CFA Class In Kuala Lumpur (Inti vs Kasturi)

I always get questions comparing different places for CFA tuition class. Therefore I decided to put them in the internet for your review. I only compare between Kasturi and Inti (the 2 most popular institute) in Kuala Lumpur for their CFA course. The rest are not popular and never heard of the name with poor review on them.

I prefer Kasturi because CFA level 2 class starts in November while Inti starts in January which left with only about 4 months time to study after minus all the holiday in Malaysia (usually early of the exam). I think their lecturers are more discipline and presentable. However the infrastructure at Kasturi is not as good as Inti. Kasturi do not have study area or coffee machine. However Kasturi's class are all within the same building as Inti always changes their class room and sometimes even to different building. In term of lecturer, only half of the Inti's lecturer are good. I have no comment on Kasturi's lecturer but recently it had gained more popularity (Katuri > 100 CFA students, Inti about 50 students). In term of pricing, Kasturi is cheaper (With IRC and registration, Kasturi (RM4200) while Inti (RM4800) . Transportation to Kasturi also more convenient and more eateries place nearby during break time. Hope you find my comment/review useful. Thanks.

Disclaimer: I do not get any incentive (cash, discount or any any other monetary and non monetary form) to promote any institute. All my review are all purely my personal comments. The information given is correct the at the point of writing ,however for accurate information please contact the respective institutes.

Click on below's table to view the comparison for CFA courses between Inti and Kasturi.

Christmas Card From Banker

You'd better watch out

You'd better not cry

You'd better keep cash

I'm telling you why:

Recession is coming to town.

It's hitting you once,

It's hitting you twice

It doesn't care if you've been careful and wise

Recession is coming to town

It's worthless if you've got shares

It's worthless if you've got bonds

It's safe when you've got cash in hand

So keep cash for goodness sake, HEY

You'd better watch out

You'd better not cry

You'd better keep cash

I'm telling you why:

Recession is coming to town!

Finance products are confusing

Finance products are so vague

The banks make you bear the cost of risk

So keep out for goodness sake, OH

You'd better watch out

You'd better not cry

You'd better keep cash

I'm telling you why:

Recession is coming to town.

I'm Going To Krabi, However I'll Buy Thai Bath Later

I'll be going to Krabi from 4-7 January 2009. Usually, the last thing before we go is looking at the exchange rate... Time to buy now... ;) However I had never used any research skill in this. The only "research" skill is to survey between few different currency exchange centre and try to nego the best price.

I was thinking... perhaps can use some "bloomberg" this time. FYI, I am not a currency expert. Thus what I am showing here is purely just based on what info I can get from bloomberg. Its a bit late when i realise that the exchange rate MYR/THB was highest in July 08. However its still good to check now instead, incase anyone cant make it for the trip etc.

Referring to the past trend, MYR depreciated quite a bit from its peak in July 08. Partially due to the new budget announcement in August 2008 which has increased the budget deficit. However looking from the average 1 month moving average standing at 9.799 comparing to the latest spot rate of 9.743. In another word, MYR has depreciated more than the previous month.

You might say, hey it might fall further. Lets quickly buy Thai Bath now....... well yes and no... I am not god. So i don't know. But we can look at experts' forecast here at below's chart.

According to the bloomberg forecast, Thai Bath is expected to reach 10 (current spot 9.743) in the first quarter of 2009. Thus from research point of view. I would think that MYR will strengthen against Thai Bath early of next year. Therefore i will only start to buy when the exchange rate is reaching 10 ( at least 9.799).

Bad Christian Name For Chinese

Anne Chang => Dirty (Mandarin)
Anne Chin => Keep Quiet (Mandarin)
Faye Chen => Dusty (Mandarin)
Carl Cheng => Buttock (Hokkien)
Monica Cheng => Touching your buttocks (Hokkien)
Lucy Leow => You are dead (Hokkien)
Jane Tan => Frying eggs (Mandarin)
Suzie Leow => Lose till death (Hokkien)
Henry Mah => Hate your mum (Mandarin)
Corrine Tai => Poor fellow (Hokkien)
Paul Chan => Bankrupt (Mandarin)
Nelson Tan => Bird laying eggs (Mandarin)
Leslie Tong => Rubbish Bin (Mandarin)
Carmen Teng => Leg hair long (Hokkien)
Connie Mah => Call your mother (Cantonese)
Danny See => Squeeze you to death (Hokkien)
Rosie Teng => Screws and nails (Hokkien)
Pete Tsai => Nose droppings (Hokkien)
Macy Koh => Never die before (Cantonese)

100 Quotes Of The Day

When I was working in Alliance Investment Bank, I remember an ex-colleague of mine, sent me below. Some are pretty nice and I still keep it till today. Hope to share with you all.

