Financial Management

Debt Settlement - Important Steps To Ensure You Are Dealing With A Legitimate Debt Company

noreply@blogger.com (David CKK) — Fri, 27 Nov 2009 12:00:00 +0000

Whenever an investment is made in a company, there are some important points which should be kept under consideration. One such point is reliability check. Some companies that exist on the internet have not even been created. In this way, many scam companies have been able to fool people and rip them off their finances.

The biggest problem being battled by every individual in this world is recession. Along with all the negative effects produced by this problem, an unusual positive effect has also been produced. Recession has damaged the corporate standing of various money granting firms. A logical aspect is that money granting companies conduct all their operations on the available cash amount.

Debt Settlement solutions are designed to improve the overall financial situation in the United States. As it is obvious that for money granting tasks, two key players are involved. One is the loan taker and the other is the loan giver. A loan taker is an individual who seeks monetary assistance while loan givers and finance granting organization.

Mostly loan takers get customized debt settlement services. A lot of companies have a generic structure which is followed for all the customers. All the clients do not use these services. Instead they get their own debt settlement solutions designed. In this way, the client does not have to depend on the progress of a generic approach.

This aspect has a negative factor as well because the generic approach has been tested and used. A new approach does not have any prediction criteria in terms of results. For a generic approach in case of debt settlement programs, the risk percentage involved is quite less. Most of the times, a very low reduction percentage is attained when the customer gets his own solution tested.

The reduction percentage attained in debt settlement services depends on the risk involved. At times when the risk involved is high then the attained percentage is low. The key factor in relief programs is that, many new things should not be tested. In this way the rate of error declines. Relief processes involve conversation to the bank representatives.

There are various settlement companies which have a mandatory condition of pre defined reduction modules which cannot be modified as well. The companies do not force any decision but the success rate is shown to the clients so that a belief is established. Belief and trust are very important factors involved in the relief company selection process.

Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.

India's UTI in funds tie-up - Singapore's UOB Asset

noreply@blogger.com (David CKK) — Thu, 26 Nov 2009 23:25:00 +0000

BusinessTimes

SINGAPORE: Singapore's United Overseas Bank (UOB) said yesterday its fund management arm has formed an alliance with a unit of India's UTI Asset Management to jointly launch and distribute mutual funds.

"The first initiative of the alliance is an equity fund that both parties have jointly developed," UOB Asset Management (UOBAM) said in a statement.

"The features of the fund will be announced at a later date."

UOBAM manages about S$13.5 billion (S$1 = RM2.44) in assets and has business operations in Singapore, Brunei, Japan, Malaysia, Taiwan and Thailand.

Its partner UTI International (Singapore) is a joint venture involving India's largest mutual fund company UTI, Shinsei Investments and another company.

UTI manages around US$15 billion (US$1 = RM3.51) and its funds are distributed in 450 of India's 620 districts, UOBAM said. - Reuters

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

REDEV Properties in Malaysia

noreply@blogger.com (David CKK) — Thu, 26 Nov 2009 00:13:00 +0000

REDEV Properties is coming to Malaysian shores. What so special about REDEV properties? Well, for one, unlike the usual land banking offering that you hold long-term for capital gains, with REDEV you are able to earn both income and capital gains. REDEV allows you the opportunity to hold a direct investment (undivided interest) in prime Canadian commercial properties for a fraction of the cost it would take you to invest in a commercial property in Malaysia. And did I mentioned REDEV commercial properties are fully tenanted as well?

REDEV Properties has been syndicating commercial properties to investors since 2001. Today, they own and manage 25 well located, fully occupied commercial properties along with 4,000 investors. Eighty percent (80%) of the investing partners are Canadians and this speaks volume in terms of the credibility of the investment offered. In fact, they recently won the Hong Kong Business High Flyers of 2008 award.

The 3 founding members are Richard Crenian, Howard Manley and Darwin Forer. They partnered up in 1981 and since then have developed over 11,000 condominiums and commercial properties in Canada. By 2001, they changed focus to redeveloping established commercial properties. It had become cheaper to buy existing properties than developing new ones, and with long term leases already established, it posed less risk and provided immediate cash flow.

By partnering up with REDEV, you enjoy immediate cash flow generated from existing leases with regional and multinational companies. You are expected to earn between 6% - 10% net income pa. Commercial properties leases are long and secure leases of 5 - 20 years. The best part is... these are Triple-Net Leases where the tenant is responsible for all taxes, insurance, miscellaneous expenses and all costs associated with repairs. This protects you as an investors.

On top of your 6%-10%pa cash flow, you enjoy capital gains as well. At the end of 5 years, investors will vote to either sell or refinance the property. REDEV has a historical capital gain of 140% after 5 years. You have a clear exit strategy.

Commercial real estate is normally beyond the reach of the average investor. REDEV provides a platform for investors to simply own a percentage interest for as little as C$25,500 in freehold property, with existing tenants and existing cash flow. This is a very secure investment with land titles (undivided interest) and a trustee to safeguard your investment. Their current project Sturgeon Plaza has established tenants such as Canada Post and Royal Bank of Canada. An excellent investment such as this is expected to be sold-out very soon. If you are interested, drop me a comment now!

p/s: Don't miss out on this!

New Economic Outlook

noreply@blogger.com (David CKK) — Tue, 24 Nov 2009 23:51:00 +0000

Speaking of starting afresh, while the financial crisis still lingers over us, many (including me) believe the worst is over. So are there anything for us to look forward to in terms of investments?

Before we move forward, let us briefly recap how the financial crisis actually started (I know its painful to remember things sometimes, but one should always learn from the past). It all started with the US housing bubble which peaked in 2005-2006. High default rates on sub-prime loans begin (sub-prime loans are loans which are in the riskiest category in the consumer loan market). Basically the financial institutions keep dishing out money to house buyers that have low credit rating. As house prices begin to stagnant or fall, house owners can no longer refinance their houses to keep up with their high interest rate mortgages. High defaults and foreclosures in turn plunge the US housing market even further.

When all these collapse, it spilled over to the financial markets. Many of these sub-prime loans are repackaged into financial instruments such as mortgage-backed securities (MBS) and a form of credit insurance called credit default swap (CDS). These are in turn sold to investors. Financial institutions who suffered losses includes Lehman Brothers (since bankrupt) and AIG (who received close to US$180 billion in US government aid that it has yet to repay). The spiraling effects include falling global consumer wealth, substantial financial commitments by governments all over the world and a significant decline in economic activity globally.

Going forward, US Federal Reserve Chairman, Ben Bernanke recently gave his comment on the US economy stating, "I've seen some agreement among the forecasting community at this point that we are in a recovery, that we will see growth in the third quarter continuing and that growth will continue into 2010. But the general view of most forecasters is that that pace of growth in 2010 will be moderate..."

Recent gains in stock prices, rise in consumer confidence and home building activity, reinforces Bernanke's view that the worst is over. The Standard & Poor's 500 Index has soured 58% since March 9, 2009 when it hit a 12-year low. Reuters/University of Michigan Index of Consumer Expectation rose to 65 in August 2009, and climbed to 69.2 in Sep 2009; signally future spending is likely to rise. US Building Permits rose 2.7% to a 579,000 annual rate in August 2009; signally an increase in future construction. Things are indeed starting to improve and next we can talk about where best to put our money to take advantage of the recovering US & global economy (A new form of investment is about to hit the Malaysian shores)!

Factors to consider when selecting fund managers

noreply@blogger.com (David CKK) — Thu, 04 Sep 2008 10:12:00 +0000

TheEdge

KUALA LUMPUR: Ethics and a forward-looking approach are key factors for investors to consider when selecting a fund manager, industry experts said.

Securities Industry Development Corp (SIDC) chief executive officer John Zinkin said investors should look at the integrity of the fund manager’s organisation — for example, how the fund manager was rewarded.

“The investor should also assess whether the fund manager has an understanding of the investor’s risk appetite, that they understand what you want in your time horizon.

“Do you want your fund manager to be engaged or passive? There are a lot of fund managers who are passive investors, they don’t go in with that engagement,” Zinkin said.

Speaking to The Edge Financial Daily, he said investors should also be clear on what they wanted out of their fund managers. “Do you just want to take your returns, or do you think through the fund manager, have an interest in the way the business (you are investing in) is being run?” he added.

Meanwhile, Zinkin said the size of Malaysia’s capital market was not enough to justify the inadequate level of corporate governance exercised.

“The governance problem is hurting the Malaysian equity market as a whole. Fund managers look at Malaysia and say it’s got a governance problem, but the market is not big enough to take the risk on.

“China’s got a much bigger governance problem, but the opportunities there are so big that people will live with that. There’s not enough going on in the market to make people want to come in here, if there’s also a slight question mark about governance.”

Watson Wyatt Worldwide practice leader (investment consulting) Puah Ser Sze added that the typical practice of looking at fund managers’ past performance was not sufficient to select the right fund manager.She said the investor should be in tune with the fund manager’s skill cycle, due to the amount of “noise” in the market.

“You have to base it on qualitative data. The criteria you should look at is the business, the people, and the investment process. You have to have good people because information gets arbitraged quickly in today’s seamless market, and with regard to the investment process, does the fund manager’s organisation have a competitive advantage?” Ser Sze said.

She added investors should be cautious of products offered by the fund manager, as part of the cause of the subprime crisis had been the over-incentivisation of low-quality products.

Meanwhile, Mercer (Singapore) Pte Ltd senior consultant Antony C Cherian said: “A skilled, active manager can add value to your investments. The challenge is to find that skilled, active manager, and this is where the research is required.”

