FUNDING Needs To Reach RM 100,000..

Invest Horizon	Investment Return			Financial Goal
	2.50%		8%
5 years	88,835		68,058	$100,000
10 years	78,120		46,320	$100,000
20 years	61,027		21,455	$100,000

From table above, we can clearly seen the funding needs to reach $ 100,000. Let's say if you are putting the money in Fixed Deposit for only 2.5% yearly interest income compare with an investment tools for instance Unit Trust - Managed Fund for average yearly return 8%. For the 3 different investment horizon, the effort put in a high investment return is rather small compare with low yearly return investment tools. So, be a Smart" Investors" and choose the realistic investment tools for your investment portfolio, so that you are able to reach your financial goal more faster.

Another important point is- you need to begin investing early and effectively, the power of compound effect enable you to accumulate your wealth , let the money work hard for you ! Happy Investing !

How Do The Rich Escape from Rat Race ?

Accordingly to Wikipedia, rat race is a term used for an endless, self-defeating or pointless pursuit. It is just like a rat trying to escape whilst running around a maze or in a wheel.


The increased image of work as a "rat race" in modern world has led many to question their own attitudes towards work and seek a more harmonious Work-life balance. Many believe that long work hours, unpaid overtime, stressful jobs, time spent commuting, less time for traditional family life, has led to a generally unhappier workforce to enjoy the benefits of increased economic prosperity and a higher standard of living.


So, if you work minimum 8 hours a day and trade your time for paycheck in order to pay bills, there is a high possibility that you are caught in rat race.



The rich who is financially successful do not trade their time for money. Conversely, the rich leverage on other people money and time to make money.
Instead of working hard for money, the rich ensure money working hard for them through investment.

Property investors leverage on other people money by borrowing from banks to purchase properties or assets. They rent out the properties and have the tenants pay off the loans. Other than getting the tenants to pay off their assets, the property investors make even more money when their assets appreciate in value. Property investors leverage on other people money to make money.

Business owners like Bill Gates leverage on other people time by hiring employees to work for them. Investors, who invest in stock market, leverage on business owners and employees time to make money for them through capital gain from stocks.




Can An Average Ordinary Person ESCAPE From Rat Race?

Absolutely Yes!

No doubt it is difficult to leave our comfort zone and risking the secure regular paychecks to pay off our bills. We need to take the first step and action to start somewhere. We need to change our mentality and reprogram our minds to mirror the millionaire minds.

At the same time, we have to start financial planning and saving to accumulate capital. Acquire the skills to generate passive income. Learn how to invest in assets like properties, stock market or own and run businesses.

As our assets growing which in return generating more money, more money will increase our capability to increase the number or size of assets. The same “money working hard” cycle repeats by itself until such time that we no longer need to trade our time for money where we can live, work, play and give freely.

Congratulations! That’s the time that we are out of rat race and achieve financial freedom!

Reduce Maximum Loan-To-value Ratio to 70% for Residential Property

Breaking news for property financing in 2010 had been announced. Bank Negara quote “ with immediate effect the implementation of a maximum loan-to-value (LTV) ratio of 70%, which will be applicable to the third house financing facility taken out by a borrower.”


According to Bank Negara statistics, outstanding loans growth for the banking sector grew 11.9% to RM841.74bil in July year-on-year. Mortgages make up the largest portion with some 26.8% of the total loans outstanding as at end July.


The move is aimed at curbing speculative property transactions in a bid to contain escalating property prices. 

For those who buying the 1st and 2nd property still valid for 90% loan financing, 70% loan financing effect for 3rd property home buyers. However, for property investors, may think twice about investing in properties if they have to cough up more money.

Financial Freedom Mastery Workshop-Yap Ming Hui

It is a great and learnt a fruitful knowledge on money management skill from the workshop dated 16th Oct - 17th Oct 2010, now I would be able to differentiate Money Making versus Money Management and the 4 Quadrant of Money Management. Now I really realized how important on money management where by most of the people usually ignore in their life.