1. I'm not getting paid much for staying alive but it's good experience.
2. I think I’ll just sit here and wait till life gets easier.
3. I'm writing to tell you I have nothing to say.
4. I happened to see you passing through my life, so I thought I’d love you.
5. Are we still friends? Or don't you know either?
6. Consider yourself thanked.
7. If you can't keep in sight, at least keep in touch.
8. Regardless of the date, I’m glad you were born.
9. I'm just moving clouds today - tomorrow I’ll try mountains.
10. If you're looking for a friend, I’d like to apply.
11. Please don't ask me what the score is - I’m not even sure what game we're playing.
12. When all else fails, eat!
13. My life has a superb cast, but I can't figure out the plot.
14. I may not be easy to reach, but I may be worth it.
15. Your illness license has expired: report back to health immediately.
16. A large percentage of me likes a large percentage of you.
17. I don't need a great deal of love, but I do need a steady supply.
18. Appreciate me now and avoid the rush.
19. Reports of my being alive and well have been grossly exaggerated.
20. It would be nice to see you again - and again.
21. Anything is good if it's made of chocolate.
22. Isn't it a nice coincidence that you and I are both alive at the same time!
23. All I want is a little more than I’ll ever get.
24. There's a hungry mailbox down the street - please feed it something for me.
25. Why don't you write, and give me a chance not to reply?
26. Single-handedly, I have fought my way into this hopeless mess.
27. To whom it may concern: you are a very special person.
28. I don't wish to appear overly inquisitive, but are you still alive?
29. I'm looking for the perfect pillow - I think it's somewhere near yours.
30. I'm sorry for not communicating, but sometimes it's very hard to write on a moving planet.
31. I may not be totally perfect, but parts of me are excellent.
32. "Please reconsider - it's so hard to take ""go to hell"" for an answer."
33. Any day is a good day to have a mother.
34. I waited and waited, and when no message came, I knew it must be from you.
35. I feel much better, now that I’ve given up hope.
36. I, for one, am longing to feel your hot breath on my neck.
37. To be sure of hitting the target, shoot first, and, whatever you hit, call it the target.
38. Please don't tell me to relax - it's only my tension that's holding me together.
39. I always know the right thing to say, after the right time to say it has passed.
40. Somehow, in my busy life, I am finding time to miss you.
41. Help improve my appearance - I’m much better-looking when I’ve been hugged.
42. I don't have any solution, but I certainly admire the problem.
43. If God had approved of the metric system, he'd have given us ten fingers.
44. We must have courage, faith, and lunch together sometime soon.
45. I have abandoned my search for truth, and am now looking for a good fantasy.
46. Living on earth may be expensive, but it includes an annual free trip around the sun.
47. Your smile is one of the great sights of the world.
48. Life is an intolerable burden, which every living thing somehow manages to tolerate.
49. Words ought not to be trusted - you can never be sure if they mean what they say
50. Please remain calm - it's no use both of us being hysterical at the same time.
51. I want it clearly understood that I’m totally confused.
52. My sources are unreliable, but their information is fascinating
53. No man is an island, but some of us are long peninsulas.
54. In order to discover who you are, first learn who everybody else is - and you're what's left.
55. You are there, and I am here, so one of us is obviously in the wrong place.
56. What I like most about myself is that I’m so understanding when I do something wrong.
57. By doing just a little every day, I can gradually let the task completely overwhelm me.
58. Communication with the dead is only a little more difficult than communication with some of the living.
59. Our meetings are held to discuss many problems which would never arise if we held fewer meetings.
60. Things are gradually falling into place - on top of me.
61. My life is a performance for which I was never given any chance to rehearse.
62. We've been through so much together, and most of it was your fault.
63. Inside every older person there's a younger person wondering what happened.
64. Anybody who thinks I am strange ought to meet you.
65. Sometimes the best way to be useful is to get out of somebody's way.
66. Life is the only game in which the object of the game is to learn the rules.
67. Look what I’ve found! ... A moment to write to you.
68. I try to take one day at a time, but sometimes several days attack me at once.
69. Words are a wonderful form of communication, but they will never replace kisses and punches.
70. There's only one thing more beautiful than a beautiful dream, and that's a beautiful reality.
71. If you can't say exactly how much you love me, try to make a rough estimate.
72. Please ask your machine to get in touch with my machine.
73. My life is already complicated enough, without trying to introduce organization into it.
74. To be sure of winning, invent your own game, and never tell any other player the rules.
75. I too have known joy and sadness, and, on the whole, I prefer joy.
76. Most of my problems either have no answer, or else the answer is worse than the problem.
77. Slavery and torture were outlawed long ago, but, for some reason, marriage is still legal.
78. We couldn't have met in any previous life, because you are one experience I’d surely never forget.
79. If you postpone a pleasure long enough, it may melt, spoil, die, evaporate, or move away.
80. Let's make it definite: I’ll see you when I see you.
81. All I want is a warm bed and a kind word, and unlimited power.
82. Watch out! It's quite possible that some of my best mistakes haven't yet been made.
83. My thoughts are free to go anywhere, but it's surprising how often they head in your direction.
84. My struggle to remain healthy is gradually killing me.
85. One thing travel teaches is why living at home is so popular.
86. Keep smiling! (but not so much that people begin to wonder if you are mentally unbalanced).
87. Children who are born into happy families grow up speaking love as their native language.
88. It's true I’m getting older, but there are still many good hugs left in me.
89. A good friend is worth pursuing - but why would a good friend be running away?
90. Ready - aim - spend!
91. Never fall in love with anybody you can't afford to lose.
92. Sometimes I make a mental note, but then forget where I put it.
93. No matter how many times I do my work, it never stays done for long.
94. Never resist a mad impulse to do something nice for me.
95. Think of me as someone who is very often thinking of you.
96. It's hopeless! Tomorrow there'll be even more books I should have read than there are today.
The longest distance in the world is always the one between you and me.
97. Just because I’m happy doesn't mean you couldn't make me happier.
98. Correct me if I’m wrong, at your own risk.
99. Doing it wrong fast is at least better than doing it wrong slowly.
100. I have you, you have me: at least one of us is lucky.

Mission Impossible - NEP

He said there were still many objectives in the NEP which must be achieved before the 30% equity rule could be dropped.

I have total disagreement with what Dr M said. So what is the strategic plan to achieve what you want for NEP? Since 1957 till now, nothing much has changed. People don't change overnight, without motivation (pressure). There will not be changed. Come on be logic, if you are in comfort zone, why bother to change?

“If you lower the 30% to 20%, non-bumiputras will have 40% equity. In that case, they should have a lower equity too,” he said.

However, Dr Mahathir said that in protecting the rights of bumiputras, economic policies must also consider the rights of non-bumiputras.

Isn't this empty talk? Protect bumiputras but also consider rights of non-bumiputras. Dr M, I think there is a conflict of interest in what you said. I only see you protecting one side.

We have to look at both sides. Be rational about it. At the moment, I don’t agree we should change the (equity rule). It’s not the right time for adjustment because the world economy is in turmoil,” he said.

No I don't look at both sides. Btw since you were Finance Minister before, please explain to me why we cant change the equity rule during economy in turmoil? There is no relationship at all. Infact we should change it to ecourage better competition to do better, increase efficiency and attract foreign investors into our market.

New Terms For The 2008 Market

CEO --Chief Embezzlement Officer.

CFO-- Corporate Fraud Officer.

BULL MARKET -- A random market movement causing an investor to mistake himself for a financial genius.

BEAR MARKET -- A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry.

VALUE INVESTING -- The art of buying low and selling lower.

P/E RATIO -- The percentage of investors wetting their pants as the market keeps crashing.

BROKER -- What my broker has made me.

STANDARD & POOR -- Your life in a nutshell.

STOCK ANALYST -- Idiot who just downgraded your stock.

STOCK SPLIT -- When your ex-wife and her lawyer split your assets equally between themselves.

FINANCIAL PLANNER -- A guy whose phone has been disconnected.

MARKET CORRECTION -- The day after you buy stocks.

CASH FLOW -- The movement your money makes as it disappears down the toilet.

YAHOO -- What you yell after selling it to some poor sucker for $240 per share.

WINDOWS -- What you jump out of when you're the sucker who bought Yahoo @ $240 per share.

INSTITUTIONAL INVESTOR -- Past year investor who's now locked up in a nuthouse.

PROFIT -- An archaic word no longer in use.

Look Out Point At Hulu Langat

I have always heard about this place at Hulu Langat which has a fantastic Kuala Lumpur view. Some said its at Ampang while others said its at Cheras. For me it seems more like nearer to Cheras, maybe because I exit from the Cheras (Pandan Indah) of MRR2.

Its not that difficult to go:-

1) Direct from MRR2 (if you come from Ampang, go towards the Cheras direction) and exit at the Pandan Indah Interchange Junction. Please take note its "after" the Pandan Indah flyover junction.

2) After turn left from MRR2, go all the way straight and pass by Steven Corner too. Along the way you will see the first Esso on your left. Before you reach Esso the road is a bit up hill and you have to turn right "immediately" at the Esso traffic light junction. We missed this junction at the first attempt. To be save you can keep to the right or U-turn if you missed the junction.

3) Go straight you will pass by a Mc Donald on your right. Go all the way straight and take note on your left there is a Putri Park Plaza. Turn left immediately after Putri Park Plaza. If you really miss this turning, you will see Petronas on your right.

4) After the Putri Park Plaza turning, go straight until the second traffic light and turn right at here.

5) Go all the way straight you will see the "Menara Tinjau (Look Out Point)" sign board. You need to drive about 3 km on a dark and winding road before you read the look out point. Although this road is dark, you will see many other cars along it. So you can rest assure that its pretty safe.

6) The Look Out Point is just on your right. You can decide to park road side (free) and wait up. I haven't try this before but I believe its a decent 15minutes walk to the restaurant. However if you going there for a date, perhaps you shall drive up there by paying RM2 for the parking.

