I have clients as young as one born in 1999 (daddy kasi). Father would become a joint applicant, the child will continue paying once reach the age of 25 when she would be stably working

OK la I let you in on it. The risk of ASB-f:

1. start of the year, you start paying your installment for the next 12 months at the rate of 4.85% p.a on RM200k that you borrowed.
2. next year, when distribution is announce. ZERO! No distribution!
3. You wasted 4.85% on RM200k paying interests for nothing!

That's about it I guess. You won't go bankrupt since your loan balance would be reduced to lesser than RM200k. When you close the account, the RM200k remains as is, the bank would only take the loan balance that is due to them

Hi, i am new to this ASB thing. Let say i have 200k on hand to spare rite now, can i park it in ASB instead of taking ASB loan? Is there such scheme in the first place?

And what is the duration expected to reach let say RM1 mil at the dividend rate of 6%. Thanks.

So non-bumi can get it or not?  :confused:

Returns is so now.
Still worth to take loan?

can you empty your ASB and ASB2 to say, ASM and ASM2, then take 200k loan for ASB and 200k loan for ASB2??

would be better no?

There are six fixed-price funds available to invest in. If you already have those filled up, you likely already know what you are doing.

So nice,  with these investment just concentrate on the career n retired as multi millionaire unlike doing biz with risk. Wonder is this only happening in Malaysia?

Not yet, I doubt it is coming anytime soon. They do not know how to do with excess capital since they are too new, at least compared to ASB which already has funds and prior investments due to its age
I know right? Plenty of people have made millions from ASB FInancing schemes. It is open to all races, Bumiputra as well as Non-Bumiputra. But it has a caveat:


By 18 you should ask them if they would like to open their own account, as they should be given the opportunity to invest on their own too. But I have been have young, 19 year olds to open ASB-financing as my clients. Their parents are paying and guaranteeing the financing of course

What if the dividend keep on reducing to a level at par with loan interest?

I don't know why I've arrived at a different conclusion to my initial expectation.

It seems, if you've 200k capital, it's better not to take the loan.

Alt 1:
Cash 200k

Alt 2:
Loan 200k + put all your cash in ASB2.

Conclusion: Alt 1 > Alt 2

the 283k is the profit from taking a 200k loan (also shown in page 1, although that internet calculator got some a slight error).

I did my own calculations but all these figures tally with the info TS posted in page 1. Loan compounding interest already included.

My problem with this calculation is here: that's RM 416k!

This ignores the concept of time value of money in finance. While you did deposit 416k in total by 992/month in 35 years, this value worth way more if you had deposited the same amount in an alternative investment with similar return. In this case, I take ASB as a benchmark.

Which mean, this 416k that you deposited over time, actually worth 1.5 million in the future. Thus, in computing the net profit, I need to subtract this cost, which is 1.5 million!

Maybe my way of thinking is too complicated and wrong ....

what do u all think about dividend on this year?

throw up your number here!

CUKUR LA ORG KITE

This. What holds most people from ASB loan/financing. Even they can see, won't acknowledge & probably ineligible to take it.

What matters is the total returns. 400k is the cost of investment.

Pay the bank 400k - get 1.8M after 35 years. (loan - 990/month)
Pay from your own pocket 400k - get 1.5M after 35 years. (own saving 990/month)

I non bumi
Dapat masok ka

ASNB app on your phone

On the app, you need to try to buy some units, then they will take you to the page where the will tell you what is your "baki boleh beli"

Do some maths, and you will know what your actual softcap is. Can ask here or any ASB threads if not sure

Easy. The accumulation of your distribution.

1. For example, you opened your ASB account in Dec 2018, you got an ASBF for RM200,000 and it was deposited into you account on Dec 2018

2. You won't get any distribution for Jan 2019 because of the monthly-minimum balance of Dec 2018 being 0

3. In Jan 2020, you will be getting RM11,000 as your distribution. Your softcap has increased by RM11,000 now and will not reduce even if you withdraw the RM11,000 you have just earned

4. Throughout 2020, you have been leaving RM211,000 in your ASB account. In Jan 2021, the distribution was announced at 6%. You earn RM12,660. Now you softcap has further been increased by RM12,660, thus bringing your total softcap to RM23,660.

5. Your balance in now RM223,660.  Suppose you withdraw RM23,660 form the account. Your balance is now RM200,000. Your softcap remains at RM23,660, which means you can deposit this much money into your account in the future if you want to

Yes but sometimes you would need to use this cash that you have earned through the distributions, consider it as an emergency fund. People who are not eligible for ASB have to go through FD, which has lower rate of return and locked down for months at a time to get the best rates.

We have access to this case and can use it anytime, and when we want to deposit the cash back in, we are welcome to do so. Isn't that wonderful?