Hi..

I'm need pro opinion here..
Didn't have house yet..

I and waifu both already finish 2nd year of asb1
Waifu using her bonus to pay for 2nd year..

I still have last year bonus untouch.. Around 15k

My Balance payslip only can get 1k plus commitment only

She at max commitment .. But got 85k on TH..

Advice me what to do next? Get asb 2 ( if still can or anyway possible?) or buy house?

Tq

hi everyone, need some advice.

1. my ASB has 100k cash + untouched dividend for 5 years + 100k loan (started this year)

if i were to withdraw my 100k cash to invest elsewhere & apply for 100k loan at the same time to max it again, do i just tell the bank to withdraw the 100k CAPITAL instead of the dividend amount? it wont affect my accumulated dividend right. OR i can do switching of fund to ASB2/ other funds instead without withdrawing?

possible to withdraw & apply loan on same day to minimize the loss?

2. planning to terminate loan on 5th year (rm543 mthly), how much do i get back ? all amount receive upon termination will stay in asb account ?

3. if by the 5th year, i do not need any cash urgently , should i just continue with the loan to yield extra dividend  / terminate & re apply ?

thanks a lot

What are your plans with the dividend? Leave it to roll or withdrawing
can't agree more. With the new government out there trying to prove something, some of the GLCs or shall we say PNB-LCs are being hit quite hard. But we all know that there are buffers in place to quell negative public sentiments against ASB returns.

I'm a newbie to ASB loan and I have a burning question.
Katakanlah saya buat ASB loan:

ASB loan amount: RM200,000
Tenure: 30 years
Interest: 4.8% (According to LoanstreetMY)
Monthly repayment: 1049.33

If I am able to pay the monthly installment using my own money, without touching the RM200,000 in my ASB, it would compound as normal right? Assuming 7% return,

End of Year 1 balance: RM214,000
End of Year 2 balance: RM228,980
and so forth.

Just wanted to clarify with you sifus here. Thank you in advance!

that is not what i meant bro

i have stated that monthly commitment is the same

so we have 2 options here

1. dont touch and keep compounding the dividend is asb

2. take out and rolling the dividend to pay for asb loan & apply for asb2 loan and serve it (same monthly commitment)

for me, if only have 1k to serve asb loan, better do asb2f 1st. Serve asb2f loan for 1 year. On 2nd year, use rolling dividend technique for asb2f and apply asb1f 200k. continue to serve asb1f by paying 1k per month. 

i believe this strategy is to maximise the OPM where in the end of tenure one will get 200k of asb2f.

let say i have 60k to serve 200k loan for 5 year(60 month) and terminate. I would go for rolling asb2f for 5 year (use 12k capital) and compounding asb1f for next 4 year (use 48k capital). then terminate both loans. Instead of serve asb1f for 5 year and terminate.

Plan A
when terminate the asb2f, i will have 17k from surrender value. plus 14k of 5th year dividend. (rolling)
when terminate the asb1f, i will have 13k from surrender value, plus 62k of 4th year dividend. (compounding)
*this calculation havent include the extra dividend of previous year after rolling the dividend to serve asb2f (14k-12k=2k)

Plan B
when terminate the asb1f, i will have 17k from surrender value, plus 80k of 5th year dividend. (compounding)

Hope you understand.

60k already used up to pay the asb1f loan for 5 year (1000 x 60 month = 60k).

btw for plan A calculation, it should be 17k+14k+13k+62k+8k=114k. 8k value come from 2k X 4 year of rolling dividend. provided that dividend is 7% (14k) and whole year loan payment (12k).
if have spouse, having 60k capital i would:

Rolling my asb2f for 5 year (use 12k capital)
Rolling my wife asb2f for 4 year (use 12k capital)
Rolling my wife asb1f for 3 year (use 12k capital)
Compounding my asb1f for next 2 year (use 24k capital)

when terminate my asb2f, i will have 17k from surrender value. plus 14k of 5th year dividend. (rolling)
when terminate my wife asb2f, i will have 13k from surrender value. plus 14k of 4th year dividend. (rolling)
when terminate my wife asb1f, i will have 10k from surrender value, plus 14k of 3rd year dividend. (rolling)
when terminate my asb1f, i will have 7k from surrender value, plus 28k of 2nd year of dividend. (compounding)

17k+13k+10k+7k+14k+14k+14k+28k=117k (this havent include the extra dividend 2k comes from each rolling account every year)

same 60k capital, but different result   

Just curious, and maybe a little off topic.

