kcchongnz blog
Advice for 25 years kcchongnz
Hi KC,
I came across your post- https://klse.i3investor.com/blogs/kcchongnz/159517.jsp and cannot help but to send you an email as I wish to learn more from you.
I really like how you give very straightforward advice with real life experience examples.
Let me get straight into the topic now. I managed to save HKD80,000 cash earlier while working overseas. The exchange rate (HKD->MYR) used to be better at 0.55-0.57 during early 2017. Then it dropped to about 0.45-0.48. I was waiting for the rate to climb up but as of today it is only 0.5 from xe.com. (I highly doubt the local money changer will give this rate)
I have no choice but to change HKD 10,000 earlier this year (Rate: 0.49, the best I could find) to pay for my car's downpayment.
Here's my questions for the remaining HKD70,000:
- Should i continue to wait for one day when the rate goes up?
- Or should I exchange it right away and then do some investment with it to make up the loss?
- With this capital (after exchanging: should be around RM35K), what advice do you have for me for investment? FD? Shares? Unit Trust?
About me:
Debt: RM40k car loan, 7 years (other than this, I'm all clear)
Current salary: RM3,600 (before EPF & Socso deduction)
I am really looking forward to your advice.
Thank you,
Young lady
Hi Young lady,
It is great that at your age you can save that much of money, and you could buy your car with your own money. When I was at your age, I had none. Not only that, I was ridden with debts, even though I already work part time when studying. That was partly due to the ignorance of personal finance. Nobody taught us then, not in school or university for sure, and offered by anybody.
I don’t think I was exception then, neither it is now. Most youngsters nowadays depend a lot on their parents. Their parents spent scores of thousands for them to study at home. Some wealth ones even spent hundreds of thousands, or million to study abroad. Many of them spent longer time to complete their study. Some when finished their undergraduate degree, they continue to study postgraduate, or other degrees, instead of working. Some started working, but mostly spent all their salaries indulging in good life, clubbing, holidaying overseas, flashy restaurants etc. which they cannot afford and as a result, incurred heavy personal and credit card debt. Parents got to help them continue providing them a place to stay, food to eat, pay their debts, to buy their cars, even house, so much so that some of them do not know how to value money. That is the peril of children of having rich parents. Luckily I was not rich.
So, congratulating for saving a tidy sum of money at the age of 25. You have a great future as you have the right attitude, and time at your side.
Your first question, should you repatriate your HK70k back to Malaysia now with the “low” exchange rate?
In this respect, everybody is different. Without getting to know you better, here is my opinion in a general form.
Nobody can predict the direction of the foreign exchange rate correctly and consistently. So, forget about predicting it, or wait for the rate to get better then change. If you need the money now, for example to pay down your debts, or buy a house, just change and use it.
My statement of difficulty in predicting the foreign exchange rate, or other macro-economic thingy is not just blurting out without rational. There is huge amount of academic studies showing that there is no statistical significant evidence to show that it could be done. There are simply too many factors and variables involved.
But what if you don’t need the money now?
I think it is good to leave the money in Hong Kong as a regional diversification. You are earning in Malaysia now and with your attitude, you should be able to save money from your salary here. It is not how much you earn, but how much you save. You don’t need to keep up with the Joneses. I recommend you read this book, “The richest man in Babylon” by George Samuel Clason.
However, I do not recommend you leave your money as bank deposit but invest in the equity market for better growth of your wealth as you are still young and have many more years to ride out any storms in the equity market. You may read my rational for it in the link below.
http://klse.i3investor.com/blogs/kcchongnz/102200.jsp
Let the power of compounding does its magic,
https://klse.i3investor.com/blogs/kcchongnz/105247.jsp
Your HKD70k will compound to HKD228k say at a bank fixed deposit rate of 3% for 40 years. Whereas if you can compound at 10% in the equity market at 10%, your money grows to HKD3.17m in 40 years by the time you retire. That is 14 times more money in the pocket!
By the way, 10% is about the long-term return of most matured market in the past, including that of Hong Kong and Malaysia.
One way you can do it now is to invest in an index fund with low cost fee in the Hang Seng Stock Exchange, or in the form of a broad market exchange traded fund, or ETF.
Eventually, I think you should invest in your own to get better return from the market following a proven successful approach of investing. However, it is not easy, nothing is easy in life anyway.
