Different people have different goals/targets in life. Some live in the now and only for themselves, others think about the future and their loved ones.

Nothing wrong with wanting to protect your nest egg. Good on you bro.

All about priorities la Bro... 18 years ago I was earning 2k also took full 200k loan and I survived. When just starting out stay in parents house, naik bas, makan ala kadar, no fancy restaurants la... Travel letak tepi dulu, enjoy life later and get a gf yg understanding low maintenance... Lol

For salary earners work smart and work your way up the ladder. But then again current generation have a different way of thinking... End of the day, all about priorities

Back in 2000, 2k may be worth more than the 2k in 2018. But still.... not that much of a difference. Can still make it if you really put your mind and effort into it.

Alhamdullilah that first 200k loan was left in there to compound and now 18 years later I've upgraded to 600k ASB loan (400k ASBf (it was possible then) & 200k ASB2f) and earning dividends on almost 1M thanks to the power of OPM. All this from pure ASB growth and strategies. It is possible thru systematic execution of the strategies and techniques prescribed by this forum and another forum

Rolling back method? You mean rolling the dividend to pay for the installments for the following year?

This post has been edited by buggie: Jan 30 2018, 08:28 PM

Long story short, I left the dividend in there all these years and never touched it.
Took my first 200k loan when i was 24.
After 10 years it grew to 400k (200k cash from dividend)
Then took another loan and transferred the 200k cash to ASW and ASD since no ASB 2 back then. So- 400k ASB sijil + 200k cash in ASD/ASW equals 600k
Transferred to 200k to ASB2 when the fund was created
After 7 years compounding 600k, got another 200k cash. = 400k sijil + 400k cash
ASB2 loan was introduced last year so I took it. Transferred the 200k cash in ASB2 to ASD again
So now is 600k sijil + 4++k cash. Took out almost 100k to renovate my new house so now left 950k


Some facts:
- The figures above are rough approximates.
- Everything here is pure organic growth and injections by way of asbf/asb2. None of my own cash was injected.
- My limit now for asb is essentially 600k now. I can remove say 50k for emergency and put it back later
- 8 years ago, it was possible to take loan up to 400k.they don't allow that now. So you're strategies differ slightly now. Only slightly....
- The years is approximate, I can't remember exactly but it was around year 2000 I think when I just started working.
- I am an average Joe salary earner punching the clock 9-5 with a public listed company. Started out at the end of 1999 after the 1998 economic crash. My starting salary was only 1600. I'm still with the same company albeit in a very much more comfortable post now.
- The loan installment was 1200 at that time so I only had 400 to spend a month. But I had an understanding gf back then who started work with gomen much earlier than me and pretty much supported me. She is now my wife of 15 years. I repaid her generosity by supporting her when she pursued her PhD.
- It says 4 funds here, namely ASB, ASB2, ASD & ASW2020. throughout the years, I transfered the funds around. But I don't have any in ASW anymore.
- I employed the terminate and reapply method. Everytime I terminated, I earned back 9-10k surrender value of which I spent as a reward to myself for being disciplined enough to continously pay monthly instalments. Down-payment on my first car - a kancil. Paid for my wedding. Even Stupidly bought a gaming pc costing 10k once which is now practically a door-stopper cum flower pot.

My target is to earn 80k in dividends yearly to support me when i retire. When I die, my son can inherit the Cash.
My last dividend was 41k plus ASB2 coming in march estimated to be 15k and ASD in June estimated to be 6k. So 41 + 15 + 6 = 62k

I'm now 42 so insyaallah I can reach 80k soon since I'm still compounding. That's additional 120k into the pool every 2 years and still going.

Remember the power of OPM. I pay 32k in installments but earn 62k for a nett of 30k. Actually more than that because the 32k a year i pay I will get back in ammortized value (the principal) when surrender.

I don't terminate anymore since once I terminate i cannot apply full 400k loan anymore. Also because my age is 42 so I can't get max tenure anymore thus my monthly repayments will be higher. But I did this religiously when I was younger to treat myself when i get the principal back. sort of a incentive to keep going with this.

This post has been edited by buggie: Jan 31 2018, 12:44 PM


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There should always be a realist. Keeps things real yeah?

