Finances

10 Most Asked Interview Questions: How To Tackle Them

2013-04-26T21:47:00.001+08:00

How many of you had stumbled upon an interview question you haven’t prepared yourself for, and your mind drew a blank? Sensing that awkward silence, you blurted out whatever words you could find and desperately made sentences out of them. The interview ended moments later, and as you reflect back on what you had said, you dreadfully realized those words don’t make much logical sense!

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Okay, if you are looking for a job now, then you’re in luck. This is a guidance post of ten most common interview questions that you might be asked for your upcoming interviews. If you’re still sending in your resumes to companies, I’ve also posted an earlier entry that you can refer to: 7 Great Ways to Get Your Resume Noticed.

Without further ado, here are the top 10 questions, let’s get started!

10. "Tell Me About Yourself?"

This is typically the first question the interviewer will ask once you’ve taken your seat. This is the opportunity for the interviewer to assess you as a person through what you say and how you deliver it. As they always say, first impression is at utmost important, so you’ve to make sure you’ve prepared yourself adequately to answer it. Keep it short and succinct, preferably within 2 – 3 minutes.

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How should you reply then? Like I said, you should have done your research on what the company expects from the candidates before heading for the interview. Your answer then, is to address how your qualities (e.g. qualifications, personalities and work experience) are relevant to the position in question. Therefore, you should only convey information applicable to what is required for the job, but not irrelevant ones pertaining to your family or personal events, for instance.

9. "What Are Your Weaknesses?"

At first glance, this seems tricky. On one hand, you can’t reveal that you lack what it takes for the job; on the other, it will be an obvious lie if you claim you don’t have any weaknesses. What should you disclose then?

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If you have thoroughly gone through the company’s profile and such, you will by now understand what qualities are considered strengths, and what are not. Now, there are several ways to answer double-edged questions like this.

With your knowledge of what constitute as weaknesses that are frown upon by the interviewer, you can admit to those which you have that are impertinent to the job requirement. Secondly, you can mask strengths as weaknesses. For instance, you can say you are a very meticulous person who gets picky with details of a project (for this to work though, the job must be one that is particular about specifics). Last but not least, you can confess to past weaknesses but show how you had triumphed over them.

8. "What Is Your Greatest Accomplishment?"

Although the interviewer is asking you about your greatest accomplishment, you still have to choose one that is more professionally relevant. This is a good time to illustrate how you can contribute to the company if you are successfully recruited, so it will be to your advantage if you mention an achievement that applies to the position.

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Let’s say you are applying for a position that requires a significant amount of problem solving and troubleshooting. You might want to talk about a time when you resolved a persistent problem that had plagued your company for years. You can explain how you initiated some research and made a useful suggestion that was eventually implemented to all departments. If possible, quantify your results in terms of savings made and increased productivity for instance.

7. "Why Did You Leave Your Last Job?"

There are various legitimate reasons for leaving a job. Yet, when it comes to interview, try to answer positively rather than complain about what made you unhappy. Talk in relation to your career goals and how the job you are applying provides a better environment for growth than your previous job. As always, angle your reply in such a way that what you had learned in your previous job had enriched you with valuable skills for the current position.

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Here, the interviewer is trying to gauge how much the job fits to your expectations. You had probably quit your last job because you were unhappy about something. The interviewer wants to make sure that you will be committed to the job and not leave because your expectations are not met again.

6. "Why Do You Want To Work With Us?"

More likely than not, the interviewer wishes to see how much you know about the company culture, and whether you can identify with the organization’s values and vision. Every organization has its strong points, and these are the ones that you should highlight in your answer. For example, if the company emphasizes on integrity with customers, then you mention that you would like to be in such a team because you yourself believe in integrity.

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It doesn’t have to be a lie. In the case that your values are not in line with the ones by the company, ask yourself if you would be happy working there. If you have no issue with that, go ahead. But if you are aware of the company culture and realize that there is some dilemma you might be facing, you ought to think twice. The best policy is to be honest with yourself, and be honest with the interviewer with what is it in the company culture that motivates you.

5. "Why Did You Apply For This Position?"

Even if it’s true to a large extent, don’t give them the vibe that you applied for this job because you were retrenched from your previous company. Or for that matter, don’t give the impression that you are here because you need to make a living. Any company wants someone who is committed to the organization and eventually developed a sense of belonging with it. It doesn’t help claiming that you’re here for the monthly paycheck.

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In fact, the best way to answer this question is to spend some time examining what you like or would like about your work and the company. It is likely you will find something, such as the culture, work environment, meaning of your work, etc. If you didn’t find anything, then you should seriously consider if this is the right job for you.

Once you know why you want this job, you can then answer them in a manner that’ll relate how well you fit with the position. For example, if you like the customer service work involved because you enjoy communicating with people, bring up that sociable personality of yours. Convince them that you’ll fit in very well here, and you’ll in turn convince the interviewer that you’ll be an asset to the company.

4. "What Would You Like To Be Doing Five Years From Now?"

Again, this question is asked to find out whether you are committed to the job. The fact is that there are people who hop from job to job, and that is because they don’t really have a solid plan to follow.

Another reason for popping this question is to see whether you are someone who sets goals in life. It’s undisputable that people who set long-term goals are more reliable than those who don’t. I mean, knowing what you want in life says a lot about your personality, perhaps as a person who can lead and stay motivated.

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Your reply should assure the interviewer that your career progression goals are in line with the actual advancement route in the company. The interviewer wouldn’t want to disappoint you in the next five years and end up with you resigning. As such, it is crucial that you do your homework on the company’s prospects so that you know what to expect for yourself, and whether it will meet your long-term career objectives.

3. "Why Should I Hire You?"

This is the part where you link your skills, experience, education and your personality to the job itself. This is why you need to be utterly familiar with the job description as well as the company culture. Remember though, it’s best to back them up with actual examples of say, how you are a good team player.

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It is possible that you may not have as much skills, experience or qualifications as the other candidates. What then, will set you apart from the rest? Energy and passion might. People are attracted to someone who is charismatic, who show immense amount of energy when they talk, and who love what it is that they do. As you explain your compatibility with the job and company, be sure to portray yourself as that motivated, confident and energetic person, ever-ready to commit to the cause of the company.

2. "How Much Are You Expecting For The Salary?"

Salary negotiation is a tough and delicate matter. Preferably speaking, you should avoid going into this topic until the later stage of the recruitment when you are being offered the job. That said, some recruiters might be hoping that you’d yield in to this question and be the first to give the number and set the benchmark. The repercussion? You might end up making less than what the position is worth!

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Hence, research on the salary range in your field to have a rough estimate of how much you should be earning. Give a large range rather than a specific amount if you have to answer it. An alternative is to pose the question back at the interviewer by asking what kind of salary does the position warrants. At other times, interviewers might just be testing you to see if money is the only thing that matters. So, do emphasize that your priority lies with the nature of the job and not the salary per se.

Remember that when the job is finally being offered to you, the interviewer would have to quote the salary. That will be the best time to negotiate your way because you will then become the one being sought after, and not the other way round.

1. "Do You Have Any Questions To Ask Me?"

This is normally the last question posed to you, so it’s your chance to finish the interview elegantly. True enough, your doubts about the job position might already been allayed by this time when the interview is almost done. Nevertheless, you’ve got to say something other than replying that you’ve got nothing to ask. Doing otherwise might leave the impression to the interviewer that you are not exactly keen to get the job.

Unless an employer is interested in recruiting a passive employee, the interviewer is likely to be attracted to proactive candidates who ask intelligent questions. If you must ask, do make sure that they aren’t those with obvious answers that you can get if you have done the research thoroughly. Yes, there’s no such thing as a stupid question, except those that you ask for the sake of asking. Try to incorporate your knowledge of the industry and the company into a question that will address a genuine concern of yours. That way, you get to amaze your interviewer and assess for a final time whether the job aligns with your expectations.

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One of the best responses to this question is to find out about your chances of landing this job. Thank the interviewer for the opportunity and express your enthusiasm for the position before asking if there is any reservation for hiring you. This will be your final chance to address any concerns the interviewer might have of employing you. Stay calm and reply objectively rather than taking any criticism personally.

Of course, you are free to ask any questions in your mind. It is, after all, you who is seeking a rightjob for yourself. Gather as much information about the position and have a feel of what it’s like working there day in, day out. If they offer you the job and it is what you are seeking for, go for it!

Insurance

2013-04-19T22:08:00.001+08:00

Life Insurance: Protect Those That Matter To You Most

If you think about it for a minute, you insure everything that's significant in your life; why not insure yourself? You are priceless after all (or at least pretty close to priceless). Life insurance helps provide you peace of mind and can provide your family with financial stability and security when it matters most.

It's easy to get a life insurance quote online from Life Quotes, Inc. through the GEICO Insurance Agency. Or call us at 1-888-532-5433 and speak to one of our insurance reps.

So, How Does It Work?

If you suffer from insomnia, then you can try reading the endless explanations and confusing legal mumbo-jumbo on the internet. You'll be instantly cured.

Or, if you're truly curious, consider these simple questions:
- Do you work full-time, inside or outside the home?
- Are you a caregiver for your children and/or spouse?
- Do you own a home?
- Are you recently married, do you have children, or are you recently retired?
Every dollar earned, every daily task that contributes to your household running smoothly, every investment...all of it factors into the security and stability that you and your family rely on each day.

A life insurance policy helps to ensure that in the event something happens to you, the needs of your loved ones can be provided for up to the amount you feel you are worth. Or your family can be provided for based on the policy amount you choose.

Get a free life insurance quote today.

What's In It For Me?

We're glad you asked.

The answer is simple: a life insurance policy helps give you and your loved ones protection from the unexpected. You know that if something happens to you, your family will have the financial protection they will need down the road.

A term life insurance policy is the most affordable and the easiest to understand. You specify the length of the contract in 5-year increments, various flexible payment options are available, and the policy provides basic protection without a bunch of the extras that complicate other types of life insurance policies.

Do You Dare Sue Your Broker?

2013-04-15T00:01:00.002+08:00

In theory, if you have lost money because your broker (or any financial institution) gave you bad advice, mismanaged your investments, misled you in any way or did various other unlawful and ethical things, you can sue for damages. If these breaches of duty are provable, the "merits of the case" are strong, as a lawyer would say. Unfortunately, these merits may not be enough to get you fair compensation with a fair amount of financial outlay. No matter how good the case, the road to financial damages is a rocky one.

The Theory and the Reality
In an ideal world, if you have a good case, you or your lawyer would write to the broker explaining the situation and requesting that he or she pay a certain amount of compensation or make a fair offer. The broker would face the realities of the situation and act with integrity, offering you a reasonable sum. If he or she genuinely believed you were mistaken, he or she would explain why, backing this up with the appropriate financial and/or legal evidence.

Unfortunately, we do not live in an ideal world and nothing makes a broker's blood run cold (or perhaps hot) more than a damages claim. The amount of money involved is generally not trivial and there is often a fear of "the floodgates opening," as you are probably not the only client in this position. It is also human nature that people are reluctant to admit they are in the wrong, no more so when this affects their pocket. Last, but very definitely not least, the civil law system has some intrinsic flaws that can be exploited by the unscrupulous and/or desperate.

So What Actually Happens?
In many or most cases, the broker will deny absolutely everything with arguments that will make your own blood either boil or freeze. The defenses will range from blaming you, the market or both, to distorting the figures or the laws, the logic or anything else that shifts the liability for the losses away from the broker. This first response will generally be presented as one of injured innocence.

If you push further, it will get nasty. Despite legal and ethical obligations to treat complaints fairly, this is also a theoretical ideal that is often totally disregarded in practice. The unstated and sole objective of the broker is to avoid (or evade) liability by any means available. Do not, therefore, expect fairness or sympathy and understanding; the firm will regard you as an enemy and treat you accordingly. You will be told that "our position is clear," which means "we will admit nothing and offer nothing, and if you want one dollar back then sue us, if you dare." The question is, should you dare?

Why It Would Indeed Be Daring
The odds are stacked against you, especially if you are dealing with a large firm. You will be stressed throughout the entire case, but the firm but will be as cool as the proverbial cucumber, because it will turn the case over to its compliance people and/or lawyers, who are familiar with all the tricks of the trade, have available resources of all kinds and who know that the converse applies to you. Such cases are often complex, invariably very time consuming and truly draining on all one's resources - financial, mental and physical.

The other side can and will run up massive legal fees, and if you back out part way you will owe them a frightening amount of money. The fees accruing on the other side are the real problem; they are used as a strategic weapon. The theory is that judges are infallible and if you lose, you were in the wrong, deserve no damages and should therefore pay the costs of the other side.

It is also common for the other side to try and avoid the real issues and merits of the case from ever being discussed openly and fairly. Thus, the civil process itself gets misused bureaucratically, through various administrative tricks and processes, while the actual financial mismanagement is either not dealt with at all, or simply denied validity.