REFER TO BELOW'S MAP FOR CLEARER PICTURE OF HOW TO GO HULU LANGAT

There are 3 restaurants there:

1) Look Out Point Restaurant

2) Gasoline

3) Bread And Olive Restaurant

I only manage to try Look Out Point Restaurant. Despite going on holiday season (which I will easily think most people are in home town instead of KL), its quite packed. I think the seats are abit too close to each other. However I guess everyone is just trying to get the best of view. Of course we got one of the best seats - the corner sits which has the best KL view. This restaurant opens in late morning until 1am (or 2am of many customers). To my suprise, the foods are quite reasonable. Chicken or lamp chop around RM13-RM20 only. Considering this type of environment, I would think the price is infact very affordable. For me, I ordered a giant size water melon juice. By the way the sizzing chicken chop that I ordered is quite nice too and infact most popular. This restaurant has the best view of all.

Under Look Out Point Restaurant is Gasoline. Gasoline is a franchise restaurant with other branches at Sungai Wang, Times Square and Sunway Plaza. They serve variesties of food ranging from Western, Chinese and Malay food. The food should be slightly cheaper than Look Out Point Restaurant. However the view is not as good. To be frank, I think gasoline tastes so so only.

Finally is Bread And Olive Restaurant. This restaurant is quite empty. View is also not as good that's why there are not many people there. From the setup I think the price will be slightly expensive.

I seriously recommend everyone to go this place. From view, weather and food, they are all fantastic.

Standard Chartered Bank Has No Standard (Part 2)

Today between 11am to 1130am, I got a very interesting call from Standard Chartered Bank. Few months back I had applied a KLIBOR mortgage product from Standard Chartered Bank and very dissatisfied with their service and product. Thus I wrote an article about my dissatisfaction. Today their manager (I can't remember from what department) called me and below are partial of our conservation which I find it very unpleasent:-

In order to protect the name of the manager, I used Ms T as the manager's name.

Ms T: You are not satisfied with our rate, service or time taken to process your application?
Me: I’m not satisfied with everything that you have mentioned.

My thoughts:-
If she really keen and sincere to solve this problem, she won’t ask this question at the first place. The issue that I dissatisfied is stated clearly in my previous post. This shows that she has no courtesy to understand my problem before calling me. Perhaps she might call me with anger and frustration.

Me: I think your bank takes too long to process my application. I can’t remember correct its either 3 months or 1 month to process it, whatever is that it is still very long to process….. (Without waiting for me to finish my sentence)
Ms T: Please be careful with what you write (or say), your application only took 1 month to process. Not 3 months.

My thoughts:-
Her intonation is like trying to threaten me. Stressing that the application “only” took 1 month doesn’t highlight the service efficiency.

Ms T: Didn’t the agent tell you that the mortgage rate (for the KLIBOR product) might not be KLIBOR + 1% ?
Me: Nope, the agent agree in principle that the rate will be KLIBOR + 1%
Ms T: ~!#$%^&*()_+ our bank structure is bla bla bla…. this agent is not our bank staff, they have given you wrong information.

My thoughts:-
How can a bank authorize agents to sell for them and trying to position that they are not responsible for the misleading information given?

Ms T: Can you remove the article from your website?
Me: No, but I might update what happened today (I’m referring to this conversation)
Ms T: Then please update in your website (that we called)

My thoughts:-
She did apologise a bit here and these however the whole conversation is basically with the motive to convince me that they are not all wrong and only want me to remove the article. Also indirectly pressure me to write something good about them

If she calls again, I will forward my complain to other departments in SCB that she’s trying to harass me.

How To Handle Tension

The Moment you are in Tension

You will lose your Attention

Then you are in total Confusion

And you will feel Irritation

Then you will spoil personal Relation

Ultimately, you won't get Co - Operation

Then you will make things Complication

Then your blood pressure may raise Caution

And you may have to take Medication

Instead, understand the Situation

And try to think about the Solution

Many problems will be solved by Discussion

This will work out better in your Profession

Don't think it's my free Suggestion

It's only for your Prevention I

f you understand my Intention

You will never come again to Tension

How Can KFC Suprise You?

KFC is very very common now these days. I remember when I was much younger, we only go KFC for birthday party. Its a luxury to go KFC (for someone from a moderate family like me). I remember when we wants to go KFC, we will wear our nice clothes, gel hair and jumping up and down when going there. Then quickly wash hands while waiting for my parents to bring over the hot fried chicken. Those were the days.

Now at many times, KFC is a cheap food which is RM7.55++ per snack meal. In Kuala Lumpur's golden triangle, a nasi lemak or keow teow goreng can be RM15 to RM20. Infact fast food like KFC or McDonald could be our last choice for lunch.



As KFC is so so common now, how would a KFC surpise you now these days? Last night I went into above KFC. Its at Bandar Baru Sentul. Quite a good location near to Pizza Hut, 7Eleven and CIMB Bank. Nothing special..... just another KFC

I was just reading the word.... mmmm community care restaurant... Maybe the staff here are very caring I guess. But come to think again, when I look at the hand sign here..... mmmm ok.. it means "love".

Then I went it.. Woww.... why this restaurant so quiet? Then the waitress attending to me... refuse to talk to me. Have I done anything wrong! I ordered and she refuse to listen. Keep on pointing at the menu... again and again... I was pissed off! Take a step back... mmmm OOOooo arrr.. everyone is communicating by hand sign language. Oooo ok... I felt a bit sorry... So I just point at the set that I want to buy. All communicating by sign languge.


Immediately after come out from the restaurant, I try to find some hint about this restaurant. Its actually the first KFC in the world that is run by speech and hearing impaired. Oohhh ok.

MMmmmm i'll hold back my comments from the business point of view. While on community service, well its a good move. All the best to people running this shop. :)

Its Good Commuting (Take LRT)

Since I moved to Bandar Baru Sentul, commuting is my main way of travelling. Its so so convenient to take LRT from there because its the first station for Star LRT (Sentul Timur Station). I used to take Putra LRT before and now I can see the different because Star and Putra LRT. Star LRT has 5 or 6 decks (can't recall) but Putra LRT only has about 4 decks. More over the number of trains on the Star Tracks are more more often. On my way from Sentul Timur station to Titiwangsa Station with is just 2 stations away, I saw another 2 stations coming from the opposite direction and it always happen.

From Titiwangsa station, I walk to the Monorail Titiwangsa station which is just about 2 minutes cover and linked walking distance. Again Titiwangsa is the first station for monorail. I will take from Titiwangsa to Raja Chulan station to reach my office.

Since both Sentul Timur and Titiwangsa are the first stations for both train lines. Almost everytime I will get a seat unless if some train broke down which causes more people squeeze into one train.

I saved a lot of time in traveling and no jam ! no jam ! no jam! :) I like to go green and also it saved a lot of $_$ to take LRT. I used to spend about RM500 a month for petrol and office car park if I drive to work. Since now I take LRT, its merely about RM100 to spend on transportation to work.

Why Nova Wants To Stay At Sentul?

I have moved 6 times since graduate from my university, Northern University Of Malaysia (UUM) . The sequence is; UUM--->Ipoh--->Singapore--->Cheras--->PJ--->Genting Kelang---->Sentul (Now). Yes moving is not easy at all and you can say that again.

Why my place is so nice? I am staying at Melur Apartment. Its directly opposite Sentul Timur LRT station. That is half minute walking distance. Its very easy to board train from this station because its the first/last station. Then its connected to Titiwangsa monorail station. Walking from Star to Monorial Titiwangsa is about 1 to 2 minutes and its a covered link. Again, Titiwangsa is the first/last monorail station. From there I can easily take train to my office which is near Raja Chulan Station.

