what's the big deal about compounding return? EPF giving compounding dividend, but I'm getting less in the one declared this year (for 2018) vs declared in 2018 (for 2017). If the percentage drops, it has little meaning, at least, to me.

Today very quite. Not much units to sapu .. others ?

cincai also got 1k+2k ASM2/3. quiet meh?

Interest on the loans are paid based on a reducing balance. As you pay your installments, your interest payments get reduced.

On the other hand, you are probably already clear about compounding. For those who don't, compounding returns takes into account the previously accumulated returns plus capital when calculating the upcoming return

So in general, people who keep on mentioning 4.85% vs 6.5% really has some understanding to do. For example of actual calculation: after 5 years of taking up RM200k financing, the 4.85% interest on a loan balance of RM189k yields a different number than a 6.5% on the now compounded RM275k value.

"what's the big deal about compounding return?" not sure if you are trolling by purposely being ignorant. But for the sake of professionalism, I will adapt Husnuzon, which is translated to "Bersangka Baik".

In any case, compounding interest is a very powerful force. "Albert Einstein famously said that compound interest is the most powerful force in the universe. He said, “Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn't, pays it.”

Are we really going to talk about compounding returns in this thread?

That's true. Provided all things being equal at that dividend being maintained. Right now I see the dividends on a down trend from 10 years back.

we can talk about anything here.

#define trolling. I've given my example. if you have doubts, look at the amount of money you received for 2017 dividend vs 2018 dividend in your EPF statement.

tell me how it is powerful if the % goes down. i only know it's good if the % doesnt go down over time

This post has been edited by beLIEve: Dec 6 2019, 03:48 PM

You are lucky bro..i got all the 100 200

i thought you early morning sapu alot already?

my ASM1 is slowly shrinking. later cannot see already

then we can discuss the compounding returns, and when I said returns, it includes negative returns as well. Thus you may even have negative returns over the years like properties, or depreciation like cars.

But to talk about 4.85% vs 6.50% is just a folly, as if you can't relate the reducing balance interest (4.85%) vs the compounding returns (6.50%)

When discussing future returns, all parties involved in the discussion must accept a figure for the returns, and these returns do no fluctuate (they will, but for the sake of discussion and calculation, they do not), if you keep on talking about your EPF, do know that the minimum return they need to give is 2%. Why don't you take whatever balance you have now in your EPF and compound it by 2% p.a.

4.85% vs 6.5% is a start. It gives an indication of the expected premium earned. Nothing wrong with that.

yes i know EPF minimum is 2%

unless you're saying that ASB has a committed minimum return rate of x%, i still don't see how compounding return makes a lot of difference. you get compounding return, but % drop by same amount.

Yes, it is a good start because the interest rates dont change too wildly over the years. 6.5% is also a conservative figure compared to the actual return of 7.0% p.a. for ASB last year - i may be proven wrong in a few weeks time when they announce their returns for 2019 investments haha

But the discussion earlier was the center point that irked me. Most non-bumiputras as so invested (in both knowledge and monetarily) in properties, you know how to calculate your returns (rental and capital appreciation), you understand the effects of variable interest rates on your loan balance, including amortization, etc. But a good number simply refuse to understand ASBF

The loan/financing component of ASBF and mortgages are completely the same (reducing balance interest calculation), and the returns in the form of distributions that can be compounded over the years, based on a fixed-original-capital are also easy to understand.

Why tak faham? Simply buat2 tak faham is it? hehehe

Btw, I know plenty of Chinese uncles and aunties that recruited young ASB-eligible dudes to proxy their investments. They understand, why don't you? I am not trying to pick a fight here, but can we please stop it with the "6.5% - 5% = only 1.5% net returns? What is the point?"

This post has been edited by wild_card_my: Dec 6 2019, 04:09 PM

you guys so lucky...
I totally din get any for today....

maybe today is a dry day. not many can strike on a dry day.

you got try nonstop?

dry day?
haha, ya i keep on spam until kena block, then spam again...

Dry day = day when little units available. A few such days I got only 100 units

Got tried during lunch, tak dapat

ok loh. guess i 身在福中不知福. was focusing on ASM1 since my % is shrinking by the day. so didn't bother so much about these. simply try only. strike I still pick up lah. didn't get any ASM1.

Finally I got RM100 for ASM 2. Thanks guys...
It's my first time got for fixed price fund =)
Will keep on continue my effort in the future

congrats! hope you will be able to buy more