Furthermore, the less of a case the firm has, the more they will resort to such tactics. The other side will probably believe it has a better chance of escaping liability by mismanaging your complaint and manipulating (or taking its chances with) the civil system than dealing with you fairly out of court, especially if you are in the right.

In addition you can still lose in court because the judge gets it wrong or the broker hires legal and financial "experts" who manage to convince him (incorrectly) that the merits of the case are weak. There are a lot of financial people out there who will testify to anything for a not-so-modest fee. Justice is definitely not always done, hence the saying "on the high seas and in court, you are in God's hands."

The ugly reality is that investors generally lose money because the investment was too risky, but trying to get damages out of the broker or firm is also fraught with financial and other risks. This all sounds daunting and rightly so. The emphasis must be made that you can still win, but you need to be aware of the harsh realities. Litigation, just like investments, can be missold.

On the Other Hand …
If you are not dealing with a big firm, there is a far more level playing field and you have a much better chance. Likewise, if you have legal insurance that will cover most of the cost, you can proceed more easily. It is also sometimes possible to get "after-the-fact insurance," which is not cheap, but it does mean your potential losses have a ceiling.

Furthermore, if you do have a powerful case, are mentally and physically tough, relatively risk friendly and/or lost a lot of money (but hopefully still have a lot) and really want to see justice done, it may still be worth going for it, even against a big player.

The Bottom Line
A financial damages claim is not for the fainthearted, but it may be worth it in the end. Make sure you think things through very carefully before the cost "clock" starts ticking away, and bear in mind that you will probably not get objective advice from a lawyer who is keen to sell (or missell) litigation. Suing a large firm is certainly difficult, but it is not impossible and it may be worth trying. The more level the playing field in terms of resources, the better your chances. Either way, the unfortunate reality is that litigation is an investment in itself, with its own risks and rewards. There are substantial costs involved, both financial and non-financial. All these factors need to be weighed up in advance and a sensible decision made. In some cases, it is better to live with the losses.

25 Reasons To Do MLM Business

2013-03-30T22:12:00.001+08:00

There are many reasons why you should start and do MLM Business. Here are 25 reasons why you should get involved in MLM business:

1. Your Own Business: When you join any MLM program, you are not joining as an employee. You don’t have a salary. You don’t have a boss who tells you what to do. You become self dependent. You are the boss, the owner and everything. Remember, you are joining as an independent distributor. This is your own independent business. You can choose, decide and operate the business the way you want it. Nobody is going to tell you what to do.

2. Can Be Done Part Time: One of the greatest things about this business is that you can do it part time while still doing your ordinary job. You don’t need to quit your job. It is advisable to maintain your job and do it part time as this will double your stream of income. Once you can see some income before getting into it full time. Unless of course you have financial back up to back you up the first few months of running this business in the beginning.

3. Fast Return on Investment (ROI): Since MLM is your own business; the return on your initial investment that you made can be earned back as quickly as you build your business. Many income earning opportunities are available in MLM. If you sell your products, you earn immediate retail profits. If you sponsor someone, you earn fast start bonuses. It is really in your hand how fast you want to make money with MLM.

4. Easy to Understand and Operate: Unlike many conventional businesses with complex and complicating business rules, MLM is a business that is very easy to understand and operate. You just need to understand how MLM works and do it. The key is in sales and building a network of people doing the same thing under you.

5. Choose Your Partner: MLM business requires your recruit others to build your business. Since this is your business, you can actually choose who you want to partner with to build your business. Smart business people will choose their business partners. Imagine having someone who has a burning desire to change his life in your business compared to someone who don’t.

6. Low Start up Cost: You don’t need thousands of dollars to start your MLM business. Usually there are two ways to join any MLM business. (A) Join as an ordinary member and build your way to the top or (B) you can start with a fast start option which gives additional edge in starting this business. The investments can be as low as only few hundred dollars.

7. Low Operating Cost: This business does not require a high operating cost. You don’t need to rent a office. You can do it from the comfort of your home. Your operating cost is determined by your marketing strategy that brings you sales and opportunity to share your business with others. Once you have duplicated and build a strong team, your expenses will be only in meeting and helping them grow more.

8. No Employee to Pay: In this business, you don’t need to hire people to work for your. In fact in MLM you are not working for your MLM business; what you are doing is to get the MLM business work for you. Yes, you need to sponsor people, but they are not your employees. They are your business partners who will help you grow your business. Help them grow theirs and you will see yours grow.

9. No Inventory to Keep: You do need to buy and keep samples of products but that just a few samples to show your customers or prospects. You don’t need to buy a large quantity of stocks. That inventory of products is done for you by your MLM Company.

10. True, Legal and Viable: MLM companies are required to have direct selling license. Thus this business is a legal and legitimate business. MLM business is not a scam business that just sells dream. MLM business provides a way to achieve your dream to its compensation plan. It’s in your hand how you do it to achieve it.

11. Not a Get Rich Quick Scheme: It takes time to build any business. Same goes for MLM business. Not everyone will join MLM business. You need to develop and build your business and that takes time. Yes, you can be rich doing MLM but only after your build your business. This is a “get rich according to your effort” business. It is a business where you determine your success according to your own effort.

12. Small but Big Business: MLM business is often referred as small business but this opinion is not true. MLM is a big business. It is an international business. This industry generates revenue of more than 100 billion USD every year. You are in a big billion dollar business. You are just operating it small but you are part of a huge industry that contributes to the world economy.

13. Financial freedom: MLM business offers an opportunity to achieve financial freedom through its compensation plans. It is an industry that has produced more millionaires than any other business. There is no cap to your income like in employment. You truly have the potential to earn unlimited income because in MLM, you income is proportionate to the size of your team’s sales volume. You don’t have to wait for salary increase. You can determine your income level.

14. Residual Income: This is the only easiest business that can be started that provides opportunity to create high residual income. Do you know what residual income is? It’s like when you own a property and collect rent by renting it out. You are not doing any work but that asset brings in a cash flow. MLM can give you residual income after you have built your network large or deep enough.

15. No Glass Ceiling: we all know about the infamous ‘glass ceiling’ that exist in corporate world. Your gender, race or age can prevent you back in moving up higher in the corporate ladder. In MLM business, your MLM Company doesn’t care about your race, gender or age. It only cares about how you build your business and you will be rewarded to that extend. In MLM, you decide where or which rank you want to be and the positions are always open for achievers.

16. Early retirement: to retire, you need some kind of residual income in place to live for the rest of your life without having to worry about your finance. MLM compensation plans often provide the most lucrative income for high achievers. Once you have created a successful team and leaders, the business can go on itself even if you are not there to support. You will still earn on going income. You can use this income to re-invest perhaps in real estate where you can create further cash flow or residual income and when all is in place, you can retire early.

17. Help Others Achieve Financial Freedom: You definitely can see so many people struggling to make ends meet. There are just so much of economic insecurities. With low income, most people just do not have enough of to cover basic expenses like housing, healthcare or food. When you do MLM business, you have the opportunity to change other people’s life by sharing this opportunity with them. If they join, you can help them achieve their financial freedom.

18. Get Tax Advantages: In almost all countries in the world MLM is a legal business. There are significant tax advantages due to this. While you declare your income tax, you may want to include your expenses like traveling, phone call bill or internet as these can reduce the deductable tax amount. Different country may have different rulings. You may want to get professional advice on this or refer to the relevant government agency.

19. Know More People: MLM business also provides you the opportunity to meet people from different walks of life. Some may even become your life long friends. There are just so much to learn from meeting others. Things that you may never even thought about. By getting to know more people and talking to more people, you improve on your communication skills, gain self confidence and improve self-esteem which is important for the success of this business.

20. Benefit of Products: the reason why a MLM company chooses MLM as its way of distributing the product is to ensure the product they made reaches people and it benefits them. Imagine putting a product in a retail shelf competing with other products. It may just get lost in the shelf and the company may loose money even if the product is great. MLM ensures that through word of mouth advertising and recommendation this high quality product reaches end user or those who needs it. You and I have the opportunity to share a wonderful product that will benefit others tremendously.

21. Business That Works: MLM is a proven business that works. Millions of people around the world doing it and are achieving financial freedom. If it doesn’t work, how can it generate revenue over 100 billion USD a year (DSA, 2010). It doesn’t work for those who are lazy and don’t take the responsibility of how to run the business successfully. It does not matter what business you are doing, you must know how to do it otherwise you are doomed to fail. It is the same with MLM. Learn to do it, and do it. If you don’t do it even though how smart you are, you will go nowhere.

22. Anyone Can Do It: Unlike most conventional businesses that requires some kind of specialist skill like sales skill, experiences or higher academic qualification such running a hair saloon, clinic or legal firm; MLM business can be started and operated by anyone regardless of gender, race or education level. It has been proven that even people who are illiterate who can’t read and write have been successful doing this business.

23. Free Business Training: MLM companies are concerned about your success because your success in this business determines their revenues. If fact, your sponsor’s success depends to your success and because of this the MLM companies will provide you with the necessary training and tools for to succeed in this business. Truly successful MLM companies focus on its distributor’s success.

24. Power of Leverage: You can generate income from the effort of others in your team. Many people misunderstand about this part of MLM business. Actually this is not people using people business but people helping people. If you help your team member achieve the financial goals they are aiming, you gain leverage and earn a substantial income for the help you given. I have never seen anyone successful in MLM without helping his/her downline.

25. Total Time Freedom: As for me, this is the most important aspect of this business. Time is short. We can only live as to so many years. If we are going to work for the rest of our life, we will never be able to do all those dream things we want to do. MLM business changes this. Once your business is very successful, you get total time freedom; meaning you no longer have to worry about your business; you can now spend time doing the things you have always wanted to do in life such as in travelling to that place you always want to go or doing that hobby you always wanted to do etc.

Retirement Planning

2013-03-05T00:42:00.000+08:00

Make Retirement Planning Your Number 1 Priority!

Personal retirement planning is often an intense challenge for loving parents with young children. Their key problem is balancing current lifestyle needs (and wants) against vital long-term future goals like retirement and children’s university education funding.

Even those with hefty incomes face this problem. Here’s a case study involving Charles and Claire – successful professionals and the doting parents of 5-year-old Cherry and 3-year-old Chester. Charles and Claire enjoy a combined net monthly income of RM15,000, which is several times that of the average Malaysian household.

Claire, who brings in a third of their total income, has been toying with the idea of quitting her job to raise Cherry and Chester fulltime. While Charles is supportive, he suggests they meet with a financial planner to discuss their long-term goals and to see if their tentative plan of having Claire quit her job at the end of 2007 is viable.

They set up a series of meetings with a reputable Securities Commission-licensed financial planner. After their third meeting, they ironically find themselves relieved and stressed!

They’re relieved because they have a much better sense of what they need to achieve if they are to retire comfortably and to educate their children in the ambitious manner they’ve always dreamed of. They’re stressed because hard numbers don’t lie. They face the fundamental choices of having Claire continue to work or of dramatically scaling back their retirement and education funding plans.

In their initial meeting with the financial planner, they were asked to list all key financial goals and dreams. They came up with items ranging from the prosaic to the extraordinary, including retiring well, educating their children abroad, travelling abroad each year, buying a mansion with a swimming pool, and owning a Ferrari.

Then, when the financial planner asked them to select the essential, non-negotiable goals, Charles and Claire settled on retiring well and educating their kids abroad.

(Note: Wong Boon Choy, treasurer and founding member of the Financial Planning Association of Malaysia, explains, “If funds are limited, we have to face the harsh reality of revisiting goals that may have been set earlier.”)

Charles and Claire initially set the education goal as their number one priority and relegated retirement to number two. But their financial planner explained that in the decades ahead our entrenched philosophy of Asian filial piety may give way to more Western ways of thinking; also, the economic climate prevailing three or four decades from now may make it impossible for even the most caringly nurtured children to fund their parents’ retirement while paying for their own needs and saving for the next generation’s education!

(Note: Even financial planners who are comfortable with parents putting their children’s education ahead of their retirement advise caution. Alfred Sek, CEO of Standard Financial Planner explains, “A common mistake parents make is overlooking their own retirement plan while planning for their children’s education. As a financial adviser, I would not recommend they put their future retirement plans in the hands of their children.”

If in later decades children are unable or unwilling to provide retirement funding for aged parents who haven’t taken care of their own retirement needs, tragedy can ensue. Wong, an SC-licensed financial planner and CEO of unit trust management company MAAKL MUTUAL, says, “People usually have two choices then: To reduce their annual expenses in retirement or to delay the start of retirement by continuing to work.” Taking the time to run appropriate analysis will help them figure out possible future courses of action. Wong warns grimly, “Someone planning his retirement should think now, ahead of time, of the key difference between eventually being considered an ‘old man’ and an ‘elderly gentleman’ – the amount of money he possesses!”)

