS mutual funds' 1.5%pa to 2%pa

--------
Ok, on to opining:
d. ASB - personally, if i can buy into ASB, i'd use the ASB loans from CIMB, MBB, etc.
Heck - free $ since i make the spread. Only have to be wary for the 1st year+ payments +if i need to take loans for anything else, this ASB loan will show up in CCRIS (watch out yar - may affect your home buying or biz loans)
Thus i'd use cash into over investments

e. On the item of "market in other countries are better atm":
To me? Yes - specifically BRICs (Brazil, Russia, India, China) +Indonesia +Thailand
Reason: Their market's index's PE, are 10 and below VS KLSE >15 liao.
Google PE - in a nutshell, it's the "Price U pay / Earning expected to get". U want this low if U want to buy lelong value - like when Tesco or Giant have big blowout sales on milk powder max /family 5 packs tongue.gif

Hm.. if U've just started in your journey, don't be in a rush to jump in
IF U really want to jump in & get your feet wet, pls do so up to 50% of your available funds for investments only.
I'd suggest U google /read up (books) on ASSET ALLOCATION, VALUE AVERAGING, EXCHANGE TRADED FUNDS VS MUTUAL FUNDS, VALUE INVESTING.

Good luck with your journey - keep in mind, it's a bloody marathon, not a sprint! laugh.gif
timw90
post Mar 1 2014, 04:40 PM

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QUOTE(wongmunkeong @ Mar 1 2014, 02:46 PM)
Ah.. so des ka. U are like my Portugese colleague - access to ASB  thumbup.gif

Those ETFs are stocks, listed on KLSE (CIMBC25 & CIMBA40) and US (URTH, VEA).
U can google about ETF to learn what are Exchange Traded Funds.
In a nutshell - ETFs are like mutual funds BUT
a. they are listed on stock exchanges, thus can be bought/sold like stocks

b. lower cost to buy - buying stocks cost about 0.5% or less of the "value" received if U buy >= RM2.xxx per transaction VS mutual funds' 1.5% to 5.x% on NAV (think ETF's price as NAV for simplification)

Note - the only downside i see is this, every purchase must be >=RM2,xxxx per transaction else the cost of brokerage is > 2%.  However, there are some brokerages like HLeB that offers cash account (ie. U must have exact or more $ than purchased) 0.1% or $8, whichever higher - something to that effect. Poke around.
For US listed ETFs, whoa.. if i do via HLeB, need to buy about USD8K per transaction to make the cost as a % worthwhile. Using OptionsXpress in SG (can open from MY without going over) is cheaper tongue.gif

c. lower yearly management cost - about 0.5% to 1%pa VS mutual funds' 1.5%pa to 2%pa

--------
Ok, on to opining:
d. ASB - personally, if i can buy into ASB, i'd use the ASB loans from CIMB, MBB, etc.
Heck - free $ since i make the spread. Only have to be wary for the 1st year+ payments +if i need to take loans for anything else, this ASB loan will show up in CCRIS (watch out yar - may affect your home buying or biz loans)
Thus i'd use cash into over investments

e. On the item of "market in other countries are better atm":
To me? Yes - specifically BRICs (Brazil, Russia, India, China) +Indonesia +Thailand
Reason: Their market's index's PE, are 10 and below VS KLSE >15 liao.
Google PE - in a nutshell, it's the "Price U pay / Earning expected to get". U want this low if U want to buy lelong value - like when Tesco or Giant have big blowout sales on milk powder max /family 5 packs tongue.gif

Hm.. if U've just started in your journey, don't be in a rush to jump in
IF U really want to jump in & get your feet wet, pls do so up to 50% of your available funds for investments only.
I'd suggest U google /read up (books) on ASSET ALLOCATION, VALUE AVERAGING, EXCHANGE TRADED FUNDS VS MUTUAL FUNDS,  VALUE INVESTING.

