Investing

[BabyHudu 0]

Hi Babes,

Just would like to know whether anyone is or has invest their savings. Coz the interest that you savings are generating in the bank are not all that much. So any thoughts on how to make your savings work for you?

[Kirst88 0]

I think saving money in the bank is really like not making money at all. It is only good enough to counter inflation rate because the interest is so low. That is why I try not to maintain too much in the bank. To me, I'll place my money in other investment tools ...

[Tyrael 0]

Never place all the eggs into a basket.

Saving money in the bank is to lighten your burden, in case you in need of cash urgently.

Likewise if you have extra cash in hand, you may wish to disperse some on investment schemes. Depending how risk taker are you. You may earn a lot in a fortnight but you will also lose a lot too.

If not, invest your spare cash in assets like stocks, funds, etc. It will grow or drop depending on the economy, there is no guaranteed that it will bring you wealth so please do your homework before you start.

An advise, play the amount you can afford to lose dont go beyond your limit. You may end up losing in a terrible state, be wise.

Edited August 13, 2008 by Tyrael

[WendyBlue 0]

this one ar...

I brought a house as investment lo... nothing great... just an apartment.

but i think it's much better than buying others...

[BabyHudu 0]

Hmmm, currently I had tried to diversify my savings into 4 parts. Since I am working in Brunei, I do have some money at hand here. This is my emergency cash. I recently bought some public mutual fund (hope it goes well). Since 2006, I deposited some into Amanah Saham. I also have another investment + insurance policy with AIA.

I'm kinda a risk taker but still will take precautions. So for the public mutual fund, I bought different kind of funds (high risk and low risk) to mitigate some of the risk.

I don't believe in loans (unless absolutely neccessary) so I cashed my car. Now saving up for more downpayment for a house. I dun wanna be too tied up for the house loan. And I wanna retire early (hahaha) and still have to think about any future education expenses for my future children.

Anyone of u investing your money? If yes, which fund did you go for and why?

[Kirst88 0]

i buy property. other than that, i also buy all those funds. Currently, I dumped a lot of money into investment linked funds. They are quite like mutual funds but then it comes with insurance advantages. My mutual funds are not working well because of the market....really sad. After ASM declares their dividend this year, I wanna sell them off. 7-8% is not a lot even though higher than FDs. To think that I actually lined up like crazy to get these funds...

Edited August 13, 2008 by Kirst88

[BananaEagle 0]

We're supposed to so-called "diversify" our investments - so do you guys think that buying 7 different mutual funds is "diversifying"? At the end of the day, they're the same investment vehicle - whether unit trust or close end fund. So how?

[BananaEagle 0]

i buy property. other than that, i also buy all those funds. Currently, I dumped a lot of money into investment linked funds. They are quite like mutual funds but then it comes with insurance advantages. My mutual funds are not working well because of the market....really sad. After ASM declares their dividend this year, I wanna sell them off. 7-8% is not a lot even though higher than FDs. To think that I actually lined up like crazy to get these funds...

Actually, based on your username - you seem quite young (born in 1988?) I'm impressed to see someone so young getting into property. How do you do it?

[fred 0]

Actually diversify is the tactics used by "fund manager" to "persuade" ppl to buy other products, say you got equity, why don't you diversify and put some money in bonds which is more secure than equity, or why not insurance, unit trusts blah blah blah. Or is for ppl who don't really have in dept knowledge in investment/don't want to spend too much time on it.

If you know what is going to be the good investment, you will poor all money in, why diversify? Just like playing roulette, if you are quite sure what is going to be the next number, you won't place your chips all over the board

[Kirst88 0]

BananaEagle, I'm not from 1988. I just simply "hantam" the 88 behind my nick when I signed up. Bad decision...now I see. I'm 27 this yr. Haha.

I agree with you Fred but not everyone has the time to monitor their investment. Plus, different people have different preference when it comes to risk. Even when a risk averse person knows that the probability of making profit from one tool is high, he/she still may not want to take the chance.

Buying different unit trust funds may be diversification but in the end, you may not gain much. If you have a lot of money to spare and don't need it to be liquid, you can look into structured products. Those that guarantee return but require you to lock your money in for a longer period.

[flyboy 0]

i split my cash between FD, land banking, shares, unit trusts and insurances...........