My apartment has 3 rooms. I am taking the master bedroom. Our unit is facing KLCC, KL Tower and Eye Of Malaysia. Its veryyyyyyyyyyy nice. Its on 24th floor thus its great to have the feeling of everything under your feet. While writing this blog I am actually looking at KLCC. Our balcony, master bedroom and middle room has view facing all those Malaysia's landmark.

I am using Izzy wireless broadband. Apparently the speed at here is above satisfaction. And its damn cheap. I am only paying RM66 per month without any phone line. It saved me the hassle to apply for streamyx line or request change line when i move. Izzy can be setup in less than 5 minutes time.

The residence demographic here are generally Malay and with some Indian and foreigners. Anyway I am not a racist guy. Infact I think the Malay here are more educated and friendly. They talk to us when we first move in and some even help us to move our stuff. That gave me a very good experience about this place.

Standard Chartered Bank Has No Standard

For the past few month, I have been trying to apply for few mortgage products. All banks will be able to give me their quotation or offer letter in about 2 weeks time while some are just in the matters of 3 to 4 days. The worst application was to Standard Chartered Bank. I waited and waited and waited for more than 1 month and they gave me the quotation for the wrong product. Then claim that they do not have enough information and keep calling me and my property agents for few times a time. I was so pissed off and say, please don't process my application and they call and beg and beg me. Eventually the offer that I got, I was loaded on the offering rate.

Look at the advertisement! KLIBOR + 1% my ass! Even the agent agree and promise in principle that the rate is KLIBOR + 1%... and after all those hassle and delays... they offer me KLIBOR + 1.6%. Immediately without hesitate I say NO to the offer.

Few days after that their mortgage samseng call me. Complaning that after all the "hassle" (this is the exact word used by the officer) I don't want to take the product. I told her that the hassle was given to me! not to you! I waited for so long and your offer is sooo soo sooo late and the rate sucks.

Everyone, please don't waste your time to apply this product. Say NO to them. Thanks.

Domino Pizza Delivery Is Super Chio!

Today is the day before exam.... its all doomy and gloomy day. My housemates are all out leaving me alone at home... and my stomach was roaring! I remember reading some good comments about domino pizza delivery .. thus I just give it a try...

I have never done pure online ordering... I don't even need a phone to do this ordering... just internet... The website is quite interactive... but a bit kiddo type... anyway generally i still give 5 stars scoring for their website.

After I placed my order, its written there... business starts at 11am and first delivery to arrive at 1130am.... but wait! my time is only 1050am.....shit! wondering if there anyone processing my order... anyway i just patiently wait....

wait...wait...wait.... until almost forgotten and "beep beep" my time is 1130am liao. Where the $%^& is my pizza! When i pick up my handphone and want to call them , suddenly "PIZZA ORDER!"...."PIZZA ORDER!"...."PIZZA ORDER!".... I was stunt, i looked at the time again exactly 1130am... i thought i'm too hungry and dreaming that the pizza boy is here.... after 3rd time calling, i ran out and really see the pizza boy there... with the big smile on my face, i said "hey you are VERY punctual!". He just smiled back.

Things that suppose to be hot are still hot and things that suppose to be cold are still cold! Damn.... while eating and writing this.... i really again impressed with them...

Hey NOVA, you have nothing else to write? Why write about pizza in your banking hall blog? Ok ok ok.... there are some financial thing that we can talk about them....

First of all Domino pizza is FREE DELIVERY! No hidden cost etc... Not like others with minimum order or RM3 etc for delivery. Look! Petrol price is up... driving there and come back would have cost me a few buck for the sky rocketing petrol... also save a lot of hassle for car park, getting a table and travelling time...

Secondly, now only i realise! Their menu price is net of all *&^%$#$ charges. I ordered the value meal 2 which is RM34.80... no more no less... I really hate it when PIZZA HUT charges those 10% service fees and 5% government fees. To be frank, i think PIZZA HUT's service sucks to the max. There is NO service at all... why charge service fees? Salad and soup have to take myself. Ask for fork/spoon their face turn black... damn.. For me, the service charge of 10% is a daylight robbing. Domino pizza is very clear about their pricing policy... just the net price shown, no hidden charge.

Congratulation to Domino pizza, i'll definately order again!!!! Yummy!!!!

Email to Perak Mentri Besar Datuk Seri Mohammad Nizar Jamaluddin

Datuk,

On the election day i traveled all the way from KL to Ipoh just to vote for Parti Pakatan. I never even bother to claim the "travel allowance" given by MCA despite MCA office is just a stone throw away from my office. What we want is a change in the government.

I don't know what to ask about what you have done because I haven't seen anything done as yet. Everyday every politicians are just busy blaming and condemning each other. There is none constructive development project announced but a lot of announcement of what projects to be scraped or postponed. The rest of the time they are busy arguing how many seats they get in the dewan etc. Stop worrying and start living!

I hope pakatan rakyat can issue a KPI (key performance index) for the party as a whole to show what they wish to do and how much they have done. This KPI has to be announced and updated to everyone at least half yearly basis.

I have been staying in Ipoh for more than 20 years before I further my studies in Kedah and now working in KL. What i see is extremely little development in the town. Good job opportunity are relatively less and the younger generations are migrating out of the town to metropolitans. There should be more incentive for corporates to setup their business or operating plan at Ipoh. Example are duty free are or operation hub. KL is the government and business hub. Penang is a technology hub. Ever consider Ipoh as a education hub? Provide incentives for colleges and university to setup their HQ in Ipoh and imagine how great is the impact to Perak when all the brains come from Ipoh. Ipoh shall have the natural advantage to be the higher education hub considering its location in the centre of peninsular Malaysia where students from all over Peninsular Malaysia can easily travel to further their studies in Ipoh.

Thank you and good luck to you. I hope I'll be able to see you again in the next election.

Best Regards,
Nova Lui
Website: www.novabankinghall.com

http://thestar.com.my/news/story.asp?file=/2008/6/4/nation/20080604100224&sec=nation

Someone Failed Maths? - Citibank Beijing 2008 Olympic Games

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Hi anyone participate in the above contest? Well I did! Anyway I am not the lucky one that ever win any prize in lucky draw or such competition.... but my main objective is to get the double cash rebate for participating! If you are using Citibank Shell card, your petrol rebate will be double of the normal rebate. For me, I'm using classic Shell card which my rebate during the promotion is 3% instead of the normal 1.5%..... I think its a decent deal. Imagine for every RM100 of petrol that you use, you get additional RM1.50 rebate. On top of that any other purchases you will also enjoy double rebate! Till end of May! AND, all transaction ( RM8 and above in a single receipt ) will be automatic entitled for the contest to go watch Olympic in Beijing!

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So what the story this time? Read the fine lines:-

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“Points/Double Rebate shall be awarded to the Participants within 6 to 8 weeks from the end of each month throughout the Promotion Period”

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Well...well..... I wouldn't say that its a catch since its spelled out clearly in the term and condition.... just that I think its a bit slow to take 6 to 8 weeks time to do the maths.... what happened? someone failed maths?

Cheap sale cheap sale! $5 for 1, buy 3 is only $15.99 !!!! ???

Sometimes I'm really confused with the pricing strategy by some retailers.... often i found products on sale in hypermarket which is actually more expensive if you buy the "promotion pack" which is infact the bigger pack. Example I found this promotion stuff selling at $15.99 for a pack of 3 ... while the non promotion single pack is only $5 !! ??? Someone failed maths?

Lets so some testing, below is a promotion of balance transfer by public bank. Assuming upfront fees is only main concern. We have NO concern about time, cash flow and minimum transfer amount. Based on below's package, which one would you choose?