To have a higher probability of success in investing in your own, first, read, and reread my articles on “Never buy any stock touted by anybody” without making your own analysis in the link here,
https://klse.i3investor.com/blogs/kcchongnz/157367.jsp
And “Never be over-confident in investing” in the link below,
https://klse.i3investor.com/blogs/kcchongnz/157964.jsp
These two will prevent you from losing in the market. In investing, not losing is always better than any other alternative. Never get involved in any “get rich quick” scheme. Don’t ever believe there is big fat frog jumping all around.
Next, you must equip yourself in the fundamental of investing, FA, by looking at investing in a stock as investing in part of a business. You must know the business you invest in; how it makes money, does it make good money with the capitals it deploys, what are the risks involved etc. There is no other way to build long-term wealth slowly but surely following the fundamental approach in investing.
Warren Buffett when he was young used to say,
“I always knew I would be rich”,
He utilizes the approach of fundamental value investing. He is now one of the riches man in the world.
There are many resources in the internet and some providers in the market to learn about FA. I am one who provide this service online in a structured manner. One can learn it from anywhere, any time, and at his own pace. If you are keen, you may email me at,
ckc14invest@gmail.com
As for now, focus on your career in Malaysia, further save, improve you skill in investing and invest following the right way.
Of course, do not forget to live a life filled with happiness and love.
Good luck.
KC
Certified financial planner
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Discussions
3 people like this. Showing 50 of 76 comments
Young lady should get to learn the Art of Living and forget the Certified Financial planning types.
2018-06-08 11:53
Sami_Value > Jun 7, 2018 10:01 PM | Report Abuse
"Nobody taught us then, not in school or university for sure, and offered by anybody."
=========================================
Truth be told.....All who are familiar with traditional Chinese values, Confucian teachings , have all the financial lessons one needs to do well in financial life.
2018-06-08 12:15
Posted by Flintstones > Jun 7, 2018 09:39 PM | Report Abuse
Okok.. Kc come i3 to find his customers liao. Summoning stockmanmy to smack some sense into kc's head!
Good good good. Ask him to bring his horse over. I love that.
However, I am surprised that after reading all his posts, you think he has the ability to do so in a rational manner?
He claimed to be a dynamite investor who can utilize the panic moment and sailang to become a billionaire. But look at what he posted, does he rally know anything about personal finance, corporate finance or investing?
2018-06-08 12:48
y kcchongnz > Jun 8, 2018 12:48 PM | Report Abuse
He claimed to be a dynamite investor who can utilize the panic moment and sailang to become a billionaire. But look at what he posted, does he rally know anything about personal finance, corporate finance or investing?
==========
look around you....see where and who are the successful investors.....not what they say or what they write..... both of which are activities designed to give them respectability.....But, rather look where you can find successful investors......and what they do....
Its the characters that make a man, not maths.
Its characters and habits that make a man , not maths
Its business sense that makes a man, not maths.
Decisive actions and pivotal moments is a gift and also a habit. Its the characters that make a man. Successful people makes full use of them.
Frequent traders vs focused strategy..........no choice, I have to surrender. Frequent traders , those ins and outs traders cannot make a big difference. Eventually, to make stock market a real difference, one has to focus, stay focused, sailang when appropriate, no other way.
2018-06-08 13:10
I think it's every speculator's dream to be able to score Warren, Dr neoh, kyy or otb type of home runs and multi baggers but the question is, does one possess their temperaments, acumen and instincts?
These virtues are called The Edge (not the newspaper)
When you do find yours, you'd not be jealous of kyy or otb because your edge would have allowed you to make money CONSISTENTLY and that ultimately, is the key to success..
There is no need to ridicule one another.. Respect and appreciate their generosity in teaching and guiding.. Learn as much as you can, discard what's not aligned with your objectives and absorb what is... Soon, you will find your edge and trade without hatred and fear
2018-06-08 13:53
Ayoyo
There is no need to ridicule one another.. Respect and appreciate their generosity in teaching and guiding.. Learn as much as you can, discard what's not aligned with your objectives and absorb what is... Soon, you will find your edge and trade without hatred and fear
=======================================
Hatred is not always a negative emotions. There is a fine line between being polite, don't rock the rock be happy and hatred......If Mahathir had not felt hatred with Najib and how UMNO got rotten under Najib, he would not have come back from retirement to lead Malaysia.
