Translate This Page

Malaysia Bank Swift Code

What is Swift code? Swift code is known as ISO 9362 and is a standard format of Bank Identifier Codes approved by the International Organiza...

Thursday, May 16, 2013

Buying endowment plans

Lately I have been looking at some of the insurance products in the company that I'm working for, Great Eastern. The main reasons for that was because of a friend of mine who encouraged me to learn more about these products.

Here are some of the right perspective that you must set in regards to Endowment plans. Unlike other savings plan, endowment plans in an insurance company comes with a protection. This is important for those of us who look at protection at the same time. The return of the plan is reasonable. Unlike other savings plans like FD, endowment plans force you to create a habit if saving a portion of your money. The plan that I was looking at is known as Great Wealth Accumulator.

By savings about 1800(minimal, depends on underwriting, your age and risk, as this is insurance related) per year, you will start getting a certain amount at the second year. (Guaranteed and non guaranteed portion). The non guaranteed portion depends a lot on the company performance. So far, the company has a nice record when it comes to the company performance.

Above is only a sample illustration. Please refer to the insurance agent or for the sales quotation by the company

Above is the sample quotation. The performance bonus that I used here is when the company performance earn 7% per annum. (Good performance).

So basically, you will be getting a bonus of about 1000 each 2 years, as you save the RM1800. Of course, you must understand the compounding effect of the RM1800 you put into FD. For the next 10 years, the FD will definitely bring a better rate of return, but what makes endowment plan attractive is at the maturity date, for your retirement and protection.

Besides that, you only need to pay for 20 years or 15 years...after that, you will be getting a yearly bonus.

Above is only a sample illustration. Please refer to the insurance agent or for the sales quotation by the company

By looking at the above, you can see that the benefits really start to become apparent at the later years. Because you will be getting a bonus of about 1000 yearly after that.

My advice: take a small portion of your salary, maybe about 10% or 5% of it to be set aside for this purpose. It will help to create a culture of savings and also planning. But do take note of this. This portion of money is mainly for savings. You may reward yourself with the bonus you are getting along the way or reuse it for our investment plan and strategy. Whatever it is, you must take the first step to manage. This endowment plan is low risk and comes with protection for your life. Very suitable for those who are working in Singapore without any EPF or people who are busy at work (couldn't find time for investment, savings, etc)

Saturday, May 11, 2013

How Hard Does Your Money Work?

I've blogged about the some of the Universal Rule of Personal Financial Management and one of the rule mentioning about never depend on single income, which is actually taken from a famous quote by the Sage of Ohama, Warren Buffett. This rule is in fact the most important rule after one have discipline in controlling spending.

It's so coincidence that I read an article in The Star, and it mentioned about how hard does your money work, although towards the end of the article, it is starting to do a bit like "advertisement" by trying to get people to use the service of fund managers or financial planners. Nevertheless, that is not the most important message. The message is clear, how hard does your money work rather than how hard one work for money - exactly the same as what I was trying to imply on the Universal Rule of Personal Financial Management: #3 Never Depend on Single Income.

The article is as follows:-

YOU may be working hard for your money, but is your money working hard for you?
In this article, we look at three distinct groups of Malaysians and how their money works for them. Hopefully you will be able to get some inspiration to make your own money work harder.
As regular readers of this column know, we recommend striking a balance between “money making” and “money optimisation” in order to achieve financial freedom. Money-making strategies involve concentrating our time, energy and resources on what we do best in order to increase our income. On the other hand, money optimisation requires converting your active income into assets and then using those assets to support your lifestyle. In short, money optimisation makes your money work for you.
To begin with, it is helpful to understand that our attitude towards money divides us into one of three broad groups of people. Which of the following categories do you fall into?

The Procrastinators
The first group pays no attention to money optimisation. They believe that financial success comes from focusing 100% of their efforts on making more money.

This group often believes that they have no time to spare for money optimisation and as a result they tend to be largely reactive in managing their finances. People in this group are highly prone to procrastinating about their personal finances and very often, they adopt a “make or break” approach to money, with the hope that by paying full attention to making more money, they will be able to manage whatever financial challenges the future holds.

This group of people suffer from anxiety over their competing financial needs and are inherently exposed to various risk factors that may adversely affect them from time to time.
When the Asian Financial Crisis struck in 1998, a successful CEO sought my advice when his RM100mil per annum manufacturing business hit a wall. In the midst of the crisis, the foreign bank that had extended him his loan reduced its line of credit as part of its rationalisation exercise for the region and asked him to pay up the amount due from the previous credit limit.

When the local banks got wind of this, they too took similar action with their loans and his business ran into a cash flow crisis. This crisis brought the company tumbling to its knees and till today, the CEO who was in his 40s when the crisis happened, has yet to restore his financial health.
Previously when his business was booming, I had cautioned him on the need for a money optimisation strategy but during that time, he was too busy managing his business.

