moral of the story....in 20years...u ll have savings RM100K++...........and ASB dividen like 2009 is 8.55%....every year dividen 7%-8%.....

Let say u take ASB Loan 200K...

BLR : 5.80%
Promosion by Maybank now : -1.65%
=============
Final = 4.15%
=============

monthly will be RM1,100-00
Tenure for 25years
Assume Dividen 7% (total dividen 2009 8.55%)

Payment : RM1,100.00 X 12 months = RM13,200.00
Dividen : RM200,000.00 X 7% = RM14,000.00

EXCESS DIVIDENT = RM800.00

so u can use the dividen to pay the next 2nd year untill 25Years.......correct me if i m wrong..................

Yes you can get the dividend to pay the loan and principal, but if you calculate properly, you can get much more by paying direct to ASB.. your choice of whether you want 100k or 300k. If you keep paying the loan with dividend basically your money will not grow for the next 25 years. Inflation will eat you alive. Look at the calculation of my last reply.

This post has been edited by gark: Mar 26 2010, 11:35 AM

yeah correct...but not all people have 100K @ 200k cash to invest.....if u got big cash...then go on.....

No one is asking you invest 200k cash lumpsump. . Just imagine since you are going to pay Maybank RM 1,100 for 25 years, what if instead you pay the bank but pay to ASB instead? What will the results be like?

Use back your assumption of 7% dividend, and pay RM 1,100 a month.

(a) if you pay RM 1,100 per month to ASB and reinvest the dividend, after 25 years you will get = RM 893,329.41

(b) if you pay RM 1,100 of the dividend is used to pay Maybank, after 25 years you will get =RM 220,000.00

Which one you prefer? You still pay the same amount at RM 1,100 per month either to the bank or ASB only. Don't get conned by bank easily.

This post has been edited by gark: Mar 26 2010, 01:02 PM

Wow, big difference yeah?

There is no free money, just that you are surrendering your future profit. In the end what is it that you want to achieve? You want to earn big money for a comfortable retirement right? If you want good profits then you must not use leverage for this kind of investment, you need blood, sweat and tears to earn and invest the money. If you want to go for the loan way, another simple calculation for you to open your eyes.

You pay Maybank Rm 1,100 per month for 25 years = 1,100 x 12 x 25 = RM 330,000

Your gains after 25 years = RM 200,000 (principal) + (RM 800 (extra dividend) x 25) = RM 220,000

Your profit = RM 220,000 (your gain) - RM 330,000 (your liability) = - 110,000 (Realized loss), YES that is a NET loss of RM 110,000 for entire loan/investment period.

So the compounded returns of your investment (ROI) via Maybank's ASB loan is - 1.6077 % Even put money in 0.2% interest savings account also don't lose like that.

The above is a very simple accounting, yet so many have their eyes clouded by instant gratification or money that they lose sight of their future plans, that they are willing to lose money in the long term. The bank is the one earning YOUR money.

Sigh, so many falls for this.... . I must give credit to the banks, they are very smart in marketing these ASB plans. Kudos to them. (Time to buy more Maybank shares. )

This post has been edited by gark: Mar 26 2010, 03:34 PM

this ASB loan u gonna pay for 1st year only.....then u 'goyang kaki' for the next year untill 25years................, got dividen end of 1st year, then u pay at JAN 2nd year for the whole 2nd year.....not need to go bank anymore to pay rm1,100.....

p/s: but if u can dicipline urself to pay rm1,100 using ur own money each month for the 25years, please go on laaa........." Tepuk Dada, Tanya Duit Poket".........remember, 1st year u cant get rm14K for dividen, because total 1st year in ur account is RM13200 only...... of course laa........but the thing is, for me i cant dicipline myself to pay even rm1000 from my salary each months for 25 years......that s why this ASB Loan for me quite good........

This post has been edited by omels: Mar 26 2010, 04:40 PM

yup i admit that there is a special magic we can manipulate with ASB Loan..i wish there will be ASW loan since it is very much the same with ASB loan in term of capital protected.

Omels,

Investment is easy, just set up your bank to auto deduct lar.... think of RM 800k, sure can already. Also refer to my last post, are you sure you will goyang kaki for 25 years? Not the bank goyang kaki ah? Invest via maybank you will lose -1.6% per year wor....

This post has been edited by gark: Mar 26 2010, 07:46 PM

paying ASB loan RM200K wif dividen for 25 years? 25 years later RM200K might worth the same wif RM20K today

As i said, " Ask Ur Pocket Money" if u have monthly very postve cash flow, then go on for auto deduction........When u apply loan from bank, of course they wanna their bnft too...it s fair, unless u borrow from Ah Long laa.....

Well it's a choice everyone must make. Seems like you are willing to pay RM 330,000 to gain RM 220,000. Well it's not my cup of tea.

This post has been edited by gark: Mar 26 2010, 09:02 PM

yup...maybe ur cup of tea is to pay rm1.1K monthly for 25 years with "auto dedection" to get ur amount.....Well, " Mamak...Teh Tarik satu, Kurang Manis"....

the key to benefit from the asb loan is not to take out any of the dividend to service the loan. You should continue to make the monthly payment from your own money throughout the loan period.

so that at the end of the 25 yrs you have the full loan amount in your account + all the dividends earned.

say on a 200k loan for 25 yrs, at a fix rate of 8% - the dividend amount will increase as every year your total asb saving will be 200k (loan) +dividend. at the end of 25yrs, you own the 200k plus all the dividend which totals up to more than 1 million.

actually ASB loan is really worth it,if u know how to use..let say you have some balance in your ASB account,for example 30k.
Then you loan for 55k add up from your current balance..then it will become 85k.

1.55k monthly repayment is RM562(included insurance) for 10 years

2.if ASB dividend give you 8%, then 85000X0.08=RM6800

3. RM6800 divided by 12 months = RM 566.66

so the dividend can cover your monthly payment for one year,but of course u need to pay
yourself for one year straight until the dividend announce.

hi...

i have one question regarding asb loan..
last year,i made an asb loan about rm35k for 5 years..
every month,i need to pay rm679 including insurance..
after 2 years i am planning to pay a lump sum to finish the loan..

my question is...do the remaining 3 years loan that i need to pay inclusive with interest
and if not how they calculate the remaining lump sum that need to be paid??

BTW, I have one colleague who is a Serani (portugis), he is consider Bumi and enjoys benefit of ASB, just dun understand

Hope 1 day PM will announce all Malaysians can enjoy the benefit of ASB coz we are 1 Malaysia now

may the parent mix marriage malay + portugis

no, he is "pure" Serani, both his parents are Serani in Melaka's Portugese Settlement, he told me all Serani is Bumi, sounds very interesting need to dig my Kamus Dewan to check the meaning of "Bumi"

Serani/Portugese are considered Minority that allowed to invest in ASB scheme. This group shd be considered Bumi by defination, as this group of ppl already in Malaya b4 the Srivijaya/Majapahit influence to Malaya. But then many states (except for Melaka) do not recognise Portugese in other states, like in KL/Selangor, they do not enjoy bumi discount when buying property in these states.