2018-06-08 15:15
Mahathir never had hatred for Najib... He had undying love for Malaysia instead.. See the difference?
Thus, if one could look beyond the person and have an appreciation for his unselfish sharing, guidance and contrasting comments, maybe one could see beyond the hatred
2018-06-08 15:36
ayoyo.....anyone with love for Malaysia will hate Najib and his 1 mdb....and show it. Do some thing about it if he can.......
2018-06-08 16:00
after all love and hate is the same thing, on opposite ends of the same thing.
2018-06-08 16:04
I can only give this piece of advice, having made and lost much money in the stock market through the years. The most important thing in life is your health, not wealth, which is important but not critical to living a happy life. Without health, you will not enjoy your life, no matter your station in life. Live a balanced life; not one consumed by the mere pursuit of wealth.
2018-06-08 16:18
Hi young lady,
i suggest you all HKD exchange to RM and all in the MFCB. After 3 year you will surprise what you earn
Thanks
2018-06-08 16:51
@Young Lady,
Very good of you to get a piece of advice from the very experience guru. However I am totally disagree to advise you to go into equity market with your hard earn money. The risk is simply not for you to bear.
Why I say this?
90% of retail investors in the market is loosing money. Why ? and do you think you have the chance to profit from it? you probably start with elementary, intermediate and advance. When come to investment, no one is telling you are elementary, intermediate or advance. You learn through and make mistake, hopefully not expensive one.
Not even invest in the bank trust fund with very high commission (3%) from any Malaysian banks. My father invest in trust fund 20 years ago when he past away 5 years ago. We found out only tiny some of money left. Can you imaging 200K invested 20 years ago and today you get the same amount 200K. How painful it is ?
For information, my father was a hard working very good businessman but stingy and calculative person yet when come to investment = zero, during the old days the general knowledge was very primitive and most of the banks was cheating on the cash rich primitive businesses. My father probably thought the bank will never cheat him. Yes, the bank never cheat him, only to return the same amount after 20 years invested and he don't even know about it!!!
I was lucky to invested in HSBC in 1986 through an old badminton kaki (Telekom Engineer) when I first graduated with a borrowing 4K from my dad. With dividend and today worth more than 30X after 30 years.
So if you are looking for a long haul investment, HSBC is a good example. They had gone through 1986, 1998 and 2009 recession and survive.
If you are looking for a >30% annual return like most of guru priest, you would probably end up with irreversible damage to your hard earn money.
2018-06-08 17:00
Buy semiconductor stocks. Demand for smart phones may not be outstanding,but it will get offset easily by demand for IoT, machine learning,artificial intelligence, data centers and electrification of cars.
2018-06-09 09:36
"Sslee Dear Sami-Value,
I am Ex-UM 1986 Chemical Engineering graduate 1986. During my time I do not think Economy Faculty just across the road offer Elective subject; Personal Finance for engineering student."
Your time, I can't answer. My time, the course was opened to all faculties students - it was known as out of faculty subject ( there were a lot of subjects the student can choose ).
If there is any younger generation studying at UM, ask them to take up this paper. I find it meaningful & fun.
There were multiple lecturers giving talk & lecture on different fields - real estate, tax, unit trust, share market, bond,etc
They will invite special speaker from industry to come for talk also. During on of the real estate session when the lecturer pointed on the importance of location, they invited Ho Chin Soon. We were like, who the hell is Ho Chin Soon ? We were given the property mapping of Klang Valley for free. After joining the workforce, then only I realized , the tip top developers are engaging Ho Chin Soon on the mapping study for the marketing purposes.
On the real estate sessions, what I could recalled was, we were given the assignment to engage in the a real situation to buy a property. The lecturer brought us to property fair at Mid Valley ( this paper was only available when there was upcoming property fair in the calendar ) , we were asked dressed formally, go around the counters, survey our dream house, ask for the details ( leasehold, freehold, title transfer, legal fees, loan etc), get minimum 3 informal / formal offer from banks. This part was the toughest part because we were yet working and was asked to act /pretend like one - most of us couldn't get this one. The lecturer (female) knew we couldn't get one but still push us to call & send in email for inquiry or else she will failed us.
