26 December 2011

Internal Rate of Return: Case Study: Saving Plan - Think IRR first Before Invest

Today, I am going to share some insight about the so-called saving plan and to point out some important aspects we should concern about. Besides, I will also demostrate the computation of the effective interest rate of the return from the saving plan. The two cases of saving plan are what I heard before. So, lets justify the so-called return based on IRR – Internal Rate of Return calculation:

For this ‘Plan’, all you need to do is to save 28,000 annually for 10 years. In between these years, you will ‘receive’ some cash return as shown in the cash flow below (case 1): 3,600 for first three years, then 8,400 for the consecutive years until the mature date.

23 December 2011

MMODE (0059): Employee Share Option Scheme (“ESOS”) 2011

Here is some of my homework of MMODE (0059). It may consist of mistakes due to human errors. So, don't take it so serious and please let me know. Thanks

According to the MMODE annual report 2010, the ESOS of MMODE actually have been given out since 25 April 2005

"Proposed employee share option scheme of up to ten percent (10%) of the issued and paid-up share capital of M-Mode ("Proposed ESOS")" which is around 96,267,000 x 0.1 = 9,600,000 shares

After given a bonus 1:2, total issued shares became 144,400,500 (2006) compared to 96,267,000 (2005).

22 December 2011

Happy Winter Solstice (Mid Winter Day) 2011 冬至快乐 + Some Thought


It is good to have family members and friends get together during this special season. But the unlimited money always costs lots of our limited time in our daily basis.

Life is short. Enjoy more priceless pleasure. Yes, it is priceless and costs you nothing but your precious time.

So, what do you want from your priceless time? To exchange it to priceless happiness or priced pleasure? It is up to you. No one force you to have a big car, branded bag, slim and fit body, etc. This is only our personal desires to show off.

As always, human's weakness: Fear and Greed.
Fear to lose face so buying expensive (but always useless) things to show off in front of others.
Greed, buying discounted things which is always useless at the end.

So, conquer your fear and greed, you will achieve better life everyday.

20 December 2011

8 Things I Have Learnt and Experienced from a Virtual Game (Dragons of Atlantis) : Appreciation Create Fulfillment and Happiness Life

Yesterday, I suddenly realize and understand the reason why appreciation make our life more pleasant and contentment after playing a virtual game (Dragons of Atlantis) in Google Plus for around two weeks.

My journey of Dragons of Atlantis is stated as follows:
“Initially, I was given 7 days protection to build my “virtual empire”. So, I was very excited to make my “empire” stronger before the end of the protection. After having a small group of army, I tried to attack other players to obtain more resources to enhance my “empire”. Everything was nice since no

15 December 2011

Financial Management: Introduction - Risk Management - Investment, Insurance, Commodities and Cash

Personally, I think Financial Management is a combination of Risk and Investment Management. Risk management help us to hedge the unexpected potential risk in our life. Investment Management, on the other hand, assists us get rid of being victim from inflation and subsequently grow wealth from it.

Risk Managment
There are three main types of unexpected potential risk in our life is Death, Accidents and Illness. Luckily, all of them can be hedged by buying a Personal Accident and Medicate Card Insurance. But please bear in mind that the total sum of payment for risk management should not more than 20% of your salary. Besides, the sum of insured should be based on each individual needs. For instance, Person A want to save 100K money for his son educational fee after 10years. To avoid those unexpected potential risk during these 10 years saving plan, Person XXX can buy total sum insured of 100K annually for death benefit to hedge the risk, which normally only cause few hundred annually. Another example is if Person XXX has a housing mortgage of 200K, he also better to buy a Personal Accident Insurance with total sum insured of at least 200K to avoid this mortgage will be a burden if unexpected potential risk happens. Again, yearly payment for such insurance normally only costs few hundreds.

10 December 2011

Life Insight: Appreciate Your Time with Your Kids

Life is strange.

When children are still young and want to stick with their parents;
Parents are busy to earn money.
When parents want to accompany with children;
Children are already used to the life without parents;
So they are normally closed to their peers instead of their parents.

Ask yourself:
Are your children really need a iPhone or luxury car or house to have a better life?

Need or want?

Understand them, distinguish them, your life would be different.
That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. So, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage.

Written by: Xaivier Chia

06 December 2011

Internal Rate of Return (IRR) -The Trick of Monthly Installment with Low Annual Interest Rate

Annual Interest Rate: 8%
Amount of Loan: $10,000
Annual Interest: $800
Total load (plus interest) = $10,800
Divided by 12 months,
monthly payment: 10800/12 = $900

Does it look like very usual for you about your monthly installment plan?

Be careful!!