Any affin/rhb asb agent can pm me on the asb plan?

This post has been edited by brobro: Jan 7 2017, 04:08 PM

spot on!

what's OD?

btw, i just learned from my friend that once we finish paying the loan, we will get cert instead of cash

and we can only get cash if the bank buys the cert. Is this true? I thought once finish, the loan amount will automatically be deposited into our asb account

what if the bank doesnt want to buy?

OD is overdraft facility, u need to read more how it works..

yes, all these while your loan is in form of cert and hold by the bank.. end of tenure, u get the cert.. this cert is produce by PNB and only PNB able to cash your cert not bank.. if you choose to cash it, PNB will depo to your ASB acc.. hope this helps

buggie very well explanation. Hope we can meet in the real life. I cant explain that well with my level of english. Thats is why i like to explain with calculation than words. But what u explain even using words is very clear and easy to understand.

To those interest to make ASB financing i urge u apply with consultant.

Why?

We provide you with knowledge. Once you apply with us, we will continue to support u in the future. We as consultant not just seek for commission but the main reason are to help people out there to increase income with lower risk tool like ASB.

ASB is the best tool if u want to force saving. After you have enough income / profit you can proceed with another investment with higher return.

The concept of ASB is OPM @ bank money to have high volume of investment so your target must to reach 400k of ASB each by using the available technique like hybrid, rolling dividend and so on. By reach this 400k target u can maximize your potential return.

Ok thats all for tonite. Those who interest can pm me as usual.

-haziq-

Now waiting for ASB2 performance. Hope not doing so bad. If can get 6.75% is a great thing . I'll add remaining asbf 100% for ASB2.

Haha, Thanks for the compliment. We should meet up as I also could use some advise now and then. especially for my short term goals.

I don't explain well with numbers and calculation so forumers here hopefully can absorb both kind of explanations to get the full understanding of how great this ASB financing tool actually is!

And I'm no consultant or an agent with any bank. I'm contributing here purely with the intention of helping out my kinsmen. Especially the young ones so they can get a headstart in life. And for someone who has 'been there, done that' in ASB loans (400k ASB loan, 200k ASB2 loan) hopefully my words carries weight.

This post has been edited by buggie: Jan 9 2017, 01:30 PM

We can apply 400k loan for ASB1 only?

Not anymore Bro... Those days can and I was lucky enough to take advantage of it at the time before they limit it to 200k only.

But who knows they might open back again in the future. So you need to build up your ASB size now in order to be ready when the opportunity comes again.

If the door is locked when opportunity knocks, it would be a shame. Opportunity won't wait.

200k now sadly.

Thanks, will get ready then.. I have been building since my father started asb loan for me when I was 18.. sometimes the monthly payment is a headache

Hi all. I've been a lurker for quite a while and anyway I've got some questions regarding my ASB Financing scheme. Anyway I really appreciate the constructive discussion here and it really helps.

My parents helped me to open 200K financing accounts when I was a bit younger (and a bit stupid). The whole financing tenure is 30 years (I believe its the maximum). To make things short now basically ASB dividends are annually paying for the loan. I was basically ignorant about the whole thing and never really bothered to really care about it besides taking out the leftovers from the dividend and go enjoy somewhere.

Now I'm finally a fresh graduate about to start my working life and this whole new reality pushed me to really care about things like this. Anyway I see myself here at an advantage to maximize returns and getting early capital gains (200K worth of ASB certificate ) before retirement from this if I consistently save and try to settle the loan earlier than scheduled. And probably expand into ASB2 and other investing instruments etc.

I'm still quite new in this...and there are many things that I don't really understand. Since I've been paying the loans annually through dividends, there are terms the receipt that confuse me like:

Advance Payment
Principal Amount
Interest

I've been reading a bit about amortization and actually it makes much more sense in monthly payments. But since my parents set up the whole thing for me and expected the whole thing to pay by itself (dividends) annually (tak payah fikir banyak), will it be more efficient to pay monthly (since I have monthly wages now)? And at the end of the year I can make extra (advance) payment by using the dividends.

And I wonder what's the relationship between Principal and Payoff Amount?

Wow, quite a lot of questions there. Will try to address it. Please ask again if I've missed out something.

Firstly, Congrats as you have taken the first step by asking. If you've just graduated then you should be 23-25. And look like your parents are smart people and have the foresight to apply the loan for you. If they applied when you were 18, then you would be 5 years in. Is the loan under your name or your parent's name?

Should point out a couple of things here. First, don't settle this ASB loan. We want to take advantage of OPM. At your age, you should always make sure that the loan is at max tenure all the time so as to minimize your monthly payments and get back the ammortized portion. Secondly, if you're going the 'rolling dividend to pay next year's loan' route, don't ever pay annually. You will lose out on the compounding interest. You wanna pay as late as possible, just after they lock in the interest for the month. Also, interest on the loan is probably lower that what you are paying now so you should terminate and reapply as soon as possible. And when you reapply, go for the max tenure here again. Don't worry about the never-ending tenure. It is a non-factor here. Totally ignore it.

If you're rolling the dividend, at the end of 30 years, you would only have 200K. This ASB loan tool has so much more potential than that!

Since you have monthly wages now, and if you can afford RM 1,000 per month and assuming the banks approve your loan, I suggest you don't touch your dividends and let it compound. Here is what I would do if i were you If the current loan is under your name). Terminate the current loan very early in the month and get back the ammortized value. If the loan is already 3 - 5 years, you should get back RM 3k - RM 5k plus some insurance premium back as well. Do with this amount what you will or you can start your ASB2 with it. Immediately reapply your loan and push the banks to disburse the amount into your ASB within the same month! (cannot stress this enough as it will effect your dividend and your bonus dividend)

Keep paying the monthly from your salary and don't touch the dividend. After 3 years terminate and reapply to get back the ammortized value and take advantage of the bank's competitive rates. Again, timing is crucial to make sure that they put in the money in the same month you terminate. Rinse and repeat every 3 years.