2 weeks from the visit, we were required to submit our report why we choose the property to buy & the financing instrument we were taking up to make the purchase possible.
In the end, the final day of the subject. The lecturer passed all of us even though non of us obtaining any informal/formal offer from financial institution ( coz banks need booking receipt, 3 months salary slips, EPF statement, IC).
The most inspiring lesson / explanation given was, she know we won't get it but still threaten to fail us if we didn't try because the intend was to get us to engage in the real process of buying the property. The process is the lesson that she want us to experience hands on.
2018-06-09 09:45
You often hear bad news about smart phones, but it's part of the use of semiconductor. In a big picture, global semiconductor sales increased 20 percent year-to-year in April.
2018-06-09 09:49
HKD is pegged to USD. That means the currency will be stable. I don't expect HKD will weaken significantly in the future. What about ringgit? Ringgit is less stable...
It's not difficult to think on your own. You don't need any advisors for this.
2018-06-09 10:27
by tecpower > Jun 9, 2018 09:36 AM | Report Abuse
Buy semiconductor stocks. Demand for smart phones may not be outstanding,but it will get offset easily by demand for IoT, machine learning,artificial intelligence, data centers and electrification of cars.
=========================
why idiots flag you? This is era baru Malaysia....and you should not be flagged.
and it even makes sense.
2018-06-09 10:39
Henly, good comments. Just to chip in some comments in capital letters.
Posted by Henly > Jun 8, 2018 05:00 PM | Report Abuse
@Young Lady,
Very good of you to get a piece of advice from the very experience guru. However I am totally disagree to advise you to go into equity market with your hard earn money. The risk is simply not for you to bear.
ME: YOU MAY HAVE A POINT. HOWEVER, BOTH OF US DO NOT KNOW HER PERSONAL RISK PROFILE.
IN GENERAL, AT THE AGE OF 25, THERE IS PLENTY OF TIME TO ENDURE THE UP AND DOWN OF THE MARKET. HISTORICALLY RETURN FROM EQUITY MARKET I MUCH HIGHER THAN BANK DEPOSIT. AS I HAVE SHOWN, THE END RESULTS WOULD LIKELY TO BE A HUGE DIFFERENCE WITH EQUITY INVESTMENT ACCUMULATES MANY TIMES MORE THAN BANK DEPOSIT.
Why I say this?
90% of retail investors in the market is loosing money.
ME: i AGREE WITH THIS.
Not even invest in the bank trust fund with very high commission (3%) from any Malaysian banks. My father invest in trust fund 20 years ago when he past away 5 years ago. We found out only tiny some of money left. Can you imaging 200K invested 20 years ago and today you get the same amount 200K. How painful it is ?
ME: THE EXPERIENCE INVESTING IN UNIT TRUST BY YOUR FATHER WAS NOT AN EXCEPTION. I FACED THE SAME EXPERIENCE TOO.
THE PROBLEM WITH SOME UNIT TRUSTS ARE THE FUND MANAGERS HAVE THEIR OWN INTEREST TO TAKE CARE OF ABOVE THE INVESTORS'. THERE ARE ALSO HUGE FEES INVOLVES, UPFRONT, ANNUAL MANAGEMENT EXPENSES, COSTS OF PLAY ETC.
I was lucky to invested in HSBC in 1986 through an old badminton kaki (Telekom Engineer) when I first graduated with a borrowing 4K from my dad. With dividend and today worth more than 30X after 30 years.
ME: SEE WITH SOME GOOD INVESTMENT STRATEGY, YOU MADE GOOD MONEY ON YOUR OWN. SO INVESTMENT IN EQUITY MARKET, IF YOU KNOW AND HAVE THE EXPERIENCE TO DO IT, GOOD OR NOT?
So if you are looking for a long haul investment, HSBC is a good example. They had gone through 1986, 1998 and 2009 recession and survive.
ME: YES, LONG-TERM INVESTING IS LIKELY TO YIELD SATISFACTORY RESULTS. YOU HAVE SHOWN IT. SO WHY DISCOURAGE THE YOUNG LADY?
I WAS TALKING ABOUT A LOW COST ETF INVESTING IN A BROAD MARKET INDEX OR ETF. BUT IF SHE HAS ACQUIRED THE NECESSARY SKILL AND EXPERIENCE, SHE CAN INVEST ON HER OWN TO GET BETTER RETURN. OF COURSE IT IS NOT EASY.
