Its not worth while to borrow to invest

(Current )FD interest rate + bank interest

I am not sure how much is your bank interest rate

But so far i read, CIMB is giving 2.5% for 12 months

So, 2.5% + bank interest rate <> ASB dividend

Correct me if wrong

This post has been edited by taiping...: Apr 2 2021, 08:58 AM

I would suggest not to take ASB Loan, instead, invest with your cash instead.
If you're talking about compounding dividends, dont forget about compounding inflation.

Yearly inflation rate in Malaysia is 3%.

Example: your yearly payment plus inflation is 3% (Inflation) + 3.3% (bank) = 6.3% payment to the bank

Dividend 4.5 <6.3%

6.3% - 4.5% = 1.8% to the bank

But if you invest with cash, whole 4.5% is yours, 4.5%-3% (inflation) = 1.5% is yours

if you calculate properly, if you were to invest with pure cash (No loan), the amount invested (your cash) is less compared to when you ASB Loan

I believe many may not grasp the idea of inflation

Inflation is where value of money decreases with time and it is inevitable

This post has been edited by taiping...: Oct 20 2021, 10:31 AM

it's okay. i guess u want to choose to believe it's worth getting loan.

This post has been edited by taiping...: Oct 21 2021, 08:57 AM