From what i understand is that using this method we can get roughly 1-2% of annual return. So i just wanna ask how good is taking up loans for ASB to protect against inflation? I always thought that these days inflation can easily go to 4% and that alone is already enough to outweight our annual return.

But what if you take into consideration that inflation rises around 2-3% every year? Then there wouldnt be much use to take up loans for ASB rite? Well thats what i think. RM100k 25 years in the future will be less of value than RM100k now

Well if u can get a 0% interest loan then ok la.. But loan nowadays has around 6% p.a interest. ASB dividen is around 8% p.a. So ur actual returns per year is only around 2% per annum. Take that 2% annual return that u get, u have to minus with a 2-3% increase in inflation every year. So at last you wont get anything

This post has been edited by Hadey: Dec 16 2008, 10:03 PM

OK i see.. so thats the correct calculation for it.. Thanx man