Money Management Strategies including:-
1) Income,Expenses and Debt Planning
2) Insurance Planning
3) Tax Planning
4) Investment Planning
5) Home Purchased & Property Investment Planning
6) Estate Planning
7) Children Tertiary Education Planning
8) Retirement Planning

You may go to Yap Ming Hui website for further details and updated events and I would encourage you to attend his seminar or workshop for self up-grading in financial knowledge and importantly know how to manage our money and let the Money Work For Us instead of You Work For Money!

www.yapminghui.com

Budget 2011 Highlights – New Proposals Related to Property Industry in Malaysia

Finally, our Prime Minister Datuk Seri Najib Abdul Razak tabled the latest Budget 2011 in Parliament on 15 October 2010. Here are some of the proposals related to the property industry: -

My First Home Scheme – 100% housing loan will be allocated for those with household income lesser than RM3,000 per month via Cagamas Berhad. Down payment of 10% is guaranteed by government for houses costing below RM220,000.

Instruments of Transfer Stamp Duty Exemption – 50% discount for residential property below RM350,000. It is applicable to first residential property and can be claimed once only.

Loan Agreement Stamp Duty Exemption – 50% discount for residential property below RM350,000. It is applicable to first residential property and can be claimed once only.

Low Cost Housing Financing Scheme – Allocation of RM50 million for all permanent Malaysian estate workers to obtain housing loan up to maximum of RM60,000 for buying low cost houses at 4% interest rateand loan tenure up to 40 years.

Affordable Homes For Poor and Low Income Group – Allocation of RM568 million to build thousand of affordable homes under these projects: –
Urban Housing Aid Project – 300 units
Public Housing Programme – 79,000 units
Projek Bantuan Rumah Sewa – 8,000 units

Malaysian Rubber Board Land in Sungai Buloh – Allocation of RM10 billion to develop the 2,680 acres mix development and target to be completed by 2025.

100 Storey Tower – It will be the tallest building in Malaysia at a new landmark named as “Warisan Merdeka” developed by Petronas. It’s a RM5 billion integrated mega project and target to be completed by 2020.

New Highways – Guthrie-Damansara Expressway, Damansara-Petaling Jaya Highway, Ampang-Cheras-Pandan Elevated Highway, Sungai Dua-Juru Highway, Pantai Barat-Banting-Taiping Highway, Paroi-Senawang-KLIA Highway.

I am the Lucky Star ! Yes ! !

Freedom Mastery Workshop 16 & 17 October!

FREE SEAT for a Single Mother to the Financial Freedom Mastery Workshop 16 & 17 October! Date Release : 13 Oct 2010 FREE SEAT : CALLING ALL SINGLE MOTHERS OUT THERE- We are giving away ONE FREE SEAT for a single mother to attend the 2-day Financial Freedom Mastery Workshop (worth RM 1,298) by Mr Yap Ming Hui on 16-17 October 2010. If you would like to be eligible to win a FREE SEAT

RENTS AS BUSINESS INCOME: BENEFITS & SNAGS | Malaysia property news and resources

RENTS AS BUSINESS INCOME: BENEFITS & SNAGS | Malaysia property news and resources

More Reasons to Shift to Real Estate | Malaysia property news and resources

More Reasons to Shift to Real Estate | Malaysia property news and resources

SwhengTee 让房地产投资实现您的退休计划

Real Estate Investment Consultant- Gavin Tee

National Entrepreneur Convention 2010

100 Ways Save tax in Malaysia Property

iProperty Investment Seminar

Venue : KLCC (Hall 1)

Date : 31July - 1 Aug 2010 (Fri - Sun)

Time : 10am - 7pm
Free Admission

National Entrepreneurs Workshop 2010

Entrance Fee : Register Before 31/08/2010       After 31/08/2010
 1 Person         RM 1,200                                 RM 1,500
 3 Persons       RM 3,000                                  RM 3,900
 5 Persons       RM 4,000                                  RM 5,500

** Inclusive Certificate, lunch and 2 tea-break
** Seats limited to 400 participants only
              

High Tech.High Touch Convention 2010

The National Entrepreneurs Convention 2010 is coming soon !! The entrance ticket per person is RM 550, you can get a good offer at RM 450 (1 person), RM 1200 (3 persons), RM 1500 (5 persons) if register before 31st August 2010. I would participate on this convention too...Hope you guys able to grasp this opportunity to enhance our knowledge especially for SME / SMI is even more encourage to take this golden chance !!

BLR Malaysia Increased in May From 5.80% to 6.05%

Recently, Bank Negara Malaysia has made the announcement to raise the overnight policy rate ( OPR ) by 25 basis point to 2.5% on 13th May 2010. This has led to BLR rate INCREASE AGAIN !!