The route I took is real....and more importantly, still relevant. Thanks voncrane for putting up the table of historical dividends. First thing everyone should do is ignore the total dividends column because the 'bonus' dividends are insignificant if you know how they calculate it. Learn how to look past the window dressing. So just look at the dividends column. You would see that in 2001 and 2017 is the same dividend... 7%. Yeah sure it went up and down thru the years but no drastic changes there. So... What I did is still applicable and relevant in this era... About the 400k limit? Like I said... Just adjust slightly. In fact the landscape is better now than during my time. For 10 years I was limited by the 200k limit. Nowadays you guys have 400k if you count ASB2. If I had ASB2 in my days, I'd be 2M up now instead of 1M only. So consider yourselves the younger generation luckier than me. I'm so envious. You guys get to be 400k up instantly. I had to wait 10 years... Sigh... Plus, the banks interest was higher then. We were looking at upwards of 6% then. Not like 4-5% these days

And yeah voncrane is right also to say that don't kiasu and should enjoy when young. By all means... Everyone should enjoy life. But just keep one eye on your old age as everyone will eventually get there and your power to earn income diminishes significantly. So find a balance. Like I said in earlier post... If you're a salary earner like me that wasn't born with a silver spoon, work smart and hard to move up the ladder... Soon asb payments are just a small chunk of your salary that you also tak rasa. The rest of your income you go and do what you wanna do la. But if you're a rich kid who is waiting for your dad's inheritance, disregard all these posts as your strategy should be different.. Lol

What I have laid out and shared here is only a small part of my entire life... Lol... The ASB part as this is the ASB loan forum. There are actually better ways to earn more money. Some more risky, others require a high capital. Nothing ventured nothing gained. But that's for a different discussion thread.

Lastly... Try not to be a pessimist. Not a good way to live life. Things may look bad now but equally, things can also get better in the future. Who knows next general election BN kalah (seriously doubt this lol) and ASB naik to 10%? Who knows la kan? All we can do is be ready when that situation happens. Voncrane is right in that different strokes for different folks. Is all about opening doors when opportunity knocks.

This post has been edited by buggie: Jan 31 2018, 06:41 PM

Yup, you are absolutely right. I've seen super rich old people with no life. My boss is one of them. Unmarried or rather married to the job. All the money in the world now but no one to go travel with and no one to shower gifts to.... Didn't get to enjoy life as he clocks out at 10 and even comes in on the weekends. In the end take his money to the grave with him...

On the other side of the spectrum... No need to go far... My office plenty of support staff earning 2500 a month for the last 10 years and yet still have the iPhone X... Or a phone more canggih than mine! Also, I volunteer at Kechara and one of the volunteer work I do is to sit down with these people who are in need and counsel them. If you listen to their stories, you can't help but feel for them. Some were successful businessmen, or high ranking individuals but fell by the wayside due to mismanagement of their lives and finances. Now at 60 years old, lining for food and clothes handouts. The future looks bleak for them and shatter to think what it'll be like when they need medical care

Balance is key. Work life balance and an eye on the future.

This post has been edited by buggie: Feb 1 2018, 01:23 AM

Sure, she's assuming 100% of the risk. You can disappear or worst still pass away and she will have a difficult time getting her money back.

If nothing goes wrong, it's free money at the end of the day but you will lose out on opportunity cost as your quota taken up by her

For short term 1-2 years it's worth it. but long term you'd lose out.

It takes 25 years to compound 200k @ 7% to 1M

If you take her proposal, then at the end of 25years, you'd get 200,000.00 free money.

But if you took the loan, assuming 1200 per month for 25 years, you'd have 1M - 360k = 640k

That's why i mentioned opportunity cost

Well said

Practically can be done... The whole dividend pay for the coming year loan payments thingy... But to do that is such a waste of a compounding machine.... Not utilising to its full potential

This post has been edited by buggie: Feb 8 2018, 07:37 PM

Yes, you should always pump out more water than what's coming into the boat.

The third tri-fecta would change... ie your tenure

ASB2 financial year ends in March

Eagerly awaiting for the announcement, hopefully some election ccandy

Not great, but at least better than last year.

Another year of compounding. Building that base!

Now wait for ASD in June

This post has been edited by buggie: Mar 29 2018, 01:56 PM

ASB2 dividend haul this year

With ASBf haul at 40+k, total haul for the year from ASBf + ASBf2 = 56k. Thanks to following the strategy...

Next year should be close to 60k!

This post has been edited by buggie: Apr 8 2018, 03:45 PM

You won't be a millionaire doing this Bro. At the end of 25 years, you'd have 200k in ASB and about 500k in ASB2 if you contribute 500 a month from your salary. If you contribute 1000 a month then you'd have just a bout a million (200+800)

But if you can afford to put in 1000 a month, then I'd suggest stretch out a bit and paying the loan with cash every month. Don't usik your ASB2. You'd end up with 1.2m (1m+200k). More if you dump into asb2 as your salary increases. Or better yet take asb2f when your budget permits. I'm sure in your journey to 25 years you'd be making more money than now.

Yup, since the dividend is taken out so nothing to compound.

But it still works... just to a different end. You still get the 200k 'free' or rather for an investment of 13+k.

Different people employ different strategies in accordance to their current state of affairs. There's no right way or wrong way. Just different strategies for different outcomes.

Great! let us know your conclusion. Would be great to hear a fresh perspective

IMO, If you have max loan, still under 40 then better to terminate and reapply