So you’ll be relieved to learn Charles decides their appropriate number one financial priority should be retirement funding. Chart 1 shows the suggested funding path toward that goal.

Chart 1: Charles and Claire’s Retirement Funding Plan

Source: MAAKL MUTUAL Bhd’s MAAKL Planners software

The analysis yielding that solution was based on 12 assumptions:

Although they earn RM15,000 a month in net income, Charles and Claire are willing to settle for a RM4,000 (in 2007 terms) a month lifestyle throughout their long projected retirement period.
Charles and Claire assume, at least at this stage of their analysis, that they will both continue working until they turn 60. As they’re both 35 now, they have 25 more years before retirement begins.
They assume they will live until 2056, just before both turn 85. So, they’ll spend a projected 25 years in retirement.
Between now, 2007, and the year they retire, 2032, inflation (meaning their personal average inflation rate as opposed to the official CPI rate) runs at an average of 4% a year. (By their first year of retirement, it will cost RM127,961 in future 2032 ringgit terms to afford a RM48,000 a year lifestyle in 2007.)
To generate the required savings and investment growth, we will assume they utilise bank fixed deposits and unit trusts encompassing money market funds, bond funds, domestic equity funds and international equity and property funds. It seems likely if such a well diversified pre-retirement portfolio is regularly and intelligently rebalanced, it should yield an average compounded growth rate (CAGR) of 8%.
We certainly don’t assume they will retire at the current 55 or 56 official retirement age because with lengthening lifespans it is a certainty that conventional retirement ages will creep up by perhaps two years for every decade we move into the future. Once they stop working at 60, all active income inflow ceases. Then their ability to stomach investment risk will fall. The rational thing to do then is to restructure their portfolio to lower its inherent volatility. This should yield lower, but more stable, returns. In specific terms, both their equity and international exposure will be reduced while their fixed deposit, money market and bond weightings will rise. Their new target compounded annualised growth rate (CAGR) is assumed here to be 6%.
Throughout their anticipated retirement period of 25 years, medical expenses will become increasingly important. Specific inflation affecting medical treatment tends to run higher than general inflation. So, we’ll assume their retirement inflation runs at 5% a year.
Taking all those points into consideration, we find based on the software used to carry out our analysis that just over RM 2.8 million is needed to fund their joint retirement, using a capital liquidation method. Note: Their joint EPF savings at 55 may grow to more than RM700,000; as this amount is NOT taken into account in this analysis it can be used as a massive cash cushion to make achieving this goal and that of educating both children abroad more likely.
As we assumed earlier that Charles and Claire will earn an 8% yield on their portfolio, obviously they will require a lot less than RM2.8 million today. Calculating this smaller number is the mirror image of conventional compounding, which causes money to grow when we move from the present to the future. Instead, we discount that large future sum back to the present by 8% a year and discover a much smaller total theoretical sum of personal savings today is needed to reach our future goal of RM2.8 million. That currently ‘needed’ sum is RM413,926 in 2007 ringgit.
They don’t have that much. We’ll assume they have a total of RM30,000 today in savings that can be committed to initiating both their retirement funding programme and their kids’ tertiary education plan. Because their number one goal is retirement funding, we’ll further assume they choose to allocate RM20,000 of their RM30,000 available cash toward starting the retirement programme. (Charts 2, 3 and 4 outline the specifics of the tertiary education programmes; they show RM5,000 is set aside to begin each child’s university funding portfolio.) Charles and Claire also opt to take advantage of the excellent EPF Members Investment Scheme to use a portion of the money in their respective EPF Account 1s to augment their initial investment. We’ll assume a total of RM12,000 can be utilised from both Charles’ and Claire’s EPF accounts for this purpose.
So, their present day shortfall for the entire retirement funding programme is RM413,926 minus RM20,000 minus RM12,000 or RM381,926. The retirement planning software used for this analysis indicates an annual investment of RM35,778 will make up for the RM381,926 initial sum shortfall.
It appears as though Charles and Claire need to channel about RM3,000 a month – on average between now and when they retire – to meet their retirement funding needs. Since they currently earn a whopping RM15,000 a month, it seems they can either enjoy a RM12,000 a month lifestyle and meet their retirement savings requirement or Claire can quit her job to spend time with the children if they settle for a RM7,000 a month lifestyle, since she presently brings in RM5,000 in net income each month. Unfortunately, neither conclusion is correct…

Remember Charles and Claire don’t just have one important financial goal, they have two (or three, if we count each child’s education funding requirement as a separate goal).

Charts 2 and 3 outline the analyses for Cherry, who is now 5, to be able to study in the UK for a 3-year honours degree, and for Chester, 3, to study in the US for a 4-year honours degree.

Chart 2: Charles and Claire’s Education Funding Plan for their first child Cherry

Source: MAAKL MUTUAL Bhd’s MAAKL Planners software

Chart 3: Charles and Claire’s Education Funding Plan for their second child Chester

Source: MAAKL MUTUAL Bhd’s MAAKL Planners software

Chart 4: Summary of Charles and Claire’s Education Funding Plan cash outflows for both their children from 2020 to 2025

Source: MAAKL MUTUAL Bhd’s MAAKL Planners software

Assumptions made in the respective education analyses include anticipated exchange rates for the pound and the US dollar. (Here we’ve assumed the ringgit will continue to track sterling at about RM7 = 1 pound, but that the greenback will continue to weaken on the back of seemingly irreversible US trade deficits and thus average RM3 = US1 between 2022 and 2025.) These are at best mere guesstimates! Obviously, there is no way of knowing what the true future tuition and living costs will be, but the purpose of such analyses is to provide at least a logical framework for long-term planning.

Financial planning itself includes but goes beyond wealth accumulation initiatives. According to Securities Commission-licensed financial planner Rajen Devadason, “Financial planning also includes wealth protection using insurance and the power of asset diversification, and wealth distribution using wills and trusts.”

With regard to caring for young children, Ong Eu Jin, chief operating officer and director of OSK Trustees, explains, “Education planning for couples with young children is never complete without addressing the ‘what ifs’ and the worst case scenarios.” Ong believes each adult should write a will. He goes on to say, “Parents with minor children should consider creating a testamentary trust under their will.” Such a trust comes into effect upon the demise of the testator, the person whose will it is, and can be structured to protect the goals and aspirations of loving parents who recognise the possibility of their not living long enough to see their children graduate. (We will take a closer look at this important facet of financial planning in an upcoming article.)

Returning to our case study, it’s clear Charles and Claire’s current goal of setting aside enough money to educate their two children in the UK and the US necessitates saving and investing about RM5,400 a month.

Once we add that sum to the RM3,000 a month Charles and Claire need to set aside for their primary goal of retiring well, we see their initially sizable net income of RM15,000 a month doesn’t appear that large.

Retirement funding specialist Devadason says ruefully, “I often sound like a broken record when I repeatedly urge my clients to aim to move up toward a long-term targeted savings rate of 40% to 50% of their net income.” He adds, “Number crunching exercises like these aren’t meant to depress people but to drive home the reality of our need as a nation to consume less and to save and invest more – much more.”

Tips For Home Loan

2013-02-28T00:38:00.005+08:00

Loan’s application declined to RM45.26bil from RM47bil!

The Bank Negara had showed on their website that loan approvals’ percentage for residential properties in the country declined to 46.8% in the first half of this year from 50.1% during the same period in 2011. While the application for loans for residential properties purchases increased by 2.9% but the actual loans approved during the six-month period declined to RM45.26bil from RM47bil in the same period in 2011.

This is evident when our clients have to resort to different banks when they buy their properties and this prolonged the property transactions period.

Whydeclinedandhowitisassessed?

One of the reasons for the increasing numbers of bank loan disapproval is because of the recent change of policy by Bank Negara to use Net Income instead of Gross Income of borrowers in approving loans.

From our recent meeting with a local bank manager on this policy, he explained that if a person:

Has a salary/total income of RM3,000.00 a month (after deductions of EPF and SOCSO)
Has a car commitment of RM500.00 a month
Other commitments of RM1,000.00 a month (house, credit cards etc)
His net income would be RM 1,500.00 but the bank will take 70% out of this net income to calculate his eligibility for another loan. That would mean the person is eligible for a loan of monthly instalment not more than RM1,050.00

Of course this calculation is just a guide and different banks have different rules in calculating a person’s eligibility.

Based on a this person’s net income of RM1,050.00 and on the basis of a tenure loan of 30 years and interest rate of BLR-2.4%, he is eligible for a housing purchase of RM230,000.00 (with 10% down payment).

In getting your bank loan approved, there are four factors that you must be prepared:

Your Net Income
Proof of your Net Income
Your Purchase – it must not be risky in the view of the Bank.
Your Credit Rating

To help you in getting your loan for residential purchase approved, we compile for you 20 Tips to Increase the Success of Your Home Loan’s Application based on our interviews with bankers, investors and experience in dealing property transactions.

While we cannot do anything on the increasing price of properties in Malaysia nor can we ask our Boss for a raise of salary in light of the inflation of our country (you can try, if you want to!), we can only work out other ways.

#Tip 1 – Sort out Your Eligibility

Before you commit yourself into any purchase of property, sort out your eligibility first. Get advice from your banker and get them calculate your loan’s eligibility and work out how much the price of a property you can afford.

Approach different banks and let them review your credit eligibility. You must be honest with them and tell them your salary, income and total expenses. There is no point in getting your bank loan approved based on false credit report while you struggle to pay your bank loan later.

Our illustration above on the net income can also be a guide to determine your purchasing power.

Based on your eligibility, if you know that you can only settle for a property priced at RM 250,000.00, don’t try to make a purchase of RM 450,000.00.

Also, you need to take into consideration of the hidden costs involved in acquiring your property.

#Tip 2 – Build Your Passive Income

The rule of Net Income is simple:

Net Income = Salary – EPF – Monthly Tax Deduction (PCB) – SOCSO

They will then use your net income to derive your Loan Repayment Ratio/Debt Service Ratio = New + current loan repayment commitments/Net Income

It’s either you cut your expenses and liabilities (such as credit cards instalments, car commitments etc) or you build your income.

While it is almost impossible for you to speak to your Boss in front of his face and ask for a raise in your salary (you can try!), what is better for you to do is build your passive income or other side income. While you can work part time during the night or weekends, what is better for you to do is build your passive income – income that you can earn without you having to work for it.

There are many ways you can do this:-

Rent out your empty rooms in your house
Build business – can start small by having a stall selling fried chicken manned by another and expand to having several stalls
Write eBooks or create products and sell online
If you already own several properties, your rental income can be part of your passive income – but be ready to deal with problematic tenants!

The opportunities are endless. It’s just a matter of whether we want it to happen.

#Tip 3 – Cut down your expenses, liabilities or commitments – Bad Debts

Robert Kiyosaki – the author of Rich Dad, Poor Dad said in this book we need to identify which is bad debt, which is good debt.

“Get rid of debt,” that’s Robert kiyosaki main advise, but you have to distinguish between good debt and bad debt:

“If you’re financially educated, like my rich dad, you know there’s good debt and bad debt. Bad debt makes you poor,” Robert Kiyosaki says. “Good debt makes you rich. Today, I’m hundreds of millions of dollars in good debt.”

“Good debt puts money in your pocket, and that’s the difference,”

Robert Kiyosaki is a real estate entrepreneur and co-author of “Rich Dad, Poor Dad

While many of us cannot restrain from buying or spending on things we think we should own after working so hard to earn our income and use credit cards or make purchases on credit, we should stop and think whether what we are buying good debt or bad debt.

If your car loan and additional costs of owning a car is taking up half of your income, maybe you should ask yourself whether you should settle for cheaper car or means of transportation.

If your purchases on credit term are eating up half of your salary, you should ask yourselves whether what you have purchased is a good debt or bad debt. Maybe you should sell off your items and settle the credit card or purchase second hand goods in future for a lesser price.

# Tip 4 – Joint Purchase with Your Spouses, Children, Parents, Close Friends or Partners

If your credit eligibility is RM 250,000.00 and your wife is earning similar income, you can joint purchase the property with your wife. The combined credit eligibility would be RM 500,000.00 and you can easily acquire a loan of RM 400,000.00. You can also joint purchase with your children, parents, and close friends or with investment partners.

The only thing is – make the joint purchase with someone you can trust and get a good lawyer to draft your agreements of share.

# Tip 5 – Make Higher Down payment

A higher down payment would mean lesser loan amount and instalments.

Settle for a higher down payment if you could – this can either from your EPF withdrawals, insurance fund withdrawals, borrow from your parents and or relatives (but not Ah Longs, please!).

In proper finance strategy, you can also refinance your current property and use a portion of your money from the refinancing for a larger down payment. To do this, get proper advice from your banker and wealth advisers before you commit anything.