He agreed investors should emphasize a forward-looking approach to identifying a fund manager, while criteria fund managers should have included business management skills, idea generation, portfolio construction and implementation.

He added that while Malaysian fund managers were largely on par with foreign fund managers in managing Malaysian equities, foreign managers were more experienced in managing global equities, and hence there was a need for Malaysian investors to include more asset classes to their portfolio, instead of just Malaysian equities and bonds.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only.

Capitalising on the Prospects of Large Bellwheather Companies

noreply@blogger.com (David CKK) — Sat, 30 Aug 2008 06:46:00 +0000

PublicMutual

In the current environment of global economic turbulence, investors may choose to invest in a more resilient portfolio comprising large cap Shariah-compliant companies listed on Bursa Securities.

Such a fund aims to achieve the objective of medium- to long-term capital growth through investments in a diversified portfolio of Shariah-compliant equity securities that offer good prospects. Public Islamic Select Enterprises Fund (PISEF) will invest 75% to 90% of its Net Asset Value (NAV) in the 50 largest Shariah-compliant stocks in terms of market capitalisation in the domestic market with the balance of its NAV invested in sukuk. Given the above investment strategy and objective, the fund is suitable for medium- to long-term investors with aggressive risk-reward temperaments.

Advantages of Investing in PISEF

By focusing on the 50 largest Shariah-compliant companies listed on Bursa Securities, the fund offers investors the opportunity to invest in companies that have established track records with relatively large market capitalisations. As at 11 August 2008, the 50 largest Shariah-compliant stocks have a combined market capitalisation of RM398 billion, which accounts for about 80% of the total market capitalisation of the FTSE Bursa Malaysia Emas Shariah (FBMS) Index. The remaining Shariah-compliant stocks account for the balance of 20% of the FBMS Index's market cap.

In general, the prospects for large corporations are expected to remain resilient as they are better positioned to withstand more challenging economic conditions due to their economies of scale, stronger financial resources, size and established market shares.

Larger companies are able to generate greater economies of scale as their costs of production and operating expenses are spread over a larger volume of units produced and sold. In addition, many large cap Shariah-compliant companies in Malaysia are well established companies with linkages to government agencies or established business groups. Consequently, these features enable large cap Shariah-compliant companies to obtain better access to financing and more competitive financing terms from the capital markets.

Given that foreign and local institutional investors generally focus on large and more liquid Shariah-compliant stocks, large cap Shariah-compliant stocks are expected to continue to figure prominently in their investment portfolios over the medium- to long-term. The earnings and share prices of large cap companies are also poised to recover ahead of their smaller counterparts in an economic up cycle.

Outlook for the Malaysian Economy

Despite uncertainties on the external front, Malaysia's gross domestic product (GDP) growth is projected at 5.0% in 2008. Our forecast assumes a moderation in private consumption growth to 6.5% in 2008 compared to 10.8% in 2007 while public spending is envisaged to grow at a sustained pace of 6% in 2008 versus 6.6% in 2007. Thus, sustained growth in private consumption and public spending will mitigate the anticipated slowdown in external demand for Malaysia's major export markets namely the U.S., Europe and Japan.

From the supply perspective, the Malaysian economy continues to be spearheaded by a resilient services sector. The services sector, which includes real estate, retail and financial services and accounts for 54% of the GDP, is expected to grow by 7.7% in 2008 compared to 9.7% registered in 2007.

In the mining sector, which comprises largely the oil and gas industry, growth is anticipated to gain pace to 6.0% in 2008 from 3.3% 2007 as the oil & gas industry has benefited from an environment of elevated crude oil prices.

The agricultural sector is projected to register a growth of 3.4% in 2008 compared to 2.2% in 2007 on the back of resilient demand for agricultural commodities. Meanwhile, growth in the construction sector is envisaged to rise to 5.5% in 2008 from 4.6% in 2007, supported by the rollout of the 9th Malaysia Plan.

The Benchmark's Track Record

An appropriate benchmark to be used to evaluate the performance of a Shariah-based Islamic fund such as PISEF is the FBMS Index as its component stocks comprise all Shariah-compliant stocks listed on the Main Board of Bursa Malaysia. This benchmark index has achieved commendable total returns of 25.22% (i.e. annualised growth of 7.8%) and 48.62% (i.e. annualised growth of 8.2%) respectively for the 3 and 5 year periods up to 8 August 2008.

Reading materials in this site are obtained from its respective website and it is for information purposes only.

Reading financial statements

noreply@blogger.com (David CKK) — Thu, 28 Aug 2008 16:36:00 +0000

Part 1: Reading financial statements

Knowledge is power. This is particularly true when it comes to investing. Knowing a company's business performance and its industry well enough enables us to buy or sell its stocks confidently and correctly. Knowledge and information improves quality of our investing decisions.

We can gain such knowledge and information of a company predominantly from their financial statements. When we look for a company with strong management, solid financial positions, earning growth, etc. look no further but the company's report card: its financial statements. Searching for a proper valuation of the stock? Let's begin with the financial statements. Analysts from the entire stock investing/ trading profession analyze and comment on the financial statements of listed companies every quarter. Great investors like Benjamin Graham, Warren Buffett, Philip A. Fisher, etc. read financial statements before further facts finding. In fact, all investing fundamentalists read financial statements.

It is suicidal to practice investing characteristics like "being patient", "being quick to response", etc. without the backing of knowledge and information. It is knowledge and information that provide great investors their unweaved beliefs in their decisions, whether it is being patient or being quick to cut loss.

With knowledge and information, we are able to be patient and to hold on to jewels like Wells Fargo, Walmart, Public Bank, OYL, etc. that can (and had) brought fortune to the stockholders. Without knowledge and information, we psyche ourselves up to "be patient" on Enron, Bestcorp, Omega, etc. and to see our life savings evaporated when these companies failed. Both are being patient, the difference lies in what we know about our investments. It comes from reading the financial statements.

(So don't advice other to BE PATIENT or BE DECISIVE in holding on or disposing their investments. Such advice can only come after knowing the true financial performance and status of a stock. BE PATIENT and BE DECISIVE are dirty investing words without the backing of knowledge and information of a particular company.)

But why, in general, layman investors don't read financial statements? One of the main reasons I suspect is that layman investors basically throw in the towel in believing that performance of stock prices has got anything to do with the company's financial numbers. Reading financial statements is, sometime, a futile effort in knowing the company performance. Profit numbers are unreliable. They are right. Looking back at 1997 Asia financial crisis and 2000 Dot Com Bubble, failed companies unabashedly manipulate their numbers before their demises. Stock prices crashed before showing any sign of losses, or before the reported profits were rediscovered as losses. The unscrupulous managements cheated in their report cards. It is reasonable for investors to believe that it is useless and meaningless to read financial statements. However, this is not true. There are ways to detect profit manipulation. We, as investors, can definitely detect profit manipulations.

We rely on the numbers provided by the management to make our investing decisions. These numbers have to be authentic and we must have confident in relying on them. To confidently relying on numbers in making investing decisions, we must be able to detect profit manipulation. Before we learn how to detect profit manipulation, we first must learn how the accountants manipulate the profit numbers.

In Part 2, you will find how accountants cook their books. In Part 3, we will learn how to detect such manipulation.

Part 1: Reading financial statements
Part 2: The principle of profit manipulation
Part 3: Detecting profit manipulation - Overview

Step 1 - Net profit and depreciation
Step 2 - Net cash or debt movements
Step 3 - Stocks add trade debtors less trade creditors
Step 4 - Capital expenditure, goodwill, tax and dividends
Step 5 - Other debtors and creditors
Concluding Steps

Part 4: Exceptions and limitations

How will you teach the lesson of `money management` to your kids?

noreply@blogger.com (David CKK) — Thu, 28 Aug 2008 12:45:00 +0000

We may all agree that the kids should start getting the lesson of "money management" at their early age in order to lead a debt free life in future. But how will you teach them the effective ways of managing money?

Below are some of the answer given by people who in real life struggle with finances in their daily lives. Let take a look at how they teach their kids.

Answer 1: I started with my kids early. I made them earn their allowance. I did a chore chart and gave each chore a dollar amount and everything they did that chore, they put their initials by that chore. At the end of the week, I would add up how much they earned and gave them that amount of money. If they ask to borrow money for something they want, they have to pay it back and I keep a tally of how much they owe me and how much they have paid back. There have been times they have wanted something and I have asked them how much money they had, if they say none, then they are informed that they have to save up for it. Each child has a savings account and when they gotten “paid”, I have tried to sit down with them and have make a list of what they want want as to how they need to situate their money, so much for savings, so much for this or so much for that, etc. When I put mu son on my car insurance, he was told that he had to pay his portion (he had a part time job). He didn't like it because it seemed like he didn't have very much money left, but he learned that if he spent it all right after he got paid, he would not have anything left and he could not do some of the things he wanted to do. If he didn't charge his phone up (he had Virgin Mobile), he didn't have a phone to use. A lot of people have not agreed with me about this and think that I needed to just give my kids an allowance, but felt it was better for them to earn it for they would appreciate it more. Also many have not agreed with me that if they ask to borrow money that I make them pay it back. I have always told them that we have to work for our money and do not just get handed it for doing nothing and that they had responsibilities also and that we were not going to just hand them money, they had to earn it. They also have learned the value of the dollar by learning how to budget their money and when they run out, they run out and cannot do anything or get anything. They have learned that you don't get something for nothing, although once in a while mom will do a little something for them. Told them to consider that a bonus. LOL My son got his first job at 16 and worked part-time. My daughter wants to get one soon also and I do not have a problem with that, as long as school work is kept up. I have also discouraged them from using credit cards. They also know kind of what our financial situation is and have seen us struggle, and in one way, I feel that it lets them see how hard things can be sometimes and to prepare for it so they don't make the same mistakes we did. I encourage them to save as much as they can.