If you are looking for a >30% annual return like most of guru priest, you would probably end up with irreversible damage to your hard earn money.
ME: THIS I AGREE. ONLY SUPER INVESTORS HAD DONE THAT. THERE ARE NOT MANY OF THEM AROUND.
NUT WE NEVER TALK ABOUT 30% CAGR, BUT MAYBE 10% OR SLIGHTLY MORE. EVEN 7 OR 8% WILL ALSO BE VERY GOOD.
2018-06-09 12:13
Looking at the options that the young lady have :-
1) Go for real estate :
Monthly Salary : RM 3,600.00
Socso Deduction: RM 17.75
https://www.perkeso.gov.my/index.php/en/quick-links/rate-of-contributions
EPF Contribution 11% : RM 396.00
http://www.kwsp.gov.my/portal/documents/10180/154493/Jadual_Ketiga_BM_20122017.pdf
PCB Deduction : RM 14.65
http://lampiran1.hasil.gov.my/pdf/pdfam/Jadual_PCB_2018.pdf
Car loan repayment (assume 4% rate) = RM 609.52
Monthly net cash received after less the fix deduction = RM 2,562.08
With cash on hand 35k, she can have option to buy her 1st house (ready house, don't go for under construction) price at RM 350k, borrowing of RM 315K (90% margin of financing) & monthly repayment around RM 1520 to 1610 / month.
The net balance of cash for her to survive will be left around RM 952.08 / monthly. If this amount is not sufficient for survival, drop this option. Do keep in mind, the ready unit might generate passive rental income around 1k to 1.5k monthly ( need to less maintenance fee) if successfully lease out at the strategic location, it will increase the monthly stream of income. Adjust to go for lower range type first to suite own financial pace.
2) Go for stock investment with the capital on hand of RM 35k. Pay tuition fees to market first. I doubt the newbie will appreciate the meaning of fundamental value investing until they experience their losses in stock market. Normally for newbie, go for quality stocks with high ROE & dividend counter like the one preached by 3iii.
3) Go for unit trusts. At her age, normally a lot of insurance agents from her peer will approach her to buy insurance / unit trust. I think the best is to buy direct from fundsupermart. https://www.fundsupermart.com.my/main/home/index.svdo. At least she can monitor the fund performance on her own instead of relying to agent sweet talk on return more bank FD , which most of the time , the fund cannot perform as per their target.
4) Go for P2P lending. This one, you earns interest like loan shark by lending your money to the borrower at quite attractive rate. https://fundingsocieties.com.my/
5) Continue to put money in FD. ( bad option in my opinion)
6) Since the Heaven have fixed our destiny to be born in our currently family background which might not of the Bill Gates or Jack Ma's level, I won't suggest something impossible idea like wishing to be borned into rich family.
Instead, find herself a rich husband & become siu lai lai - habis cerita. Do be reminded on the risk that siu yeh chai got a lot of mistress one. VT got 4 wives.
If, I were at her position, I'll go for option 1 : real estate with the condition that the location is strategic.
2018-06-09 14:28
sami value, don't ask her go deeper in debt please. Somemore property market is still softening now.
Ask her pay down her debt to zero first. especially that 7-year car loan debt. Interest alone will kill her, not just the depreciation.
2018-06-09 14:37
this kind of advice must have assumption, one of it being that she can ensure that she is gainfully employed for the next x years. The thing about shouldering more debt is the assumption that she will have these income (and probably incrementally more in future) coming in.
Already got car debt, now want learn people sailang house?
But i like ur point 2 and 3. Yes, let her get burn in stock market, the sooner the better. In the mean time, just throw cash DCA method into the growth fund, even best if it's a global low-cost index fund.
2018-06-09 14:39
salary RM2.5k, house installment RM1.5k? apuuuuuu....pls don't do that.....the most i can tolerate is 25% off take home pay. You haven't told her she need cash for deco, touch up, furniture, and incoming houseowner expense like cukai pintu, home insurance
also remind her, take 30-year home loan she will kena at least 50% interest on top of borrowed principal.
2018-06-09 14:43
@Alex
kikikiki, we are from different school of taught. Buying property from the point of view as the buyer vs buying property from the point of view as investor totally different.