# Tip 6 – Longer Tenure

You can stretch up your loan to 30 or 40 years tenure and spread out your instalments. Some bank also offer loan up to 60 years or 70 years of age. Of course the longer your loan tenure is, the higher the interest you need to pay.

But believe it or not, with the inflation rate of our country plus the law of scarcity your property would be priced at the same price of your total payments or more by the time you settle your loan. You can also make prepayments with your EPF money to shorten the tenure and interests when times come.

# Tip 7 – Look For Bargain Property

The No.1 investment advice is –

“Buy low, sell high!”

While it is almost impossible to find bargain properties nowadays, it is still possible for you to find one if you go further looking for one. There are still people who would sell their properties for lesser sums for many reasons – migrating, in need of money for business, divorcing etc.

We once had a client who sold his property at a price much lower than market value because of matrimonial matter.

These properties normally won’t go public and even if it does, it would be taken up very fast. So the key is networking.

# Tip 8 – Negotiate with the sellers or come to an arrangement with the sellers

Some sellers or vendors are friendly and good enough to make some arrangements in your favour. This can be an arrangement for say you pay the vendor a larger sum of down payments but in instalments over a fixed period, with or without interest. In this way, you need not obtain higher margin of loans and it’s easier to get your loan application approved.

Also, the bank is able to see your commitment in buying this property as they may think that you have paid large down payment to secure your property. In this circumstance, it is very unlikely you would want to see your property being auctioned for defaults of payments.

Or, maybe make the Sale and Purchase Price higher to get a higher loan so you don’t have to pay for the down payment? But this may work against your objective as the main concern here is about getting your loan approved – the only reason it is not approved is because you’re borrowing too much. So unless you find one undervalued property, it is very unlikely that you will be able to use this strategy as bank normally value the property lower than the sale and purchase price.

# Tip 9 – Shop for Banks just like how you shop for clothes

Don’t settle for only one bank. There are plenty of banks in our country both local and international banks. Some banks albeit Bank Negara policy, maintain lenient policy in approving bank loans than the other.

It is advisable that you always approach banks and get their letter of offer before you sign any Sale and Purchase Agreements or bookings. Negotiate with the seller to allow you a certain time to get bank loan while reserve the property for you. Once you get the letter of offer from bank, you need not to worry about losing your booking fees in case of failure of getting a bank loan.

If you approach more banks, you will be able to compare their interest rates and other benefits and get the one benefited you the most.

# Tip 10 – Look for Tenanted Property

This is common for many investors. If you are new in investment and is buying the property for investment purpose, settle for a property currently tenanted. You may be thinking why the landlord would sell the property while he is earning passive income. This could probably because the landlord is adjusting his portfolios; he needs large sum of money to finance his other purchase or for his children tertiary educations. The reasons are endless; you just need to find the right property.

If the property is currently tenanted, this can be part of your guaranteed future income which most banks will take into consideration. Show to the bankers the Tenancy Agreement. The longer and higher rental the property is currently tenanted the better. If it is rented to good companies like 7-11, even better.

# Tip 11 – Have Proper Bookkeeping

The bank normally wants to see your income statements to determine your credit eligibility. While some may only ask for your pay slips, most would require you to produce your income tax statement/report.

In this case, you cannot lie to your bankers about your total commitments because they can check your commitments (other existing loans) from their integrated system linked to Bank Negara.

If you could produce to your bankers your detailed financial statements including your total incomes, total expenses – this would help in assessment of your credit eligibility because the bank doesn’t have to estimate or second guess your expenditure and can make correct assessment of your credit eligibility.

# Tip 12 – Report and Pay Your Tax Accordingly

Nowadays banks are stricter in assessment of their customers’ credit rating.

They request customers to produce their income tax statements. If you’re a business owner and you tell your bankers you are making RM 500,000.00 a year but if you only report your profit as RM 250,000.00 as reflect in your income tax statement, the bankers would take the RM 250,000.00 in their assessment.

Therefore, unless you have better solutions and are not leveraging on the bank’s money in your property purchases, it would be wiser for you to report your profit accordingly and pay your tax accordingly.
Get proper advice from Tax consultants to assist you in this matter.

# Tip 13 – Pay your Credit Card and other commitments on time

Always maintain a good credit rating by paying your credit card and other commitments (loans) on time. When the bank lends you the money, they want to ensure that their money will be paid back on time. This is the risk that the bank needs to evaluate and it makes sense that if you’re a good payer who pays on time the bank will love you to be their customers who borrow from them. They know that you will be able to pay what you borrow and make money for them.

It is often very difficult for a person who does not pay on time or who has been blacklisted from the bank or other banks to get their loan approved.

Mind you that they have an integrated system that is able to track your history or track record with other banks or at least they know whether you’ve been blacklisted.

# Tip 14 – Pay off your credit cards!

This is interrelated with # Tip 3 and # Tip 12. If you are buying too many things on credit cards and by instalments or easy payments, beware that your loan application may not be approved. Simply – the bank think that you have too much commitments and aren’t good at financial management. They may also think that you may somehow unable to pay your credit card and the loan. So unless and until you can prove to the bank that you’re earning more than you spend, be careful when spending with credit cards as your may go on with shopping spree and splurged your spending budget.

# Tip 15 – Build and maintain good rapport with bankers

It is very important for you to build and maintain a good rapport with bankers. They are the ones who will facilitate and in some situations approve or involve in the process of approving your loan applications. If you could build your rapport and they trust you being a good payer, this may help in your loan getting approved.

Also, if you build your rapport with fellow bankers, they will help you in persuading their superiors to approve your loan or get their superiors to review your loan applications. If they don’t know you, most of them would ignore your application once their superiors disapprove the applications.

# Tip 16 – Readjust your portfolio

If you own too many properties with the bank’s money and they are generating negative cash flows for you, you may need to readjust your portfolio. It may be wise for you to sell off your negative cash flow property or those not making money neither appreciate in value to cash your new purchase. This way, the bank will be able to see that you’re more than able to finance the loans.

# Tip 17 – Have a Guarantor who has good financial background

To ensure that your loan is approved, you can also get a guarantor for your loan. Of course this person must have good or positive income statement. If in the absence of you paying the bank loan and you have a guarantor who is capable of paying the bank loan then it is very likely that the bank will approve your loan application.

Be wary that a guarantor will be liable for the instalments in default of you paying the loan and is also liable to be sued for bankruptcy. Further, this guarantor’s credit eligibility will be taken up by being a guarantor for your loan. This means that if he becomes a guarantor for your RM 300,000.00 loan, this RM 300,000.00 will be taken as his own loan when the banks assess his loan application.

# Tip 18 – Choose your location of property purchase wisely

When buying your property, always follow Ho Chin Soon Real Estate Mantra–

Location, Timing and Branding!

This is also particularly important when getting your loan approved.

Some banks only finance purchases of properties in certain locations. Some banks also look at who are the developers. This is logic considering that banks are money making institutions and they want their money to be safely returned. If you make purchases at secluded area at high price but with no potential to grow, the bank will be wise not to lend you the money.

The same is true if you make purchases from developers who are popular for not keeping their promises or new developers who cannot prove their credibility, the banks are unlikely to lend you the money to purchase properties from these developers.

The rule is simple – if you can’t pay the loans, can the bank recover the money back by auctioning your property? If they can easily auction your property means they are likely to lend you the money. If they think there is no taker for your property, they won’t lend you the money. They always think of the exit route before they make an entrance.

# Tip 19 – Shop for Loan Packages Just Like How You Shop for Combo Meals

There are many types of loan packages offered by different banks. Some offer graduate loans that only require you to pay less in the early years and gradually increase over the years, others offer Islamic loan or interest only loan for under construction properties. Whatever package you choose, choose the one that you think best suit you taking into consideration of the interest rates and sum of instalments.

If you believe you are only able to pay less in the early years as you have just graduated with a degree and you strongly believe that your salary will increase as times goes by, take up this package. The bank will very likely approve your loan based on this package instead of approving your loan with high instalments in the early years.

If you think you can flip the property after the property is completed but you don’t have strong ability to finance your property during construction, take up the ‘interest only’ package albeit the higher interests.

# Tip 20 – Be Confident!

This is going to be the last tip – be confident in whatever you do – just like when you present your case to the banker!

Show your confidence in your ability to pay the instalments by supporting your applications with various documents. Show to the bankers that you’re able to finance your property just like how you tender your proposals for your boss to accept your idea.

Bankers want to hear their investment in you will reap fruits. So tell them that their investment by lending money to you will not make them suffer losses.

Lastly,

Plan your exit before you enter. As Robert Kiyosaki always say ‘has an exit strategy in mind’ in whatever business you do.

We hope you can get your loan approved in no time and own your very dream property.

To prepare yourself in purchasing your property, read our 7 Steps Your Must Know When Buying Your Dream Property!

Give us your feedbacks and or comments regarding the tips we have given. Either way, if you have something to add on, let us know! We would love to hear from you!

How To Invest

2013-02-25T21:24:00.000+08:00

Got only $20 to put away right now?

It may not sound like much, but you can use it to buy shares in Intel. Or Johnson & Johnson. Or Harley-Davidson (you rebel). And those are just a few of more than 1,000 options available. What if you've got $100 -- or $1,000? Your options are even greater.

We're not here to tell you where to invest your money. We won't lay out a handful of stocks on a "buy" list. But what we can tell you is how you can invest your money -- the mechanics of investing small, large, and medium amounts of cash. We can even help you choose a broker.

How to invest $20Let's start with $20. We're going to assume that you've already paid off any high-interest debtand that you have some money stashed in a safe place (like a savings or money market account) that you can get to quickly in case of an emergency expense. Now you find yourself with a little extra dough, and you want to begin investing for your future.

Is it even worth it to invest such a pittance?

Heck yeah it is! One of the best ways to invest small amounts of money cheaply is through Dividend Reinvestment Plans (DRPs), also known as Drips. They and their cousins, Direct Stock Purchase Plans (DSPs), allow you to bypass brokers (and their commissions) by buying stock directly from the companies or their agents.

More than 1,000 major corporations offer these types of stock plans, many of them free, or with fees low enough to make it worthwhile to invest as little as $20 or $30 at a time. Drips are ideal for those who are starting out with small amounts to invest and want to make frequent purchases (dollar-cost averaging). Once you're in the plan, you can set up an automatic payment plan, and you don't even have to buy a full share each time you make a contribution.

Drips may be one of the surest, steadiest ways to build wealth over your lifetime (just make sure you keep good records for tax purposes). For more details on Drips, see "What if I can only invest small amounts of money every month?"

How to invest a couple of hundred bucks
So you've weeded out all the wooden nickels from your spare-change jar and have tallied up a few hundred bucks. Instead of blowing it on snack food and Elvis memorabilia, consider investing it in an index fund (the only kind of mutual fund Fools like). An index fund that tracks the S&P 500 is your ticket to an investment that has traditionally returned about 10% per year.

Some index funds require as little as $250 for you to call yourself an owner. This low minimum is usually restricted to IRAs (Individual Retirement Accounts). After your initial investment, you can add as much money as you like, as frequently as you like, with no additional costs or commissions. You purchase index funds directly from mutual fund companies, so there are no commissions to pay to a middleman.

If you have a few hundred dollars to start with, then this is a great, low-cost way to establish an instant, widely diversified (500 companies!) portfolio.

How to invest $500
Once you're up to $500, your investment options open up a bit more. You can still buy an index fund, and now you'll have your pick of fund companies that require higher initial investments. This freedom will enable you to shop around for a fund with the lowest expense ratio.

You should also seriously consider opening a discount brokerage account. You'll want to focus on the account option that best serves your needs; some accounts require a minimum initial deposit, and some don't. That means you can open up an account with whatever investing money you have available, and start researching and perhaps purchasing individual companies. (Or, if you're enamored of index investing, you can easily invest in Spiders, a stock-like investment that mimics the performance of the S&P 500.)

The key here is to keep your costs of investing (including brokerage fees) to less than 2% of the transaction value. So if you're planning to add to your position in stocks a few times a month, a Drip or an index fund may still be the way to go.

How to invest $1,000-plus
What can you do with a grand? Obviously, with $1,000 you can open up a discount brokerage account, but look at the rewards if you can scrape up an additional $1,000 a year to add to your original investment.

Say you've got 40 years to retirement. If you start with $1,000 and invest an additional $1,000 each year, and your money earns 10% annually, then when you're ready to retire at age 65, you'll have $532,111.07. That seems worth it to us. If you have earned income, you can set up a Roth IRA, and you won't even pay any taxes on that $532K when you withdraw it. (As always, your mileage may vary.)

Again, even at this level, the key is to keep fees from eating up your earnings. So make sure that the costs of investing (including brokerage commissions, stamps to mail in checks, and books that help you learn to invest) are less than 2% of your account's overall worth. With small accounts, that can be a challenge, but with such low commissions being offered by discount brokers, it's definitely doable.

