RE: Investment Guide: RM1,000 - Now Where Do You Invest It?

So what do you do with RM 1,000? 
Here's a good guide on growing your money in investing!

Investment Guide: You Have RM1,000. Now Where Do You Invest It?

You may scoff at the idea of getting into investments with just RM1,000. You might think, “What can I do with that meagre amount?” A lot, actually. You’ll be surprised at how much you can gain in years to come if you invest that money right now.

You don’t need to invest hundreds of thousands up front to see a healthy return. With just RM1,000, you can kick-start your investment portfolio and see money rolling in.
According to your risk appetite, here’s an investment guide on where you can put your RM1,000 and see it grow.

Amanah Saham Bumiputera (ASB)

Risk: Low
Average return: 8% to 10% per annum
Example: If you invest RM1,000 over 10 years, your return will be RM1,367.36 excluding dividend and bonus

ASB is a premier unit trust investment specifically for Malaysian Bumiputera. It is managed by Amanah Saham Nasional Berhad (ASNB), a wholly-owned subsidiary of Permodalan Nasional Berhad (PNB).

It is meant as a long-term investment, with the longer you keep your money, the higher the possibility of higher return.

Some of the ASB features:

• Capital guaranteed – low risk
• No sales charges – higher return
• No redemption charges – higher return
• Maximum investment amount: 200,000 units

Real Estate Investment Trusts (REITs)

Risk: Medium
Average return: 6.82% per annum
Example: If you purchased 700 shares from Sunway REITs in 2012, and sold them in the first quarter of 2014:



REITs are meant for investors who would like to invest in property, especially retail lots, but do not have the capital to buy them outright as investments. These trusts are formed by companies that purchase and manage real estate using funds pooled from shareholders. Dividend payouts can be generous depending on which REIT you are buying.

Like most long-term investments, the longer you leave your money in it, the higher the return will most likely be.

* DPU stands for Distribution Per Unit, or also known as, dividend per share of the financial year. It is listed in sen.

Unit trust funds

Risk: Low to medium
Return: Depends on portfolio and funds
Example: If you invest RM1,000 in the AMB Lifestyle Trust Fund Today for five years on Fundsupermart.com.my, your return, based on the historical performance, may be:

 Performance figures (as of July 22, 2014)

Unit trust funds are a form of collective investment that allows investors with similar investment objectives to pool their funds to be invested in a portfolio of securities or other assets. A professional fund manager then invests the pooled funds in a portfolio which may include cash, bonds and deposits, shares, properties and/or commodities.

The return on investment of unit holders is usually in the form of income distribution and capital appreciation, derived from the pool of assets supporting the unit trust fund. Each unit earns an equal return, determined by the level of distribution and/or capital appreciation in any one period.

However, investing in unit trust will usually involve certain costs like sales charge, platform fee, annual management charge, trustee fee and other charges. By investing via Fundsupermart, investors can reduce these fees and charges as compared to investing through a fund manager.

With a unit trust fund, you can still maintain liquidity and security, but it is no longer a savings account – it is an investment. Unit trust is the most suitable investment for the common man who is interested in equities but lack the funds to diversify independently. Unit trusts offers an opportunity to invest in a diversified, professionally managed portfolio with lower starting capital.

Compare the performance of different funds to find the best one to invest on using our unit trust comparison page.

Blue chip stocks in Stock Exhange

Risk: High
Return: Possibly high return, depending on market and company
Example: If you invested RM 1,000 in Axiata in 2009 (five years ago), it would amount to about RM2,340 now.

AXIATA 5 Years                                                                          Source: Bursa Malaysia

 

Investing in blue chip stocks are recommended not just because of the capital appreciation, but also the attractive dividends, depending on the company. In the example above, Axiata is a well-known and reputable blue chip company.

Blue chip companies refer to reputable and financially sound companies, selling high-quality, and widely accepted products and services. These companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.

However, if you’re risk averse and not well informed, stocks should not be used as a short-term investment in order to make a big profit. This action is not investing, but pure gambling. There may be times in which stocks have put a record on short-term growth, but these occurrences are very rare.
Making short-term transactions with stocks can lead to high cost of investment due to the various brokerage and transaction fees. Depending on your investment amount, these fees can add up to a significant amount.