If you need more informatin to make decision... visit :-

http://www.publicbank.com.my/en/en_content/images/bt7_form.pdf

http://www.publicbank.com.my/en/en_content/images/tc_bt7.pdf

I'll discuss with you the answer in the next few days.... prepare with your answer and calculation. ;)

Jui Jing ( what you want is not all i can give, what i can give is not what you need )

Hi all concern friends. Thank you for your serious concern about where i am going after this. I had resigned from Alliance Investment Bank in mid March 2008. The reason is because as the title; what you want is not all i can give, what i can give is not what you need. :) its a song call Jui Jing by Lee Shen Jea. Its always a risk when changing job, you never know how your boss behave and hows the working environment over there. I had left without any offer and had decided to go unemployed and focus in my CFA studies.

Actually months ago, as all TA's friend know i had been given an offer to go back to TA. Its a management associate programme which i suppose to be route into various parts of TA department for training purpose. I am very keen on research, corporate finance, futures and securities. But again, finally i sang the same song "what you want is not all i can give, what i can give is not what you need". Thus i had turned down the TA's offer. There are a lot of rumours about me coming back and even confirmed the offer etc. FYI i have picked up the offer letter but never signed it because i had never been able to make up my mind.

I am back into my mood to be unemployed for the next 3 months. The feeling is very nice... freedom... no need to worry about anything until one fine day........ THEN!!! suddenly i got an offer from a Singapore company. It has just set up its operation in KL 2 years ago. This company is call iFAST. Its the owner for www.fundsupermart.com.sg and .hk . Its the leading fund trading website in Singapore. At the same time, there is another offer from my mentor (i am very thankful to him if he read this post. But here i hope to keep it secret... so no need to ask me) to join his new company. But eventually i took up iFAST's offer. It has been my dream to be an analyst. I'm offered a job to be a fund analyst in iFAST Kuala Lumpur. I need to take SC's exam in order to be authorized to publish my writings about investments. I'll be reporting for work at iFAST on next week and will be going to Singapore for about 1 month training.

I apologize for keeping your all waiting about my news. In order to know more about my next thing in future. Please visit my new website www.novabankinghall.com/en. I hope to share more financial thoughts with you in future. My hp number and email still the same. Adios gals and guys... take care.

Caught in the act eating stinky bean curb in Taiwan Shin Lin Market :P

We Had Moved To www.novabankinghall.com/en

Thank you for your continuing support our blog, novabankinghall.blogspot.com. In order to continue sharing and discussing financial products, we had decided to moved to a new website : www.novabankinghall.com/en . There will be function for forum, download and in future will have more database research, polling, or even product review submitted by our readers. Thus in future please refer your friend to our new website instead of this blogspot. Thank you very much.

My latest article is "Secret To Customize Your Own Capital Protected Portfolio", please view it at www.novabankinghall.com/en. Thank you again.

When Can You Accumulate Your First Million?

I am glad that more and more of my friends are getting more financial savvy now. Last week I met a friend whom told me he wants to have a huge amount of money (eg RM500K) and retire for good. Some times we just want a simple life. Imagine if you have RM500K and invest into a very safe investment which gives you 10% return per annum, only from your return from investment you will have about RM4K to spend every month. By that time, working is just a hobby. :) Therefore I am writing this article to show how can you make it. But this time lets make it tougher, we target to make RM1million.

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Are you ready for the discussion? Let see how shall we starts... There are many assumption and status-quo factors which MUST be included. I'll explain bit by bit

Annual Income
I start with a average annual income of RM36k annually. This will include your basic, allowance and bonus for the whole year. Your salary increment will be as follows:-

First 5 years = 7% growth in your annual income
Next 5 years = 5% growth in your annual income
Next 5 years = 3% growth in your annual income
There after no increment ( just to be more conservative in my analysis )

Initial Investment
My research will starts with someone with a RM10K to start as his investment. This money is not necessary in cash form, it can be your assets in stock market or even your fixed deposit, unit trusts, investment link etc. But this money must be a liquid asset which can be reallocate according to the investment strategy as below.

Investment Strategy
We will put all the investment money into equity fund (50%) and bond fund (50%) with the assumption that equity fund will be able to garner 15%pa return in the long run while 7%pa for bond fund. Opss another very important assumption in this analysis is that you are not the Warren Buffer of Malaysia. Anyway as long as you can make an average return of at least 10% return pa in the long run shall still fits into this analysis.

FYI for the past 5 years, the average return for all the equity funds in Malaysia is 20%. But to be more conservative, I only use 15% as the expected return in this analysis. Anyway for bond fund shall be quite save to say 7% pa because most bond fund can make 5% to 8% return pa.

EPF Investment
I assume that your employer contribute 12% into your EPF account and yourself 11%, therefore total will be 23% of your income into your EPF account and expected return is 5.5% pa. Again, I assume that this money is purely for retirement purposely, thus we won't take out this money to other purpose such as purchase house/ further studies/ medical expenses.

Savings

I assume that you are able to save 30% of your annual income net after EPF deduction. But I didn't include the consideration for tax expenses. Its quite difficult to include tax expenses because everyone might have different tax rebates etc. Therefore pardon me that this analysis do not include tax expenses which can range from 3% to 28% of your total income taxable.

The savings each year will be included into your investment fund at the end of each year ( add into "beginning invst").

Total Asset
Therefore your total asset shall be the ending invst amount plus the EPF savings.

Conclusion

Based on all the assumption above, you will be able to accumulate your first million in the next 18 years. My friend whom asked me shall be 45 years old by then.... Opppsss... I hope he doesn't mind his age is disclosed. If you have 1 million, what would you do? :) Too early to dream? Not really, just properly plan your strategy now... based on my analysis, you will be a millionaire soon. Please remember me when you are a millionaire... I might need some funding from you :)

So if you have RM1million, if you just take out the return of 10% pa, you will be able to answer a annual income of around RM8k per month. Wahhhh happy? Well focus on how to build your wealth, not to think when is the next recession. Focus in recession will cause your wallet to go recession too. Have properly financial planning and understanding about the investment instruments.

P/S: Based on the same assumption above but just different target saving, your 1million will be on:-

10% saving, will be able to accumulate RM1 Million in the next 22 years
20% saving, will be able to accumulate RM1 Million in the next 20 years

30% saving, will be able to accumulate RM1 Million in the next 18 years

40% saving, will be able to accumulate RM1 Million in the next 16 years
50% saving, will be able to accumulate RM1 Million in the next 15 years

Finally if you are extremely keen on the calculation table, please email me. I'll send the table in excel format to you. So that you can play around using your own assumptions. Well you might want to start your initial investment with RM100k or your annual salary of RM50k, who knows?

What Is Hedge Fund?

ahooWhat is hedge fund? Fund that can be used for hedging? No no no my dear. Basically hedge fund is very close to being a mutual fund (aka unit trust). The main different is that hedge fund is not regulated by the local investment regulatory authorities. In our case is the Securities Comissions (SC).

Investment Mandate

Since it's not regulated also means that hedge fund has more flexible investment mandate. For example a unit trust in Malaysia can't hold more than 15% of its portfolio on a single stock while hedge fund does not has this regulation. In another word, a hedge fund can invest all into just a few stocks. On an extreme example is less than 5 stocks.

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Leveraging (Borrowing)

Hedge fund can borrow to invest. Don't be suprise to find hedge funds that borrow up to 1000% of its initial capital to invest. Alternatively hedge fund also can invest into derevative only which eventually leverage its position without owning the underlying asset.