The Secret to Growing $50,000 Into $900 Million...
At the age of 38, a middle-class insurance man from Peoria, Illinois, quit his day job and invested $50,000 in the stock market just as everyone else was plowing their money into bonds. When he died in 1994, his stake was worth over $900 million.

Now, Motley Fool Co-founder and CEO, Tom Gardner, wants to send you a free copyof a book that reveals exactly how this little-known investor did it — and give you the chance to join him and a small group of dedicated Fools who are on a unique quest to replicate this incredible investment success. Simply enter your email address below and we’ll send you all the details.

Bankruptcy

2013-02-23T19:13:00.001+08:00

How Does Bankruptcy Work?

Bankruptcy is a legal process intended to help individuals and companies who are unable to meet their debt obligations. Bankruptcy can help you get control of your financial situation and help you maintain possession of property to which creditors might have a legal claim. The process can have very negative effects on your ability to borrow money for quite a long time (up to ten years), but there are circumstances where bankruptcy might be the best option.

There are two types of bankruptcy for individuals: Chapter 7 and Chapter 13. The two types work quite differently. When filing for Chapter 7, most of your unsecured debt disappears within 90 days. However, much of your property, including your home, will be sold off, with the proceeds distributed to your creditors. Basically, anything you have that is worth much at all will be sold to pay creditors. In addition, a Chapter 7 bankruptcy stays on your credit report for ten years. So Chapter 7 bankruptcy is no laughing matter.

A Chapter 13 bankruptcy lets you keep your property. This form of bankruptcy is a debt repayment plan, rather than a debt eliminator. With Chapter 13, you generally set up a three or five year repayment plan, and the bankruptcy only stays on your credit report for seven years. If you own property that you do not wish to relinquish to creditors, Chapter 13 may be your best option. Chapter 13 is also a better option for those who are having temporary difficulties but anticipate better times ahead because it has somewhat less of a long-term impact on credit ratings.

If you do not own a lot of property or are comfortable with the idea of relinquishing your property, then Chapter 7 may be the best option. It creates the best financial circumstances, from a debt management perspective, because it erases your debt. You are no longer responsible for debt repayment. How much property you must give up depends on the laws of the state where you live. But forget about moving to a state with better consumer bankruptcy laws in order to get a better deal. If you've lived in a state for less than two years, then you must abide by the bankruptcy laws in the state where you formerly lived.

If your credit score is already ruined from multiple missed payments or from being in default with creditors, then declaring bankruptcy won't have much of a negative impact on your credit score. In fact, it might even help your credit score. This is because once your declare bankruptcy, your balances and records of unpaid debts are removed. All of those debts will be marked as being included in a bankruptcy. So even though having the bankruptcy on your credit report is very negative, it may be offset by the removal of multiple active bad debts.

Since you are basically starting from scratch, you have the opportunity to begin rebuilding your credit anew. A good way to begin that process would be by acquiring a secured credit card. After being careful to make all your payments on the secured card for a year or two, you will be in position to apply for an unsecured card and continue the process of rebuilding your credit. Eventually, after seven or ten years, the bankruptcy will slide off your credit report. If you have made timely creditor payments in the meantime, then your credit will be restored

Gold Investment In Malaysia

2013-02-21T07:41:00.000+08:00

Written by iMoney Research Team

Gold investment is growing in popularity. At the time of writing this (1 June 2012), the gold price is at US$49.93 (or RM159.58) per gram. Only 5 years ago, gold price was around US$20. Had you invested in gold over this entire period, you would’ve made a profit of almost 150%!

Many Malaysians have asked the iMoney team how they can invest in gold without actually buying physical gold bars or gold bullions. After all, the risks of physically holding on to gold bars as an investment can be very, very high!

In Malaysia, some banks offer gold investment accounts, which allow you to buy and sell gold without actually ever owning the physical bars. The iMoney team has identified five Malaysian banks that offer such gold investment accounts:

UOB Bank Premier Gold Account or Gold Savings Account
Public Bank Gold Investment Account
Maybank Gold Investment Account
Kuwait Finance House Gold Account-i
CIMB Bank Gold Deposit Account

Choosing the right bank for gold investment in Malaysia

While these products may seem similar to each other on the surface, they can in fact be quite different. Kuwait Finance House, for example, uses a generic gold bullion that has a gold purity level of 99.5%, while banks like UOB Bank, Public Bank and Maybank all claim a gold purity level of 99.99%.

Another important point when choosing between banks is to look at the bank’s “buy-sell spread”, which is the difference between the price you pay when you buy gold, and the price you receive when you sell gold.

For example, if it costs RM160 to buy a gram of gold from Maybank, and at the same time, Maybank would only pay you RM150 when you sell a gram of gold, the “buy-sell spread” would be RM10. Sometimes, this “buy-sell spread” is expressed in a percentage form.

To maximise your profits, choose a bank with the smallest “buy-sell spread”.

Lastly, pay attention to hidden fees and charges. Some banks like UOB Bank and Public Bank will charge you a fee if your gold balance (i.e. the amount of gold investment you have in your gold investment account) falls below a certain level. Others like CIMB Bank may charge an early account closing fee if you choose to close your account within 6 months.

Keen to get started? Want to know which bank offers the best deal for gold investment in Malaysia? Check out iMoney’s Gold Investment Account

What Is a Mutual Fund?

2013-02-18T21:52:00.000+08:00

As a popular investment option, you have probably already heard plenty about mutual funds. Chances are you own mutual funds in your retirement plan or brokerage account. In fact, according to the Investment Company Institute, more than 92 million individuals in the U.S. (about 45% of U.S. households) owned mutual funds in 2008. But do you know what mutuals fund are and why so many people own them?

Mutual funds are an investment that allows a group of investors to pool their money and hire a portfolio manager. The manager invests this money (the fund’s assets) in stocks, bonds or other investment securities (or a combination of stocks, bonds and securities). The fund manager then continues to buy and sell stocks and securities according to the style dictated by the fund’s prospectus.

Fees of Mutual Funds

All mutual funds charge fees to operate and manage the fund. Management fees pay the fund companies (or managers) to manage the funds. Some funds also charge investors an upfront sales charge/loadwhen he/she first purchases shares in the fund, while other funds charge a back-end load (contingent deferred sales charge) upon sale of fund shares. There are also funds that have no sales charge and these are known as “no-load funds.”12b-1 fees are imposed by some funds to cover marketing and distribution costs. There are also various share classes of funds that differ in fee structure according to class (Class A, Class B, Class C, etc.)

Structure of Mutual Funds

Technically, mutual funds are “open-end” funds -- one of four basic types of an investment company.Closed-end funds, exchange-traded funds and unit investment trusts are three other types. As investment companies, mutual funds are regulated under the Investment Company Act of 1940.

Regulation of Mutual Funds

Regulation of mutual funds, compared to other pooled investment options (think: hedge funds) is extensive. Mutual funds must comply with a strict set of rules that are monitored by the Securities and Exchange Commission. The SEC monitors the fund’s compliance with the Investment Company Act of 1940, as well as its adherence to other federal rules and regulations. Since their development, the regulation of mutual funds has provided investors with confidence in terms of the investment structure.

Diversification of Mutual Funds

The beauty of mutual funds is that you can invest a few thousand dollars in one fund and obtain instant access to a diversified portfolio. Otherwise, in order to diversify your portfolio, you might have to buy individual securities, which exposes you to more risk and difficulty.

Another reason to invest in mutual funds is their adherence to a basic principal of investing: Don’t put all your eggs in one basket. In other words, many different types of investments in one portfolio decrease your risk of loss from any one of those investments. For example, if you put all of your money into the stock of one company and that company files for bankruptcy, you lose all of your money. On the other hand, if you invest in a mutual fund that owns many different stocks, it is more likely that you will grow your money over time. At the very least, one company’s bankruptcy will not mean that you lose your entire investment.

Professional Money Management of Mutual Funds

Many investors don’t have the resources or the time to buy individual stocks. Investing in individual securities, such as stocks, not only takes resources, but a considerable amount of time. By contrast, managers and analysts of mutual funds wake up each morning dedicating their professional lives to researching and analyzing their holdings and potential holdings for their funds.

Variety of Mutual Funds

There are many types and styles of mutual funds. There are stock funds, bond funds, sector funds, money market funds and balanced funds. Mutual funds allow you to invest in the market whether you believe in active portfolio management (actively managed funds) or you prefer to buy a segment of the market with no interference from a manager (passive funds and index funds). The availability of different types of funds allows you to build a diversified portfolio at low cost and without much difficulty.

While you have a plethora of investment options (individual stocks, ETFs, and closed-end funds, to name a few) mutual funds offer a simple, efficient way to invest for retirement, education or other financial goals.

Personal Loan Tips

2013-02-16T20:33:00.000+08:00

10 tips for taking out a personal loan

The personal loans price war is hotting up. This week Derbyshire Building Society has thrown down the gauntlet to rival providers by launching a rate of 5.6 per cent on loans between £7,500 and £14,999.

According to analysts at price comparison site Moneysupermarket, this is the lowest headline rate since November 2006.

Although the Bank of England base rate has been at an all-time low of 0.5 per cent for three-and-a-half years now, loan rates have remained stubbornly high – until now.

With rates falling, we’ve put together 10 top tips for taking out a personal loan.

1. Shop around

As with any financial product, when it comes to taking out a personal loan it pays to shop around and compare APRs. The APR (annual percentage rate) tells the true cost of a loan taking into account the interest payable, any other charges, and when the payments fall due.

Your bank may say it offers preferential rates to its current account customers but you might still find there are cheaper loans available elsewhere. For example, existing Natwest customers are offered a rate of 7.9 per cent - 2.3 per cent above the rate offered by Derbyshire BS.

2. Check the small print

Before you apply for a loan, check the small print to see if you’re eligible. Some best buys come with some onerous conditions. Sainsbury’s Bank offers a loan rate of 5.6 per cent, for example, but applicants must have a Nectar Card and have used it at Sainsbury’s in the past six months. Natwest and RBS only offer their best loan rates to current account customers.

3. Think about early repayment charges

It might seem unlikely at the time when you take out a personal loan – but don’t forget that it’s possible you will be able to pay off your debt early. Many loan providers will apply a charge if you wish to do so, so it’s a good idea to check how much this might cost before you apply for a particular deal. If you think there is a good chance you will want to settle your loan early, it may be worth searching for a deal that comes without any early repayment charges.

4. Shop around for PPI

Payment protection insurance (PPI) has had some bad press but it’s still a useful product for some people. It’s designed to cover your monthly loan or credit card repayments if you are unable to meet them due to sickness or unemployment. If you decide you need this type of protection, it’s vital you shop around for the cheapest deal: buying a policy direct from your lender could still cost you far more than buying from a standalone provider. Furthermore, PPI policies often come with a long list of exclusions, so make sure you fully understand what is, and is not, covered before committing to a policy.

5. Check your credit rating

If you plan to apply for a market leading personal loan, it’s crucial that you check your credit rating first. Lenders are only required to offer their advertised 'typical' APRs to two-thirds of applicants. Therefore, if your credit rating is not in good shape, you may be offered a more expensive deal than the low rate loan you originally applied for.

6. Consider a credit card

Before you apply for a personal loan, consider other forms of credit. You might find a credit card is cheaper and a card with a 0 per cent introductory offer on purchases will enable you to spread the cost of big purchase interest-free. The longest 0 per cent deal currently is 16 months from Tesco Bank. However, if you don’t think you will be able to repay your debt within the 0 per cent offer period, you may be better off with a long term, low rate deal. Right now, the Sainsbury’s Bank Low Rate Credit Card offers a rate of 6.9 per cent APR on purchases.

7. Check out peer-to-peer lending

If you’re anti-banks you might want to borrow from a peer-to-peer lender such as Zopa. The site, “a marketplace for social lending”, links borrowers and lenders. Applicants are credit scored and you need a decent score to be accepted. Rates vary but Moneyfacts lists a rate of 6.2 per cent on a £7,500 loan over three years.

8. Borrow more

In general, the larger the loan the lower the interest rate. Due to the way some providers price their loans, there are occasions where you can actually save money by borrowing slightly more. Currently, a £7,000 loan over five years from the AA is advertised at 13.9 per cent APR with repayments of £159.58 a month. But if you were to borrow an extra £500 the advertised rate drops to 6.4 per cent APR and the monthly repayments are lower at £145.76. So borrowing the additional £500 will actually save you £829.20 over the full 60-month term of the loan.

9. Don’t apply for too many loans

When you apply for a loan online, most applicants will leave a “footprint” on your credit record which lenders check before approving a loan. Having lots of applications on your record makes you look desperate or in financial difficulties. As a result lenders will see you as more of a credit risk, so your latest loan application is less likely to be approved.

