Welcome Guest ( Log In | Register )

16 Pages < 1 2 3 4 5 > » Bottom

Outline · [ Standard ] · Linear+

 Opinion on financial planning for my family, for a 30's daddy

views
     
wodenus
post Feb 27 2015, 04:52 PM

Tree Octopus
********
All Stars
14,990 posts

Joined: Jan 2003
QUOTE(icai @ Feb 27 2015, 03:42 PM)
I'm now learning to pick up investment knowledge so to enhance the return of my investment. I have been reading an investment book mentioned that savvy individual investors might perform better than certain funds due to these individual investors do not have diversified portfolio and their investment portfolios could have higher risk than mutual funds.

So for my own investment portfolio, I only have 2 to 3 stocks that generate yearly return ranging from 10% to 15% (given the dividend yield that would be 12% to 17%), so I may not perform to manage a public fund compared what I did on individual basis.

Anyway, let me find out more on how to improve my investment skills so I can find a better career in fund management smile.gif .
*
Not necessarily. If you can pick 2-3 stocks that consistently yield 12-17% you are already fairly good.. and the consistent 2% dividend.. its quite impressive. You just don't realize how impressive that is. IMO you should really look into this, or you can start a weekend class in investing, lots of people would like to learn how to do that.
nexona88
post Feb 27 2015, 05:01 PM

The Royal Club Member
*********
All Stars
41,828 posts

Joined: Sep 2014
From: REality

Rm450/month for insurance is quite high.. really need to do something about it ASAP.
internet also can choose cheaper pack..

kucingfight
post Feb 27 2015, 05:04 PM

Look at all my stars!!
Group Icon
Elite
5,736 posts

Joined: Jan 2003
From: Shah Alam



i'm @ same age as you, though earning less.

assume combine nett income 9k (with wife)

expenses / month

a) housing loan = rm1650
b) 2x kids (1 & 4yrs) = assume rm1500 (milk, expenses, daycare etc)
c) Fuel = rm500
d) utilities bill = rm300
e) insurance = rm250 * 2 = rm500
f) groceries,meal etc = assume rm1500
g) 1x car loan = rm800 (another car is old car, imagine if we were to get another 2nd car)
h) car maintenance = assume RM100
i) security fee+ accessment fee = RM150

savings = 9000 - 7000 = rm2000

above figure does not include emergency/unexpected spendings (family holidays, etc) . oh well, we have and trying to live thrifty, and try to save as much as possible

Assuming, 2nd car loan = +RM800 , children expenses + RM500, it's pretty much end to the savings.

This post has been edited by kucingfight: Feb 27 2015, 05:11 PM
SUSMatrix
post Feb 27 2015, 05:15 PM

King of Char Siew!
********
Senior Member
15,022 posts

Joined: Jan 2003
From: Damansara Jaya/Bandar Utama


QUOTE(icai @ Feb 27 2015, 04:42 PM)
Too bad that I have already bought a car which is a sunk cost now sad.gif , so I have to suck it up. sweat.gif . I try not to drive my car to work and I instead took bus/LRT to office so to save some travelling costs. But after getting married, I have to drive my wife to work (my wife has her own car, but now I fetch her to work). My wife and my office are close so cost of travelling by car shared by 2 persons should be reasonable.
*
Got wife and kid, no choice lar bro. You need a car. Me and wife drive separate cars also. And yeah, my travel also short distance. I only pump fuel about once every 2 weeks if i didn't go anywhere far, eventhough my car is fuel sucking in city drive. No toll also. thumbup.gif
Hapeng
post Feb 27 2015, 06:55 PM

Regular
******
Senior Member
1,021 posts

Joined: Jun 2008


Don't see any excessive expenditures on your part TS.
Like the others have pointed out, you're in your prime and in a somewhat positive net cashflow position. So tough it out, save as much bonus as you can.

When you get your raise, please try to maintain your current expenses and you will find savings there
TSicai
post Feb 27 2015, 07:09 PM

Getting Started
**
Junior Member
75 posts

Joined: Feb 2015
QUOTE(gark @ Feb 27 2015, 03:19 PM)
If I were you I would stop worrying on BLR 35 years down the road, I am sure your income will rise faster than BLR can rise.  Or even if your life can beat the 35 years loan... tongue.gif

Also I would not worry on trying to squeeze water out of rock, but as much as you can trim your expenses will be good. Especially a few more years down the road where your kid will attend kindergarden/school

Instead of thinking/struggling on how much you can save, I would be more interesting to work on the asset you have above, and how to maximize the value and grow it. There are many ways to invest and they can be fruitful in the long term. This forum is all about investing and I am sure you can pick up a few pointers here and there.  laugh.gif

Compound interest/gain is a very powerful tool.. given enough time... icon_rolleyes.gif
*
As I plan to setup an emergency fund, so the FD of 20k will always be left untouched (I might even increase the amount amid increase of expenses due to inflation). So I will only be able to grow the stock portfolio amounting 50k and will pump in more savings into this portfolio.

