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

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MUM
post May 18 2021, 09:50 PM

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googled and found this,...

effect of compounding effect in share market
https://www.amgfunds.com/research_and_insig...ompounding.html
Suppose you invest $10,000 into Cory’s Truck Company. The first year, the shares rise 10%. Your investment is now worth $11,000. Based on good performance, you hold the stock. In the second year, the shares appreciate another 10%. Therefore, your $11,000 grows to $12,100. Rather than your shares appreciating an additional $1,000 (10%) like they did in the first year, they appreciate an additional $1,100, because the $1,000 you gained in the first year grew by 10% too.

If you extrapolate the process out, the numbers have the potential to grow as your previous earnings start to provide returns. In fact, $10,000 that returns 10% annually for 25 years would grow to nearly $110,000— and that’s without investing additional money. Keep in mind that the examples presented throughout this paper are hypothetical, and actual returns will be different, much less predictable and potentially negative.

more and some youtube too...
https://www.google.com/search?q=compounding...sclient=gws-wiz
MUM
post May 19 2021, 08:11 AM

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QUOTE(zenwell @ May 18 2021, 11:12 PM)
Thanks for this! is it only buying shares can have compounding effect? what about mutual funds, equity funds etc?
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maybe you can try substitute "Cory’s Truck Company" from that example; with something more locally known unit trust or mutual fund like TA Global Technology fund or Principal Asia Pac Dynamic Income fund.
then also replace the word "share" or "share price" from that example too with NAV or NAV price (for unit trust/mutual fund)....
just forget about unit distribution (if any) for that example.
then hopefully you can see better?

hmm.gif effect of compounding or effect of compounding interest? hmm.gif

This post has been edited by MUM: May 19 2021, 08:26 AM
MUM
post May 30 2021, 11:35 AM

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QUOTE(missfarren @ May 30 2021, 11:32 AM)
hi guys, where can i park cash that can be withdrawed fast? rm 50-70k?

epf ok if balance over 1 mill? how long epf take to wihdraw and can it be done online?
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mind narrow down your definition of "Fast"?
how many working days or hours is considered fast to you?

MUM
post May 30 2021, 11:41 AM

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QUOTE(missfarren @ May 30 2021, 11:38 AM)
prob 2-3 days

say i am keeping this money to buy a car but no stock yet.... unsure waiting time....
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then EPF is out...for it takes more than 2~3 days

hmm.gif 2~3 working days?.......try Money Market funds or eFD (now OTC FD is very troublesome)....

This post has been edited by MUM: May 30 2021, 11:42 AM
MUM
post Jul 25 2021, 04:35 PM

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QUOTE(langstrasse @ Jul 25 2021, 04:10 PM)
Hello folks,
I'm looking for advice on asset allocation in the current market environment.

For someone in mid30s - 70% of my net worth is in ASNB holdings which provide about 4-5% returns (this year will probably be 4% at best). After inflation, this is almost negligible returns.

My question - how are you splitting your liquid assets in current environment?
I have read about this rule of thumb below, but does anyone here actually implement this?
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if you had been "Happily" and contented with 70% of your net worth is in ASNB holdings which provide about 4-5% returns and known that after inflation, this is almost negligible returns. ....just stay with it....
it has alot to do with your risk appetite, risk capacity, past experience or environment exposure to investing.
Nothing wrong with that...for any change away from that may subject your money to added risk of losing some of it

previously what did you do with your rest of your 30% net worth?

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