10. Know the risks of secured loans

Secured loans are cheaper than unsecured loans but you run the risk of losing your home if you don’t keep up repayments. Secured loans are only offered to homeowners with equity in their property and mean the lender effectively takes a charge on your property. So don’t sign-up unless you’re 100 per cent sure that you will be able to meet your repayments – this type of loan is basically less risky for lenders but more risky for borrowers.

Debit Card

2013-02-14T07:50:00.000+08:00

What is a Debit Card?

A debit card is a plastic card which makes it possible to debit or use money directly from your bank account. Like a cheque book, a debit card is usually given along with other banking products (e.g. when you open a new savings or current account).

The advantage of a debit card is that it allows its holder to debit money at any authorised merchant as long as your account is funded. In some ways, a debit card is similar to credit card, but it only works when there are available funds in your account.

Debit cards are sometimes said to be half an ATM card and half a credit card. This is because some debit cards issued by banks allow you to enjoy the exclusive rights and discounts given to credit cardholders.

How Does a Debit Card Work?

When you make a transaction using a debit card, money is deducted immediately from your savings or current account because the card is linked directly to your bank account by electronic means. When the card is swiped at any merchant that accepts debit cards, it subtracts the money from your bank account and automatically deposits it straight into the merchant’s account. The merchant receives the money immediately. This type of transaction is different from when using a credit card, which is using borrowed money from a bank or financial institution.

Some debit cards will require your signature when transaction is in progress just like a credit card does, while other debit cards use a PIN number for verification. This is added for security reasons as only you will know your PIN number.

There are certain factors which you need to be aware of when you select a debit card, such as;

Limitations: Some debit cards are not allowed to be used for all kinds of transactions. For example, you may not make online transactions or purchases with debit cards from certain merchants. A debit card usually has a maximum limit you can bill for, though it is your choice to set the limit you want.

Linked Savings Account: It is a good idea to consider linking your debit card to an account that matches your spending habits. However, not all bank
accounts can be linked to a debit card.

Fees and Bills: There might be fees you have to pay when you apply for a debit card. Most people do not usually consider these fees. The fees may include:
- Annual Fee: The bank issuing the debit card may require that you pay an annual fee just as it is done with credit cards. Although, annual fees on debit
cards are usually less than that of a credit card.
- ATM Withdrawals: Some banks may offer up to a certain number of free ATM withdrawals, but start charging after that.
- Card Replacement fee: if you lose your card and want a replacement, banks may charge you for this.

Importance and Benefits of a Debit card

Debit cardholders do enjoy specific privileges and discounts such as;

Cashback: the cashback benefits on a debit card are usually less favourable than those offered by credit cards.

Reward Points: Just like credit cards, some debit cards reward you with points each time you swipe your card.

Discounts: As a debit card holder, you may also enjoy discounts and privileges offered by banks and participating merchants.

Advantages and Disadvantages of a Debit Card

When you use a debit card, you will never be in debt with the bank since purchase amounts are deducted directly from your linked savings account. It is relatively easy to apply for a debit card in Malaysia, as all you need is to have a current or savings account that offers such facility.

One disadvantage of using a debit card is that you can only spend the money you have in your linked savings account. Any transaction in excess of your bank balance will either not go through, or result in the bank charging you an overdraft fee.

Common Debit Card Terms

PIN: This stands for “Personal Identification Number”. A PIN is like a password – it is a series of digits used during a transaction to validate that you are the cardholder.

Debit Card Issuer: This refers to a bank or any other financial institution that issues debit cards.

How credit cards work

2013-02-10T06:59:00.000+08:00

Credit cards are issued by a credit card issuer, such as a bank or credit union, after an account has been approved by the credit provider, after which cardholders can use it to make purchases at merchants accepting that card. Merchants often advertise which cards they accept by displaying acceptance marks – generally derived from logos – or may communicate this orally, as in "We take (brands X, Y, and Z)" or "We don't take credit cards".
When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder indicates consent to pay by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a card not present transaction (CNP).
Electronic verification systems allow merchants to verify in a few seconds that the card is valid and the credit card customer has sufficient credit to cover the purchase, allowing the verification to happen at time of purchase. The verification is performed using a credit card payment terminal or point-of-sale (POS) system with a communications link to the merchant's acquiring bank. Data from the card is obtained from a magnetic stripe or chip on the card; the latter system is called Chip and PIN in the United Kingdom and Ireland, and is implemented as an EMV card.
For card not present transactions where the card is not shown (e.g., e-commerce, mail order, and telephone sales), merchants additionally verify that the customer is in physical possession of the card and is the authorized user by asking for additional information such as the security code printed on the back of the card, date of expiry, and billing address.
Each month, the credit card user is sent a statement indicating the purchases undertaken with the card, any outstanding fees, and the total amount owed. After receiving the statement, the cardholder may dispute any charges that he or she thinks are incorrect (see 15 U.S.C. § 1643, which limits cardholder liability for unauthorized use of a credit card to $50. The Fair Credit Billing Act gives details of the US regulations. The cardholder must pay a defined minimum portion of the amount owed by a due date, or may choose to pay a higher amount up to the entire amount owed which may be greater than the amount billed. The credit issuer charges interest on the unpaid balance if the billed amount is not paid in full (typically at a much higher rate than most other forms of debt). In addition, if the credit card user fails to make at least the minimum payment by the due date, the issuer may impose a "late fee" and/or other penalties on the user. To help mitigate this, some financial institutions can arrange for automatic payments to be deducted from the user's bank accounts, thus avoiding such penalties altogether as long as the cardholder has sufficient funds.
Many banks now also offer the option of electronic statements, either in lieu of or in addition to physical statements, which can be viewed at any time by the cardholder via the issuer's online banking website. Notification of the availability of a new statement is generally sent to the cardholder's email address. If the card issuer has chosen to allow it, the cardholder may have other options for payment besides a physical check, such as an electronic transfer of funds from a checking account. Depending on the issuer, the cardholder may also be able to make multiple payments during a single statement period, possibly enabling him or her to utilize the credit limit on the card several times over.

Advertising, solicitation, application and approval

Credit card advertising regulations include the Schumer box disclosure requirements. A large fraction of junk mail consists of credit card offers created from lists provided by the major credit reporting agencies. In the United States, the three major US credit bureaus (Equifax, TransUnion and Experian) allow consumers to opt out from related credit card solicitation offers via its Opt Out Pre Screen program.

Interest charges

Credit card issuers usually waive interest charges if the balance is paid in full each month, but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid.
For example, if a user had a $1,000 transaction and repaid it in full within this grace period, there would be no interest charged. If, however, even $1.00 of the total amount remained unpaid, interest would be charged on the $1,000 from the date of purchase until the payment is received. The precise manner in which interest is charged is usually detailed in a cardholder agreement which may be summarized on the back of the monthly statement. The general calculation formula most financial institutions use to determine the amount of interest to be charged is APR/100 x ADB/365 x number of days revolved. Take the annual percentage rate (APR) and divide by 100 then multiply to the amount of the average daily balance (ADB) divided by 365 and then take this total and multiply by the total number of days the amount revolved before payment was made on the account. Financial institutions refer to interest charged back to the original time of the transaction and up to the time a payment was made, if not in full, as RRFC or residual retail finance charge. Thus after an amount has revolved and a payment has been made, the user of the card will still receive interest charges on their statement after paying the next statement in full (in fact the statement may only have a charge for interest that collected up until the date the full balance was paid, i.e. when the balance stopped revolving).
The credit card may simply serve as a form of revolving credit, or it may become a complicated financial instrument with multiple balance segments each at a different interest rate, possibly with a single umbrella credit limit, or with separate credit limits applicable to the various balance segments. Usually this compartmentalization is the result of special incentive offers from the issuing bank, to encourage balance transfers from cards of other issuers. In the event that several interest rates apply to various balance segments, payment allocation is generally at the discretion of the issuing bank, and payments will therefore usually be allocated towards the lowest rate balances until paid in full before any money is paid towards higher rate balances. Interest rates can vary considerably from card to card, and the interest rate on a particular card may jump dramatically if the card user is late with a payment on that card or any other credit instrument, or even if the issuing bank decides to raise its revenue.

Benefits to customers

The main benefit to each customer is convenience. Compared to debit cards and checks, a credit card allows small short-term loans to be quickly made to a customer who need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card.
Different countries offer different levels of protection. In the UK, for example, the bank is jointly liable with the merchant for purchases of defective products over £100.^[8]
Many credit cards offer rewards and benefits packages, such as enhanced product warranties at no cost, free loss/damage coverage on new purchases, various insurance protections, for example, rental car insurance, common carrier accident protection, and travel medical insurance. Credit cards can also offer reward points which may be redeemed for cash, products, or airline tickets. Research has examined whether competition among card networks may potentially make payment rewards too generous, causing higher prices among merchants, thus actually deteriorating social welfare and its distribution, a situation potentially warranting public policy interventions.^[9]

Detriments to customers

High interest and bankruptcy

Low introductory credit card rates are limited to a fixed term, usually between 6 and 12 months, after which a higher rate is charged. As all credit cards charge fees and interest, some customers become so indebted to their credit card provider that they are driven to bankruptcy. Some credit cards often levy a rate of 20 to 30 percent after a payment is missed.^[10] In other cases a fixed charge is levied without change to the interest rate. In some cases universal default may apply: the high default rate is applied to a card in good standing by missing a payment on an unrelated account from the same provider. This can lead to a snowball effect in which the consumer is drowned by unexpectedly high interest rates. Further, most card holder agreements enable the issuer to arbitrarily raise the interest rate for any reason they see fit. First Premier Bank at one point offered a credit card with a 79.9% interest rate,^[11] however they discontinued this card February 2011 because of persistent defaults.^[12]
Complex fee structures in the credit card industry limit customers' ability to comparison shop, help ensure that the industry is not price-competitive and help maximize industry profits.^[13]

Inflated pricing for all consumers

Merchants that accept credit cards must pay interchange fees and discount fees on all credit-card transactions.^[14]^[15] In some cases merchants are barred by their credit agreements from passing these fees directly to credit card customers, or from setting a minimum transaction amount (no longer prohibited in the United States).^[16] The result is that merchants may charge all customers (including those who do not use credit cards) higher prices to cover the fees on credit card transactions.^[15] In the United States in 2008 credit card companies collected a total of $48 billion in interchange fees, or an average of $427 per family, with an average fee rate of about 2% per transaction.^[15] Research shows that a substantial fraction of consumers (about 40 percent) choose a sub-optimal credit card agreement, with some incurring hundreds of dollars of avoidable interest costs.^[17]

Weakens self regulation

Several studies have shown that consumers are likely to spend more money when they pay by credit card. Researchers suggest that when people pay using credit cards, they do not experience the abstract pain of payment.^[18] Furthermore, researchers have found that using credit cards can increase consumption of unhealthy food.^[19]

Grace period

A credit card's grace period is the time the customer has to pay the balance before interest is assessed on the outstanding balance. Grace periods may vary, but usually range from 20 to 55 days depending on the type of credit card and the issuing bank. Some policies allow for reinstatement after certain conditions are met.
Usually, if a customer is late paying the balance, finance charges will be calculated and the grace period does not apply. Finance charges incurred depend on the grace period and balance; with most credit cards there is no grace period if there is any outstanding balance from the previous billing cycle or statement (i.e. interest is applied on both the previous balance and new transactions). However, there are some credit cards that will only apply finance charge on the previous or old balance, excluding new transactions.

Benefits to merchants

An example of street markets accepting credit cards. Most simply display the acceptance marks (stylized logos, shown in the upper-left corner of the sign) of all the cards they accept.

For merchants, a credit card transaction is often more secure than other forms of payment, such as cheques, because the issuing bank commits to pay the merchant the moment the transaction is authorized, regardless of whether the consumer defaults on the credit card payment (except for legitimate disputes, which are discussed below, and can result in charges back to the merchant). In most cases, cards are even more secure than cash, because they discourage theft by the merchant's employees and reduce the amount of cash on the premises. Finally, credit cards reduce the back office expense of processing checks/cash and transporting them to the bank.
Prior to credit cards, each merchant had to evaluate each customer's credit history before extending credit. That task is now performed by the banks which assume the credit risk. Credit cards can also aid in securing a sale, especially if the customer does not have enough cash on his or her person or checking account. Extra turnover is generated by the fact that the customer can purchase goods and/or services immediately and is less inhibited by the amount of cash in his or her pocket and the immediate state of his or her bank balance. Much of merchants' marketing is based on this immediacy.
For each purchase, the bank charges the merchant a commission (discount fee) for this service and there may be a certain delay before the agreed payment is received by the merchant. The commission is often a percentage of the transaction amount, plus a fixed fee (interchange rate). In addition, a merchant may be penalized or have their ability to receive payment using that credit card restricted if there are too many cancellations or reversals of charges as a result of disputes. Some small merchants require credit purchases to have a minimum amount to compensate for the transaction costs.