Both local and foreign banks have started to announce the latest BLR rate respectively as below:-

• BLR Affin Bank = 6.05% (effective 18 May 2010)
• BLR CIMB Bank = 6.05% (effective 18 May 2010)
• BLR Hong Leong Bank = 6.05% (effective 18 May 2010)
• BLR Maybank = 6.05% (effective 18 May 2010)
• BLR Public Bank = 6.05% (effective 18 May 2010)
• BLR RHB Bank = 6.05% (effective 19 May 2010)
• BLR Standard Chartered Bank = 6.05% (effective 18 May 2010)
• BLR United Overseas Bank = 6.05% (effective 18 May 2010)

For more information and updates, please login Banking Info

Base Lending Rate Increase From 5.55% to 5.80% in March 2010

Most of the bank in Malaysia have made the announcement to increase the base lending rate (BLR) from 5.55% to 5.80% effective from March 2010.Below are some of the bank's new BLR rate:-

• BLR Alliance Bank = 5.80% (12/03/2010)
• BLR AmBank = 5.80% (10/03/2010)
• BLR CIMB Bank = 5.80% (09/03/2010)
• BLR Citibank = 5.80% (11/03/2010)
• BLR Maybank = 5.80% (09/03/2010)
• BLR Hong Leong Bank = 5.80% (10/03/2010)
• BLR Public Bank = 5.80% (09/03/2010)
• BLR OCBC Bank = 5.80% (11/03/2010)
• BLR UOB = 5.80% (11/03/2010)

You may visit to Banking Info for the latest update of BLR for foreign and local banks.

Online Trading or Use A Broker?

Which ways are you prefer when enter a stock trading? I shall go through some advantage and disadvantages of these 2 options.

Online Trading

Advantages

-         Speed and Time Saving

-         Pay lower brokerage fee (Maybank /CIMB only RM 8- RM 8.88 per transaction)

-         Allow enter the trade orders at night

Disadvantages

-         Easy to make mistake when enter trade orders

-         Network Connection / Server Down

Use A Broker

Advantages

-         Opinions / Advice on what to buy and sell

Disadvantages

-         Advice given not guarantee for good return

-         Time waiting may causes you loose on profit

-         Pay less attention on your account when handle too many accounts

-         Pay Higher brokerage fee compare to online trading

Whether you are choosing the online trading or broker, you should also do your own research on the particular stocks and pay attention to related market news. For me, I will using both ways, when I am not convenient to do online trading, I will use broker to enter the trade orders. I would prefer to use online trading when a large amount transaction or frequent transactions has been carrying out.

Check out below websites if you would like to look into online trading.

-         CIMB Securities Sdn Bhd – www.itradecimb.com

-         K&N Kenanga Berhad – www.kenwealth.com

-         Mayban Securities – www.maybank2u.com.my

-         OSK Securities Bhd – www.oskl88.com

-         SJ Securities Sdn Bhd – www.sjsec.com

Types of Securities Traded in Bursa Malaysia

What is security’s definition? According to wikipedia definition, “ it is a negotiable instrument representing financial value”

It categorized into:-

a) Share Capital – Ordinary shares –  i) consumer

                                                         ii) industries

                                                         iii) trading / services

                                                         iv) construction

                                                         v) finance

                                                         vi) hotel

                                                        vii) property

                                                        viii) plantation

                                                         ix) mining

b) Fixed Income Securities – 

i) Preference shares (have preferential position on dividend payment & division of company’s assets over ordinary shares.

ii) Non-convertible loan stocks – 1) secure – debenture -  2) unsecured

iii) Convertible loan stocks (loan provided by investors with fixed interest rate)

c) Others – 

i) Warrants / TSR (these are rights but no obligations given to holders to subscribe for new ordinary shares).

ii) Call warrants (these are rights but not obligations to buy a fixed number of shares at a specified price within limited time period.

 iii) Property Trust (REITS, only invests its funds an landed properties)

iv) Closed-end Funds (invests only in shares and price is determined by market forces and net asset value.

v) Electronic Traded Funds (ETF) (tracks an index, will not be fund manager to repurchase the ETF)

These are basic forms of securities categories of securities we can found in Bursa Malaysia.

The RIGHT TIME to Buy Shares?

