Dollar Cost Averaging

I thought I already shared this before but apparently a lot of people thought they knew but yet they DO NOT apply this method correctly to earn profit ...  Dollar Cost Averaging or Ringgit Kos Purata basically says you should invest the SAME Amount of money Periodically. Just to remind all that in fundamental investment, you Buy Low Sell High. So this is the Key Message :when you...

Stock vs Gold vs Property

Below I share some historical trends for Stock Market, Gold and Property.  They are not directly correlated but each is good enough to represend some form of global historical trend.  So they are good enough as an overview and for layman entry level comparison.Stock marketPropertyGoldComparison 1 - 1975 to nowGold has earned 3.5xStock market 8xProperty 10.7xComparison 2 - origin...

zzzz Stock Market - Foreign Fund

Everyone already knows but this data just to assure it - Foreign Fund already leave zzzz share market, all you need to consider now is if the company you invest in can substain this crisis.&nb...

EPF/KWSP/401K is causing you to lose money because of their own stupidity

sorry I hadn't posted much these few days and I need to earn some extra money to substain this upcoming school holidays :)Anyway, I receive an email which I have personal experience with.  I think its important for all zzzzn to know too .... and I would guess USA goverment may have done the same.  Good luck with your obama votes :)Subject: SCAM by KWSP / EPF / 401KThis is another method for KWSP to steal our money!Remember during Budget...

Case Study : middle income group

This morning I over heard a case study from radio station 988 :A young man earning $4000-5000 a month. $1000+ pays to house loan, $500+ pays to car loan etc and every month he has a remaining of $500 for saving. His question is what he should do with all his loans. He also has some credit card debt.The answer given by the expert on radio is :Use the $500 to clear all credit card debt, then car...

Buy Term Invest The Rest

In one of the old post I shared how to best use of your money among insurance, fix deposit and mutual fund ( click to see old post).Basically it says if bad thing happens within the first 5 years, insurance is the better choice because you get $100,000+ while your FD/Mutual Fund saving is only starting to accumulate at $10,000+. However for the next 10-20 years FD and mutual fund are clearly better...

Capital Guaranteed Saving ...

Nowadays, more and more people complains about drop of their investment value.  This would be a good learning experience that you may not be able to take the risk you thought you could ...A few days ago, I came across this Capital Guaranteed Saving Plan by Prudential called Pru-Retirement something.  May be this kind of plan is suitable for those who cann't stand recent market crashes ...click...

will Injection $ into stocks work ?

Frequently we heard people 'inject' money into stock market to 'support' it.  Sometimes they put in more flowery words like, "we will buy in good businesses at low price.  At one hand, we will earn in long run, and it also increases people confidence, so its double the benefits !"Will it work ?Well ... its quite simple really.  If the market turns out to be the bottom when you...

Insurance vs Fix Deposit vs Mutual Fund

InsuranceI search around and found this, one of the best Endowment Insurance Policy I can find.  Just a reminder that "Endowment Insurance" is a type of insurance you go for when you are aiming at SAVING !  ( read old post for more info )Basically this plan says if you save $18,000 for 10 years, you will get $300,000 by the year 20th.That is about D O U B L E your investment, not to mention...

Goal ? Just set one ... its better than None

Sometimes back I mentioned one should start saving even without a goal  (old post).  However, having a goal is still better than having none.Because the journey is easierwhen you think you knowwhere you are going.If you really cann't find yourself a compelling goal to pursue for, just set a generic one.  Like you are aiming for $1 million and that could get you ...1) a good lengthy trip to Mount Himalaya ...2) build your own winery...

Cut Loss, Cut Lost or Cut Loose ?

Many have asked if Cut Loss is within my fundamentals and why I purposely avoid talking about them when I could have.  Well, because that is also another myth about it ... :)Cut Loss basically refers to a situation where you get on a finance vehicle hoping for X return but turns out a Y loss instead.  Therefore you get out of that vehicle hoping to minimize the loss."I would sell when it gains or loss 20%."The missing thing is "Time".  If...

Insurance

I mentioned insurance is not in my pyramid but acting as a support pilars to the pyramid I build.  ( read old post for more info )I categorize insurance into the following ;1. Term Insurance2. Whole Life Insurance3. Endowment Insurance4. HybridTerm Insurance is the most basic type of insurance.  You pay a certain amount of money to the insurance company and in return should something unexpected happen, insurance company will pay...

Mutual Fund Interim Report

This is one of the oldest fund I have kept - Public Index Fund from Public Mutual.This particular one is Interim Report - published 6 months after last annual report.This parts below shows how much return this fund gives for the past years.  A few highlights areFinancial Year Ended 31 JanLipper method  Normally I ignore this part because unless you purchase the fund on 31 Jan, else those...

What's Wrong with Mutual Fund ?

If these Fund Managers are so Expert, why in the world they do not withdraw from the market before the market crash ?A well establish mutual fund company normally has a large invesment sum of money to invest with.  Sometimes one mutual fund company alone can have more than all the money traded in the stock market one day.  That also means, a fund manager can put ALL money into a crashing market and still make the market trends up that day....

Mutual Fund - service charge

Equity Mutual Fund is a fund that invests into stock market directly, usually either to (1) gain maximum capital appreciation or (2) receive constant dividen payout as an income.The standard advice is to read the prospectus, understand the purpose of the fund before buying it.  Public Mutual is the largest private mutual fund company in zzzz and this is a sample of prospectus.  All...

Stock : When to Buy at What Price

This explains how I buy stock, when to buy and at what price.  And why I don't really bother global recession and market fluctuation.  Actually that is not right, I do get very excited during down turn.  Its not often you get this kind of opportunity knocking on your door.There are a lot of reasons and fundamentals behind this method but here I will just list down the practical steps...

Finance Big Bang Theory

I have this Big Bang theory about Finance ...At First, there Was Nothing,Then there is Everything !Long long time ago, we exchange goods for a living.  Sometimes I asked for 4 chickens to exchange my 1 bag of rice, but some other times, my friend is only willing to give 3 chickens.  So as times go, more and more people do not like this constant changing of 'price' and they want standardization....

Personal Finance RISK - another Myth

A very common comment in Personal Finance is this ...The Higher the Return,The Higher the Risk !!I agree with this if I am a general public.  I also like it if I am discussing this in a philosophical class.  But in practical life in Personal Finance, it doesn't help much.  It just tell me not to be greedy.  But it doesn't tell me what to do with my portfolio.  So the myth...

Property Myth in Personal Finance

Property is one of the most interesting topic in Personal Finance, becaues it carries a lot of myth and paradox with it.Property is one of the few finance tools that bank is willing to lend you money before you buy it.Because of that alone, you can do almost ANYTHING you want with it.  Imagine this ;1.  you see a good property2.  you find someone who will rent it3.  you convince bank how much its worth is and you can...

The Solution - Portfolio

This marks the First milestone of this sharing in Personal Finance Fundamental - the solution !Since the post of "now Finance Planning starts ...", there is a wealth pyramid built.  I want to re-emphasize that everyone's should build their own pyramid.  And everyone may use different material to build it.And I also talk about Life Line - a simple drawing of your life and what you...