Property investment - location is the 1st priority. Other area softening does not mean all area softening. This time around is the best time to buy if you find a good bargain at the correct area. There are method to test & scout if it is true there is great demand at certain area.
If it is unfurnished unit, yes. Some money for minor renovation necessary. 10k to 20k.
Reason for completed unit = sub-sale market, the property could be fully furnished & renovated & ready to move or lease out. The fire insurance & MRTA is compulsory the moment you take loan from banks / most of the time. The quit rent is small money.
Reason to borrow young because when you are young, you can stretch your borrowing to longer tenure up to 35 years long & you can have lesser monthly commitment. As you age, bank will no longer give you longer tenure. The amount pay back at 50% that you worry, most of my investing peer did early settlement on 5 years to 10 years time instead of total 35 years. It is not as heavy as 50% as you perceived. I did my early settlement for the 1st property also.
Bear in mind, yes, our salary will increases over time, the value of property also increases over time due to inflation.
* provided she can survive with the balance monthly cash.
I was recently offered a unit in waiting to let go by buyer if the buyer loan is rejected by bank from an agent. The buyer was taking 2 units at same time, fully furnished & renovated with move in condition. Selling price RM 300k but the monthly rental fetching RM 2k/ month. Will you not buy if coming across this kind of offer when you can afford it financially?
I checked all the property portals from i property, property gurus, durian property - no one is selling at that area ! those who buy, do it silently coz they are still loading up until they cannot take. The agents are keeping listing unit tight in hand & only release to selective close client. There is under supply at that area with sudden upsurge in the rental demand. The location, I would not like to reveal.
2018-06-09 16:22
Sendiri pun tak betul.... ini kan nak bagi nasihat... dah mc Hadi Awang nak jadi penasihat
2018-06-09 21:51
Semiconductor Outlook: Further Upside in the Cards
https://www.zacks.com/stock/news/307182/semiconductor-outlook-further-upside-in-the-cards
2018-06-09 23:15
such a nice topic from a young lady....reminisce my study life, kinda saving type, till i can save my study loan bit, buyin a 3rd or 4th hand car from ma sister, go and back to work for few years.....make some personal loan, for buying gold a bit then a land, ...ok good lady, ahis age i only has half of her saving or less...ermmm...
2018-06-09 23:30
just share2 for me no 1. land and housing, low risk high return 2. precious metal, low risk low to medium return 3. then the stocks imvestment and trading high risk low to very high return...so choose it wisely, or do it all, according to our capability....
2018-06-10 00:05
ohh i forget, my preference no 1. unit trust, low risk low return but more liquid and peace of mind, no 2 then land and the rest...ermmm...happy investing amigos...
2018-06-10 00:20
Posted by moneypedia > Jun 10, 2018 12:20 AM | Report Abuse
ohh i forget, my preference no 1. unit trust, low risk low return but more liquid and peace of mind, no 2 then land and the rest...ermmm...happy investing amigos...
==========
to each is own, that's what makes the world so interesting.
2018-06-10 00:26
my son is 25....salary $ 5,000.....bright future....saving money is I think the last thing on his mind.
I expect him to earn at least $ 12,000 by 30.
2018-06-10 10:25
ic sami value, hope she is better off la with car loan and house loan, if can do early settlement (i think it's a must).
if recession kicks in and she loses her job, she can well loses her butt too, being that she is stuck with depreciating car loan, and a house that she couldn't sell at at least breakeven.
I note your point that when it comes to property, and the example you gave, easily 8% rental yield. Good offer. The thing is, if recession comes (just a probabilistic scenario), can rental yield be guaranteed? If got contract, then gooding la. If not, as property market is softening, what stops these renters to go to places where it is easier on their pocket?
I can also share. I saw someone hoot a property around 2011, want to sell at at least 50% profit off his initial purchase, list it since 2013, now until 2018 he is listing the property at some 23% loss (still no ppl buy), because that area is oversaturated with empty properties.
The best part? the photo sports some furnished stuff, still wrapped in nice plastic, since 2011 until now no ppl rent, apu.....kena con by sales agent.
I haven't talk about his monthly installment paid since 2011 (even earlier i guess before the unit is ready), those mrta la insurance la as you said.
