55

Cannot afford to hire you lei... bodyguard richer than the master...

Yes if u refer to JPY

Updated portfolio.. Going downhill again..

And here I am DCA-ing and second-guessing myself

So guys, once you're down, say, 7% of the value though within what you're prepared to risk, do you

i) prepare to cut loss
ii) screw it, I'll average down!
iii) look at another fund to reduce overall volatility to feel better that average is still in the green

I understand from my time here that it'll, for instance, be tiring to chase / time the market (xuzen) and continue averaging down (master Wong).

Since we all have goals in mind and don't plan to be invested forever, how should I go about making sure the longer term goals are achieved in good time?

So far for the past few years... only cut lost on 2 funds which is Gold and General and Energy Fund. Rest all funds.. I just let it ride and top up small amount when seeing down trend. Sakit hati also when seeing portfolio value going down and down..

I don't see maybank offering 4.31% for 12 months?

I look at point (iii). Usually UTF is benchmark hugging. When its benchmark goes up, it follows and vice-versa. When market goes up, it is easy for the UTF to go up and we all think that the FM is awesome / great / guru etc.

But the real skill is when market goes down such as time like this. Then you will really know which FM-UTF is really skillful.

Xuzen

Your point above brought to my mind something about asset allocation. I am your typical Malaysian (unker mindset). Meaning I do not have a Panama account or UHNW private banking facilities at BVI or Cayman's.

I do not own a big RM 6 Million villa or expensive cars. I work for a salary, own one MyVI, and a Honda City. One old one storey bungalow house (passed down from parent) for own domicile and an old shop for rental (also passed down from parents).

1) Notwithstanding the above, a substantial portion of my wealth is locked up in KWSP. And I know that KWSP major holding is in Malaysia Govt Bond and Large Cap Malaysian Blue Chip stocks. Therefore it is quite logical to think that my wealth is exposed to the asset described as above. As such, when I participate in KWSP-MIS program, it is therefore logical for me to choose UTF that is exposed to small and mid cap. And for fixed income portion I choose UTF that are exposed to Malaysian corporate bonds to give an even more diversified portfolio.

2) For PRS, I participate in Affin-Hwang Moderate fund. This PRS fund is Asia-Pac ex Japan exposed. Therefore when I buy cash UTF, I avoid Affin-Hwang UTFs as to avoid having duplicating holding.

3) This leaves me with gaps in the developed market (US, Eurozone, JP), Properties and Commodities. As such, for Developed market, I choose GTF as proxy to access Developed Market. For properties, I am still looking for a good REIT to invest (considering Manulife Asia-Pac REIT fund). Whereas for Commodities, I will stay at the sideline first as this asset class has been performing very badly these days.

4) I do not consider forex or holding paper currency as a proper asset class. Currency to me are just paper. They have no intrinsic value.

The above are an example of proper asset allocation.

Xuzen

This post has been edited by xuzen: Apr 27 2016, 11:12 AM

dude - have a plan

eg
A) Accumulation phase: (maybe up to age 50? ie 5 years before planned retirement?)
IF market goes meh..
THEN.. DCA / VCA

IF market goes VIAGRA!
THEN...
eh which one went way too crazy? eg 60% net profits in less than
eh which one went way out of my Asset Allocation or sub-allocation? rebal rebal - sell high, buy low

IF market goes limp / suicide squad
THEN...
eh which one went on suicide mission due to depression/sad? can buy MORE ar? big lelong ar? or simple 10%-20% discount je?
eh which one went way out of my Asset Allocation or sub-allocation? rebal rebal - sell high, buy low

Personally i only average down on BUCKETs of investments or long time high quality companies (think Nestle, PBank, XOM, CVX, MCD, etc.). If a mutual fund goes meh meh and down for 3 years+ straight VS similar funds in that sector/country, i move the sum to another fund (same sector/country).

---
B) Retired phase: (maybe up to age >=55? )
different sets of IF THEN ELSE

---
C) Moving from (A.) to (B.) Bridging actions' IF THEN ELSE
different sets of IF THEN ELSE

---
Simple right?
U know why the saying "Kerbaus makes $, Beruang makes $, Khinzir gets slaughtered"?
Coz "Khinzirs" don't have any plans or thoughts BEFORE hand.

Another famous thought: U shouldn't draw your fire-escape plan DURING A FIRE, right? It should be planned BEFORE it happens.

No absolute right/wrong plans ya - unless one happens to be totally illogical AND unlucky .

thanks for the insight

It was on the Maybank onsite. The terms are:-

(1) Minimum deposit of RM10K. Lock in 12 months.
(2) E-deposit only. Meaning for Maybank 2U customers only.
(3) Promotion ends 30th April 2016 or when the fund is full, whichever comes first.

So, if you are a Maybank2U customer, just try e-deposit online and see if the promotion is still on?

Better use maybank eGIA-i. 4%. Place today, van withdraw tomorrow and still get 4%p.a interest for 1 day placement. more flexible.

Off topic a bit.

When I analyse some rich clients and friends to see how they became rich, it was either by:-

(1) Property investment. I am referring to long term investment with more than 5 rental properties. Not property flipping;

(2) Running their own business, being housing developer, rubber factory, electronic factory, construction line, etc.; or

(3) Inheritance because their family is rich.

Sad to say but I have not seen one person who has become rich from unit trusts investment alone. I have also not come across a person who became a millionaire from trading in shares (excluding those who became rich through insider trading or maybe playing contra?).

But having said that, speaking from experience, a white collar worker with a university degree will earn at least RM1 million in his working lifetime. Whether he will become a millionaire in his retirement age will depend on his savings and spending method, not on his investment. Without savings, there is no money to invest in the first place.

This post has been edited by Vanguard 2015: Apr 27 2016, 05:08 PM

hehhe - i aim to be "the first"
Check 1. not a property enthusiast BUT have bought/rented out/sold before

Check 2. definitely NOT a businessman - i'm a 1010110 guy, nerd + introvert (except when talking about things i'm passionate about.. like $ & risk mgt, investing, usable statistical approaches to investing AND trading

Check 3. Family is typical 1 man working for $ + 1 woman working @ home for baka kids (i'm one of them)

Check 4. Not a stock trader or day trader per se but i do set aside 10%+/- for "pasar malam" (options) trading (it's tough work, not as passive as value averaging & value investing)

Realistically, i'm 100% sure i won't be the first or last - heheh, any monkey that can save >=33% of working income & 100% of invested/business income sure can hit millionaire (investment assets) status. The main fight is how one prioritize one's money allocation - some prefers a new car every 5 years (with 5 years loan), overseas vacations, etc. No right/wrong - just priorities.

The real game IMHO is USD or Pound Sterling Millionaire and.. DECA MILLIONAIRE

This post has been edited by wongmunkeong: Apr 27 2016, 05:36 PM

kgf and esiscf going red. damnnnnn

True, true also.

I do not see UTF as a means to become rich. I see it as a vehicle to preserve wealth and to beat inflation.

Xuzen

See! See how illogical investors are! 1MDB is a bond default issue; and this cause equities to tumble.

Xuzen

yep... the good thing about UT, some funds - some years they are on steroids going up, some years they go south.

For me, UT is long term - 20-30 years.. no emotion just use DCA.
just like what Xuzen mentioned, UT is more of "preserve wealth"

Preserving wealth? I thought that's what people say about gold. (Warren Buffett may disagree.)

UT is for growing capital. Definitely not for quick gain.