Hi.

My Aunt suggested I buy ASB for bumiputras as she feels it is the best form of investment for bumiputra (high yield/low risk)...

However, I am still uncertain. Every investment has its risks right? What risks do I face if I buy ASB and max it out? O_o For bank FDs I know it is that banks only insure 60K of amount... Stocks can plummet and properties can remain stagnant or suck your money, etc... What is ASB risk?

Seems to good to be true to simply dump money there and get 'guaranteed' high returns(8-10% is relatively high to me as it is classified low risk...)...

Feedback plz?

I know that many people feel this way but I want to know what the risk involved is mah~ Past performance does not ensure future performance Scared la~ Seems to good to be true ne?

Sorry dear. I think the pampering is unfair too.

Ne? O_O I tot it was ASB that returns 8%? *shrugs* I dunno where to see ASB past performance All I hear about it was from word of mouth. Gah.

Anyways, I think I will go to the HQ and get as much info from them(any chance one of them fluent in english?) as possible then invest in it la. Less risky than UT I think..

Ohh... I see thank you for explaining! Beginner investor need alot of explaination cuz blur~

Btw, Muslims have to pay 'zakat' every year for their savings and investments (cash, stocks, gold, etc. Property excluded...) lah~ something like 2.5% of lowest yearly amount(if the lowest amount you have in bank savings or FD or at home under mattress or whatever that year was 20,000 as opposed to highest amount of 50,000 then must pay 2.5% of 20,000 as zakat) so it sort of evens out...

Hmm... If you are bumi then I also assume you muslim right?

7% wont be enough as you have zakat to fulfill every year dear...

so in effect you want to make 9.5% (zakat is 2.5% of lowest amount of your savings that year) to kautim 7%.

Not so easy to find investment like that.

What you can consider is buying a property for capital gain as well as income from rental (abit mafan finding & handling tenants but worth it if you willing to wait for appreciation).

The rest you invest in various stocks, UT, etc...

However, I notice you did not take into account inflation to your calculations... Inflation every year is anywhere from 1-2% to 8-10% (like this year-ouch!).

RM5000 now will not be worth the same amount 5 years from now.

Finally, I forgot to ask-Do you have any DEBT(car/house loan, student loan, CC debt, etc)??? If you do, I suggest paying up your debt so you don't need to worry about that anymore and maximise your monthly income for investments and such.

I am sorry but basically you need to fill us in with more info to get better suggestions.

P/S: I dunno how old you are but I don't think you should quit working unless you in your 50's++... Why don't you look for a less stressful more enjoyable job instead?

Ohhh very good Dreamer It didn't even occur to me to ask him if he had medical coverage and such.

Btw, Love no.5! LoL! "It is more complicated than this" indeed

If you tell us your age, it be easier to estimate what 'rest of your life' means O_o if you an old fart (70)who got maybe 5-10 years to live then sure enough if level of lifestyle you aiming for is RM5000 a month (barring medical complications and disease...). If you not yet retired 55-60, then not enough... Unless you mean to live in the rural area and spend your days fishing lor - then sure can if live in Klang Valley or Penang then forget it.

Of course, this is all speculative you know... You could get into an accident anytime if it was meant to be. Thus, a balance of enjoying life now and planning for the future is essential to be well rounded. No point being a scrooge then drop dead never enjoy But thats just me...

6mil??? Lets see...

6mil assume you put in 4% FD - 2.5% for zakat = leaves 1.5% which is 90K/annum
90,000 divided by 12 months = RM7,500.

However, this method does nothing against inflation and as the years go by - the value of your 6mil is corroded(by 3-8% EVERY year >< Assume 3% every year only... that means after 30 years, your 6mil worth like 3mil only & your RM7,500/mth is RM3,500-RM3,000/month instead). Also, my calculations are based on the fact you comply and fulfill zakat. If you don't then you have more $$$ la but thats personal religious obligations lar... Up to you.

Inflation is a BIG deal. Alot of pensioners who originally were 'comfortable' (RM500 just 30 years ago was worth a heck of alot more than today) now are below the poverty level. They probably rely on their children and whatnot to get by...

Seriously though, it is definitely possible to live without working with 5mil or more if you work it right... But I feel it is only possible if you got 5mil AFTER ensuring you have no debt, covered for medical insurance to the MAX, if you have dependants and give a shit about them -take out life insurance.

With 5mil(no debt+got insurance)... I would use 1-2mil to purchase 3-5 freehold middle range non-landed as well as landed properties to balance capital appreciation and rental income then hire a property manager to find tenants-deal with them-pay him his cut (10% of rental if I am not mistaken O_O) and relax, I would put 1-2 mil in UT and stocks to maintain certain amount of liquidity (it isn't easy to liquidate properties... process takes too dang long if you need $$$ fast), and the remaining I would put in ASB and FD...

Mind you this is VERY simplified version of what to do with so much moolah~ There are alot of considerations. If you have that much money, you worked hard for it so work just as hard to preserve it la...

Read up, research, ask for opinions, see several financial advisors and consider hiring one - BUT remember NOT to feel OBLIGED or FORCED to invest in anything you are not completely clear about or seems to blardy good to be true...

We can't help you if all you throw at us are million dollar figures. Age, risk level, dependants, work, insurance, lifestyle, etc all would help giving more solid advice.

Oohh~ excellent observation!

I took your RM106 multiplied by 12 months = RM1272/year

Then checked the compounded interest of 15 years for both lump sum RM10,000 vs annual addition of RM1272 with 10% return/annum

Then I used http://www.moneychimp.com/calculator/compo..._calculator.htm to see the outcome.

The result was surprisingly RM41K++ for the lump sum and RM49K++ for the annual addition!

which means people would benefit more by putting in money THEY HAVE as opposed to money THEY BORROW!

Would never have thought to check until you pointed it out Excellent!