The other answers worth mentioning are:

Answer 2: First of all, my children earn their money by doing odd jobs around the house. When we have a garage sale, they have their own little area to sell their own things. I am trying to teach them, that if they want something bad enough, they need to save the money first. My son will usually take 1/2 the money he makes and put it toward something he wants, and he puts the other 1/2 in a savings account for something he may want later. I am hoping that this will help them learn to manage money when they are older.

Answer 3: I think one of the best ways to teach kids money management is by creating a systematic allowance system which mimics real life economy.

For example, I think think it is very important that the allowance is “earned” by doing chores/special projects, etc. This way, they are learning that you have to work for your money (it doesn't just appear out of thin air). Also important is that allowance money is needed. I intend to pay for for all essentials of my child, but to budget extras such as “special toys”, gifts for family members, treats from the ice cream truck, etc. in their allowance money. This way, from a very young age they will be used to budgeting their money. If I pay for every special treat my child wants, their money will not mean much to them. I would much rather pay my child a generous allowance (based on work ethic) and have them make financial mistakes as kids instead of as adults.

Another important part of their allowance includes a mandatory budget. I had a friend growing up who received allowance every week. Each week 10% of her earnings went to church, 10% went to savings and the rest she could spend however she wished. Imagine practicing putting 10% of your income in the bank since you are 5 or 6 years old.

I also intend to teach my children about money by recycling toys. If my child wants a brand new toy, I will tell him/her that I will buy it for them if they will give to charity an old toy they no longer use. I will also take them to garage sales, thrift shops, etc. and emphasize how fun it is and what treasures we have found. Instead of throwing something old out, I will try to make a game as to how we can use it for something else?

Lastly, I will model for my children how to maintain a budget and be honest with them as they grow up about my financial problems early on. When I see someone who is homeless or if we volunteer at a shelter, I will take the time to explain to them how sometimes good people mess up with their money and it takes some time for them to get back on their feet. *I also plan to educate them on investing (as soon as I learn more myself. *As they enter college and get a car, etc. I plan to put their name on my credit card and to teach them how to use credit for one central thing (such as gas) and pay it off each month. Their name being on my card will also allow them to start life with a high credit score and several years of credit history.

Answer 4: I have made many mistakes in managing my own financial affairs throughout my life, but I am making sure my kids understand how to handle money, credit and all related issues:

-we sit down and discuss the months bills and how much income we have coming into the house every month. This way, they understand when I say “eating out is not in the budget this week”, and they understand exactly why - instead of just saying “we cant afford it” and not giving them an explanation.

-each child has a minor savings account with our credit union, and when they earn money by doing work for their grandparents, or I am able to give them a little money for helping me with a special project around the house, they put part of it into their savings - even if its only $1.00 or $2.00 - every little bit adds up, and we sit down with their savings account statement every month when it comes in the mail, and I show them where they have earned interest on their deposits.

-I use THIS SITE to educate my kids on credit and payday loans, and what can happen if you misuse your credit or take out payday loans. I have showed them the horror stories of the illegal payday lenders and what they do to peoples lives. Ive shown them an online calculator and had them add up purchases they'd like to make - and then said, “okay, if you made these purchases on a credit card, with, say, just 9% interest, this is how much you would repay for those purchases”. Then we take it one step further and I tell them “uh oh! You just got injured and cant work for 3 months - meaning you cant pay your credit card bill for 3 months - your interest rate just jumped up to 21%! This is how much you will pay for those purchases NOW…” We've done the same things with payday loans, using the “rollover fee” that many of them charge. This site is a fantastic resource for teaching your kids about credit, debt and payday loans.

-I try to teach by example. My kids have seen me, as a single parent, struggle, fall, get behind on bills and have to deal with the consequences, and pull myself back up and start all over again. They've seen me have to borrow from family to make it through the week or month, or to put gas in the car to get to work. BUT….theyve also seen me repay those debts (sometimes slowly, but always paid in full!), and theyve seen me make phone calls to creditors in an effort to make a payment arrangement - not ignore them and allow them to start collection proceedings.

Hope this info helps! :-)

Answer 5: What I currently do:
1. I never let my children borrow money to buy things they cant afford.
2. Both my children receive an allowance and I encourage them to put some of that allowance into a savings account.
3. I talk with my children all the time about how credit cards work and how the companies are not their friends.
4. But most importantly, I model how I would like my children to use money.

Answer 6: In order for kids to understand debt and money they have to live it. I have two preteens and my problem was, “Mom can I have 10 for this or 20 dollars for that”. They hadn't a clue the value of money (as most kids don't)That was my problem.
This was my solution:
Instead of paying them an allowance for chores etc, I put them on a time card system. I agreed to pay them 8 dollars per hour for the work that they did around the house. That sounds like a lot of money but if you figure the dishes got done in 10 minutes the laundry in 15, and real solid hours worth of work, a lot gets done. First off that eliminated the money they ask me for here and there. They get paid on payday, the same payday that I do, and we keep the time cards on the kitchen fridge.
Inevitably they always need to “borrow” because payday is not for a few days (sound familiar) Well then what I do is reduce their hourly rate from 8 per hour to 4 per hour until that debt is paid off. They don't like it but they wanted the money early, and it will cost them.

A couple of things have happened since I have implemented this.
1: My house is immaculate!
2: I don't hand out money from my wallet anymore, ever!
3: They are learning the basic rule, If you cant pay cash you cant afford it, and if you have to borrow it will cost you.

I can tell them over and over the importance of money management but at 12 and 13, they couldn't care less what I say, its the REAL LIFE consequences that they respond to and its working.

To do this with your kids, you NEED time cards and a set payday. And you have to be firm and consistent.

Answer 7: Well, the first thing that comes to mind is allowances–my parents paid me a certain amount for chores, and helped me open a savings account. One good thing that I got out of my childhood was helping my mom out with her annual garage sale! I learned quickly about the value of a dollar(which stretched further 30 years ago than today) :)

Helping your child set up a budget with their earnings can be rewarding and even fun at times! And when they purchase items with their own money, they tend to cherish it and take care of it much better, knowing that they worked so hard to obtain it!

I think parents should be somewhat more open about their finances with their children(at least when they are mature enough to understand). Involving and educating your children using your household budget once they are old enough can really prepare them for their finances once they are out on their own. And they will appreciate you for it. :)

Answer 8: The number one way to teach your children or any child is by “EXAMPLE”. What you do they mimic to the letter so please set a good example by Saving your money, spending it wisely in front of them, talking about money in sensible manners and most of all “RESPECT” your money!!

Thank You

Answer 9: Ive developed a payment schedule that is assigned to each household chore, instead of a “blanket” allowance. I have the younger two pick pictures of items they would like to have, including the price, from store advertisements. My older child is more aware of what her activities cost. They then have an opportunity to earn money towards their purchases by picking items off of the chore list. At the end of the week I total their balance. Half of the balance must be deposited in to their savings accounts, which we opened with Christmas money, and the other half can be spent or save toward their wish list items. I think that this helps my kids see the value in hard work and also how quickly money disappears when “blown”! We also have a rule that half of “gift money” will also be deposited to the savings accounts.

Answer 10: I think the best way to teach at a young age is lesson learned. When a parent starts to give a child money, they should explain to them the value of money and parents should have the child sit down with them when they pay their bills. This way the child will see how much the parent makes, how much goes toward each bill and what the parent has left over for the week. Tell the child that this does not mean that the left over money is not to spend as they want.

After a few months, start to give them an allowance. Take the child to the toy store and see how they respond and ask them if they want to buy anything. If they spend all of their money and a few days later they want something, such as ice cream or a candy bar, tell them they should have managed their money better. Buy the child a small box for them to keep their money in. Instead of handing the money to the child every week, put it in the box for them. Go to the bank and get some withdrawal slips and give them to the child. Also get a small notebook for the to keep track of how much money they have. When they need money, have them fill out a slip and deduct it from the notebook.

If they overdraft send debt collection letters to them. Just kidding.

Answer 11: At the beginning of May I sat my kids down with a plan. We were going to write down each cent we spend and in June we are going to review and work out a budget for the house. I'm also going to work out a budget for my kids with all of the items that are bought for their needs excluding the necessary ones like movie tickets, soda, ice cream… etc. These are things they have been buying with their allowance and if they needed extra it was purchased for them.

In June my kids will have a budget and they will have to use their allowance accordingly to buy their extra things so that they will be able to understand how important it is to spend your money on the things you want vs the things you need. They are always needing extra things like an eraser or a new notebook or wanting an extra snack or ice cream from school. These things they will have to buy on their own with their money. If the project is a success I will continue it.

My oldest is just 13 but by the time she is 16 I plan on introducing her to credit if she is employed. My plan is to co-app with her on a credit card and try and teach her at the importance of good credit and paying your bills on time. She already has a car she just doesnt know it yet. She will be responsible for carrying the insurance on it as well as putting gas in the car. I will continue this also with my next three children.

Answer 12: Well, our older two are 6 and 7 years old. K and 1st grade. Were starting with teaching them the value of work, that money doesn't grow on trees. We buy them things in moderation, but extras, they get to work for. An extra chore here and there around the place nets them a quarter or so. Good grades pay pretty well, too. It adds up quick, for kids that age.