Thankfully, with financial literacy and education such issues can be avoided. The challenge is that this group of people probably still accounts for the majority of the population in Malaysia.

The Do-It-Yourselfers
The second group pays some lip service to the concept of money optimisation, but their financial strategy is mostly reactive and far from comprehensive. If asked how they plan to meet their various financial goals, they will admit that they are unsure of what components are missing in order to optimise their money.

It's a classic example of “you don't know what you don't know”. You can't address an issue if you don't know the root of the problem, the potential solutions and how best to manage them.
A few of these individuals are proactive and comprehensive in their financial planning but the majority manage their personal resources in isolation from one another. This scenario happens when they do not see the big picture and fail to adopt a holistic financial approach to their investments, children's tertiary education, retirement, asset protection, estate management, debt and loan management, taxation and insurance.

I recently met a doctor who was proud to share with me how he had optimised his money in a comprehensive manner. He shared that he had invested some money for his own retirement and also allocated savings for his children's overseas tertiary education. In addition, he planned to build a beautiful bungalow for his family. When I asked him whether he knew if he would have enough money to fund these financial goals, he was dumbfounded and admitted that he was not sure. By managing his finances holistically, he would have the answer clearly.

The Delegators
The final group of people seeks professional guidance and support to achieve money optimisation. As a result, they are proactive about their financial goals and adopt a comprehensive and holistic financial management strategy to ensure that their income is optimised to achieve long-term financial independence and to grow their wealth.

I met a young CEO one year ago who had gained exposure to the benefits of engaging an independent financial adviser (IFA) while he was working in Australia. Although he belonged to the smallest of the three groups we have identified, in countries such as the UK, US and Australia, this group form the biggest portion of the population, thanks to widespread public education and financial regulations to protect the consumer's interest.

As I outlined in my latest book, Set Yourself Free, there are five criteria that every IFA must have. Firstly, he must hold the right regulatory licences to facilitate the delivery of independent advice. Secondly, he must charge a fee for his advice and services, and thirdly, an IFA must be able to provide holistic and integrated advice that addresses all aspects of money optimisation for the clients. Fourthly, an IFA has no sales quota to meet so that he provides advice based on his clients' best interests. And finally, the IFA must have access to a wide range of financial products so that he can package a combination that will help the client achieve financial freedom.

In line with the country's aim of becoming a high income nation, Malaysians must make a mindset shift and proactively take control of their finances with both money-making and money optimisation at the top of their agenda. Only with this strategy will financial freedom be truly realised.

Source: The Star

Tuesday, May 7, 2013

Foreign investors confidence shown after BN win in GE13

Much has been debated and argued about the GE13 results. Well, it doesn't matter because foreign investors are showing their confidence as the market open today. 

Affin Investment Bank Head for Retail Research Dr Nazri Khan said the participation of many foreign investors in the local bourse today was a clear signal of their confidence in the Malaysian economy.

“Bursa Malaysia soared to a new high of more than 1,800 points and this clearly showed foreign investors’ confidence in the government’s development projects.

“In fact, Bursa Malaysia received an injection of RM2 billion in foreign funds during the morning session today which is the highest recorded thus far,” he told reporters here Monday.

Of course, there might be a lot of argument that these are all manipulation but then again, assuming that the momentum is maintain, we are talking about revising the target to 1,830 points by year end. 


So far, BN win has also had a positive impact on the cash and foreign exchange market while the entry of foreign investors has helped the movement of the ringgit, which rose to a 10-month high of 2.9870 against the US dollar.

Well, if you are still upset about BN win in the election, maybe this will help to cheer you up. 