Good luck with your journey - keep in mind, it's a bloody marathon, not a sprint! laugh.gif
*
Even after reading through V2.. I still cant catch all the words you say.. :S any book you could recommend for me to start reading up on all this ETF, and stock stuff?

also, for ASB loan. is it like car loan? where by the longer i borrow the more interest I pay? I thought ASB loan wasn't that attractive. That's why I didn't opt for it.

Thank you again for your replies biggrin.gif
wongmunkeong
post Mar 1 2014, 05:46 PM

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QUOTE(timw90 @ Mar 1 2014, 04:40 PM)
Even after reading through V2.. I still cant catch all the words you say.. :S any book you could recommend for me to start reading up on all this ETF, and stock stuff?

also, for ASB loan. is it like car loan? where by the longer i borrow the more interest I pay? I thought ASB loan wasn't that attractive. That's why I didn't opt for it.

Thank you again for your replies biggrin.gif
*
oops.. my bad - which words unclear ar?
List them or part of the sentence - i can clarify. My bad, sometimes i forgot i took me several umpteen years of reading +hands-on to learn. notworthy.gif

Books?
GENERAL
For investing as well as life in general tongue.gif
http://www.amazon.com/7-Habits-Highly-Effe...1800/ref=sr_1_3?
s=books&ie=UTF8&qid=1393666898&sr=1-3&keywords=7+habits

Simplify +Savings +Investing = Turbo
http://www.amazon.com/Secrets-Millionaire-...rds=T+Harv+Ekar

Cow sense investing
http://www.amazon.com/Four-Pillars-Investi...ds=four+pillars

ASSET ALLOCATION
http://www.amazon.com/About-Asset-Allocati...B6T1T1X7T07DC0R
http://www.amazon.com/The-Intelligent-Asse...B6T1T1X7T07DC0R

VALUE AVERAGING
http://www.amazon.com/Value-Averaging-Stra...s/dp/0470049774

ETF
http://www.amazon.com/Exchange-Traded-Fund...-3&keywords=ETF

VALUE INVESTING
http://www.amazon.com/Little-Value-Investi...value+investing
http://www.amazon.com/Value-Investing-Dumm...value+investing

BTW, pls note, IMHO investing <> trading yar.
Trading IMHO = biz where i buy product at low price & sell higher price, actively growing wealth.
Investing IMHO = systematically buying into companies or properties and passively growing wealth.

On ASB loan - i did a calculation for my colleague and it was worthwhile.. i gotta dig it out.
Did it for her a year back.. can't remember for sure whether flat rate (like car loan) or mortgage style (reducing balance or effective rate pa) - very highly likely = mortgage.
Anyhow, it doesn't matter what style as long as when calculated as "effective rate per annum" VS ASB's returns = makes sense with a spread of at least 2%pa smile.gif
Note though on my worries if U intend to borrow for buying home, biz, etc as ALL borrowings show up on your CCRIS report and your loan office may think U have too high a monthly commitment / too highly leveraged.

Just a thought notworthy.gif

This post has been edited by wongmunkeong: Mar 1 2014, 05:50 PM
timw90
post Mar 1 2014, 10:34 PM

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QUOTE(wongmunkeong @ Mar 1 2014, 05:46 PM)
oops.. my bad - which words unclear ar?
List them or part of the sentence - i can clarify. My bad, sometimes i forgot i took me several umpteen years of reading +hands-on to learn.  notworthy.gif

Books?
GENERAL
For investing as well as life in general tongue.gif
http://www.amazon.com/7-Habits-Highly-Effe...1800/ref=sr_1_3?
s=books&ie=UTF8&qid=1393666898&sr=1-3&keywords=7+habits

Simplify +Savings +Investing = Turbo
http://www.amazon.com/Secrets-Millionaire-...rds=T+Harv+Ekar

Cow sense investing
http://www.amazon.com/Four-Pillars-Investi...ds=four+pillars

ASSET ALLOCATION
http://www.amazon.com/About-Asset-Allocati...B6T1T1X7T07DC0R
http://www.amazon.com/The-Intelligent-Asse...B6T1T1X7T07DC0R