Indeed I calculated that with an initial investment porfolio of 50k and an annual return of 10% and I will continue further invest additional 20k annually, I will be a millionaire in 13 years. If the annual return can be improved up to 15%, the years to be a millionaire would be 16 years. However, a million could be a small amount after 13 to 16 years sad.gif .
TSicai
post Feb 27 2015, 07:13 PM

Getting Started
**
Junior Member
75 posts

Joined: Feb 2015
QUOTE(adele123 @ Feb 27 2015, 03:27 PM)
Ok. Point. Insurance is important but still 250 for medical alone is very expensive. My mum’s medical is 2.8k a year and she’s above 60. If your plan is investment-linked, reducing premium is possible. OR, this is a big OR, someone who gets 4-5months bonus I assume works for a company that at least gives medical coverage. You can opt for a medical insurance with deductible, save you 30% - 40% or so. I think it’s doable, given your age, to tweak the insurance, without sacrificing what you intend to leave behind for your dependents.

Like someone else mentioned, most of the expenses are pretty much fixed. Well, the only thing that can cut is really that 600 you give to your parents but I don’t want to ask people to be a lousy son. Lol.
*
I didn't further elaborate the medical plan so some friends here could be misguided:x . My RM250-insurance plan is not a pure medical plan, it is an insurance plan with medical card, 36 critical illness, death and total permanent disability coverage (sum assured amount up to 350k). After some due consideration, I will cancel the RM200-life insurance.
TSicai
post Feb 27 2015, 07:30 PM

Getting Started
**
Junior Member
75 posts

Joined: Feb 2015
QUOTE(cfa28 @ Feb 27 2015, 03:40 PM)
I was am in your current position

Cut what you can cut

a) Unifi
b) Reduce Parents by RM100 every mth - but if got bonus, buy them / treat them

Use your Bonus to settle your Car Loan - free up RM800++ per mth

You're doing okay Bro

Been there, still there
*
As I don't have much entertainment activities except watching movies and reading e-book online, so I won't cut the Unifi. I also not going to reduce contribution to parents, because they relying on that to partly fund their retirement.

By the way, even I save the bonus, I won't use this to settle the car loan. Car loan repayment is fixed, so even if I paid more, the excess payment would be treated as advance payment and not going to reduce the interest on my car loan. Secondly, the car loan interest is pretty low, so it would be more feasible for me to invest the saved bonus and generate an annual return of 10% which is higher than the car loan interest rate?
jutamind
post Feb 27 2015, 07:42 PM

Look at all my stars!!
*******
Senior Member
2,203 posts

Joined: Jul 2007
Why not changing your stock investment strategy to high yielding stocks? At least the dividends quarterly/half yearly contributes to the cash flow


QUOTE(wodenus @ Feb 27 2015, 04:52 PM)
Not necessarily. If you can pick 2-3 stocks that consistently yield 12-17% you are already fairly good.. and the consistent 2% dividend.. its quite impressive. You just don't realize how impressive that is. IMO you should really look into this, or you can start a weekend class in investing, lots of people would like to learn how to do that.
*
Hansel
post Feb 27 2015, 07:46 PM

Look at all my stars!!
*******
Senior Member
8,950 posts

Joined: Aug 2010
When your chld strts primry school, the costs may go dwn a bit compared to whn he/she was a toddler, thtis of course, if you live frugaly, as in gg to a gov't primary school, getting tuition fr only nec subjects, or you tech the child at home.

Whn the child starts secondary school, thn the expnses will go up frther.