For the past 3 weeks, the stocks market has been in slow trading volume, may be is the CNY season, most of the investors rather take out the money with them, this has causing most of the stocks price dropped, I myself have taken this opportunity to increase the quantity of stocks at the low price. TA and TAGB are 2 of the stocks I had taken in my portfolios, I have confidence that the company would make good earnings with their strong fundamentals background and experience especially in the hotels investment.

There is always a reason for us when we Buy or Sell a particular stock. I personally agreed and most important for me is we need to know the maximum price we should pay for good stocks. Therefore, we need to make valuation estimation realistic. Some calculations need to be done like EPS, P/E ratio, growth rate…etc.

Intrinsic value (real value of a company) is very important as well.

Robert Kiyosaki - The New Rules Of Money

I would like to sharing with you Robert Kiyosaki (The author of the book Rich Dad,Poor Dad) on The New Rules Of Money, really worth to put as your knowledge.















I strongly agreed with Robert's view and I would also put his teaching into my practice.
Happy Investing !

Impact on Net Worth if you choose NOT TO Settle Credit Card’s Outstanding

Most of us knowing that the interest rate charge on credit card is 18% per year,  which also means 1.5% per month (18% / 12 months ). However, bear in mind if the amount of the monthly interest in the credit card statement is not settle, there would be interest on interest, the compounding on interest within a year will amount to 12 times. This thus gives rise to Effective Annual Rate (EAR).

	EAR = [ (1+Nominal Annual Rate/12)12  - 1 ] x 100%

 

                     = [ (1.015)¹² -1] x 100%

                    = [ 1.1956 – 1] x 100%

                    = 19.56 %

Hence, we should clearly know the effect of credit card cost and manage it well.

What would be the impact on your net worth if you choose not to settle the outstanding?

	Total Asset  = Total Liabilities + Net Worth

 

[His Debt]

Let’s say Alan owes credit card balance RM 10,000 at the end of each month. EAR as calculated above 19.56%, implies he has to pay interest charges of RM1,956/yr.

[His Asset]

He keeps RM 50,000 in FD with annual interest of 2.5%, and no other asset besides FD.

RM 50,000 = RM 10,000 + Net Worth

Net Worth = RM 50,000 – RM 10,000 = RM 40,000

If Alan just allows the interest on both asset and liabilities to accumulate, what would happen after 10 years?

  

Table A shows the growth of amount owing under Credit card.
Year	Begin Balance	Interest 19.56%	End Balance
1	RM 10,000	RM 1,956	RM 11,956
2	RM 11,956	RM 2,339	RM 14,295
3	RM 14,295	RM 2,796	RM 17,091
4	RM 17,091	RM 3,343	RM 20,435
5	RM 20,435	RM 3,997	RM 24,432
6	RM 24,432	RM 4,779	RM 29,212
7	RM 29,212	RM 5,714	RM 34,926
8	RM 34,926	RM 6,832	RM 41,758
9	RM 41,758	RM 8,169	RM 49,927
10	RM 49,927	RM 9,767	RM 59,693
** Assuming no penalty charges for no payment for 10 years.
Total Liability Increased RM49,693 (from RM10,000 to RM 59,693)

Table B shows the growth of Fixed Deposit.
Year	Begin Balance	Interest 2.5%	End Balance
1	RM 50,000.00	RM 1,250.00	RM 51,250.00
2	RM 51,250.00	RM 1,281.25	RM 52,531.25
3	RM 52,531.25	RM 1,313.28	RM 53,844.53
4	RM 53,844.53	RM 1,346.11	RM 55,190.64
5	RM 55,190.64	RM 1,379.77	RM 56,570.41
6	RM 56,570.41	RM 1,414.26	RM 57,984.67
7	RM 57,984.67	RM 1,449.62	RM 59,434.29
8	RM 59,434.29	RM 1,485.86	RM 60,920.15
9	RM 60,920.15	RM 1,523.00	RM 62,443.15
10	RM 62,443.15	RM 1,561.08	RM 64,004.23
Total Asset Increased RM14,004.23 (from RM50,000 to RM64,004.23)

Net worth Alan decreased by RM 35,688.77 !!

See the findings! If Alan chooses not to bother to settle the credit card payment, when he has the cash to do so, his personal net worth would

decrease from RM 40,000 to RM 4,311.23. (64,004.23 – 59,693).

The impact is much greater than you can imagine!