Erik [7] is getting good about it. Rather than asking for stuff outright, most times he asks if there's something he can do to make some extra change to get whatever it is.

Hes pretty well figured out the concept of working. Hes getting a handle on saving, too. At present, hes saving up for a new, fancier bike [a share of the price, actually]. I'm starting to touch on budgeting with him, as well. Using simplified examples, like what happens to his plan for a new bike if he takes a dollar out to get ice cream from the roving [overpriced] truck.

This approach has had its pitfalls. Especially in the beginning, when he was getting used to the idea that I'm serious about it. On the other hand, hes come up with some surprisingly sophisticated questions, for a kid his age. Hes also managed to seriously impress his first-grade teacher.

Answer 13: The first rule of teaching good money management is to practice it yourself.Besides that, there are a few important lessons to make sure your teens learn about money before moving out.

The first thing you need to do is make sure your teen learns the value of a dollar. This means they need some sort of opportunity to earn money.

If they don't have the time to get a job, have them caddy for you on Saturday mornings or mow a neighbor's lawn during the summer. All they need is a little bit of income to teach them valuable lessons about money.

These three new things will give them a good understanding about how banks work.
Next, have your teen get a credit card. Not your credit card to be used "only for emergencies" but a credit card in their own name to be used for their everyday purchases. Teach them to pay it off every month.

Finally, teach your teens a little bit about taxes. If they have a job, they'll be required to file taxes.

Giving your teen good lessons in money management can be some of the most valuable lessons you teach them during their time in your house. A young adult who is well-acquainted with how to use money will be prepared to leave the shelter of your home and become a competent member of the real world.

Answer 14: I pay them for each task that they do. I inspire them with the reality that they can have whatever they want but must earn it to do so. I pay them for each task that they are willing to do, mow the lawn = 10.00, do the dishes = 1.00, clean the house, (sweep, dust, clean windows) = 20.00 etc…
Quarterly I show them the bills and the process I go through to pay them, (checkbook logging, addition, subtraction).
I also have Mutual funds set up for them and as the monthly statements come in we sit down and review the math on the statement such as if there was a loss or gain, any dividends, interest or charges etc… I ask them if they would like to contribute any funds they have earned into their mutual funds on a regular basis so they can experience real time the impact of their own efforts.
Jack Hallaran Atlanta, GA

Answer 15: When my kids were younger, I started teaching them about money, too bad I didn't follow my own advice! I wanted to teach them responsibility and how to save and money management, so I started when they were 4 or 5 years old.

They had chores to do each week, pick up toys, take out trash, set table, etc. I made a chart and each day, they got to put a sticker if they completed their chores. At the end of the week, if they had completed their chores, they got an allowance.

The rule was, that they had to put a third in a savings bank, a third for emergencies(Like an extra something for soccer, or extra money to buy a shirt or tennis they wanted), and a third for them to spend how they wanted.

When they were young, they didn't seem to notice the savings, but as they got older, they saw how the money built up and that they had extra if they needed it. It also taught them that you have to work for what you want.

The lesson stuck with my oldest, he still does this, my youngest–well, that's another story.

Answer 16: About two years ago, my current husband began investigating ways to do a proper budget and in his search, he came upon Dave Ramsey. He went to Borders, bought Mr. Ramsey's book, and that led to us buying the Financial Peace University home study course, which led us to taking the real course taught at a local Christian church by a certified FPU graduate.

My son is 23 years old and he has watched me (his mother) struggle financially since he was born. My ex-husband (his father) was not really interested in paying bills or working so after being several months behind on rent, car payments and utility payments, I left him,(after 17 years of marriage, so I did give it the old college try) but not before I settled up with everyone. I had to borrow money from my extended family and I walked away. To this day, he has not changed, but I have changed, especially how I look at money.

What my son has learned through just my husband and I talking about Dave Ramsey and his FPU is that all high school teaches you is to go to college so that you can learn to incur debt, so that hopefully one day you will be able to pay off your student loans and have a career that will pay just enough to pay off the student loans, car payments, credit card payments, etc.

Since my son has been out of high school and Ive remarried someone who knows accounting inside and out, he has learned that you cant spend what you don't have. My son does not have any credit cards or credit card debt, he does not have any loans, except for what he owes to his school. He does not have a car payment, rent, mortgage, etc. He works part-time and puts his money away for the day when the “student loan payments must start”. Most 23 year old cannot say they are “debt free” except for what they owe their school.

Although I feel badly that for so many years I struggled, maybe that was a lesson that although you can choose to struggle, you can also choose to do something about it.

I thank you for your time and God Bless.

With belief,
Gina M. Bricka

Answer 17: The best thing to do is to first educate them on the difference between what is/is not crucial (wants and needs) as well as budgeting skills and critical thinking. Also it would be good to let them know just how bad credit cards can be and to teach them never to take out a PDL.

Answer 18: Open a savings account for them. I try to put some money away here and there. Also have family members that may put some in on occasions or through small odd jobs. When the child asks for something, ask if they have enough in their account. With time and patience, they can learn the value of the time it takes to earn the money and also to decide if it is worth giving up on that item.

Answer 19: I will teach my girls to pay themselves and to save 1000.00 to start with just for emergencies! I will not allow my girls to get a credit card as soon as they graduate, because I'm not paying the bill! My kids will be allowed to live at home until they can afford to buy a home of their own and not rent. They should put money in a 401k while they are young. If they need a small loan they should always ask parents first. They should never buy a home where it depends on two people to make the mortgage payment. But these days that's about the way it is unfortunately because people want more,and more. We should be able to get more for our money than what we get.

Answer 20: I have a 6 year old grandson. I took him to an ice cream place and we looked at the price of an ice cream cone. It was approximately $2.50. for 2 scoops of ice cream on a sugar cone. We then went to the grocery store and we looked at ice cream to see how much it was. He found out that for $2.50 he could get a 1/2 gallons of ice cream. Then he could have ice cream every day for a week.

We did the same thing, he wanted from Sonic tater tots. They were $1.99 for 1 cartoon of them. We then went to the store and got a huge bag for the same $2.00 and he got to enjoy them all work.

My goal is to teach him that you can sometimes still have treats but you have to make your money go further with the treat money you do have.

Answer 21: My son is 6 and he is already learning the responsibility
of money. He does little jobs around the house and receives
a money award.I.e-if he dusts his bedroom he gets 20p.
He has got what he calls his transformer fund, and
is saving to buy as many transformers as he can.
Because of this he understands why i have to go to work
for our money, as i am a single parent and have to watch
money.

Answer 22: I belief we need to first of all teach them on the importance of money. Example - Without money there will be no sweets, toys etc..

Action- Start on getting them to take action. Get them started on collecting coins first and show them how it can grow to a dollar and why is it important that it should grow to a dollar.

Piggy banks- Buy for them their first Piggy banks teach them to start putting coins now. My preference would be a transparent one so as they can see the coins growing physically.

Wealth Journal- Get the kid started on his or her own wealth journal. Teach your child to identify goals in the journal and encourage your child to write about why the goals are meaningful to them

Start an account- If your kids are old enough, you can give them their very first bank account (I belief that this is the best present you could give your kid)

There are Board games design for kids about investments/ money management etc.. Examples would be the Monopoly (Junior), Money-wise Kids, the cash-flow for kids and etc..

Once your child learns to save- teach him on compound interest.

To summarize- if you want to teach your kids on money management, you have to lead as an example. Constantly teach them about the 3 keys to money management

Saving, budgeting, and investing

Answer 23: I would start by getting them a savings account. I would let them have an ATM card (not debit)and they would put their earnings from there allowance in the savings account every week. When they want something that of course isn't a necessity to them they could pull out the money and keep a transaction register of their spending to keep track of their money. When its all gone they will realize the value of a dollar and learn to manage their money more wisely.My mother did the same thing for me and by the time i had graduated high school I had bought my own car and had about $3000 of my hard earned money in a savings account which later was the down payment on my house. I was 19 then and if my mother didn't teach me the value of a dollar the way she did I probably would be like the average 25 year old today still living with mom not knowing where i was going in life.

When there is a lack of transparency in land dealings…

noreply@blogger.com (David CKK) — Tue, 26 Aug 2008 08:58:00 +0000

A 260 acres open space earmarked for the building of Penang Global City Centre (PGCC) in Malaysia is currently surrounded by controversy. So much so that the former Chief Minister of Penang, Tan Sri Dr Koh Tsu Koon has to dodge bullets by the current Chief Minister, Lim Guan Eng at a debate entitled The True Story Behind the Land Controversy in Penang. A one-liner by Lim Guan Eng sums it up for the debate that night: “If there was no corruption in the previous Barisan Nasional government, then they would not have fallen in the March (2008) election tsunami.” Yep, I guess that says it all FORMER Chief Minister, Tan Sri Dr Koh Tsu Koon!! The list of land scams by the authorities in Malaysia goes on:

When I propose foreign land investments to investors in Malaysia, I tend to get this question a lot, “How come you guys don’t invest in land in Malaysia instead?” Or another popular one, “How come we get development approved in Malaysia so quickly and yet in Canada it takes 2 - 4 years of planning?” Hmm……let’s see. Could it be because there is no transparency in land dealings in Malaysia compared to Canada? Could it be because like in the example of PGCC, where the land zoned as “open space” sold at RM43psf is now worth RM250psf when it was rezoned as “mixed development” in a controversial way (despite public protest)? Could it be because the developer tends to need close political ties (smells of corruption)? Or could it be because it is not uncommon for multiple land titles issued on the same parcel of land (manipulation of the land registration system)?

