Voluntary to Cut EPF Contribution - Should I?

Thu, 06 Nov 2008 02:52:00 GMT

Beginning from 1 January 2009, EPF contributors can voluntary reduce their EPF contribution from 11% to 8%. This is part of the stimulus package to encourage spending for investors/contributors. On secondary, KWSP do not have the enough resources to manage our resources. Let weight the right/wrong and good/bad for EPF contributors and economy.

Saving Plan aka Investment Link Products - No Wrong Product, Only Wrong Investors

Wed, 29 Oct 2008 08:31:00 GMT

Before committing into any saving plan aka investment linked product. Ask yourself a few questions as below. Let see you fits into which objectives for your investment decision.

Subprime Mortgage Crisis

Tue, 28 Oct 2008 03:23:00 GMT

Subprime Mortgage Crisis started in June 2007 and at the point of this article is written (end October 2008), it has been 16 months. We still see sign of weaking in the global equity market. I'll discuss more about what's happening now and what are we expecting in future. However lets take many steps back to understand about the root of how this happened.

Budget Mesra Rakyat 2009, What Are The Goodies For Us?

Fri, 29 Aug 2008 13:27:00 GMT

The much awaited budget mesra rakyat is out again. Its not very very much of a growth focus budget but instead more of a budget mesra rakyat. But I am happy with the focus into public transport. I pray everyday there is no jam in KL… have never stop praying for that. There are few that personally I think its good to share with everyone:-

(click on the title to read more about my review on budget 2009. Full speech also available for download)

Normal Investment Practise - Buy High Sell Low

Sun, 24 Aug 2008 23:15:00 GMT

Your Mortgage Officer Sucking Your Blood

Tue, 19 Aug 2008 14:42:00 GMT

Market has been and will be ever and forever so competitive in the mortgage sales. Once you decide to buy a property, less than 1 week few bankers will call you and try to offer you their mortgage products. Just there is something that is bugging me…in order to get the sales, the agents are even willing to mislead of confuse the investors.

1% ADMIN FEES FOR PTPTN

Thu, 14 Aug 2008 06:37:00 GMT

Dear abang-abang, adik-adik and kakak-kakak sekalian. This is the day we are all waiting for.............Mega Sales! Beside compound discount, PTPTN also can give discount. Thank you very much ;)

20 DAYS INTEREST FREE PERIOD IS ALIVE

Tue, 29 Jul 2008 15:47:00 GMT

Yeah yeah…there is no more 20 days of interest free period? So what? You are going to sit down and cry? Take it or leave it dude. You cannot imagine the number and types of credit cards I own. I enjoy going plastic. Credit cards give me unlimited cash flow, yet I am the master of my cards and not the other way round. No bad debt, no koyak pocket, no need to borrow money from Ah Long Pte Ltd

If people were more educated on how credit cards work, there won’t be the need to read the all the bullshit from other blogs that complain about it.

Again, you can complain about this new regulation or use your brain to think of how you can get around it. The key concept is very easy-- 20 Days of interest free period is not applicable for cards with an outstanding balance, therefore you shall use ONLY your cards that have NO outstanding balance for your daily purchases Comprehend?

I’ve mentioned in my earlier article, that one should NEVER mix your daily use card with the balance transfer credit card. Here are some tips (tricks) that would allow you to CONTINUE enjoying 20 interest free days.

1) PERFORM BALANCE TRANSFER

Let’s assume you have three credit cards and all have debts. You can perform a simple balance transfer to combine all your debts into one card. Slowly reduce your outstanding balance in that one card, while using the other two other two “clean” cards for your daily purchases and voila you still enjoy your 20 days interest free period.

2) CLEAR YOUR DEBT AND ONLY SPEND FROM DEBT FREE CARD

Assuming you has two credit cards with outstanding balances. Focus on paying of all the debts on one card, while just the minimum on the other card. Again, the trick is to focus your debts on one card while “cleansing” the other card. Voila! You then enjoy your 20 days interest free period with the clean card.

3) APPLY NEW CREDIT CARD

One of the simplest ways is to apply for a new credit card. Continue paying whatever you need to pay for your other credit cards, while only using the new credit card for purchases and make sure you clear this credit card every month. You shouldn’t have any outstanding debts in this new card because it would not be wise to apply for new credit cards every month!

The bottom line is that credit cards are extremely convenient, provided it is used wisely. Shall it be your savior at bad times? God bless you.