Pleae do budget for the abov.
TSicai
post Feb 27 2015, 08:13 PM

Getting Started
**
Junior Member
75 posts

Joined: Feb 2015
QUOTE(sinbad2k @ Feb 27 2015, 04:07 PM)
In my opinion, expenses you can consider cutting:

1)Unifi
Downgrade to Streamyx or choose other cheaper broadband packages.
2)Insurance??
If your insurance only covers yourself, I think it's quite expensive. Change to those that still provide basic TPD & Critical illnesses coverage with cheaper premiums.
3)Reduce allowance to parents?
This is really up to you. If things gets really tough, you probably have to cut this.
4)Medical Insurance
Yours sounds expensive to me. I don't recall paying so much monthly for mine
*
1) Unifi - I don't have much entertainment activities except watching movies and reading e-book online, so I won't cut the Unifi

2) Insurance - I will cut the life insurance so to save RM200 monthly premium.

3) Contribution to parents - My parents relying on the amount of RM600 to partly fund their retirement.

4) Medical insurance - this plan is not a pure medical plan, it is an insurance plan with medical card, 36 critical illness, death and total permanent disability coverage (sum assured amount up to 350k).
TSicai
post Feb 27 2015, 08:16 PM

Getting Started
**
Junior Member
75 posts

Joined: Feb 2015
QUOTE(Matrix @ Feb 27 2015, 04:11 PM)
Disagreed. You should use extra cash to settle your housing loan instead to reduce the interest in the long run. Car loan is fixed. You pay all also the interest reduction is very little.
*
Agree, I will not prepay car loan. Anyway, I will invest my savings in stock market instead of prepaying house loan, because stock market return is higher than house loan interest rate.
TSicai
post Feb 27 2015, 08:19 PM

Getting Started
**
Junior Member
75 posts

Joined: Feb 2015
QUOTE(cfa28 @ Feb 27 2015, 04:14 PM)
To me its not about interest but cashflow

If you got a bonus of RM40K

Paying RM40K for the HL only eases RM20K * 4.65% = RM930 in interest per year

But paying this RM20K means he does not have to service the Car Loan anymore and frees up the monthly instalment of RM800++

We all have different perspectives
*
As I have mentioned before that car loan repayment is fixed, so even if we paid more, the excess payment would be treated as advance payment and not going to reduce the interest of the car loan.
TSicai
post Feb 27 2015, 08:21 PM

Getting Started
**
Junior Member
75 posts

Joined: Feb 2015
QUOTE(gark @ Feb 27 2015, 04:17 PM)
All insurance company sells term life insurance. Agents will not promote or or deliberately discourage you because they get only very little tiny commission for selling term life. Try to inquire directly with the company.

That what makes the term life insurance cheap n good.  rclxms.gif  rclxms.gif

Remember insurance agent 95% is trying to line their own pockets instead of looking out for what is best for you. Unless you meet the rare 5%, most will only try to promote the most expensive ones with UT attached as they give the highest AND recurring commission.
*
I see. Most of the agents are having conflict of interest with the consumer. Anyway, I will cancel the life insurance to save some costs.
adele123
post Feb 27 2015, 08:41 PM

Look at all my stars!!
*******
Senior Member
4,414 posts

Joined: Jul 2013


QUOTE(icai @ Feb 27 2015, 07:13 PM)
I didn't further elaborate the medical plan so some friends here could be misguided:x . My RM250-insurance plan is not a pure medical plan, it is an insurance plan with medical card, 36 critical illness, death and total permanent disability coverage (sum assured amount up to 350k). After some due consideration, I will cancel the RM200-life insurance.
*
actually i did guess it was a all in one. which is why the more reason to cancel another. tongue.gif

just want to make sure we are on the right track, the one that is 200 per month, is pure life insurance or endowment or what?

also IF the other one is an investment-linked plan, you can ask for increased of sum assured as well. IF you think 350k is not enough, but i guess at this point for you, more may not equal better.
Hansel
post Feb 27 2015, 08:46 PM

Look at all my stars!!
*******
Senior Member
8,950 posts

Joined: Aug 2010
QUOTE(icai @ Feb 27 2015, 09:21 PM)
I see. Most of the agents are having conflict of interest with the consumer. Anyway, I will cancel the life insurance to save some costs.
*
You need cashflow now, my friend, since you are thnking about invsting in equities and REITs. Whch is why I would prpose tht you go wth more yield instrments. About yr sure-fire stock pick netting you 12% to 15% cap gain per yr, I suppose you are mor a trader, ie buyng and selling to mak this 12% to 15% gain, right ?
jasminteddybear
post Feb 27 2015, 10:44 PM

Getting Started
**
Junior Member
52 posts

Joined: Feb 2014
So sad that this is the way that Malaysian Are living and 6000 is considered as middle class by our minister =(

Bro, I feel for you as well but there is seriously nothing much that you can do about it. maybe you can try to increase side income. Have you considered insurances or other network business that you can do during your weekend? cause your baby still small so might have more time to boost your income.