Costs to merchants

Merchants are charged several fees for accepting credit cards. The merchant is usually charged a commission of around 1 to 3 percent of the value of each transaction paid for by credit card. The merchant may also pay a variable charge, called an interchange rate, for each transaction.^[14] In some instances of very low-value transactions, use of credit cards will significantly reduce the profit margin or cause the merchant to lose money on the transaction. Merchants with very low average transaction prices or very high average transaction prices are more averse to accepting credit cards. In some cases merchants may charge users a "credit card supplement", either a fixed amount or a percentage, for payment by credit card.^[20] This practice is prohibited by the credit card contracts in the United States, although the contracts allow the merchants to give discounts for cash payment.
Merchants are also required to lease processing terminals, meaning merchants with low sales volumes may have to commit to long lease terms. For some terminals, merchants may also need to subscribe to a separate telephone line. Merchants must also satisfy data security compliance standards which are highly technical and complicated. In many cases, there is a delay of several days before funds are deposited into a merchant's bank account. Because credit card fee structures are very complicated, smaller merchants are at a disadvantage to analyze and predict fees.
Finally, merchants assume the risk of chargebacks by consumers.

Parties involved

Cardholder: The holder of the card used to make a purchase; the consumer.
Card-issuing bank: The financial institution or other organization that issued the credit card to the cardholder. This bank bills the consumer for repayment and bears the risk that the card is used fraudulently. American Express and Discover were previously the only card-issuing banks for their respective brands, but as of 2007, this is no longer the case. Cards issued by banks to cardholders in a different country are known as offshore credit cards.
Merchant: The individual or business accepting credit card payments for products or services sold to the cardholder.
Acquiring bank: The financial institution accepting payment for the products or services on behalf of the merchant.
Independent sales organization: Resellers (to merchants) of the services of the acquiring bank.
Merchant account: This could refer to the acquiring bank or the independent sales organization, but in general is the organization that the merchant deals with.
Credit Card association: An association of card-issuing banks such as Discover, Visa, MasterCard, American Express, etc. that set transaction terms for merchants, card-issuing banks, and acquiring banks.
Transaction network: The system that implements the mechanics of the electronic transactions. May be operated by an independent company, and one company may operate multiple networks.
Affinity partner: Some institutions lend their names to an issuer to attract customers that have a strong relationship with that institution, and get paid a fee or a percentage of the balance for each card issued using their name. Examples of typical affinity partners are sports teams, universities, charities, professional organizations, and major retailers.
Insurance providers: Insurers underwriting various insurance protections offered as credit card perks, for example, Car Rental Insurance, Purchase Security, Hotel Burglary Insurance, Travel Medical Protection etc.

The flow of information and money between these parties — always through the card associations — is known as the interchange, and it consists of a few steps.

Credit Card

2013-02-09T07:48:00.002+08:00

7 tips for handling your first credit card

By Karen Price Mueller

Opening Credits

Karin Price Mueller is an award-winning writer with a specialty in personal finance. Ask a question.
'Opening Credits' stories

Dear Opening Credits,
My daughter is a freshman in college, and she's getting credit card offers. She doesn't have any income. How can I help her make smart decisions about getting a card? -- Worried Mom
Dear Mom,
College can be a great time for students to establish credit histories, but it can also be a time to rack up devastating debt that will follow them into their adult lives.
Card issuers know students don't have much income, if any, but issuers make offers nonetheless. Dormitory mailboxes aren't overflowing with them as they were a few years ago, thanks to issuers tightening their lending standards in reaction to the economic crisis. Still, college students are a big source of revenue for credit card companies. In fact, a study by student loan provider Nellie Mae found that college freshmen carry an average balance of $1,585. That average balance swells to $2,864 by their senior year.
The free-spending mentality of new cardholders gets many students into trouble. And when the high interest rates found on some student cards kick in (not to mention the hefty annual fees), a student's quest for financial independence can quickly turn into a money nightmare.
Before your daughter signs on for a card, help her search for one with a low interest rate and no annual fee with our student credit card finder.
You can also support your daughter's endeavors by giving her some tips on smart credit card spending:

Understand the terms of the card. Know the interest rate, the fees and the payment schedule.
Beware of 0 percent teaser rates. While 0 percent interest is enticing, the offer may tempt her to spend more than she can afford to repay. When the introductory rate is over, the interest rate will swell and so will her balance. Know what the "go-to rate" is.
Play with interest rates. To show your daughter how debt can accrue thanks to interest, plug some hypothetical numbers into our credit card calculators for some examples. Those $50 shoes and last week's $15 pizza delivery at 20 percent interest can get really expensive.
Set a budget. If your daughter receives an allowance, she should learn not to charge more than she'll be able to pay. If she does, her credit card balance will balloon with interest charges.
Pay on time. Your daughter will start to build a good credit history if she pays on time, even if she can't pay the balance in full. That takes us to our next tip:
Pay in full. To avoid costly interest charges, she should try to pay her bill in full each month. If she can't, she should pay as much as possible.
Don't go over the limit. If she spends too much, she'll incur additional fees for spending more credit than she's been allotted.

Instead of a traditional credit card, another option to consider is a secured credit card. As cardholder, she'd deposit a certain amount of money in an account with the card issuer, and her credit limit would be the same amount. If she fails to make payments on the card, the issuer will already have the deposited funds as collateral.
You may also want to keep an eye out for pending federal legislation that would limit the total credit that can be given to college students. The bill would amend the Truth in Lending Act and require card issuers to get proof of income from college borrowers before offering a card. If passed, it would stop card issuers from extending credit to students who don't have income or a co-signer.
And before you co-sign a card with your child, remember that if she gets into trouble, you'll be on the hook for her debt and your credit report could be negatively affected.

Malaysia Gold Investment

2013-02-08T07:03:00.000+08:00

Price of gold was unable to rally despite two items

On Thursday the price of gold gave back yesterday’s gains as the yellow metal was unable to gain any traction in the aftermath of the Federal Reserve’s latest monetary policy meeting. The spot gold price finished down by $10.94, or 0.7%, at $1,665.13 per ounce after briefly surpassing the $1,680 level on Wednesday afternoon. The SPDR Gold Trust (GLD), a proxy for the price of gold and the world’s largest gold ETF, closed lower by $0.99, or 0.6%, at $161.20 per share.

Silver relinquished its prior day advance alongside the gold price, as it slid by $0.60, or 1.9%, to $31.46 per ounce. As for gold and silver stocks, they came under pressure amid a combination of weakness in precious metals and the broader equity markets. The Philadelphia Gold & Silver Index (XAU) closed with a loss of 0.8% at 149.68 while the S&P 500 Index dipped by 0.3% to 1,498.11.
Among heavily-traded gold and silver stocks, notable decliners included XAU components Agnico-Eagle Mines (AEM), Kinross Gold (KGC), and Silver Standard Resources (SSRI). Shares of AEM retreated by 1.8% to $45.83, KGC by 1.6% to $8.23, and SSRI by 1.1% to $12.05.

The price of gold was unable to rally despite two items that generally provide a tailwind for the yellow metal – U.S. dollar weakness and disappointing economic data. On Thursday the U.S. Dollar Index fell to a weekly low of 79.20, while the euro currency climbed to 1.3594 against the greenback – its highest level since November of 2011. As for the latest key U.S. economic report, weekly jobless claims rose by 38,000 to 368,000 – well above the 350,000 consensus estimate among economists.

Commenting on today’s weakness in gold prices, VTB Capital analyst Andrey Kryuchenkov wrote in a note to clients that “Once again (there was) not enough follow-through buying and intraday traders took profits. We failed to breach $1,680 while the Federal Open Market Committee offered little new.”

How to Invest Money for the Future

2013-02-06T07:49:00.001+08:00

Invest your money wisely.

No matter what you do for a living or how much or how little money you make, investing for the future is critical. These days, fewer workers than ever can rely on a traditional defined benefit pension plan, so it is up to every worker to save for his own retirement. Learning to save and invest for the future is very important, and that process should start as soon as you start earning your own money.

Step 1

Build an emergency fund equal to at least three to six months worth of living expenses. Having an emergency fund in place will protect you in the event of a job loss, large medical expense or other financial shock.

Step 2

Check with your employer and ask if there is a 401k plan in place. Request an enrollment booklet and review it carefully. Invest at least enough to get the full company match, but aim to invest more than that over time. Consider enrolling in an automatic escalation plan that boosts your contribution percentage automatically each year you remain in the plan. As of 2010, you can invest up to $16,500 in a 401k plan, plus another $5,500 if you are 50 or older. The administrator of the plan will keep track of your contributions and suspend them once you reach the limit for the year.

Step 3

Contact several mutual fund companies to ask about their individual retirement account, or IRA, plans. The IRA is designed to help workers save for retirement by providing a tax break, either up front in the case of a traditional IRA or through tax-free withdrawals in the case of a Roth. In addition to mutual fund companies, banks and brokerage firms can administer your IRA for you as well. As of 2010, the contribution limit for IRA accounts is $5,000, plus an extra $1,000 for those age 50 and older.

Step 4

Set up an automatic monthly investment into your IRA by directing money to be transferred from your bank account to the mutual fund within the IRA. This automatic investment forces you to save and also forces you to live on less than you earn.

Step 5

Set up similar automatic investments for mutual funds outside your IRA and 401k if you still have money to invest. Investing a set amount of money each month means you automatically buy more shares when the market is down and fewer when it is at all-time highs. This approach, known as dollar cost averaging, is an excellent way to build wealth for the long term.

How to Make Easy Money

2013-02-05T00:25:00.000+08:00

How do you make money without any skills, and without significant planning or preparation? You do not have to resort to deception or stealing; all of the following steps are easy and accessible to just about anyone.

EditSteps

Selling

1
Burn copies of all your CDs and DVDs, then sell the originals. Nice collections can be sold individually for a price that you think is fair, but if you want to compete with online media downloads, sell everything else for a few dollars apiece..

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2
Raid your house for items you no longer need. Put all the cheap items in a yard sale and advertise it with signs around the neighborhood and a post on the free classifieds or on Craigslist. Sell anything worth more than a few dollars individually on Amazon, Craigslist, or GeoLi.st, a smartphone app that allows you to show your sale items to other people in the area.
3
Sell stock photos. Stock photos are simple, somewhat nondescript images that people can use for a fee in the articles, brochures, presentations, etc. They don’t earn much apiece, but if you upload a nice little collection, the sales can really add up – especially since photos can be sold over and over. Best of all, it doesn’t get much easier than clicking off a few decent shots, uploading them, and waiting.
4
Sell your hair. If your hair is over 10 inches (25cm) long and untreated, you can sell it for hundreds of dollars; really long hair that is minimally washed can fetch thousands, especially if the color is unusual.
5
Sell plasma. Plasma is a component of blood and the process of donating it is similar to giving blood. Though you can’t technically sell plasma, you will be compensated for your time to the tune of $20 to $45, depending on the location. Your body regenerates plasma after the donation, meaning you can repeat this process regularly (check local donation centers’ regulations for rules on frequency). If you haven't been to the doctor in a while, going through the pre-screen is also good way to get a free health checkup.^[1]
6
Sell sperm. Sperm samples can sell for between $40 and $100 apiece. Though the application process is lengthy and only about 5% of applicants meet the criteria,^[2] once you’re accepted, you have a great outlet for making pocket money whenever necessary.
7
Sell things you find outside. You’d be amazed what people with no access to the outdoors will pay for things like dried pinecones, manzanita or curly-willow branches, vines, Chinese lanterns, driftwood, cattails, and other interesting or unusually shaped plants. Search some craft sites to see what people are looking for and the next time you prune, let everything dry out in your garage for a month before selling it online.

Marketing

1
Find a focus group in your area. Focus groups pop up sporadically but tend to pay very well, especially considering that most take an hour or two. Search for focus groups in your area with a site like FindFocusGroups.com.
2
Fill out online surveys. Companies who want to know what is on the minds of their customers are willing to pay for your opinion. Online surveys won’t make you rich or replace your day job, but they’re an easy way to make a little extra cash without needing any special skills or a lot of time.
3
Market via Twitter. If you have a lot of followers and presence on Twitter (or know how to cultivate them), use your account to promote news and interesting sites or announce deals for a site like Ad.ly.
4
Turn your car into a moving advertisement. Companies will actually pay you to “wrap” your car in an ad and go about your daily commute. In big, busy cities, this can earn you hundreds of dollars monthly. There are also bumper-sticker programs if you aren’t willing to go all out.