Profit Sharing

Most hedge funds practice profit sharing as part of their management fees. For example a hedge fund can set a minimum benchmark of 5%. Any return of the fund above the threshold of 5% will be split at 80:20 (invester:manager) with the hedge fund manager.

Example:-

Benchmark (Threshold) = 5%

Fund performance = 30%

Profit sharing (investor:manager) = 80:20

Thus the performance bonus for the manager is 20% of 25% (30%-5%) which is 5%.

There are very important point to take note:-

1) there is no loss sharing with the manager

2) normally there is a minimum or fixed management fees (eg 1% per annum of the asset under management) despite the performance of the fund

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Fund Manager Commitment

Due to the profit sharing feature, some fund manager might tend to take higher than normal risk because he will be awarded for the extra gain but won't be penalise for the lose. Therefore some company actualy enquire the manager themself to invest into their own fund (certain % of the fund's net asset value) so that the fund manager will be more cautious to manage its own money which is part of the fund itself.

Valuation and Liquidation

Most hedge fund do not practice daily valuation. They are either priced twice monthly, once monthly or even quarter yearly (rare case). This is due to the reason that some of the instruments that the fund invest into might not be liquid enough to be valued daily. Logically if there is not liquidity (no transaction) on the instrument, its difficult to get the most accurate price on the daily basis.

Liquidation (or redemption) on the fund is also done according to its valuation frequency, among the other reasons to do that is due to the ease in managing its cash flow. A fund which has a stable NAV (less unit creation or unit redemption) is easier to manage because you can plan when to realise your profit or gain.

Fund of Hedge Funds

This is a mutual fund which invest it's asset into many other hedge funds. Due to the nature of hedge funds which are unregulated, thus naturally imposed a higher risk to the investors. Therefore to reduce risk, a mutual fund is created to invest into a few other hedge funds and their performances are monitored by a mutual fund (regulated) manager. Not all countries allow Fund of Hedge Funds ( a type of FOF - Fund of Funds ).

Hedge Funds in Malaysia

Basically there is no pure hedge fund to date in Malaysia. Due to its high risk level and the complicated instruments used by hedge funds. Infact in Singapore, hedge fund is a niche product but globally hedge funds activities have grown substantially. But the feature of hedge fund can appear in many different form of mutual funds such as fund of fund, capital protected fund or structured products.

Risk Level of Hedge Funds

Hedge fund do not necessary means higher risk, but due to it's unregulated nature, investors tend to be more keen on the higher risk (focused portfolio and leveraging) hedge funds. As pre-mentioned, there are capital guaranteed hedge funds.

Bursa Malaysia Trading Halted

Malaysian stocks fell the most in a decade after the ruling coalition's worst election result in fifty years put Prime Minister Abdullah AHmah Badawi's position in doubt and raised questions about his spending program.

Trading on the Kuala Lumpur stock exchange was halted for an hour after the Kuala Lumpur Composite Index tumbled by the 10 percent limit as opposition parties took control of almost half the states contested in March 8 elections. This is an automatic protection mechanism to protect the investors so that market might oversold or unreasonable selling due to panic in the market. Thus a down of 10% will automatic suspend the market and halt all trading activities. The market is close about 2:58pm Malaysia time. Till now Malaysia is the biggest drop market in Asia Pacific.

Most goverment linked company (GLC) stock prices are badly hit due the the uncertainties in their projects due to the change in the goverment especially the few main states such as Selangor, Penang and Perak. Foreign investors has been selling down the market since month ago and have been selling furiously today.

I Have The Cash, Should I Pay Off My PTPTN Immediately? Should I Even Take The Offer At The First Place?

I had come across friends, whom refuse to accept the PTPTN loan or some whom actually borrow from their parents to settle off all the PTPTN loan as soon as after their graduation.


Some doesn't even pay which I had read in newspaper about some local self made millionaires in Malaysia whom hasn't pay off their PTPTN. Please do not do that.

Anyway a few simple issue that I wish to share with you are below:-

1) Why you should accept the PTPTN offer

PTPTN is consider the cheapest source of financing that you can get. Refer the table below. There is none financing products that offers you a loan at 4%. More over getting a PTPTN loan is only once (or max twice) in your life time. Not the same case with credit card which you can apply every now and then. The processing procedure is very easy, which will be solved in the university during the orientation week ( depending on university procedures ).

2)Why you should not use your parents' money to settle off the loan

Your parents' money are meant for retirement, thus one should be responsible for his/her loan. Settling off the loan in lump sum doesn't provide you the liquidity option. Imagine if you need the money for emergency case (eg medical expenses), you can't withdraw that amount of money back from PTPTN.

Imagine if you can borrow at 4% and invest at a guaranteed return of 5% (eg Merdeka Bond), you would have been able to make a riskless investment return of RM200. Lets do some mathematics, the net return is 1% (5%-4%) while investing RM20,000 (PTPTN loan amount) at the net return of 1% gives you RM200 return per annum.

As long as the expected return is higher than the borrowing cost, you will definately make profit along the years servicing your education loan. If the expected return is 8% (eg ASW 2020), you would have been able to make a riskless investment return of RM800. Lets do some mathematic again; investing RM20,000 (PTPTN loan amount) at the net return of 4% (8%-4%) gives you RM800 return per annum.

EPF Withdrawal For Unit Trust Investment

Its a bit of conflict for myself to invest via my EPF monies. I guess EPF is doing a OK job for our investment money. I wouldn't say it's extremely well but at least every year we get more than 5% return pa. EPF had announced the dividend distribution of 5.8% for the investment of last y ear. Even 5% is already more than the return of fixed deposit standing at 3.7%. Don't forget your EPF monies are in one way or another capital guaranted.

Please don't use your EPF monies to invest into pure bond fund. Basically bond fund only gives you about 5%-8%pa and it's not guaranteed. There are bond funds that can lose up to 30% of it's investment. Don't forget about the sales charge too. Why take the risk to invest into a product that gives a non guaranted return of 8% when you can put it into a safe heaven that consistently give more than 5%?

Starting from year 2008, KWSP has cap the maximum sales charge of unit trust invested by EPF member at 3% only. Meaning investment by cash is charge about 5%-6% commission(sales charge) while by EPF is only charge at maximum 3% commission (sales charge). Then KWSP has gone the extra mile to reduce the minimum criteria for their members to be eligible to invest into unit trust. Don't forget also now we have more money into account 1 (70%) comparing to last time only 60% in account 1.

I guess KWSP is doing all they can to encourage their members to investment into unit trust funds. Wondering if you are eligible to use your EPF money for unit trust investment? Refer to below's table:-

Example: Assuming if you are 25 years old and assuming the minimum investment into unit trust is RM1000. Therefore you need to have at least RM20,000 in your EPF account (1 and 3) in order to qualify for withdrawing your EPF money for unit trust investment.

The calculation method is shown as below:-

P/S: I am so surpise so many people still doesn't know how much is the distribution of their EPF money in the different accounts. Below are copied from KWSP website.

Effective 1 January 2007, the Account is divided into two parts, namely Account I and Account II. Contributions received on your behalf from your employer will be credited into the two accounts according to the following percentages:

Account I - 70% of monthly contribution
Account II - 30% of monthly contribution

These accounts are created for different purposes, and different types of withdrawals are applicable on each accounts:

Account I Savings in this account is meant to be used for your retirement, and it cannot be fully withdrawn before you reach the age of 55, become incapacitated, leave the country or deceased (payment will be made out to your nominee / heir).

You are allowed to invest part of this savings to allow you to add the value of your savings.