Labels

Investment News share market bursa malaysia FBM KLCI market daily report stock stock market Brokers Report Malaysia Financial Management brokers call Personal Finance research report Financial Economy General stock investment Money Articles FBMKLCI Stocks market PublicInvest Research Budget Wall Street Update PublicInvest research report Wall Street KLCI oil & gas 1MDB Hong Leong Investment Bank research report Personal Opinion Dow Jones Issue US bursa Credit Card Debt Kenanga research report equity market kenanga research oil price politics ringgit Market Watch PPP klse najib property development Malaysia Weekly Highlights Nasdaq oil property thoughts EPF Hong Leong Investment Bank Research Income Tax construction Maybank Research Misc Money Master Najib Razak S&P 500 Index The Edge Financial Daily US stock market bank negara weekly weekly investment term China Companies in Focus Inflation Loan Rules Theedgemarkets business maybank plantation s&P 500 warren buffett Crude Oil Insurance MIDF research report Maybank IB research Retirement Planning Reuters business news finance global opinion spending stocks with momentum technology Bank Brokers Feng Shui OPEC Savings Wealth bear market currency financial services global market investing microsoft wallstreet 1 Malaysia Development Bhd 1Malaysia Development Bhd BNM International Reserves Billionaire Budget 2016 Commodity Disney Investment Term Malaysia News PCB Petronas Richest People STD Saudi Arabia bloomberg british american tobacco gaming sector low oil price media publicInvest russia share investment stock pick telecommunication top glove trading wallstreet update weakened Ringgit 2010 2016 Air Asia America Bad Debt Bill Gates Billy Toh Budget 2017 Calculation Chinese New Year Currency Exchange Education Fed Forex Gold IPIC Income Iran Kenanga Research research report Lembaga Tabung Haji MAS Macquarie research report Oil & Gas sector Quote RHB Semiconductor Industry Association (SIA) Star Wars Star Wars: The Force Awakens US Fed hike affin hwang capital airasia analyst apple axiata bearish market business highlights construction & engineering consumer products dow jones industrial average earnings report equity expenses global bear market healthcare hup seng industries berhad inari inari amertron berhad interest rate learning malaysia airlines market news maybank investment bank oil and gas oil palm plantation oil prices opr overnight policy rate (OPR) s&P500 s&p satya nadella scandal thought thought of the day 2013 2014 Bank Negara reserves Broker Report Budget 2020 Cash Rebate Donald Trump Earn Financial Planning Financial World Forbes Global Competitiveness Report Global News Global semiconductor sales Goldman Sachs Good Debt How The Rich Get Richer IOI Corp Bhd India Intelligent Investor Interest Rates Linear Income M&A Securities Mahathir Malaysia Business Highlights Maybank 2 card P1 Passive Income Privacy Policy PublicInvest Bank research report REIT RHB Investment Research RHB Research Report RM SIA Sector review TA Research TM TPPA Telekom Malaysia Tun Dr Mahathir US news USD USD against MYR United States Wall Street Journal World Economic Forum Zeti airasia x airlines apple inc asset allocation automotive aviation sector azure banking sector bat beverage bonds box office brent crude budget 2015 bumi armada buy property cash consumer discretionary default developer electricity tariff hike engineering financial market global economy greece gst home hong leong investment bank house infrastructure iphone jobs kossan rubber industries macquarie equities research report malaysia Ringgit market close market updates mukhriz nadella new era for oil opinions pipeline services politic public bank random rate hike research retirement ringgit crisis sector update semiconductor semiconductor sales semiconductor sector shale producers share sime darby stock market. oil & gas industry tax technical analysis telco sector the edge weekly news world market 0% Easy Payment Plan 1MDB scandal 1mdb story 20 cents 2009 2011 29 minutes 3.25% 53 cost cutting measures 7-eleven 9 Things Rich People Do Differently Every Day ABNxcess AFP NEWS AMMB Abu Dhabi fund AirAsia X Bhd Alcohol AmInvestment Bank research report Amazon Ambank Aminvestment research report Ann Joo Ann Joo Resources Bhd Anwar Apple watch Asia Asian stock market Avengers BIMB Securities Research BJ Auto BP Plastics Holding Bhd BSI Singapore Bailout Banking and finance sector Benjamin Graham Biden Bio Osmo Book Borneo Oil Bhd CIMB CLIQ Energy Bhd CPO export tax CPO price CSI 300 Carlos Slim Carlsberg Cepatwawasan Group Bhd Charts China General Nuclear Power Corp China's bond market China's wealthiest man Christmas Circuit breaker Citibank Cash Back card Commodity Watch Credit Customer Service DSKH Holdings (M) Bhd Dagang NeXchange Bhd Datasonic Group Bhd David cameron Debt Status Deficit Deloitte Dividend Domestic news Dutch Lady Milk Industries Bhd E.U ECB EON Eastern & Oriental Bhd Eco World Eco World Development Group Bhd Edra Euro Europe Central Bank European Union Evergreen External Trade FPSO Genesis Fed rate hike Federal Reserves Federal rate Fitbit Fitbit Inc Gamuda Genting Malaysia Berhad George Kent (M) Bhd Global Competitiveness Index Global Issue Gordon Growth Greece exit Greed is Good Guan Chong Bhd Guinness HSBC Hasbro Hektar Reit Hiap Teck Ventures Bhd Highlights Hillary Clinton Hock Seng Lee Hong Leong Bank Bhd Hong Leong Bank Investment research