As Warren Buffett once said, “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”

No matter which investment vehicle you pick, it should have a long-term flavour. That way, you don’t get eaten alive by trading fees on a relatively small amount of money invested, and there can potentially be higher return on your money.

For most people who are struggling to save up on some money to invest, remember, it can always be done over time. You can always top up your investment in various investment vehicles as and when you have saved up some investment fund. If you keep at it over time  you will gradually build up a pretty secure and diverse investment portfolio. It’s always good to start early!

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RE: Multiple Income Streams: How They Can Work For You

Let's talk about something interesting...
multiple source of income

Yes all of us want more and more income, I mean - who doesn't right? In fact, the more, the better!

And we spend most of our time thinking about it, especially when we are seemingly stuck at a "crappy" job or even when things are not going our way.

This article gives us good insight on the topic of: why multiple sources of income?

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For most people, the only income they earn comes from their job. Get up, go to work, come home, and collect their paycheck – and they're perfectly comfortable and believe it is good enough for them.

But then once children come along, when they have to start taking care of ageing parents, medical bills start rolling in with age, they come to one realisation (perhaps a bit too late). Having a job is like putting all their eggs in one basket. All their income is reliant on one job, and if that job goes away, they and their family would be hurting.

The only solution is to create more sources of revenue – streams of income. Even if they weren't as much as a full time job, having income from multiple sources ensures that if something happened to any one (including their job) it would not be nearly as disastrous.

This begs the question: But how can you create more sources of revenue while burdened with debt, holding a full time job, and the needs of a family?

Here's some ideas to help you get started:

1. Start a business on the side.
You could do some freelance work, sell merchandise on eBay, teach classes on a skill you're proficient at, fix computers; it doesn't take much time at all and earns a bit of regular money.

2. Start writing about something you're passionate about.
Start a blog. It could be about cooking or parenting, somewhere to collect your thoughts and experiences. List the "lifehacks" you've discovered, share the knowledge you've accumulated; anything's possible. You won't believe the number of people that will be interested in what you have to say. Once you get it going, you can start earning income from the advertisements. The writing can be done whenever, filling in gaps in your time.

3. Build up a consistent savings fund.
Whatever income you earn, use the income to build up a large long-term emergency fund. While the income stream here is rather small (2-4% interest on several months' salary), the fact that the income is based on your own capital and you don't have to do any additional work for it.

4. Eliminate debt.

5. Look for investments that will earn a better return.

Obviously, these sources all require work, with the exception of the savings fund. These are usually called active income streams. The savings fund, which requires no active work, is a passive income stream. Obviously, passive income streams are better over the long haul because they provide income without additional work contribution. Active income streams generally involve a trade of work for money, which means that your time is consumed. However, passive income streams almost always require some significant money to start with, something many people don't have.

What's the real benefit here?

Why put out a lot of effort for multiple active streams? The reason is the same one you'll find for why you should have a diversified investment portfolio – if one of those streams dries up you're still doing all right because the other ones keep going. And when they're all going, you make significantly more than you spend, so you can pay off debts and eventually build up more sources of passive income.

It all comes back to spending less than you earn; multiple active income streams just ensure that the earnings are pretty stable and that there's a big gap between earnings and spending. Then, when you're debt free, you can start taking those earnings and look for ways to build up passive income through investments.

The first step is to make a serious commitment to spend less than you earn. Without that commitment, none of this will work. Focus on paying down debts with the difference between your earning and your spending.

The next step is to figure out something you're good at. Perhaps you have a knack for cleaning your windows or maybe you know how to arrange furniture so it looks great. Maybe you can write very quickly. Almost any strong trait you have leads directly to some sort of profit-making venture that you can do in your spare time. Spend some time figuring out your talent, then think about how that could make money.

Once you've got something figured out, commit some regular time to it. Give up an hour of television each day to bake bread or matte finish photographs, then find places to sell them. Once you get the kinks of whatever your little business is worked out, it'll become a steady small source of income for you – another income stream.

Then, use that income stream for something financially positive. Don't spend it immediately. Instead, contribute that money to debt repayment or use it to invest in something – stocks or otherwise.