Account II Savings in this Account is meant to help you to make early preparations for a comfortable retirement. Withdrawals are allowed for the purposes of:

Attaining the age of 50 years;
Owning a house - the downpayment for your first house;
Settling the balance of your housing loan - first house;
Financing education for you and that of your children's;
Medical expenses for you and that of your children's

The EPF will not consider application for withdrawal from any account for purposes other than those stated in the current law as cited in the EPF Act 1991; EPF Rules and Regulations 1991; and EPF Circular and Procedure.

Maybank Balance Transfer

I am considering this product. I had done some review on it. Actually I had read it many times before, just thinking maybe I can share some knowledge here with you.

I personally prefer the 24months package simply because the monthly rate is the cheapest. But do you know how much is the effective annual rate? After compounding monthly, the effective annual rate is 4.59%

There are plentiful of safe investment instruments out there that can easily make more than 5%pa on your investment. Therefore why not leverage on 4.59% and get back the return of 5%pa.

Below are some of the term and conditions worth to take note:-

1) The cheque payment to the other banks will be effected within 10 business days from the date of approval of your balance transfer.

- If you don't wish to be charged interest on the source credit card (the card to be transfer out), therefore you have to do your timing properly so that Maybank will pay your existing card before the statement date. Don't be surpise to be charged late payment charges if Maybank only pay your source bank (eg bank X) after the due date!

2) The finance charges will be calculated from the date your account is debited for settlement of your credit card account with other issuers.

- This means that interest will be calculated immediately not until end of the statement date. This might make a 20 days different in interest saving days.

3) For 24 and 36 months plans: Upon approval of your Balance Transfer, NO new account will be allocated. The balance transferred will be in your existing Visa/MasterCard/American Express account.

- Incase you are not aware, some bank actually transfer your money to a new account number when you do a balance transfer. This is for the ease of maintenance. Because your account might be might with other purchases of the month which suppose to be charged higher interest compare to the money from balance transfer. Generally the bank will knock off the principle with the highest interest rate before paying for the lower.

4) RM30.00 processing fee will be charged for each Balance Transfer application approved.

- Most banks charges a minimum processing fees which ranges from RM20 to RM50. This fees is a serious consideration. Example if you transfer only RM1000 but charged RM50 for the processing fee, that comes to 5% of charges just in 1 transaction. That is extremely expensive. Therefore I will only transfer bigger amount to the bank with higher processing fees. If you have the balance transfer size of more than RM5000, the effective cost (interest rate and processing fee) is only about 5% pa stil. For me, 5% is consider relatively cheap :)

P/S: Remember use our card for convenience not for credit (unless in special case :)

Am I Taxable? When Should I Start Declaring My Income?

Chinese New Year is always my best opportunities to catch up with my friends especially those from secondary school. Most of us have been in the labour force for 3 years while there are a few whom just graduated. Suddenly “Hi Nova I am just wondering, am I taxable? When should I declare tax?” …. Ooohhh suddenly it hit my mind that this question has been asked many times before. So I decided to include my answer in this blog.

Generally, anyone whom is already working suppose to start declaring your income to Inland Revenue Board (IRB). BUT!!! Its not the first time that I had heard so many complaints from my friend (whom have salary of less than RM2500 per month) that are not “allowed” by the IRB officer to open an account with IRB. Most companies will open a tax account for you with IRB but there are some smaller companies which don’t do that for you.

Basically for those whom already has a tax account, it’s advisable for you to declare you income every year. But for those without, try to open one even if your income is below RM2500 (although sad to say that you might be asked to go home by the IRB officer). Don’t forget althought your basic might be below RM2500, but your annual income might be still more than RM30,000 (RM2,500X12months) due to bonus, allowance, over time claim and other income.

There is a very big chance that you are actually over charged for tax paid during the months which you get higher pay cheque (example during the months that you receive your annual bonus or quarter yearly sales commission). After you declared your income tax and realize that you are actually not taxable or IRB has actually over charged you, IRB will return the excess to you by sending the cheque to your home (It really works because I received it before last year).

I hope this write up comes in just in the write time during this time that most already receive their B form from IRB J. All the best in your tax planning.

Question and Answer

1) Dear Nova, the RM2,500 chargeable income in the schedule above refers to the monthly salary or total annual income? eg if my annual income is RM30,000, for the first RM2500 im not charged..followed by the next 2500 i'm charged at 3%?

First of all you have to differentiate between your annual income and your income taxable.

Income Taxable = Annual Income - Tax Deduction

Example of tax deductions are EPF/insurance, computer, medical expenses, gift to charity and investment in SSPN

Therefore if your annual income is RM30,000 and assume your total tax deduction is RM27,000 therefore your taxable income is RM3,000. Therefore based on the schedule above, the tax payable is (RM2500X0%) + (RM500X1%) which is RM5.

Anyway this is just an illustration. There are still many tax exemption when you fill in the BE form. Therefore if your annual income is RM30,000, most probably you are not taxable. But incase you are taxed some where when you actually have higher income in a particular month due to bonus/special allowance, therefore IRB will have to return the money (which are deducted on that particular month for tax) to you.

Do A Balance Transfer At Cheaper Rate And Free Handphone Worth RM849!

Hi all, you have to be very careful when you do balance transfer. I was earlier kinda keen on this product but when I know the actual T&C, it really pull me off.

I wanted to get the handphone by transfering RM6k to my Ambank card. There is no transaction/administration cost. Wow that's great! More over I will be given a free handphone SE K550i worth RM849! AND interest rate of 8.99% pa ONLY!

Please be aware, this balance transfer is a bit different then the rest. Its based on a installment amount. Eg of normal balance transfer is that if you transfer RM6000 for 2 years, everymonth you only have to pay the minimum 5% and the interest rate. On another hand, this Ambank product converts RM6000 and interest of RM1078.80 (8.99% X RM6000 X 2 years) into 24 installment loans which each month you have to pay RM294.95 ( RM6000+RM1078.80 / 24 Months)as installment. Imagine, if you pay 8.99% interest per annum based on principle of RM6000 but effectively you are only borrowing RM3000 per annum (due to the reason that you have to service your principle amount every month). On net effect you are actually charged 8.99%X2=17.98% (normal interest is actually 18%pa, thus there is almost none different).

Wow, let see..... paying interest of RM1078.80 for a phone worth RM849. Well well if you have debt anyway and haven't done any balance transfer, they why not do this balance transfer and get some free gift. BUT if you have the cash, I rather buy by cash rather than this balance transfer. At least I get to choose more phone rather than SE K550i.

P/S: I do not consider compounding effect in this calculation for easy understanding (I hope I really had made it easier for you). Finally this post doesn't mean to condemn any product in the market, only trying to bring awareness to everyone. Thanks

Questions and Answer

1) Nova, I don't understand how the effective borring becomes RM3k when I actually transfer (borrow) RM6K from the bank, please explain in detail. Thanks.


Please refer to a simple table that I had done below:-
Scenario 1:-
If you borrowed RM6K, but you have to make payment of RM500 every month ( RM6K/12 months), therefore the amount of borrowing every month is lesser. If you take the average of borrowing amount every month (which is lesser each month), effectively you are borrowing only RM3K ((RM3250+RM2750)/2) in a year.

Scenario 2:-
Ok maybe you are lost still... lets compare to a normal situation. Your good friend lend you RM6K as per scenario 2. He said, hey VS I lend you RM6K for one year... please remember to return RM6K to me at the end of the year. Since you are not paying any installment to him along the year. Therefore effectively, you are really borrowing RM6K a year. Because everyday when you wake up from the bed, you are still owing him RM6K until you payback all.