[flyboy 0]

I don't believe in loans (unless absolutely neccessary) so I cashed my car. Now saving up for more downpayment for a house. I dun wanna be too tied up for the house loan. And I wanna retire early (hahaha) and still have to think about any future education expenses for my future children.

friend, you are smart, I also cash my house and car...no debt, no worries

[jewelelegance 0]

I will invest in jewelies.Because it have some resale value.I have a good background in this field.

Jewelelegance

[Joukowski 0]

Hey going into debt to aquire assets isn't such a bad idea because the rules for financial investment are all written around leaverage off debt to aquire wealth. Obviously however, they higher you debt the more risky your financial position becomes, as you need a certain minimum cash flow to service the debt in order to remain financial.

[stryker 0]

so. what is best way to invest money?...i dont mean millions..but maybe around 10-20k..is anyone here into forex?

[Kirst88 0]

Lately I have been getting more and more serious in the matter of achieving financial freedom. I would like to share what I have learnt in the process. PM me if you would like to hear more.

[PinkyGal 0]

I bought a property at kota Kemuning...else don't know what to do with the money since put in bank not much gain...

[dance_pixie 0]

I am into real estate, have been investing in props for 5-6 years already, mostly in KLCC and Mont' Kiara. I do believe in leveraging, good debt that is. Don't have much bad debts on my own, I especially dislike credit card debts. I am into using OPM (other ppl's money) in creating wealth. And by OPM, I mean legal financiers.

[dorlisa 0]

Sorry am a invest idiot. Do you mind telling me how to use OPM to create wealth? this is interesting. No need to come out own money also can create wealth.

[dance_pixie 0]

OPM in this sense means financier's money. Instead of cashing out 100% for a property purchase, you take a loan of say 90%. That means you are leveraging with only 10% downpayment. Flip the property upon completion (usually with good locations, you can expect some 30-40% capital appreciation), and you make nett gains surpassing that initial 10% capital outlay. That is the simplest way I can put it. So as you can see, instead of say using RM300K for example, for a condominium unit, and gaining some RM100K capital appreciation upon completion, your outlay here is only RM30K (not inclusive of incidentals), and with that RM30K, you made some RM100K or thereabouts. It is a very simple estimation, pls don't take my figures as definitive. But I hope you get the gist. Real estate can be very rewarding if you do your homework right. I actually started out with very small properties when I first graduated from uni, so don't be shy if they are not high end ones when you start yours. Oh, and there are also instances where you can purchase with no money down at all. You can manipulate this with inflation of SPA (sale and purchase) prices on paper now that RPGT (real properties gains tax) is exempted. Good luck, dorlisa.

Edited September 19, 2008 by dance_pixie

[BabyHudu 0]

I recently got into forex trading. Hope it goes well

[Secret Squirrel 0]

http://malaysiapersonalfinance.blogspot.co...rst-income.html

I learn a lot from this blog, he says that (1) Income first (2) Save first... and then followed by lots of great insights about how to invest - MUST READ especially for those who are young

[Wes 0]

In Volatile times like these, preserving your capital is still the best choice. Unless you are a risk taker, by all right go ahead and buy stocks now as some of the counters is darn cheap.

[mizz sharon 0]

With rather volatile and bleak times like now,

What do you'll think about Investing in foreign currencies? Is it a viable short term investment tool?

(p/s : Just wanna share my six pence worth, I'm currently studying overseas. And the interest earned on normal FDs, etc here are way higher compared to the M'sian Sav a/c interest rates. I know there's a lot of factors to take into account, but with just 10% tax on interest/dividends earned for overseas investors. I think its still a rather stable yet profitable way to accumulate long term stable income? What do you'll think?)

[cslee 0]

With rather volatile and bleak times like now,

What do you'll think about Investing in foreign currencies? Is it a viable short term investment tool?

(p/s : Just wanna share my six pence worth, I'm currently studying overseas. And the interest earned on normal FDs, etc here are way higher compared to the M'sian Sav a/c interest rates. I know there's a lot of factors to take into account, but with just 10% tax on interest/dividends earned for overseas investors. I think its still a rather stable yet profitable way to accumulate long term stable income? What do you'll think?)

In fact you guys can consider public mutual unit trust. It is the top fund manager in Malaysia. For current situation, you may invest 90% to bond and 10% to equity. WHen our composite index drop to 650 points later, you just reverse the portfolio and more to equity. I am pretty sure that you will make good percentage of interest income in next 5-10 years time.