VALUE AVERAGING
http://www.amazon.com/Value-Averaging-Stra...s/dp/0470049774

ETF
http://www.amazon.com/Exchange-Traded-Fund...-3&keywords=ETF

VALUE INVESTING
http://www.amazon.com/Little-Value-Investi...value+investing
http://www.amazon.com/Value-Investing-Dumm...value+investing

BTW, pls note, IMHO investing <> trading yar.
Trading IMHO = biz where i buy product at low price & sell higher price, actively growing wealth.
Investing IMHO = systematically buying into companies or properties and passively growing wealth.

On ASB loan - i did a calculation for my colleague and it was worthwhile.. i gotta dig it out.
Did it for her a year back.. can't remember for sure whether flat rate (like car loan) or mortgage style (reducing balance or effective rate pa) - very highly likely = mortgage.
Anyhow, it doesn't matter what style as long as when calculated as "effective rate per annum" VS ASB's returns = makes sense with a spread of at least 2%pa smile.gif
Note though on my worries if U intend to borrow for buying home, biz, etc as ALL borrowings show up on your CCRIS report and your loan office may think U have too high a monthly commitment / too highly leveraged.

Just a thought  notworthy.gif
*
All those stock words and acronyms. I see them as alien words haha. No experience yet.

Thank you for the list. I think I'm going to get the "Secrets of the Millionaire Mind" 1st. Seems like an interesting book.

I know about the ASB loan affecting house loan thing. Was about to loan 200k, then I punch some numbers and realize it might force me to settle down with my job. I still have plans to further study. Do update if you find the excel spread sheet. Maybe I missed out some stuff while punching those numbers.

Was great having your insight on these matter. Cheers!
turbopips
post Mar 2 2014, 01:28 PM

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This post has been edited by turbopips: Jan 1 2015, 08:55 PM
bearbear
post Mar 2 2014, 02:06 PM

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lucky dude same like my chinese lady colleague who has some siam bloodline and considered as bumi officially.

by the looks of thing just dump what you have into asb keeping mayb few k as emergency fund. borrow the balance from bank to utilize your 250k quota. once u have more fund just replace it to your loan for asb. even with loan you are gaining something for free. 8% per annum or 2-3% with loan and relatively risk free, no brainer for me.

at the same time you can get yourself familiarize with all the investments.
3antz
post Mar 3 2014, 10:54 AM

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Hi all, I hear a lot about emergency funds, in your opinion what is the best way to store these funds? Do you place them in short term FD or high interest savings account? Thanks
Kellermann
post Mar 14 2014, 01:21 AM

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Good evening everyone. ...I badly need your opinion regarding - using ez payment (credit card) to pay for life/medical insurance..is it advisable?
An agent quoted me rm500/mnth (rm200 for my newborn son and and 300/mnth for myself)...thats 6k of debt...rite? I told him I preferred standing instruction, so I can pay every month..then he told me thats gonna cost me extra rm25..sure I'll save 25×12..but does it really worth it? Really dont like using my credit card this way... please advise from good personal financial management point of view....

Btw my total income 4k..b4 tax ...etc...tq for your reply...


alex_cyw1985
post Mar 14 2014, 06:08 PM

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From: Malacca



QUOTE(Kellermann @ Mar 14 2014, 01:21 AM)
Good evening everyone. ...I badly need your opinion regarding - using ez payment (credit card) to pay for life/medical insurance..is it advisable?
An agent quoted me rm500/mnth (rm200 for my newborn son and and 300/mnth for myself)...thats 6k of debt...rite? I told him I preferred standing instruction, so I can pay every month..then he told me thats gonna cost me extra rm25..sure I'll save 25×12..but does it really worth it? Really dont like using my credit card this way... please advise from good personal financial management point of view....

Btw my total income 4k..b4 tax ...etc...tq for your reply...
*
What do you mean by ez payment? the insurance charge to your credit card only, make sure you fully settle it every month, what is the debt you mean???

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