Time not right for PNB to invest abroad, says Wahid

sos

Hi bro...u hv very valid question..let me try to explain

In the comparison, the basis is not 300k, but the basis is paying RM3,080 monthly for next 10yrs...which is RM370k.
So, to answer your question, the actual basis is paying RM370k over 10 yrs, with “loan and invest” compared to “no loan, but invest by force-saving, by assuming u have taken the loan”


Option 1

Eventhough i could get 300k loan, but there is upfront fees i have to pay...one-time cost abt 12k to obtain this 300k.

300k-12k = 288k, which is the actual amount which i can invest in ASNB. Thats why on Day 1, my loan value is 300k but ASNB investment value is 288k. Then i work out the spreadsheet assuming mortgage interest 4.3% and ASBN dividend 6% (assume both constant over 10 years)

Option 2

I don’t take loan, instead invest every month RM3,080, which is the same amount i pay to bank if i took the loan. Which is forced-saving method. In this option, i not need to worry about BLR movement and ASBN dividend trend. Risk free option.

Conclusion
“Taking loan, invest, pay refinance installment of RM3,080” could gives almost same return after 10 yrs, compared to “No loan, invest RM3,080 monthly in ASBN”.

By the way, i might miss some important variable as i only did quick spreadsheet by considering basic variable only.

This post has been edited by veera77: Nov 9 2017, 11:20 PM

Just case study only to gives some illustration..

if suprising we save 300 that month, suddenly one unexpected expenses will come and sapu that 300..ha ha.. yeah..i have went through this situation many times..

A bit off-topic, but for your info..only for self-employed, home-makers, working overseas, or anyone who not getting caruman majikan every month.

In Budget 2018, under KWSP’s Skim Persaraan 1 Malaysia, from 2018-2022, govt will top-up 15% on top of your contribution..but there is cap (RM250/year).

If u do backward calculation, RM250/15% = RM1,667
Mean, contribute every year RM1,667 (monthly RM140)...u get RM250 (15%) + KWSP dividend (5-6%)..which is total return of 20% per annum, for next 5 yrs.

But u have to go to KWSP and register under Skim Persaraan 1Malaysia first. Only if u are eligible.

http://www.kwsp.gov.my/portal/en/general/1...-savings-scheme

This post has been edited by veera77: Nov 9 2017, 11:46 PM

Is it wise take epf money for asnb?

Sorry, my 1.6 cents ...

There is a difference between the monthly RM3080 for option 1 and RM3080 for option 2.

In option 2, one will have to work to earn that RM3080.

In option 1, it is self generating.

Suggest to close here, agree to disagree. Otherwise we will replying till the cow comes home. Ha.

All the best!

If your epf more than 1M, then better take

what is the rationale?

To quickly summarise 2 key eligibility
i) Must be Under 55
ii) Currently NOT contributing with fixed income

Ok back to topic

Sure bro..ha ha..hope we could discuss more other topics in future...

Quick question, can one person setup second or even third ASNB account?

Scenario might be different for those who opt to go for longer loan tenure. Maximise the 30 years. Would you be willing to run the same numbers? Based on the current loan rates. I'm thinking of getting a RM 200K loan once I start working.

More than 1M epf no devidend

One IC one account

Too bad, I personally believe PNB should raise the cap

There's no limit the number of units on ASW2020, ASM and AS1M. Don't see the problem of limiting one person to one ASNB account.

why no dividend above 1mil? Doesnt sound right

Dear AOL24,

pls find spreadsheet 200k@30yrs

assumption
-4.5% loan rate
- 6% dividend tae
- no upfront fee
- dividend re-investment/compounding

i try to upload excel sheet for you, but its not allowed in lowyat forum.




Attached thumbnail(s)

Thanks for the info !

what is the conclusion?