P/S: Sorry if the table above is too small to view. Now you know I am not a good artist. I guess that's what they said the different between people who uses left brain more than right brain. :)

Flexi Mortgage Loan

Basically there are 2 type of flexi mortgage loan.

The first type is the one that combine it with a current account. A few banks that has this package are Alliance, Standard Chartered and Hong Leong. Therefore they house owner will transfer all his current account from other bank to this bank eg Bank A. If the mortgage loan is RM200k, but he has RM20K in the current account, automatic the mortgage loan will be reduced to RM180. Therefore the mortgage loan amount changes according to how much the investor put in or take out from the current account. Please take note, if the money put into saving account or fixed deposit only gives you 2-4% but if put into this current account will saved you about 5% (eg BLR 6.57-1.75%). Remember one dollar saved is actually 1 dollar earned :)

The second type of flexi account means that you has the flexibility to do prepayment (meaning to pay more in order to settle the debt earlier) without having to give notice to the bank. Banks that has this package are Public Bank and OCBC.

You might be confuse when you see the second product coz hey my dad is already paying more everymonth for his installment. Hehehehe please read ur t&c carefully, the older mortgage product do not allow prepayment unless notify or request from the bank. Therefore any dollar you paid earlier is only stand by for the next month's installment and no interest given!

Both product above subject to a 5 years lock in (some 3 years depending on banks).

Good luck and happy investing.

Merdeka Bond, Is It Suitable For My Parents?

Bank Negara Malaysia will issue Bon Simpanan Merdeka 2008 amounting to RM2 billion on 1 April 2008. Is RM2billion a lot? This investment might be as good as ASW2020. I remember many times that the ASW2020 are sold off in just 1 or 2 hours. So better be fast/early if you want to buy this.

The bond, which will be scripless and based on Syariah principles, is an additional savings instrument for senior citizens who are 55 years and above and not employed on a full-time basis.

There is nothing wrong to be a Syariah approved intruments. For the non Islamic investors, don't be so rigid about this. Basically Syariah investing are more stable. Another objective for this product is that it allows the Muslim investors to participate. Frankly, wouldn't investing in ASN better than this Merdeka Bond? Just the question to ponder since I never invest in ASN myself.

Those wishing to subscribe may apply for the bond during the sales period, commencing from 3 to 31 March 2008. The bond, which has a 3-year tenure, offers a return of 5% p.a. and provides flexibility for early redemption before the maturity date. This product will be as good as saving account! Just the flexibility to withdraw anytime and still be given the pro-rated interest and 5% interest per annum.

The minimum investment in the bond is RM1,000 with a maximum of RM50,000 per investor. Its good to have a capping of maximum RM50,000 of investment. Don't be suprise to see people coming in with RM1,000,000 cheque. Thus this provide opportunities for everyone to invest. A minimum of RM1,000 is fair enough. Its the minimum for any other unit trust funds.
Bon Simpanan Merdeka 2008 can be subscribed at all commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Berhad, Bank Simpanan Nasional and Bank Pertanian Malaysia.

The allocation of the bond is based on first come first serve basis. Successful applicants will be notified by their agent banks????? Why successful applicant? Just a quick guess, maybe they will proceed with some checking to ensure that the applicant meets the criteria to investment (eg golden citizens whom are not on full time employment). Profit payments will be made through the bondholders' accounts with their agent banks. That means the interest cannot be reinvested.

The profit for BSM 2008 is 5% p.a. This means the profit is approximately 1.25% (5% divided by 4), of the investment amount at the end of each quarter. This is another advantage feature of this product. Normal Fixed Deposits only gives you the return at the end of the tenure. Assuming the dividend is reinvested at the same rate, the effective rate (due to the profit paid quarterly instead of yearly) will be 5.1%. Another thing is, the return are not taxable :)

The BSM 2008 is non-negotiable, non-transferable and non-assignable. BSM 2008 can be redeemed at face value on and before the maturity date but after the first profit payment. The profit payment will be apportioned based on the number of days the bond is held. Minimum redemption amount allowed is RM100. Bondholders may redeem their bond holdings in multiples of RM100. This provides liquidity to the golden citizen. Again well done. Its a good product for golden citizens.

Economical Way To Pay PTPTN

Hi there, thanks that my friend brought up this issue to me.Ya it's kinda some cost to pay PTPTN... I mean the transaction cost. Especially for those whom pay monthly, RM2 (most expensive) per transaction can be quite something.

So there are some more convenient ways of paying and cheaper which is internet banking as the table on the right.FYI you can pay yearly or quarterly in order to save the transaction cost. Its allowed by PTPTN to pay yearly or quarterly if you do not have enough funds.

Assume monthly PTPTN payment is RM100 and each time transaction cost is RM2, therefore the trasaction cost is 2% (RM2/RM100). If pay half yearly on the same amount which is paying RM600 (RM100X6months) and transaction cost is RM2, therefore the transaction cost is 0.33% (RM2/RM600). Most important is, think about the convenience? Well you can consider to pay at early of the half year if you have the cash (thus will also save some interest). All the best gals and guys!

Tax Rebate on Computer Purchases (2007) - Does It Benefits The Lower Income?

Thank you very much to you whom are still reading this despite so many write ups which my friends couldn’t understand much. I have to admit that either I have very poor English or bad presentation skill. But still I hope my sharing will enable you to know more and be more aware about your own financial planning.

Since year 2007, the rebate for computer has changed compare to year 2006. Lets start with review of the changes.

Table on the upper right shows the computer rebate for year 2006 and 2007 respectively.

Referring to the computer rebate for year 2007, it doesn’t seems to benefit much for the lower income group. Anyway looking at the flip side of this, it’s more beneficial to us in the long run assuming we will eventually fall among the higher income group. But it’s still a dilemma, I guess a RM500 rebate for a low income fresh graduate means more than a RM1000 rebate for someone whom is earning more than RM250K a year.

Take care my beloved readers, be aware and remember to have proper tax planning. Good luck and Happy Chinese New Year 2008!

Soft Dollar? What Is That?

Maybe might not realise.... the investment managers are making money out of the brokerage that they trades for you.

In case you are noobs in stock investing, all trades that you do in share market will be charged a brokerage fees of 0.60% but since investment managers trade in huge volume, they are only charged eg. 0.30%.

When your unit trust trades in the market, the broker actually billed your fund 0.30%. Its the fund manager's discretionary to decide who is the broker ( in the case of mutual funds ). The question is WHO he will choose to execute the traders for him? On what basis of selection? Fees? Research? Relationship? Recipocal business? Execution?

What ever are the reasons, for 0.30% paid by using the investors money, the fund manager actually receive kicked back or softdollar from the broker.

Some investment managers (IM) doesn't receive soft dollar aka soft commission from the brokers because it's claimed that they get the best brokering fees thus no further kick back.

Some IM recieved the soft dollar but agree will put it back into the unit trust funds because it's investors money.

The tricky one are the IM that keeps the soft dollar for themself. I am not saying that's its not allowed or not ethical. As long as the soft dollar is used for research for the benefit of the investors, then it is perfectly fine.

Thanks to read my bla bla bla again... this is not a huhaaa thing in the market... just hope to bring some realisation or attention to you. The next time you pick up any unit trust prospectus, try to read for their soft dollar policy, you might find something suprising ;) FYI some use the softdollar for company dinner :) - of course this will not be disclosed in the prospectus. It's all ethical issue.