In Alberta, Canada, the government guarantees the accuracy of the land title. As a result, anyone who suffers a loss due to an error on the title or even as a result of a fraudulent transaction may take steps to obtain compensation from the government through the operation of the Assurance fund. The titles are electronically registered and provides easy access via a web-enabled Spatial Information System (SPIN). You can easily verify land ownership over the Internet.

Over in Alberta, Canada it takes 2 - 4 years for development approval because they follow a very systematic process that even incorporate public hearings where adjacent land owners are invited to raise their concerns. All views are taken into account before development approvals are given. And no… greasing a politician’s hand will not get your development approval ahead any faster!

Maps are easily available at the town/city council websites to verify the status of the land you are investing in. Land Use Bylaw Map, Area Structure Plan (ASP) Map and Future Land Use Map are useful maps whereby you can identify whether the land you are investing in is incorporated in the town/city council master plan.

1. Land Use Bylaw Map - Tells you what is the current permitted land use.
2. ASP or Future Land Use Map - Tells you what is the future permitted land use.

The essence of making money from land banking is when a parcel of raw land is bought up by a developer for development so make sure that the land you are investing in has development potential by utilizing the various maps. If the land is clearly stated as residential usage… as long as the developer doesn’t apply to get a casino or commercial mall approved for that land, it is more of a matter of complying to the town/city council regulations to get the development approved. In Canada… it is systematic and transparent. I will end my post with a few examples of town/city council maps below:

Source: landbankingdotus

Choosing A Right Prepaid Visa Card or Paypal Withdrawal Debit Card

noreply@blogger.com (David CKK) — Tue, 26 Aug 2008 07:16:00 +0000

This is what a good Prepaid Visa Card compare with others bank debit visa card or credit card. The tune money prepaid visa are more flexible and Internet friendly. The most I like is we / Malaysian can execute Paypal Withdrawal fund from our PayPal account with this prepaid visa card from tune money.

Unlike others bank Prepaid Visa Card or debit visa card charge higher monthly fees for Paypal withdrawal facility or they do not even have such a feature for you to withdraw Paypal fund into their card account.

Fact, The Tune Money Prepaid Visa Card is a reloadable visa card that allows you to only spend the amount that you have pre-deposited into your account. If you don’t like debt and you don’t want to carry cash around, then a prepaid visa card is also what you need.

The prepaid visa card is a personalized prepaid card as your name will be imprinted on the card itself, it quite similar like debit card or credit card, but it give you so much more any ordinary than normal credit card / debit card / charge card. Here is what you will get:

100% approval with no credit check, every one qualifies provided you are above 18 years old :)
Allow Maximum load of RM10,000
Easy to obtain and use anywhere
Cash withdrawal at ATM’s worldwide
Easy reloading options
View Transactions online real time
Affordable annual fees of RM9.90 (no more monthly late fee, interest or finance charge)
Balance enquiry online
Paypal withdrawal acceptable
Security of your money (avoid cash loss)
Card to card transfer allow
Obtain cash back bonus each time you spend using the prepaid visa card

“Cash back” is a cash bonus you receive from Tune Money for using your Prepaid Visa card, which is the total of your quarterly accumulated Tune Points converted into cash and then credited back into your prepaid visa card account for you to spend. Spend every RM3 at Air Asia = you get 3 Tune point / Spend RM3 on any others Merchant = you get 1 Tune point. So the more you use your prepaid visa card, the higher points you will collect, and therefore, the higher amount of cash back you can receive for continues spend.

Here is how useful & Where to use your Tune Money Prepaid Visa card…

1) Retail - Just use your card at any outlet that accepts a card that carries the VISA acceptance mark as a means of payments. As long as you have enough money loaded to cover the payment, you can safely use your card.

2) E-Commerce - Can use for purchase online or Paypal withdrawal. If you are using PAYPAL to accept payment online for your internet business or affiliate earning, the Prepaid visa card can be use on your PAYPAL account for fund withdrawal.

3) Mail order Telephone order - You can use the card to make purchases via ordinary mail (snail mail) or through the telephone, depending on the merchants requirement.

4) AMT withdrawal - You can withdraw money from any AMT (with the visa plus logo) both domestically and internationally. We encourage you to withdraw your money from CIMB ATMs to save on higher transaction cost.

You can re-load your tune money prepaid visa card via any of POS office malaysia, CIMB bank or Bank Simpanan Nasional.

Here is a complete fees or charges table for the card for you reference:

Overall, it seems like this prepaid visa card from tune money is an extremely wonderful proposition for Malaysians especially for Paypal withdrawal functional and the annual fee only Rm9.90 per year, excellent :) .

Thanks for visiting and enjoy! you can contact us at livingsurfer@gmail.com for detail or application.

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Alliance Bank - Savelink IPO

noreply@blogger.com (David CKK) — Mon, 25 Aug 2008 07:43:00 +0000

Save link Interest Payment Option (IPO) – The loan that offers the flexibility of OD at the price of home loan rates with low initial payment of interest for the first 5 years of the loan.

Product Features
Save link is a deposit linked flexi home
loan - A home loan and Checking Account combined into One (1) that offers unlimited prepayment and redraw all of pre-paid amounts at anytime. Alliance Bank has added a new feature to Save Link - Savelink IPO.

Savelink Interest Payment Option (IPO) features the combination of SaveLink HomeLoan and Interest Servicing Only(similar to the nature of OD) for the first 5 years of the loan. Commencement is from first disbursement or 3 months from the Letter of Offer date, whichever is earlier. IPO is applicable to both completed and under-construction residential properties. Minimum Property Price or property market value at RM 100,000. The offer margin of finance is up to 90% of the Property Price or the property market value and the minimum loan tenure is 15 years (inclusive of interest period).

The Savelink IPO package offers the convenience of Zero Entry Cost (ZEC) option. This package comes with a Lock-In period of 3 to 5 years ( 5 years for Zero Cost package and 3 years for Non-Zero cost package- completed property only) and early settlement within the first 5 years of the loan will be being imposed an exit fee of 3% of the original loan amount.

What's good about it?
This flexi loan only requires the Borrower to service interest payment only which is different to most other Banks’ flexi loan packages that require the Borrower to service the interest and principal. The feature of Interest only payment at lower Home Loan rates (offered rate as low as BLR minus 0.9%) makes it affordable for the new homebuyers or home up-graders to commit on their desired dream house with low initial payment of interest only. Additionally, this loan suits Investor as they are only requires to service the interest portion for first 5 years of the loan before selling the property to a quick profit. Also the built in flexi features in Savelink IPO allows the Borrower to achieve cost savings, while having the flexibility to redraw on the excess payment made should they require cash.

Limitation
With IPO loan, during the first 5 years interest payment period, no principal portion will be paid hence no principal reduction during the interest period. The full installment payment will be deferred to commence on Year 6 onwards and this lays heavier repayment amounts on Borrower as the loan will still need to be settled within the approved loan tenure less interest period. For example, a repayment tenure of 15 years, the first 5 years is the interest period and the repayment of the approved loan amount is to be repaid fully during the balance 10 years of the loan tenure. Hence, the monthly installment amount will be higher as it will be based on the 10 years instead of the applied loan tenure of 15 years. This loan requires discipline in managing funds and Interest rates may be higher than loans without such features.

Requirements Document Preparation of Maybank American Express Cards

noreply@blogger.com (David CKK) — Wed, 20 Aug 2008 07:34:00 +0000

There are 5 types of requirements document preparation for the Maybank American Express credit card and American Express charge card application - Income Earner, Graduate, Self-Employed, Expatriate and Existing Credit Cards holder. The requirements Document preparation should be refer based on you income field, follow it through for higher approval.

Maybank American Express Credit Card:

Annual Fees:-

-Two years fee waived for Classic and Gold only
-Platinum Card Fee not waived – Supplementary, First 2 cards free

Nationality requirement:-
1. Applicable to Malaysians and expatriates only.

Age requirement:-
1. As a principal cardholder, you must be aged between 21 to 65.
2. As a supplementary cardholder, you must be at least 18 years old

REQUIREMENTS DOCUMENT PREPARATION:
Income Earner:
1. Copy of NRIC (both sides) or Passport, including that of requirements document for supplementary applicants as well.
2. Latest Income Tax Return (Form B) or
3. Latest 2 months Salary Slip; and
4. Latest 3 months Savings Account Activity/Current Account document Statement.

Graduate:
1. Copy of NRIC (both sides) or Passport, including that of supplementary applicants document preparation.
2. Letter of employment document
3. Copy of Degree Certificate
4. Latest 2 months Salary Slip
Note: Salary above RM2,000.00 eligible to apply Gold Card and Classic Card RM18k per annum.

Self-Employed:
1. Copy of NRIC (both sides) or Passport, including that of supplementary applicants.
2. Copies of Business Registration (Form B only) or Form 9, 24 & 49 of Company Act.
3. Latest Income Tax Return (B Form); and
4. Latest 3 Months Saving Account Activity/Current Account Statements requirements document. (Personal account and/or Sole Proprietor company’s account)

Expatriate:
1. Copy of Passport, including that of supplementary applicants
2. Letter from employer confirming income and duration of employment contract in Malaysia (contract valid for 2 years upon application received)
3. Applicant must be a Maybank account holder (to open first before submitting application).