Ok i'm gonna be your fortune teller here... barring any unforeseen circumstances. After roughly 10 years, you would have earned 200k in dividends. Free to do as you will! From here on, you will be earning dividends on 400k (200k cert + 200k cash dividend). Plus if you terminate/reapply every 3 years, you would have additional 10k

If PNB still limit loan size to 200k, and your salary in the last 10 years probably would be substantially more, you can start your ASB2 loan. Sooner even if your funds allows it. For me at the time, PNB allowed 400k loan so what i did was took out that earned 200k dividend, transferred to ASB2 and applied 400k loan on ASB. So earning on 600k yearly. Then when the banks allowed loans on ASB2, I applied the 200k ASB2 loan and transferred the 200k cash to ASD, now earning dividends on 800k (400k ASB; 200k ASB2; 200k ASD). Of course during that time all of them were earning dividends for me so now I'm close to earning dividends on a Million yearly. More when it compounds.

As I've mentioned, we don't know maybe PNB will open up again so you need to be ready for when that happens. So you should focus on this medium-term goal. Once you reach that 10 year mark, reevaluate your position. The financial climate and landscape might be different then so no need to look too far ahead. Sometimes planning too far can be a liability or a hindrance as it closes your mind to possibilities as you are too focused on a target in front of you that you fail to see what's to your left or right.

To quote you, "I see myself here at an advantage to maximize returns and getting early capital gains". This is very matured thinking and hats off to you for having that early realization. Youth is your main asset here.

This post has been edited by buggie: Jan 11 2017, 11:58 AM

Crystal clear + using asb asb2 and didik

Bravo bro buggie! An eye opening post!

Thanks, informative post


What I learn here is,
Assume loan 200k, pay monthly for 3 years. Stop and cancel loan, ask bank to disburse amount of remaining, let's say 36k

So at the same month, apply maximum loan again which is 160k example (200k - 36k + dividend) and continue paying for 3 years.

Repeat.

Is this what I suppose to do?

Hey Bro PrincZe, I think you've gone a little astray in the concept. Let me try to explain or maybe bro Haziq can explain better in figures

But firstly, what does the 36k represent?

Anyway, let's set the scene.... so you take 200k loan and you pay 1k monthly for 3 years. Assuming @ 7% dividend, you would have 245k in ASB by now made up of 200k sijil pledged to the bank and 45k of earned dividend in cash. You've paid 36k in installments and you have 27 years left in your tenure. Your outstanding owed to the bank will be less then 200k but that's not important.

Clear on the scene above? Ok now what do you do?

On the 1st of the next month apply to terminate the current loan which has 27 years left and immediately re-apply the loan for 200k again for the max tenure of 30 years. Don't worry, the bank officer should be used to this procedure of terminate/re-apply. Only thing is that you have to make it clear that they (the bank) have to disburse the NEW loan within the same month which could be very frustrating. I'll explain why later.

What happens when you do this? the bank will dissolve the 200k sijil and settle your existing 27 year loan. This leaves you with only 45k dividend in cash in your ASB. So for roughly 2 - 3 weeks until your new loan is approved and disbursed, your ASB will only have 45k in it. Then the bank will do their due diligence and process your new 30 year loan application and if all goes well, before the end of the month will put back the 200k sijil into your ASB making it 245k again

So where do you stand after this whole process? Your loan is extended back to 30 years. And you have 245k in ASB (200k sijil + 45k cash) ready to earn you that compounding interest at the end of the year. And you continue to pay for the next 3 years before repeating the process. And as a bonus, you get back 3k in ammortization which you can spend to get that new iPhone/Samsung to reward yourself for being so disciplined in making those monthly payments!

Bro haziq, correct me if I'm wrong please.

This post has been edited by buggie: Jan 12 2017, 10:04 AM

Thanks bro, fully understand.

But pnb or bank won't say, oh u have 45k cash inside. U only can apply 155k loan? 200 - 45k

Cause maximum is 200k?

So if dividen is 100k, I still can apply 200k loan?

Your ASB size grows together with your dividend and not limited to 200k. And once it's reached a certain size, it will always remain at that size. It won't shrink back. Essentially the size of your ASB is now the last max balance you've had before.

For example, now you have 245k, and if you take out 45k to buy that MyVi cash, you can put it back in next month.

To answer your question, even if your dividend is 500k, you can apply for 200k loan.

FYI, I actually have a 400k ASB loan because my ASB size has reached that amount. But of course PNB limited the loan to 200k only now. Those days were 400k limit.

And for this very reason my advise is to grow that ASB size as quickly as possible so that when PNB opens up the 200k loan limit to 300k, 400k, or even unlimited, your ASB size is ready to take advantage of it.

You don't want to be in a position where PNB suddenly announce tomorrow that they are raising the loan limit to 400k but your ASB size is only 300k. You have to wait a good 6-7 years before you can take advantage of it. That's a missed opportunity to me.

fully understand.

just few more questions.

1) Why 3 years are the recommended one to sell and apply loan again?

2) If i continue to do it for 3 years, i will get 45k dividen in cash. if i do it for 30 years, i get 450k dividen in cash ? but i will still be paying 200k of loan.

3) What are the ideal interest rate that we should buy / sell loan? Currently as per my m2u, the profit rate is 5%. is that interest rate? interest rate should be lower as possible?

if it's high, it should not be higher than what asb is paying right now? 6.75%?

thank you again so much