How many of us here uses the dividens for other than rolling? I pay my ASBF monthly and use the dividens and bring my family to go on a nice holiday every year.

I feel there's no point saving so much if you dont enjoy life. Obviously, Do Everything in moderation.

Again, was just curious. Dont bash on me for not rolling my dividens. =P

No money to add

Lock-down is coming up. Quite nervous.. I hope they will declare not too low of a dividend. With Tenaga, SD, TM all losing their value, may hit ASNB funds hard

1. For those who have already invested for a while should not be too affected in the event of low dividend-announcement for the year. This is especially true for those who have more asset (units) than their liability (loan outstanding) even if they refinanced back to the maximum RM200k

For example, if an investor-borrower has 250k units (200k certificate and 50k accumulated dividend), even at 6% dividend he would be getting RM15k, and will be paying about RM12,720 (RM1,060*12) in the next 12 months in installment

2. Your mileage will vary, depending on how long you have been investing and the amount you have in the account in the past 12 months leading up to this upcoming dividend

3. The biggest concerns are related to new investor-borrower who may think that the investment may not be yielding enough on a yearly basis (even if they choose to compound), due to the fact that the installments would include the capital repayment + interest/profit

For example, if an investor-borrower took ASB-financing this month at RM200k, and expect a repeat of 6% dividend in January 2020, he would yield RM12k, while having to pay RM12,720 in the next 12 months. However, he must also realize that his outstanding balance would have been reduced from RM200k to RM197k in that year.

4. In short, low dividends would affect those who are just about to start borrowing, especially if they are planning to use the rolling-method and cannot persevere with a "negative cash-flow" in the first year.

This may be out of topic but....
Bro, would you share with us what you wanna do with all of the money you've invested in ASB when you've reached your financial goal?

I know we all hve different goals in life but I'm jnterested to know from someone who is actually having 7 digit (or near 7 digit) in asb. :-D

Yes, like wild_card said. I think I should just rephrase I'm having a loss based on the amount I paid to the bank vs the dividend I received. And I'm not trolling, I just stated the fact I given out more money to the bank than what I expected to receive, even during my THIRD YEAR of ASB financing.

I've mentioned the reason behind it: shorter tenure (25 years), high interest rate (5.45%) and high MRTA premium (6k+). I only stated what I experienced, in the view point of a normal person.

If this is really hard to understand, I'll just throw the number here.

Total ASB accumulated: RM219,300
Dividend (roughly calculated from this year rate): RM14,254
Monthly installment to bank: RM1256
Total annual I paid to the bank: RM15,072 (-818 loss)

Just to clarify again, this is my 3rd year of investing already. And I'm still having loss. For first year, it's understandable, but it's been 3 years I'm incurring loss. It seems I'll only able to get profit for the 4th year then.
TLDR
I'm just expressing disappointment due to the low dividend rate of this year which causing me to have loss. If any of you getting profit, congrats.

boleh share, bro

end of this month, can check how much dividend masuk

btw, off topic a bit, what u guys think of incoming epf dividend %?

You are an inspiration bro..haha. Mind sharing your profile: age/occupation/education. I really look up to financially savvy people.. in this case for ASB unit holdings. I am currently restricted only 100k loan, due to lower income & commitments, possibly age too (30). Maybe next year will apply for another 100k financing as my career & income grow.

I so jelly.. Hahaha

Woow. Care to share the strategy with me?