If the answer above is no, then maybe you can look into going oversea to work. then you have toleave your kids and your wife =(

If not then hope for a promotion lo... pray that they give you more.
cherroy
post Feb 27 2015, 10:49 PM

20k VIP Club
Group Icon
Staff
25,759 posts

Joined: Jan 2003
From: Penang


QUOTE(icai @ Feb 27 2015, 08:13 PM)
4) Medical insurance - this plan is not a pure medical plan, it is an insurance plan with medical card, 36 critical illness, death and total permanent disability coverage (sum assured amount up to 350k).
*
If so, you may already bought a "duplicate" insurance already.

Critical illness, TPD are those covered in life insurance generally.
Medical insurance got CI and TPD
Life insurance also got CI and TPD.

This post has been edited by cherroy: Feb 27 2015, 10:49 PM
TSicai
post Feb 28 2015, 09:15 AM

Getting Started
**
Junior Member
75 posts

Joined: Feb 2015
QUOTE(cherroy @ Feb 27 2015, 04:22 PM)
You are breadwinner of family, but yet leave little saving every month.

Mind that it is the saving which will cater all emergency need of money, not insurance.
If you are the breadwinner of family, the first priority is always rack up saving, not rack up insurance.
There are plenty of incident that your insurance is not going to help up your family if anything happened to you.
Insurance is not a magical tool that cover every aspect of loss of income incident.

Insurance doesn't cover your retrenchment, but saving does.
Medical insurance doesn't cover everything, it has its own scope, but you saving cover you all.
So does life insurance has its own scope of coverage.

Over-insured and left with little saving is not something advisable.

Rm450 per month for insurance is quite a high number to start with especially with little saving left, if one has ample saving left, then Rm450 per month may not much.
*
Thanks for your good advice.

Initially when I bought the life insurance, I was thinking to use the sum assured of the life insurance to cover the housing loan amount of RM400k. After second thought, I realise it would be cost effective to top up the sum assured of my current medical plan, which includes critical illness, death and TPD benefit, and the top cop cost will be much lower than the current life insurance premium of RM200 monthly.

I am also considering to cancel the medical card coverage from my existing insurance plan in order to save insurance costs, because my company does provide medical card plan for staffs.

By having removing extra insurance premium, I think I might be able to save RM100 to RM150 monthly smile.gif .
TSicai
post Feb 28 2015, 09:26 AM

Getting Started
**
Junior Member
75 posts

Joined: Feb 2015
QUOTE(pisces88 @ Feb 27 2015, 04:29 PM)
nice write up, detailed calculations.

Its scary how much little is left for someone earning 6k a month. how about those earning below 4k and married =/

Look into cutting down the insurance premium. Also, your car will be settled in 2 years, so probably you only need to grind your teeth in these 2 years (assuming you dont change your car in 2 years tongue.gif) then you'll have more to save.
*
Yup, nowadays RM6k to RM7k salary not enough for a family with 1 or 2 kids cry.gif .

Yes, I will cut down on insurance premium, and hopefully 2 years I will have more positive cashflow after fully settled my car loan. I also plan to withdraw EPF money yearly or half-yearly whenever my EPF account 2 got extra amount with the reason to reduce/redeem house loan.

This is what I find out from the EPF website to withdraw EPF money to reduce/redeem house loan.
http://www.kwsp.gov.my/portal/documents/10..._D8_Jun2014.pdf

My current company does give higher employer contribution up to 15% for my EPF, together with my own-11% contribution, there is a total of 26% of salary being contributed to the EPF monthly. My 4-month bonus will be charged of 26% to contribute to the EPF. Out of this total EPF contribution, there is approximately 30% will be allocated to EPF account 2 and I can withdraw account 2 money to reduce the housing loan. Of course I do not plan to reduce the house loan with the EPF withdrawal, instead I want to increase my savings and also investment because I believe my investment portfolio return will be higher than house loan interest rate.

Below is my estimate yearly withdrawal amount from the EPF account 2:
= [(6,500*(0.11+0.15)*12)+(4*(6,500)*(0.11+0.15))]*0.3
= 8,112

16 Pages < 1 2 3 4 5 > » Top
 

Change to:
| Lo-Fi Version
0.0207sec    0.19    6 queries    GZIP Disabled
Time is now: 29th March 2024 - 02:52 PM