report Hong Leong Bank Wise card Hong Leong Industries Bhd ICB IMF INTC IPO IPOs IT Ibraco Bhd Intel Corporation International Petroleum Investment Company (IPIC) Islamic Banking and finance sector Ismail Sabri JF Apex Securities JF Apex Securities Research Janet Yellen Jerasia Capital Bhd Junk KNM KNM Group Bhd KVMRT 2 Investment KWSP Keep Up With The Joneses Khir Toyo LHDN Leissner Lim Kit Siang Lucasfilm M+ online Market Wrap MARA MH370 MIDA MISC Bhd MLTA MPC MRTA MSN Money News Madza Malaysia Airports Holdings Malaysia Banking Malaysia Bond Market Malaysia fund Malaysian Palm Oil Board Malaysian Ringgit Mara Digital Store March CPO export tax Maxis Maybankard 2 Card Microsoft in the new era Millionaire Next Door Mistakes Motivation N2N Connect NAP 2014 NTPM Holdings Bhd Nazir Razak News Update News at a Glance Nikkei O&G OCBC OPEC war OSA Obama Office 365 Windows 10 Oil Watch PTPTN Packet One Parkson Paypal Perdana Perisai Petronas Chemicals Group Bhd Petronas Gas Bhd Pintaras Jaya Bhd Pioneer Natural Resources Co Power Practical ways on spending Prestariang Bhd Public Investment Research PublicInvestresearch report RBC Capital Markets RCP average poll of US election RGB International Bhd RHB Research RM crisis RM2.6 billion ROE Ranhill Holdings Bhd Rants Rating Raya holiday Recession Ringgit's volatility SEM SKB Shutters Corp Bhd SME segment SP Setia SRR Saizen REIT SapuraKencana Seacera Group Bhd Shale oil Sime Darby Bhd Simee Darby Singles Stimulus Plan Stock Selection for the Enterprising Investor Sunway Construction Bhd Superlon Holdings Bhd Swift Code TIME TMI TNB TOYOTA TRC Synergy Tan Sri Tony Fernandes Tax Reliefs Technorati Tenaga Tenaga Nasional Bhd The Citizens Declaration The Edge Weekly The Negative Side The New York Times Tim Cook Titijaya Land Bhd Trans-Pacific Partnership Agreement Trump v Clinton Tsipras U.K UEM Edgenta Bhd UMNO UMW Oil & Gas UOA US Box Office US election US fed US manufacturing data US market US patent and trademark US prosecutors US stocks USA USD/MYR USEconomy Uchi Technologies Bhd Ultra-Rich Networth individuals UniFi United Kingdom Uob one card Versatile Creative Bhd W-8BEN WCT Holdings Wahid Wal-Mart Wall Street support Warren's Way Windows 10 Yak Yew Chee Yellen Yinson Holding abenomics aemulus affordable housing ahmad bashah ahmad zahid airline airports alibaba alternative investment aluminium asian market audit automobile azure machine learning bank negara malaysia below $30 a barrel berjaya auto bhd berjaya food bond market borneo utara highway brexit britain broadband budget 2018 budget revision bulk purchase of property bullish bullish market burse cloud computing cocoa coffee consumer staples consumption power cost of having a baby crane customer data debt investor deflation risk development downpayment for your home early election earnings per share economic outlook economic outlook 2016 economic sanction economics economy outlook ecoworld effective gross income egi election election budget electric utility electricity electricity bill electricity production endowment plan energy sector entertaiment eps essay european central bank eversendai eversendai corp export data family food beverage food services forecasts foreign-worker levy hike fundamental questions on retirement genting group genting plantation george soros global energy global stock market globetronic glove goldman great eastern group purchase of property has oil bottom? health higher price home business household & Personal product how low can ringgit drop? humor industrial package industry product interest internet investment income investment plan investment strategy iraq jack ma jack ma ready to take on the world jaks resources bhd japan jobless kimlun klci index knowledge land reclaimation work lawsuits life lifestyle lifestyle inflation liquefied natural gas (LNG) machine learning maintain buy malaysia government managing debt manchester united manufacture polyrethane product manufacturing marine engineering market closing market outlook markets mazda medical insurance metering microsoft earnings middle class monetary policy committee moneymaster mortgage movie negative nestle noon market offshore marine support services oil & gas services oil gain oil madness oil market oil production oil rally oil&gas oldtown opr hike patent petrol petrol chemical petroleum petronas gas pipeline project positive power generation power plant prime minister primus pacific private placement profitability ratios project reference property & infrastructure property development and investment putrajaya quantitative easing relative strength index (RSI) renewable energy reputational risk resources retail retailing retirement fund rhb research institute risk risks ruble salesforce sapurakencana petroleum savings for retirement scicom scientex scomi energy services bhd sector sell share markets share price shinzo abe shipbuilding shopping mall stagnation star publication (M) bHd starbucks statistics steel stock market bursa malaysia stock market investment stock price swiss swiss bank takaful tech technical indicator telco the malaysian insider the star thermo-vacuum form plastic packaging manufacturer time value money top gainers top losers trade volume index (TVI) traditional healthcare uchi tech umw holdings upstream oil & gas ursa malaysia value of compounding wal-mart effect warren buffet water related engineering wearable tech webe windows worldwide sales zecon