Existing Cardhodler from Other Banks (issued more than 1 year)
1. Copy of NRIC (both sides) including supplementary applicants
2. Copy of Credit / Charge card (both sides – to strikeout/cover three digits).
3. Not applicable for expatriates card holder
4. HSBC credit card statement (latest 1 month)

Notes: It is advisable to enlarge NRIC and Credit Card to 150% All documents enclosed, must be verified by Agents with signature, agent’s name and Sales Code/PF No.

Maybank American Express Charge Card

Annual Fee:

-First 3 years fee waiver
-Free laptop bag worth RM200 upon approved and activation of RM50 of card within 1st month upon receive card

REQUIREMENTS DOCUMENT PREPARATION:

Individual Applicant (Salaried Employee):
1. Photocopy of NRIC (both sides) or passport
2. Income Tax Returns (Form B/Latest EA Form)
3. Last 2 months’ payslips
4. Last 3 months’ savings account activity/current account statements

Self-Employed:
1. Copy of NRIC (both sides) or Passport
2. Copies of Business Registration (Form B only) or Form 9, 24 & 49 of Company Act.
3. Latest Income Tax Return (B Form); and
4. Last 3 months’ Saving Account Activity/Current Account Statements. (Personal account and/or Sole Proprietor company’s account)

Expatriate:
1. Copy of Passport
2. Letter from employer confirming duration of employment contract in Malaysia (at least with minimum of 6 months in Malaysia and with contract valid for 2 years upon application received)
3. Last 2 months’ bank statement (local)
4. Applicant must be a Maybank account holder (to open first before submitting application).

Existing Cardholder from Other Banks (issued more than 1 year):
Salaried Employee
1. Copy of NRIC (both sides)
2. Copy of Credit / Charge card (both sides – to strikeout/cover three digits).
3. Last 2 months’ payslip (optional)
4. HSBC credit card statement (latest 1 month)
Self-employed
1. Copy of NRIC (both sides)
2. Copy of Credit / Charge card (both sides – to strikeout/cover three digits).
3. Last 2 months’ bank statement/3 months’ saving account (or fixed deposit certificate)
4. HSBC credit card statement (latest 1 month)

Notes:
It is advisable to enlarge NRIC and Credit Card to 150%. All documents enclosed, must be verified by Agents with signature, agent’s name and Sales Code/PF No.
Personal reference, no address, telephone number, relationship (only relative, friends/boss not allowed, address different from home).

Common error:
Missing information on application (blank)
Preference of Card not indicated
Full name as per NRIC Residence address, number of years
Employment information, designation, years employed, income
Married but spouse info not provided
Personal reference, no address, telephone number, relationship (only relative, friends/boss not allowed, address different from home).
Collection of cards, not advised.

Remember that preparation and submit the correct requirements document is the factor to increase your approval chance from the bank

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MAA offers new investment scheme

noreply@blogger.com (David CKK) — Wed, 20 Aug 2008 07:11:00 +0000

TheStar

Product provides capital guarantee and returns higher than fixed deposit rates

KUALA LUMPUR: Malaysian Assurance Alliance Bhd (MAA Assurance), in tandem with rising global inflation and volatile equity markets, has launched a structured investment product that provides capital guarantee and returns higher than fixed deposit rates.

The product, Master Capital Guaranteed Plan Swing 6, is syariah compliant and focuses on three themes, namely China and Hong Kong, mining and steel, as well as oil and gas. Each theme will invest in two stocks.

Vice president for life business development services division Y.C. Chan said the product was ideal and suitable in light of the current economic situation coupled with low fixed deposit rates.

“We are targeting fixed depositors as well as those hoping to make some potentially higher returns in this challenging economic environment.

“Policyholders can expect to rake in an average of about 12% returns per year for this plan.

“We are also hoping to achieve gross premiums of at least RM50mil in the first two months of its launch. The product was launched last Friday,’’ he said during an interview.

According to Chan, the company was optimistic of the product as it allowed policyholders to obtain potentially higher returns from investment and, at the same time, would provide capital guarantee at the end of the fourth policy year.

He attributed the investment in the China and Hong Kong markets to the former’s robust economic growth and the latter’s ability to tap into the mainland’s growth and benefit from buoyant trade, services, retail and property sales.

China’s economy was expected to grow at 8%-10% per annum over the next three years spurred by a strong domestic economy, infrastructure spending, population and income growth, he noted.

Chan added the mining and steel as well as the oil and gas sectors had good potential.

“The demand for commodities and steel is seen outstripping supply, with robust demand coming from Asia, especially China and India.

“The crude oil market is facing tight supply and geopolitical tensions and its demand remains relatively unresponsive to higher prices,” he added.

A minimum premium of RM10,000 is needed for this plan and, apart from capital guarantee, it also provides insurance coverage.

Death benefit is provided for the first RM2mil premium (per insured), thereafter, any amount above this figure would not be covered for insurance protection.

He said a policyholder could, if hewished, withdraw his capital guaranteed benefit at the fourth policy year and terminate the policy, or maintain and continue by switching the benefit into other MAA investment-linked funds without any charge.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only.

Thinking of alternative investments?

noreply@blogger.com (David CKK) — Wed, 20 Aug 2008 06:38:00 +0000

TheEdge

There has been a lot going on in global financial markets. With volatility likely to continue, and general consensus of a slowdown in major economies, the question most frequently asked is: Where and what should I invest in next? Given the uncertainties and increasing challenges, investors are exploring various investment options to stay ahead of the curve, and opportunities to improve long-term returns.

This article will cover some of these investment choices known as alternative investments, which complement traditional investing and have been attracting a growing interest from institutional, high net worth individuals as well as retail investors.

Alternative investments

Investments in our market comprise mainly equity, bonds and property. These are traditional investment vehicles. Over time, with innovation and increased understanding of the markets, other alternatives have started gaining popularity.

Many alternative investments with minimal correlation to traditional benchmarks have proven to be resilient in volatile markets and uncertain economic conditions. This formula has worked well supporting the investment rule of thumb — portfolio diversification — and increasing resilience against risks.

An understanding of alternative investments may be helpful in supporting more informed investment decisions, for exposures to other than just equity and bond markets.

Alternative investments include familiar products such as private equity, real estate and structured products; whilst examples of more sophisticated options include managed futures and hedge funds.

In contrast to traditional investments, alternative investments seek absolute performance and depend on advisers’ skills for performance. They may use leverage and have historically low to moderate correlation with market indices. Typically, it is not as easy to liquidate such investments as there may be fixed periods ranging from monthly to yearly, and may include possible lock-up periods. Charges may generally be higher and in the form of performance fees.

Traditional investments, on the other hand, would seek relative performance where returns depend primarily on market performance. They have historically high correlation with market indices. These forms of investments generally do not employ leverage, offer daily liquidity and charge fixed management fee on assets under management.

Why invest in alternative investments?

Alternative investments offer opportunities to qualified investors to diversify their portfolios by combining alternative strategies with traditional holdings, aimed at generating steady returns and preserving wealth through fluctuating market conditions.

Over the years, while the risk-adjusted returns in the stock and bond markets have become less, modern investment instruments such as alternative investments have helped realise consistent returns over time, as they tend to move in opposite directions to traditional strategies.

Alternative investments have helped preserve opportunities for positive returns even during times when stocks and bonds under perform.

Types of alternative investment

1. Private equity

Private equities are privately negotiated deals that are invested in mostly non-public companies that may be in different business phases or categories. This would include start-ups, companies in the development stage or expanding, a buyout situation, perhaps restructuring. Investments could be in form of venture capital (VC); leveraged buyouts (LBO); mezzanine or distressed debt.

Private equity managers could be stand-alone or fully integrated organisations that may take an active role in a target company’s management with the objective of creating value during the period of investment, and to exit profitably.

2. Real-estate investment

This is probably one of the most commonly known forms of alternative investing. Real-estate investment would have an internal rate of return objective although there is no guarantee of the return objectives being met. Leverage could range from 0-75% and the investment has low correlation with market indices.

There is less volatility compared to equities and fixed income as investments are in physical assets, though investments would be relatively illiquid. Real-estate investment could offer an advantage in the form of potential inflation hedge.

Real-estate investment can be public and debt-based like commercial mortgage-backed securities (CMSB) or public and equity-based like real-estate investment trust (REIT) stocks or real-estate mutual funds. Other forms of investment include private and debt-based like mezzanine debt or senior loans or private equity like open and closed-end funds.

Investors should note that commercial real estate can offer portfolio diversification as historically it has low correlation with other asset classes and has provided steady returns over the long term. It has proven performance versus other investments. It is different from family homes and there is risk/return trade-offs in various real-estate investments.

3. Structured products

Of late, structured products have become popular in the market as it can offer the security of principal protection with the opportunity of further income upside. Structured products can be performance-linked, leveraged/arbitrage products and principal protected.

Performance-linked products may be linked to the performance of a basket of assets such as stocks, bonds or hedge funds; or to indices like Morgan Stanley Capital International (MSCI), FTSE or S&P Indices. They are usually illiquid and have no leverage.

Principal-protected products offer capital assurance with potential upside from returns linked to performance of predetermined assets. Principal protection is only valid if the investment is held till maturity.

Leveraged/arbitrage products are investment products that generate returns based on the spread between assets and financing costs. They normally have limited liquidity, with potential for high returns, which comes with association of high risk.