2018-06-10 13:16
Posted by qqq3 > Jun 10, 2018 10:25 AM | Report Abuse
my son is 25....salary $ 5,000.....bright future....saving money is I think the last thing on his mind.
I expect him to earn at least $ 12,000 by 30.
RM4500 or RM5000 a month?
Is that so great?
Do you know that can't even pay for a two room apartment in Auckland?
Actually whether one can be wealthy when they get older is not how much they earn, but how much they save and invest to accumulate.
You should encourage your son to read the riches men in Babylon, rather than boosting something above which is nothing to be proud about not saving money.
You never ever wonder why after you retire, you can't even have 6 figures investment in shares as once posted by you?
2018-06-10 15:26
kc
For a 25 years old, Happiness is a worthwhile objective, not certified financial tools.
and happiness comes from knowing he got a bright future.....and in the right direction.
The certified financial planning goons think too highly of themselves...........
2018-06-10 16:14
kc
there is a saying, how much can eat is fated.....no need to worry too much....just living a life that is meaningful and better if got bright future.
2018-06-10 16:21
how much can a 25 years old save any way? how can it be a meaningful amount?
it is not how much can save, it is how much can earn that is important.
2018-06-10 16:24
Posted by qqq3 > Jun 10, 2018 04:14 PM | Report Abuse
kc
For a 25 years old, Happiness is a worthwhile objective, not certified financial tools.
and happiness comes from knowing he got a bright future.....and in the right direction.
The certified financial planning goons think too highly of themselves...........
I thought I read about your son doing CFA.
Tell me frankly, how does he go about doing stock analysis?
Does he folow my way of using financial planning tools, my way of business and financial statement analysis and valuation, or
Your way of dynamic investing, panic moment, sailang?
Than I will be able to tell if he is going to be successful or not.
2018-06-10 16:29
A fisherman who wants to catch more fish will cast one, two or more nets. This is akin to someone who works for money. He slogs day and night or jogs thru several jobs (nets) in the hope of making more money (fishes). The end result? By the end of the day, he's going to be exhausted with very little money to show (just like the fishermen)
The wealthy ones make money work for them in that they make the fishes (money) swim to them. How? They build coral reefs.
It is never too late to build your own coral reef, be it in starting your own business or passive income empire (properties, stocks etc), investment in education (to widen knowledge and increase your value) or leverage on other people (to complement your weaknesses), developing an edge in your techniques or methods to bring in consistent income etc
simple as they are, those are the secrets of the millionaire's success
- rewritten from Joey Yap's live events
Qqq3, I do hope and believe that your son will have bigger dreams than what his father had wished - that for him to make 12k per month by 30
And yes, love and hatred may be on the same stick but they are at the opposing ends.. Which means You can't be feeling both at the same time.. And outcomes vary upon which ends of the stick one is holding
2018-06-10 17:41
kc
at 25, what they do is monkey see monkey do. I copy you, you copy me.
but that is the way society is organised. Some will follow, some will rebel, eventually, some will break out and do their own stuffs.
as for the certified financial planning goons, they think too highly of themselves. In a world full of uncertainties, they think they can advise people , strangers how to prioritize their money, their lives.
Professional hazard, just being busy bodies, ...young people should stay clear of these certified planning types....Happier this way.
2018-06-10 17:45
Professional hazard, just being busy bodies, ...young people should stay clear of these certified planning types....Happier this way.
BFM ...regularly put in a certified financial planing type on air....talk cock, talk BS, I either switch off or laugh at them.
2018-06-10 18:13
@Alex
ic sami value, hope she is better off la with car loan and house loan, if can do early settlement (i think it's a must).
..................................
- By norm, a personal finance conscious individual will not commit heavily on the depreciating asset. The is the first lesson will be taught. Judging from gender personal preferences even my from own peer, female have tendency to spent on aesthetic even though knowing it is depreciating asset.
if recession kicks in and she loses her job, she can well loses her butt too, being that she is stuck with depreciating car loan, and a house that she couldn't sell at at least breakeven.
...............................
-as I mentioned earlier, how comfortable is the lady with her current active income. Do not jump to conclusion too fast by thinking she only have fix salary to rely on. At 25 y.o with 35k saving, she "might" have part time income or other unknown incomes which can reduces her monthly expenses. Some people eat free meals at KFC & McD doing customer feedback for MSP. You can also get free petrol for customer feedback.
