no
only individual name if adult
if child yeah can join name as parent

May i know what app / website are you using to calculate? Mind sharing?

If you are non bumi but married to a Bumi, yes you can do a joint ASB-financing account with your spouse

You supply the income statements, spouse supply the account. She would be the main applicant



Android app, "financial calculator"

So let's say if your total cap is RM250k with RM50k being your softcap. Earlier in the year you need some cash and you withdraw RM50k from your account, then next year after bonus for example, can you put RM50k back into your account which would bring your total cap back to RM250k?

parking

This post has been edited by mousqy: May 3 2019, 11:04 AM

TH is crap nowadays, better park at FD instead...

TH just park minimum amount for haji and that's it. If already go for haji just close it down instead

U can make utube video series abt this since its valid argument, opinion on risks etc.. sure many ppl comments n monetise it lolz

good thread, TT!

wild_card_my

Where is the asb soft cap? Thanks

wild_card_my

Sent you PM on ASB loan inquiry. Do have a look and feedback. TQ

I have made a few, will continue to make them.

Thank you

This is not it. This is a Summary of distribution. I can't remember which statement it was, but my client printed it out and we managed to see it.

Sorry for the late reply. Just got back to you.

You got the idea!

But what you mean to say in the last part is actually "can you put RM50k back into your account which would bring your total HOLDING back to RM250k?" And the answer is yes.

Your total capping will NEVER decrease. Your holding may increase or lower as you deposit and withdraw you cash investments (including the received distributions), but the capping remain as it was, until it gets increased again.

Hope this is clear, but if it isn't I guess... I would have to make a video about this to explain it using pen and paper

I agree. I would avoid funds that are always in the news for the wrong reasons.

This is clear enough, thank you. For the benefit of others, you may want to make a video about this though

I thought I would. But my schedule

Feel free to ask anything here though, I enjoy responding to them

Firstly, thanks for the compliment. I also greatly appreciate the discussions and information that you shared. Thanks again.

I usually don't take things at face value as I believe in finding out the truth and understanding how things work. I consider myself an armchair economist and a hobby investor.

Frankly, I have been discussing this ASB financing and PNB offerings with my financial buddies infrequently during our get-togethers. With your confirmation of their not revealing the NAV of ASB, it seems like it works like a high coupon sovereign bond.

If the fund managers can continue providing the returns, then everything is good. I'm just wary of the fact that if they can't, and things go south, the fallout may be devastating to our economy especially our ringgit. High returns mean nothing if there is no value to the currency.

Some risks that I see.
1) PNB has 98%(!) invested locally, with 70% in the stock market and equities, representing 10% of the market cap of our local stock market! (Source: https://www.theedgemarkets.com/article/pnbs...e-grows-rm279b). If our economy slows down and if ASB is unwilling to reduce their distributions, the only way is for BNM to increase liquidity which will have an adverse effect on our currency. The fund size is RM279b (as of Mar 2018), which is more than half the size of BNM's international reserves (USD1=RM4.14). As you and I know, our stock market performance is practically flat past 5 years (excl. dividends) and is even underperforming regionally YTD. That's why after seeing your table of the distribution history, warning bells went off in my mind. Either the fund managers are oracles that can time the market, trading with insider info or something fishy is going on. I tend to believe the latter two.

2) The push for ASB financing. This is increasing liquidity by borrowing from banks and putting the faith on the people. In other words, use future money now from private banks, in the faith that the people will work to repay it and get rewarded. This is all good except that there is crazy pressure on PNB to continue delivering market-beating returns. And since ASB is so liquid, it could also be its downfall in case of a bank run of sorts. And if PNB can sorta "guarantee" these kinda returns, why don't they cut out the middle man (aka bumis) and just borrow from private banks? Yeah, this will then look bad on the affirmative action part, but it just seems inefficient to me as an economic-minded person. This is the main reason we (my friends and I) feel there must be some risk we don't know.

All in all, just my two cents. I really hope that everything is above board and PNB is truly doing an amazing job (nothing short of a miracle) to have such market beating returns year in year out (for 40 years mind you). I, myself have a small fortune in ASM and ASW2020 but the big bulk of my investments are in the global markets (non RM).

Let say borrow RM100k for 10 yrs, repayment around RM2k monthly (example)

So just standby RM24k-48k, auto debit for 1 yr or 2 yrs, next 8 yrs just use interest to pay the rest of loan

Possible issit? Let money pay by itself for long term

So what is the ideal tenure for RM200k actually so as not too burden (prefer RM2-3k monthly)...15 yrs ?

Btw grace period/cut off is 2 yrs before its worth the interest used for loan repayment rite ?

ASB has recently changed it fund category from EQUITY to MIXED ASSET, although I have not see much changes reflected in its holdings. Perhaps the returns wont be as aggressive as it had been in the past.

2. As for the "market-beating" returns, it is clear if we look at the annualized returns of ASB, they are not the market beater. Other unit trusts can beat them but due to the fact that their NAV is declared each day, thus the changes of NAV/unit on a daily basis, everyone's returns would be different from each other, even if the entry and exits are made just a single day apart

Yeah, this is called the auto rolling method. You would not end up with RM1.8M as I mentioned in the first thread, but in the end you would still end up with with "free" money. I dislike this method since you are incurring opportunity cost going forward

There are no hard and fast rule about the best time to cancel the loan. You have to look at:

1. the best current market interest rate over the effective rate you are paying now
2. the capital that you would have been returned to you once you close the loan account. This capital can be further invested as cash investment

So you can increase your financing but can you reduce it?
Lets say take 100k loan then you want to reduce it 50k some years later, is that possible?

How much can you salvage?

On top of the interest, do banks charge for insurance and sijil asb?

Its just one of the money u can commit.....