Structured products can be customised to fit the unique requirements of individual investors and can offer potentially higher yields than of market norms if certain scenarios materialise. The underlying structure could be in forms of various exposures to diversified market sectors — they could be offered in one packaged security or maybe repackaged as credit-enhanced/principal-protected products to be managed actively with the aim of improving the risk/return profile of the investment.

4. Managed futures

Managed futures are essentially an alternative investment strategy that offers access to global futures market via professional money managers called commodity trading advisers (CTAs).

CTAs use trading strategies and money-management techniques to attempt to achieve profits and control risks. They trade in global markets including futures, options and forwards on traditional commodities like gold, crude oil, soybean and crude palm oil. They also trade in financial instruments such as the US Treasury Bond, British Long Gilt and NYSE Stock Index as well as currencies, which include but are not limited to the euro, Japanese yen, Czech kroner and Thai baht.

As in any other forms of investment, there are risks involved. Due to the use of leverage, a small change in market price of a futures contract can produce major gains or losses for a managed futures contract.

Nevertheless, from January 1994 till June 2008, managed futures generated an average rate of return of 7.25% compared with the S&P 500 of 8.65%, Nasdaq of 12.6%, Global Stocks of 7.49% and Global Bonds of 7.83% (Credit Suisse Tremont Hedge Fund Index LLC, Lipper as at July 2008).

Given the sophistication of this investment class, fees are higher than that of traditional funds.

5. Hedge funds

Hedge funds aim to make absolute returns regardless of market conditions. They offer greater flexibility than traditional investment managers and can go long and short on stocks. Use of derivatives and leverage is allowed and normally hedge funds impose a higher minimum investment amount. Performance fees are charged based on returns generated by the managers.

Hedge funds do have liquidity restrictions and are moderately regulated with limits on capacity.

Here are several facts about hedge funds.

i) In the early 90s, the hedge fund industry was dominated by high-risk, aggressive macro players. It has since evolved significantly in terms of AUM as well as sophistication, and in 2007, there were over 10,000 hedge funds with many more diversified strategies. Hedge funds do not apply the same investment strategies as other funds.

ii) Hedge funds are not only for bear markets as they seek low or negative correlation to traditional long-term investing.

iii) Hedge funds do not always lack transparency. Whilst skill-based investing may be less transparent than traditional investing, some hedge fund managers make transparency their selling point.

Generally, hedge funds offer opportunity to improve portfolio efficiency with enhanced returns while potentially reducing risk. It also advocates diversification with low correlation to existing asset classes and the chance to participate in investments managed by top-rated hedge fund managers, using different strategies and employing a wide range of instruments.

A fund of hedge funds is a multi-manager hedge fund that has dedicated and expert teams of managers. The assembling funds of hedge funds create a significant advantage over private investors as it offers the opportunity of exposure to a diverse set of strategies in a single investment.

Multi-manager funds have access to the best managers, who often close quickly and limit allocations to long-term clients who buy and hold. Very importantly, fund of hedge funds offers diversification, as it minimises risks by combining funds and strategies.

Minimum investments are lower than single-strategy funds, hence reducing the strain of high-value investing. Transparency is not an issue as they are able to obtain and interpret complex information, which could be a challenge to private investors.

In a fund of hedge funds, strict due-diligence processes facilitate identification of quality managers, while continuous monitoring and reviews are enforced.

Portfolio construction and readjustments of positions are made throughout the life of the portfolio. These efforts are resource intensive and could not possibly be conducted by a private investor.

It is important for investors to read, research and understand the features, liabilities and benefits offered by alternative investments such as private equity, real estate, structured funds, managed futures and hedge funds. A well-diversified portfolio, which incorporates some form of alternative investment, could help increase returns and lower portfolio volatility overall.

Aisyah Lam is the head for wealth management products, Citibank Berhad

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only.

EON Bank Credit Card 0% Interest Balance Transfer Up To 48 Months!

noreply@blogger.com (David CKK) — Fri, 08 Aug 2008 08:12:00 +0000

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This balance transfer plan is designed to take the stress out of your credit card payments, the EON BANK GROUP Credit Card Zero 0% Interest Balance Transfer will help you save even more at the same time, providing you with many flexible options of repayment up to 48 months installment to suit your financial needs.

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mailto livingsurfer@gmail.com for more detail or application.

OSK-UOB targets 9% returns for new fund

noreply@blogger.com (David CKK) — Fri, 08 Aug 2008 08:08:00 +0000

TheStar

KUALA LUMPUR: OSK-UOB Unit Trust Management Bhd has teamed up with JP Morgan Securities (Asia Pacific) Ltd to launch the OSK-UOB Income Alpha Fund for which they are targeting 8% to 9% in net returns yearly.

OSK-UOB chief executive director Ho Seng Yee said they hoped to attract RM200mil in investments from investors with low to medium risk tolerance.

“Malaysians are generally risk averse and in these uncertain times, some investors may be keen to diversify some of their investment into less risky asset class,” he said at the launch yesterday.

Ho said the fund was suitable for investors who wanted to preserve their capital and wanted returns that were above the prevailing inflation rate.

The inflation rate in June rose to a 26-year high of 7.7%, fuelled by the hike in petrol and diesel prices.

Ho said investors could expect income distribution from the fund semi-annually.

The fund’s main strategy is to invest 90% of its net asset value in ringgit-denominated short-term fixed income securities and the remaining 10% in derivatives in the JP Morgan Yield Alpha 8 Index with exposure in Britain, Europe, Japan, the US and the G10 countries.

The Alpha 8 Index would invest in bonds, foreign currencies and also equities.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only.

New AmInvestment commodities fund

noreply@blogger.com (David CKK) — Fri, 08 Aug 2008 07:50:00 +0000

TheStar

KUALA LUMPUR: AmInvestment Bank Bhd is planning to capitalise on the global commodity boom with its new fund called AmCommodities Extra.

Managing director Kok Tuck Cheong said the long-term outlook for commodities remained positive due to a mismatch of supply and demand, which had raised commodity prices.

“Commodities have low correlation to equities and bonds, and therefore provide investors another alternative class of investment to enhance their portfolio as well as preserve their wealth against inflation,” he said at the launch of the fund yesterday.

At the launch of AmCommodities Extra. From left: Yvonne Phe, Kok Tuck Cheong, Citibank Bhd head of wealth management Aisyah Lam and Datin Maznah Mahbob

“It has been observed that commodities have consistently outperformed inflation and commodity prices are rising faster than inflation rate.”

On the high volatility that the market experienced lately, chief investment officer (fixed income) Yvonne Phe said the fund had a “revolver strategy” feature, which would reduce exposure of underlying assets during vicious swing and increase exposure when volatility subsided.

AmCommodities Extra invests 90% in fixed income instruments and 10% in structured derivative instruments with exposure to potential upside of commodities theme. These structured derivatives provide 75% exposure in Rogers International Commodity Index (RICI), an index managed by Jim Rogers, a well-known commodities guru, while the remaining underlying assets consist of commodity-related equity indexes in Australia, Brazil and China.

However, this fund does not include crude palm oil (CPO) because of its thin trading volume. Chief executive officer Datin Maznah Mahbob said the fund would emphasis on liquidity but she might consider CPO in the future if the liquidity improved.

Meanwhile, director (retail funds) Ng Chze How said this fund provided an opportunity for portfolio diversification, as most of Malaysian investments were in bonds, equities and cash.

“For investors who can assume medium to high risk, they should consider this class of investment,” he said.

As at June 30, RICI constituted 44% energy, 34.9% agriculture and livestock, and 21.1% precious metals.

Ng said AmInvestment expected AmCommodities Extra to be fully subscribed in six to 12 months.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only.

Public Mutual declares distributions for 4 funds

noreply@blogger.com (David CKK) — Wed, 06 Aug 2008 04:38:00 +0000

PublicMutual

Public Bank’s wholly-owned subsidiary, Public Mutual declares distributions for four of its funds. The total gross distributions declared for the financial year ended 31 July 2008 are as follows:

Public Growth Fund: 10.00 sen

Public Bond Fund: 5.00 sen

Public Islamic Opportunities Fund: 4.00 sen

Public Islamic Select Bond Fund: 1.50 sen

Public Mutual’s Chairman Tan Sri Dato’ Sri Dr. Teh Hong Piow said Public Growth Fund and Public Bond Fund which are the winners of The Morningstar 2007 Fund Awards (Malaysia), have generated five-year returns of 85.14% and 24.41% respectively for the period ended 11 July 2008, according to The Edge-Lipper Fund Table dated 21 July 2008. Public Bond Fund is also the winner of The Edge-Lipper Malaysia Fund Awards 2008.

Meanwhile, Public Islamic Opportunities Fund which was ranked No. 1 for its three-year returns has generated a return of 59.70% for the same period in its category. Public Islamic Opportunities Fund was launched in 2005 while Public Islamic Select Bond Fund was launched last year.

Public Mutual is the largest private unit trust company in Malaysia, and it manages 64 funds for more than 1,800,000 accountholders. As at 30 May 2008, the total fund size managed by the company was RM28.4 billion.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only.

Citibank Celcom Malaysia Credit Card Save Your Celcom phone bill

noreply@blogger.com (David CKK) — Tue, 05 Aug 2008 21:14:00 +0000

Citibank Celcom credit card, an innovative card that rewards you like no other, designed to provide financial savings to customers who chalk up high monthly mobile phone bills.

It is the only Citibank credit card that lets you talk for less with Celcom Malaysia. It allow you to get cash rebates and earning extra rewards points each time you use your phone or citibank celcom credit card.