The real goal here is financial independence. By making yourself less dependent on a specific revenue stream (i.e., your primary job), you're giving yourself independence and the flexibility to make choices that you never had before.

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RE: There is NO Freedom in being Rich

I came across a very interesting site when browsing about getting rich and ect..
Here is what we think..we want the cool stuff, luxury and all that so that other people will acknowledge that we are indeed somebody. We want to live the freedom of living life and our lifestyle also becomes the goals of others as a bench mark to reach and to obtain some day soon too..

However...this article kinda turn things around..
check this out..very good read!

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What do you and 99% of the population want most? Most people will say "More money." Specifically, we want to be rich. Who wouldn't? If you're rich, you really don't have much to worry about, except maybe what to do with all that money.

More money means material comforts, and doing what you want when you want without having to answer to anybody; being in charge of your own life. Since this is so obvious… why are we even talking about it?

Because sometimes, the obvious is so obvious that we miss the bigger picture. When we talk about wanting to be rich, what are we really talking about; money or freedom?

There's a pretty big difference between the two, no? Does having more money absolutely mean having more freedom, or security, or even peace of mind? Not necessarily. Being rich certainly provides material convenience, but you and I know there are plenty of rich people out there who are completely miserable. Sometimes they miss the whole point of being rich—i.e. freedom and happiness. Instead, they work even more than some middle class people, who struggle just as hard, because some rich folks think they have to work harder in order to stay rich and "free." Can you believe that?!

So in the end, what are we really after? What do we really want?

What we're really seeking is a feeling that we associate with being rich. The house we want can give us a sense of comfort. The car we want can heighten a feeling of importance. Travel and toys can bring excitement and stave off boredom. But you don't have to wait to be rich in order to have these things or experience the feelings of freedom and happiness.

The goal isn't to get rich in order to be free. Let's turn that around! Get freedom first, and then being rich becomes icing on the cake.

How do we get free now? Financially speaking, you do this by creating passive income vehicles—some to build, some to buy—letting those streams gather momentum over a few years, reaping the rewards, then doing more of this with other passive income structures. This way, you get the material wealth that gives you tangible freedom from having to worry about working—one of the basic goals of our desire to be rich—and if you really know what it is you really want, you get the happiness part of it as well.

Freedom is only as good as the results of your true intentions. In other words, keep the endgame in mind. We're not getting rich to be free. We want to be free and then enjoy the benefits of being rich. This is not something we have to wait for to arrive in the future. There's no freedom in waiting. Freedom starts now.

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The ultimate tax relief guide for Malaysians

Here is an interesting infographic on the taxation matters in Malaysia

It speaks on what are tax reliefs, how to calculate your taxes tax reliefs

like Robert Kiyosaki says - knowledge is power!

Hope this helps! 

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RE: RINGGIT MAY DOWNTREND to 3.33 level against US$ by yr-end - HSBC economist

Uh-oh, so during the Chinese New Year, our uncles and aunties, cousins, siblings and friends have been discussing about the economy growth right? 
I'm sure it was hidden somewhere between the pile of discussions after your aunty brags about the new house or jewelry or about the latest holiday trip..
or was it your cousins whose children had the higher score and top of the class?

It all later boils down to the economy and our Ringgit Malaysia (RM) is expected to decrease in value as compared to the USD. 

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KUALA LUMPUR - The Malaysian ringgit is expected to touch the 3.33 level against the US dollar by year-end on the back of the strengthening greenback, said HSBC ASEAN Economist, Lim Su Sian.
At the end of last year, the local currency was traded at 3.25 against the greenback.

"The ringgit is not the only ASEAN currency that is weakening against the US dollar as the US Federal Reserve is printing money at a slower pace to strengthen the dollar.
"However, we see the ringgit remaining strong as the underlying fundamentals remain strong," Lim told a media briefing on the Economic Outlook 2014 in the capital, Thursday.

She said Bank Negara Malaysia does not interfere with the market value of the ringgit, especially when compared to some other central banks, which intervene more than BNM does.

BNM allows market forces to set the price of the ringgit, she added. -BERNAMA

source:  http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=218022:ringgit-downtrend-to-333-level-against-us$-by-yr-end-hsbc-economist&Itemid=3