Another important part of the personal finance is to raise cash during crisis. Know what avenues you can raise emergency cash in case of unexpected event. You must know which financial instrument you can scarifies & let go in the event of emergency. Insurance premium, saving premium, EPF, jewelry, etc.
Just don't commit if not feeling uncomfortable. But with balance of RM 950/ month, too me, it is comfortable if I'm single.
........................................................
I note your point that when it comes to property, and the example you gave, easily 8% rental yield. Good offer. The thing is, if recession comes (just a probabilistic scenario), can rental yield be guaranteed? If got contract, then gooding la. If not, as property market is softening, what stops these renters to go to places where it is easier on their pocket?
................................................................
Yes, people will opt for cheaper option. You must know who is your targeted market group of people. There is a bottom-line which cannot be lowered. Anything lower than the base = sleep at roadside. The sector which did not affected by recession = education. Economy good, you still send your children to university, economy bad, you still send your children to university. Can university student opt for cheaper alternative at further location during bad time ? Know your target group. Rental for family range from 900-1500/month. Anything more than that, family cannot afford. Rental for students can go higher than 1500/month to 2500/month depending on the location & demographic.
I can also share. I saw someone hoot a property around 2011, want to sell at at least 50% profit off his initial purchase, list it since 2013, now until 2018 he is listing the property at some 23% loss (still no ppl buy), because that area is oversaturated with empty properties.
-Aiyo, your friend failed in flipping strategy. Flipping got flipping category & strategy , there is threshold amount cannot exceed also. If the threshold amount exceed, buyers will have a lot of other alternative coming in, your market will reduce due to competition. Know your target market, don't simply hoot.
If your friend flip strategy failed & resorted to rental strategy, must know the rental target also. Cannot expect unrealistic rental if the surrounding do not have infra like commercial area, university, industrial. If the rental target too high exceed 3k/ month, your potential tenants will be reduced to expat. No local will rent, coz if they can afford 3k rental, they can buy their own unit already.
The best part? the photo sports some furnished stuff, still wrapped in nice plastic, since 2011 until now no ppl rent, apu.....kena con by sales agent.
....................................
Don't fully blame agent. Agent is only sales person, their job is to sell. Investor job is to validate the agent selling points before investing by doing ground investigations.
I haven't talk about his monthly installment paid since 2011 (even earlier i guess before the unit is ready), those mrta la insurance la as you said.
.................
I think i3 have discussed many times. It is matter how the person use the tool. A sharp knife can be used to save life to perform surgery. The same sharp knife also can cut yourself if you accidentally slipped it because you don't know how to hold it properly.
2018-06-10 23:25
@moneypedia, land purchase is another category. you buy red color grant land ? coz for land purchase, bank will only give 50% margin & the tenure max at 15 years with quite a high BLR+ rate.
in short, buying land. you need heavy upfront cash.
2018-06-10 23:31
Nice sami value, like to talk to u... Haha...
OK la, can ask her to hoot now. Buy before too late~~
2018-06-10 23:48
Left 850 per month... After minus chap fan and ice water, still got money left for Sk2 makeup and yearly traveling or not? Hehe
2018-06-10 23:49
Posted by qqq3 > Jun 10, 2018 06:13 PM | Report Abuse
Professional hazard, just being busy bodies, ...young people should stay clear of these certified planning types....Happier this way.
BFM ...regularly put in a certified financial planing type on air....talk cock, talk BS, I either switch off or laugh at them.
Still don't know why some people, even after retirement, do not even have much money to leave behind?
2018-06-10 23:51
Still don't know why some people, even after retirement, do not even have much money to leave behind?
==============
in 20 years, I will be as rich as KYY at 80, should not be a problem.
2018-06-11 00:06
by newbie911 > Jun 11, 2018 12:16 AM | Report Abuse
Qqq3, mind to share your top 3 holding?
Hope can follow u.
==========
you can't follow me because I can sell without warning you..
nevertheless, for a direct answer to your direct question, you can read here....
https://klse.i3investor.com/servlets/forum/600157964.jsp
2018-06-11 00:36
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I think young lady should focus on the Art of Happiness rather than the Art of stock market.
2018-06-08 11:51