Key Benefits and Features:
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5% additional cash rebate on CELCOM bill for payment made through CITIBANK One Bill

Special Rewards Program:
RM1 = 3 reward points for CELCOM bill payment via Citibank Celcom credit card
RM1 = 1.5 reward points for non CELCOM purchases using the Citibank celcom credit card

Zero Entry Cost:
New CELCOM Malaysia Subscriber - Waiver on upfront payment fee (1 month plan rate) and Waiver on connection fee RM50.
Existing CELCOM Malaysia Users -Waiver on switching plan fee, RM 10
New Citibank Credit card Customer -1st year annual fee waiver

Greater Payment Convenience:
CITIBANK One Bill Service, ensure timely payment of bill SMS reminder on mobile phone bill with payment option

Protection:
Free Celcom SIM Card Rescue Service, RM36 p.a.
Free Celcom SIM Card replacement, RM 50
Zero lost Citibank Celcom card liability, 1 hour card replacement by Citibank

Redemption Program:
5,000 Reward Points (Valid for 6 months) - 1,000 SMS (Celcom to Celcom) or 300 SMS (Celcom to other network) or 4,000kb Internet Browsing or RM 25 cash rebates on phone bill
2,000 Reward Points (Valid for 3 months) - 300 SMS (Celcom to Celcom) or 100 SMS (Celcom to other network)

Privileges:
Citibank World Privileges, 25000 merchants worldwide
Easy Payment Plan
Advance Loan On Phone
Balance Transfer
24/7 Customer Services
FFL Supplementary Card (2 cards)

Target Market:
Core Target 29-35. Individual mobile phone users

Annual Income Require:
Min income ; RM 18,000

Citibank Celcom Card Credit Line:
Min: RM 3,000 Max: RM 45,000

Annual Fees for Citibank Celcom Credit card:
Basic=RM 90, Supp=RM60 (First 2 FFL)

For further enquiry or applications of this card, please email us at livingsurfer@gmail.com for your interested!

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Malaysia 'attractive' but fund managers wary

noreply@blogger.com (David CKK) — Tue, 05 Aug 2008 20:28:00 +0000

BusinessTimes

Although Malaysia market valuations are very reasonable now, the outlook remains uncertain given the political uncertainties, says a Hong Kong fund manager

FOREIGN fund managers are continuing to cut their exposure in Malaysia, with most saying that while the economic fundamentals remain relatively sound, the political outlook is a big concern.

"Malaysia actually remains a pretty attractive market, but the recent political uncertainties make people like us hesitant to invest," said a fund manager from Hong Kong whose company manages some US$5 billion (RM16 billion) in the region, of which about "several hundred million" has been invested in Malaysia.

Although market valuations are very reasonable now, the outlook remains uncertain, he added.

"It doesn't help that investors are not really going for emerging markets these days, so Malaysia is not necessarily a place people need to be in right now. There's a lot of money sitting on the sidelines," he said.

The market's key benchmark index, the Kuala Lumpur Composite Index (KLCI), has shed 20.5 per cent this year, making it the fourth worst-performing market in Southeast Asia, after Vietnam (-52.6 per cent), the Philippines (-28.2 per cent) and Thailand (-21.4 per cent).

The KLCI closed at 1,148.68 points yesterday.

Political stability has always been one of the reasons foreign investors had bought into Malaysia, and, with that now being questioned, there is bound to be some marginalisation, analysts said.

Several other foreign fund managers contacted by Business Times voiced concern that the government may be too distracted by recent political developments to carry out its job effectively, especially in the implementation of development projects.

"I would say politics is the single biggest thing weighing on the market. We have been a net seller since the general election (in March)," said another foreign fund manager, based in Malaysia.

Political concerns intensified months after the general election when former Deputy Prime Minister Datuk Seri Anwar Ibrahim, now the de facto opposition leader, voiced plans to topple the government by mid-September through parliamentary defections.

The loose opposition coalition, Pakatan Rakyat, currently has 82 of the 222 seats in Parliament.

Anwar is also set to contest a by-election in Permatang Pauh, Penang, after his wife, Datuk Seri Dr Wan Azizah Wan Ismail, stepped down from her parliamentary seat.

Fund managers were quick to add that in addition to political concerns, the market's poor performance was also caused by factors such as the expectations of slower economic and corporate earnings growth in the second half of the year.

Many, however, believed that were it not for the political developments, the stock market would do much better and could possibly outperform the region.

A recent Merrill Lynch fund manager survey on global emerging markets found that more fund managers had an "underweight" stance on Malaysia last month (56) compared to April (44).

In the same period, the number of those holding "overweight" positions fell to 13 from 22.

According to stock exchange operator Bursa Malaysia Bhd, foreign investors accounted for about 42 per cent of trading value in the market in the first half of the year, compared with 37 per cent in the whole of 2007.

But in terms of foreign ownership, it was in the "low 20s per cent", compared to the "mid to high 20s per cent" last year, Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff had said.

Analysts said they did not expect political noise in the country to die down anytime soon. They believed the "last milestone" would probably be the Umno party elections in December.

"We see no quick resolution to the increasingly fragile political backdrop in the near term," Deutsche Bank said in a report early last month. It expects the KLCI to fall to 1,060 by the end of the year.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

Thailand advertisement - Important of Protection

noreply@blogger.com (David CKK) — Tue, 05 Aug 2008 20:15:00 +0000

Home Loan Review - OCBC Graduated Home Loan

noreply@blogger.com (David CKK) — Tue, 05 Aug 2008 18:59:00 +0000

OCBC Graduated Home Loan

OCBC Graduated Home Loan is designed to meet the financing needs of borrowers by servicing lower monthly installments which will gradually increase over the first 5 years in tandem with the borrower's income stream. The installment from 6th year onwards will remain until the rest of the financing tenure.

Product Features
OCBC Graduated Home Loan is a daily rest interest calculation term loan that comes with the flexibility which allow the borrowers to make prepayment and redrawal of the excess payment made. Redraw is only available upon full release of the loan. This scheme is applicable to graduates who hold a Diploma or Degree with a minimum age of 21 and maximum entry age of 35 years. The applicants must either be with the same employer for 1 year or have been working for at least 2 years. For joint applications, at least one of the applicants must be a graduate in order to qualify for the OCBC Graduated Home Loan.

OCBC - Interest Rates Option - NZEC (As at 30.04.2008)

Fixed Rates

3 Years Fixed Rate: 4.88% (Yr 1 - 3), BLR - 1.55% (Thereafter)

5 Years Fixed Rate: 5.68% (Yr 1 - 5), BLR - 1.55% (Thereafter)

Variable Rates

BLR - 2.00% (Yr 1 - 3), BLR - 1.75% (Thereafter)

OCBC - Interest Rates Option - ZEC (As at 30.04.2008)

Fixed Rates

3 Years Fixed Rate: 5.88% (Yr 1 - 3), BLR - 1.55% (Thereafter)

5 Years Fixed Rate: 6.18% (Yr 1 - 5), BLR - 1.55% (Thereafter)

Variable Rates

BLR - 1.50% (Yr 1 - 3), BLR - 1.65% (Thereafter

OCBC Graduated Home Loan provides 90% margin of finance for all landed properties and 80% margin of finance for non-landed properties except for the following locations - Wilayah Persekutuan, Petaling Jaya and Penang Island, which is at 90% margin of finance. It also offers different packages; giving the borrowers the choice of variable and fixed rates packages. The package comes with the option of Non-Zero Cost (NZEC) package and Zero Cost (ZEC) package that covers legal fees, stamp duties, disbursements and valuation fees in connection with the loan. The minimum loan amount for the OCBC Graduated Home Loan, ZEC package is RM100,000.

For completed properties, the minimum loan tenure is 5 years and maximum loan tenure is 40 years or up to age 70, whichever is earlier. For under construction properties, the minimum loan tenure is 5 years and maximum loan tenure is 36 years or up to age 70, whichever is earlier. OCBC uses the debt-to-service ratio (DSR) whereby Employees Provident Fund (EPF) and taxes are deducted from the borrower’s gross salary. The housing loan must not exceed 40% of the borrower's nett income.

For the NZEC package - If the facilities are redeemed within the first 5 years of the loan, there prepayment charge is 3% of the amount prepaid (including capital repayments) and the outstanding amount redeemed or RM 5,000, whichever is higher.

For the ZEC package – If the facilities are redeemed within the first 5 years from the loan, the prepayment charge is 3% of the amount prepaid (including capital repayments), and the outstanding amount redeemed or RM 5,000, whichever higher + Administration Fees (as listed below).

Admin Fees : Loan Amount
RM 05,000 : Up to RM 500,000
RM 10,000 : RM 500,000 & up to RM 1,500,000
RM 15,000 : RM 1,500,000

What's good about it?
OCBC Graduated Home Loan is a term loan that commensurates with the borrower's earning capacity. It provides a graduated monthly repayment scheme with lower monthly installments for the first 5 years and longer loan tenure (up to 40 years or when the applicant turns 70, whichever is earlier).

The affordable start-up repayments is useful for applicants who are earning lower income in their initial years of their career as they will service lower monthly installments, hence making it more affordable. The repayment structure frees up cash for home-buyers in the first 5 years of buying their property. With low monthly installments, borrowers can use the extra funds to renovate their new home, or buy new furniture.

With the built-in flexible repayment feature, borrower can make capital repayments even during the low initial monthly installment of the first 5 years. No notice is required and no penalty charged.

Limitation
To qualify for the OCBC Graduated Home Loan, applicants must have at least a recognized diploma. Also, applicants' age must be 35 years and below.