ANTI INFLATION CREDIT CARD

Tue, 29 Jul 2008 15:46:00 GMT

Inflation is at record high in most nations. There are seriously nothing very much we can do about it. Personally I don't see myself spending more... but prices are just up up up. Generally inflation this time is not motivated by consumer spending but by increase in energy prices. Thus easily kill our consumption power.

Interestingly after petrol linked credit card, now there are increasing trend of banks launching promotion or credit card related to purchases from hypermarket. First we have Giant that tied up with Ambank and Citibank. Then we have Carrefour with UOB Bank and now Tesco (limited day promotion) with Direct Access (CIMB)

So far there is no impression credit card that gives the best rebates for purchases at hypermarket. But with my heavy heart, still my vote goes to UOB One Card. This card gives the highest rebate on on-going basis. Still the location and number of branch is the killing factor for most user.

RECESSION

Tue, 29 Jul 2008 15:46:00 GMT

Recently I received few forward email by the title of this article. When I read the content, I come into total disagreement with what this guy has to say. True many people lose their money in the previous recession but yet still many millionaires are made during that time. Remember about the 80/20 rules? You can be a 80% investors whom panic and listen to him, or the 20% investors whom make big money during recession. In this article, only the words in blue are written by me, while the rest are copied directly from the email.

********************************************************

Recession is coming..........................make your own judgment, don't panic!! Do what is wise.

The recession looks very eminent. It is really time to take pro active steps to avoid a painful time in the next two years which is how long the recession is expected to last.

Suggestions:

1. Don't take any loans, buy homes, properties with loans, or even cash. Keep as much cash as possible.

Take loan, but only those which has fixed and low interest. Example is installment plan that cost u around 5% per annum. You need to take loan so that you have more cash if recession really comes

2. Pay off as much of personal loans, private loans, as debt collection will be hastened.

This guy doesn't know what he is saying about. First point says keep cash, second point says pay off all ur loan. Rule of thumb, just pay what ever u need to pay, during crisis cash is king not profit. Don't be so silly to give away ur cash now. If u really want to do it, cash is still cash value, u can repay anything. No need to do it now... duh....

3. Sell any stocks you can even at lower prices.

OMG, this guy is same with the 80% investors group. Sell low (now) buy high?

4. Take money off from Trust Funds.

~!)(*&^&*%^ I am sure this guy don't know a thing about unit trust. Have he ever heard of low risk fund before? What about fixed income fund? Or funds which are defensive against market down turn such as consumer goods or precious metal? OMG!

5. Don't believe in huge sales forecast from customers, be extremely prudent, lowest inventories, reduce liabilities.

)&%$%^^&*( what the hack is this? On second attempt to understand, I guess he is referring to the business owner to reduce the investory buffer and reduce liabilities.

6. Don't invest in new capital.

This is more prudent, but again look at the potential. Don't simply shun all opportunities.

7. If you are selling homes/ properties/ cars , do it now, when you can get good prices, they are going to fall.

Ok... i'm kinda agree with this... since the price still high now. Just additional comment on property, if your property is meant for income purpose ( to collect rental only ) and not capital appreciation. Then you shouldn't sell that property.

8. Don't invest in new business proposals.

Have u ever heard anything call business cycle? Every business can work differently during different market cycle.

9. Cancel holiday plans using credit cards.

#$^&*()_*&^

10. Don't change jobs, as companies will retrench based on 'last in first out'.

If i am boss, i'll make the decision based on the staff competency. If you have a lousy staff, wouldn't you want to remove it and keep just the next and proactive/aggressive staff? Probably this guy don't really know what happened during the pass recession. Normally there is a great tendency to retrench the senior management staff rather than the junior staff. This is because senior management staff are highly paid which will effect the cash flow/income of the company during recession.

Stay cool, wait, and if you took all of the above actions and more, you probably will be better off then many.

This is not a rumor.

Bear Stearns is the first of many banking and financial institutions that will start falling in the not too future. If Bear Stearns can fall, so can JP Morgan, Citibank, HSBC, and the whole world. US economy falls, the rest will crumble. India and all those selfeconomies will be the most protected, but not gullible. Europe may be a little stronger, but not China, another giant! Malaysia will see significant impact.

Malaysia's economy will be killed by the politician, not by recession

NBH NovaBankingHall Articles