Odd Jobs

1
Walk dogs or board pets. People in cities pay well to make sure that their pets are taken care of when they’re away, and walking dogs is a good way to get some fresh air and exercise while having fun. If you live in a house or pet-friendly apartment, you can also post ads offering to board pets for $20 to $50 per day (depending on what the competition is like in your area). This is especially effective during the holidays when people are likeliest to travel.
2
Make money via your smartphone. Apps like Field Agent, CheckPoints, WeReward, MyLikes, and Gigwalk allow you to complete small tasks (anything from snapping a photo of yourself at a cafe to scanning a barcode) for a few dollars. These are great ways to make money while you’re out to lunch or going about your grocery shopping.
3
Become a virtual assistant. If you have administrative experience and would like an opportunity to work from home, look into virtual assisting jobs at a site like virtualAssistants.com or TaskRabbit.com. It may take about a week to be processed, but the work is extremely convenient for stay-at-home parents or for filling in the gaps of a part-time schedule.
4
Make the most of an unusual skill. You might think your talent is totally unmarketable, but a little creativity can go a long way. If you do calligraphy, write wedding invitations and stationary as a freelancer; weddings are big business, meaning you can charge handsomely for your services. If you play an instrument or dance – even if you’re no virtuoso – you can sideline as a busker; performing in an area with bars or any other place where people are likely to be uninhibited will make the money flow more freely. If you have a truly bizarre talent that is fun to show off at parties but otherwise has no practical value, make (good quality) videos of yourself, post them to YouTube, and try to go viral; once the page views/subscriptions start to build, you can use the page to do some affiliate marketing.

Renting

1
Rent out a parking space or driveway. Have a parking spot you don’t need in a busy area? Renting it out is a no-maintenance way to turn it into a source of income. Find out what renting a parking space costs in your area and offer yours for a little less.
2
Rent out a spare room. Taking on a boarder will involve some initial setup (prepping the room, posting an ad, screening people), but after that you can enjoy a sizeable extra paycheck every month. What’s more, renting a room isn’t nearly as involved as renting an apartment or a house; since you will be on-site, you won’t have to worry about wild parties on your property or make late-night trips across town any time the pilot light on the water heater goes out.

Miscellaneous

1
Host a bring-your-own-beverage party, then sell all the recyclables. Be sure to mark a large trash bin with a recycling sign to minimize cleanup.
2
Search for unclaimed money or property. Go to unclaimed.org to be linked to the official pages of US states or Canadian provinces you have lived in, then follow the instructions to search for and, if necessary, claim funds owed to you.
3
Find sign-up incentives. If you were thinking about switching bank accounts, getting a new credit card, or recommending a company you like to a friend, for example, shop around for cash-back bonuses before making your decision.

Financial Management

2013-02-03T20:26:00.000+08:00

10 Personal Finance Apps to Help You Manage Your Money

Michelle Gail |
Business & Finance
| March 28th 2012

16Comments

Freelancers are often frustrated by fluctuating income. And when you don’t have the luxury of getting regular paychecks, there is the tendency to make money mistakes. But you can avoid overspending and make better use of your money by practicing good money management.

Reaching your financial goals doesn’t mean you have to be a financial wizard. Nor do you have to hire a money manager.

What could be valuable however, is a personal finance app that helps you keep abreast of your finances. Even if you have achieved freelance success, and don’t have money worries, you can still learn to sharpen your money management skills right in the palm of your hand.

Have a look at 10 apps that you perhaps didn’t know you needed, but you won’t be able to live without once you start using them.

1. IRECONCILE

iReconcile’s motto is ‘keep your finance in check.’ The easily customizable Android app helps you manage day-to-day financial transactions using a checkbook register. You don’t need to keep a list of all items you bought or all the money you spent. The app does everything for you; once you enter each transaction, your new balances appear automatically. It also comes with free updates and online backup.

iReconcile also lets you setup budgets and create reports. If sticking to a budget is difficult, you can setup daily, weekly, or monthly budget reports. If you wish to share your account with another user, you can do that securely with iReconcileSync. This optional feature lets users sync and manage account information through their iPhone, iPod, or iPad.

Try iReconcileSync free for 30 days or purchase a monthly subscription for $1.99, or $19.99 a year.

2. GROCERY GADGET

Grocery Gadget is a free shopping management and productivity app. Grocery Gadget helps you reduce the time you spend in the supermarket and the time you would normally spend rewriting grocery lists. It also helps to cut down your grocery bill. You can add notes, take photos of grocery items, and use ecoupons from specific stores.

Use the Grocery Gadget barcode scanner to create your grocery list, or type the list directly into your phone. You can create multiple lists including a master list to be used every time you shop. Scan the barcode for each grocery item and the app automatically calculates your totals. Scroll to add, delete, or check items off your list as you continue shopping. You will know your total bill and appropriate sales tax before you reach checkout.

Grocery Gadget’s full version costs $4.99; it is compatible with iPhone, Android, Blackberry, Windows phones, and Nokia.

3. YNAB YOU NEED A BUDGET

Here is a program that offers free, daily, weekly, and monthly online class to introduce users to YNAB, and how to use the app. The courses (which require registration) also teaches beginners the basics of starting a budget and setting up accounts. Meet-ups and discussion forums are available if you require more help. There is also a blog and daily posts presented as real life case studies. If you find the courses too basic, the 40 video tutorials have a bit more substance.

YNAB is serious about helping people achieve freedom from debt. Learn how to accomplish financial freedom in the Four Rules video features. These videos are short but informative, running about 2 to 6 minutes long. The Four Rules are:

Give Every Dollar a Job
Roll with the Punches
Stop Living Paycheck to Paycheck
Save for a Rainy Day

YNAB is fun and intuitive, and has good screenshots. And where most free trials are 7 or 30 days, YNAB chose to give a 34-day trial. The app runs on iPhone and Android, and costs $60.

4. XPENSETRACKER – EXPENSETRACKER & MILEAGE LOG

Have app, will travel. XpenseTracker is the app you need while you are on business. Enter your details for each log and XpenseTracker records your expenses. You can add expenses for a weekend at a hotel, car rental, purchases, or business lunches. You can also include descriptions and notes.

When you set up your preferred currency, XpenseTracker will calculate your conversion rate. The mileage tracker calculates distance traveled and fuel purchases. This app is compatible on iPhone and iPad. The download is available on iTunes for $4.99.

5. PAGEONCE MONEY & BILLS

Pageonce is a useful personal finance application with complete budgeting features. It lets you check your cash flow, and organize and pay your bills in one place. The app is also a straightforward monitoring program. If you occasionally forget to pay bills on time, you can setup bill-payment reminder alerts to avoid costly late fees. Pageonce newest feature allows you to pay bills with credit cards.

Tap and select “Where your money’s going” and get a chart-form history of your spending habits. To keep up-to-date on your spending, you can set notifications to receive alerts when your spending goes uncharacteristically higher than normal.

In addition to viewing and modifying account information, Pageonce allows users to track stock portfolio and frequent flyer miles. This app is available through major mobile devices; the company is currently working on making Pageonce compatible with Android 4.0.3. Pageonce is free to try; the upgrade costs $6.99.

6. HOMEBUDGET

HomeBudget is a helpful expense tracker for your freelance business and the family budget. The features are numerous: spending trends, recurring expenses, budget rollover, bill tracking, categories, and more. Users of Quicken can import their personal financial data directly into HomeBudget for easy budgeting.

Expect a slight learning curve with HomeBudget. Within the 5 main screens are 30 more screens that require some effort to navigate through. But of the 5 main headings, the most commonly used are the expense, income, and budget screens.

Canadians wishing to use this app should note that HomeBudget works with a limited number of Canadian banks. When you’re ready to try HomeBudget, just download the lite version for free, or buy the full version for $4.99.

7. IBANK 4

According to IGG Software, iBank is “The Gold Standard for Mac money management.” iBank 4 is more suitable for advanced users, or anyone with previous experience using heavyweight apps. There is a somewhat high-end learning curve, but the developers have provided video tutorials about how to use each feature.

Costing a hefty $59.99 for a single license, iBank 4 does more than simple budgeting. Mac users track and manage their entire net worth in once place using the Dashboard Widget. You can also manage investment portfolios, retirement accounts, and stock options. And there are 10 convenient account options to choose from including line of credit, money market, 401k, asset, and savings. iBank 4 allows the transfer of funds into foreign currencies.

iBank 4 does have some glitches. Summary reports occasionally give incorrect totals-these have to be corrected manually. Occasionally, when integrating with Quicken, some category fields and transactions do not import properly. And for simple budgeting, users cannot make online bill payments through iBank. Overall, iBank is a good comprehensive program.

8. MONEYDANCE

Moneydance lacks a number of features that iBank 4 has. However, the app is a good alternative to iBank. And, unlike iBank 4, you can set up online bill payments. The Moneydance interface has a new improved look, which makes it easy to use the main navigation bar.

Setting up notifications for budgeting tasks, such as recurring bills, takes little effort. Additionally, this iPhone app let’s you import QFX/OFX files (for Quicken), manage investments portfolios, and reconcile accounts. All account transactions can be converted into multiple currencies. And, if you have a zero balance in any of your accounts, check the ‘inactive’ and ‘hide’ boxes to remove the account from the list. The free download limits you to 100 manually entered transactions; the paid version costs $49.99.

9. EASYMONEY

Organize your money with EasyMoney, one of LifeHacker’s top 5 personal finance apps. EasyMoney also made the pages of Amazing Android Apps for Dummies. This app is recommended if you need help organizing your money and tracking expenses.

Devoted EasyMoney users prefer this app to many of the more popular Android apps-users also rate the app as excellent. They like the ease of use, and that the app has everything needed to easily manage their finances. EasyMoney is also flexible in handling multi-currency accounts. Try EasyMoney free for 30 days-an upgrade to the premium version costs $9.95.

10. MONEYWIZ

MoneyWiz does everything you would expect in a full-featured personal finance app. It streamlines your day-to-day finance in one convenient place; it also creates customized budgets, sets reminder alerts, and more. With over 200 features, MoneyWiz is ideal for individuals doing advanced budgeting. Unless you are an entrepreneur, you likely won’t use all the features.

MoneyWiz is more sophisticated than most finance apps. It is set up to perform account reconciliation, financial forecasts for future dates, and advanced budget transactions. You can create custom reports on your net worth. MoneyWiz is translated in 8 languages; you can also complete transactions in multiple currencies.

Silver currently offers MoneyWiz for iPhone and MoneyWiz for iPad. The MoneyWiz for Mac version will be available in spring 2012. All versions cost $4.99.

Finances

10 Most Asked Interview Questions: How To Tackle Them

10. "Tell Me About Yourself?"

9. "What Are Your Weaknesses?"

8. "What Is Your Greatest Accomplishment?"

7. "Why Did You Leave Your Last Job?"

6. "Why Do You Want To Work With Us?"

5. "Why Did You Apply For This Position?"

4. "What Would You Like To Be Doing Five Years From Now?"

3. "Why Should I Hire You?"

2. "How Much Are You Expecting For The Salary?"

1. "Do You Have Any Questions To Ask Me?"

Insurance

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So, How Does It Work?

What's In It For Me?

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Retirement Planning

Tips For Home Loan

Loan’s application declined to RM45.26bil from RM47bil!

Whydeclinedandhowitisassessed?

#Tip 1 – Sort out Your Eligibility

#Tip 2 – Build Your Passive Income

#Tip 3 – Cut down your expenses, liabilities or commitments – Bad Debts

# Tip 4 – Joint Purchase with Your Spouses, Children, Parents, Close Friends or Partners

# Tip 5 – Make Higher Down payment

# Tip 6 – Longer Tenure

# Tip 7 – Look For Bargain Property

# Tip 8 – Negotiate with the sellers or come to an arrangement with the sellers

# Tip 9 – Shop for Banks just like how you shop for clothes

# Tip 10 – Look for Tenanted Property

# Tip 11 – Have Proper Bookkeeping

# Tip 12 – Report and Pay Your Tax Accordingly

# Tip 13 – Pay your Credit Card and other commitments on time

# Tip 14 – Pay off your credit cards!

# Tip 15 – Build and maintain good rapport with bankers

# Tip 16 – Readjust your portfolio

# Tip 17 – Have a Guarantor who has good financial background

# Tip 18 – Choose your location of property purchase wisely

# Tip 19 – Shop for Loan Packages Just Like How You Shop for Combo Meals

# Tip 20 – Be Confident!

Lastly,

How To Invest

Bankruptcy

How Does Bankruptcy Work?

Gold Investment In Malaysia

Choosing the right bank for gold investment in Malaysia

What Is a Mutual Fund?

Personal Loan Tips

10 tips for taking out a personal loan

Debit Card

Importance and Benefits of a Debit card

Advantages and Disadvantages of a Debit Card

Common Debit Card Terms

How credit cards work

Advertising, solicitation, application and approval

Interest charges

Benefits to customers

Detriments to customers

High interest and bankruptcy

Inflated pricing for all consumers

Weakens self regulation

Grace period

Benefits to merchants

Costs to merchants

Parties involved

Credit Card

7 tips for handling your first credit card

By Karen Price Mueller

Malaysia Gold Investment

How to Invest Money for the Future

Step 1

Step 2

Step 3

Step 4

Step 5

How to Make Easy Money

EditSteps

Selling