30 March 2012

Insurance Saving Plan: "pay" 6 years and "cover" 20 years - Personal Experience Sharing

Finally, my "pay" 6 years and "cover" 20 years insurance was matured last year. Let me summarise what I receive from this so-called "Education/saving plan" in this article.

Background:This insurance was bought 20 years ago.
Premium around RM330* annually.
Sum of insure is RM10,000.00.
Purpose: A gift from my parents for my education (supposedly).

Problems:In the 15th year, I was too free, so I bring the insurance policy to the insurance company to ask some questions. But I had been informed that this insurance was going to terminated if the Surrender Cash Value became negative (Surrender Cash Value = Total Cash Value - APL ).

25 March 2012

Who are investors? Time, Money, Knowledge and Skills

Answer: All people are investors.Yes, we all are investors. The differences are what we invest and why do we invest?

All of us have time, do you?
Some people invest their limited time to 'earn' unlimited things, such as money, knowledge, confidence, and status;
Some people invest their limited time to 'exchange' priceless things, such as true love, true friendship, true kinship;
And some people even invest their limited time to 'gain' temporary pleasure, e.g. drug, violence, and sabotage.

21 March 2012

Online Car Advertising Service Provider in Malaysia: Get paid to drive your own car daily

In this new era, there are many ways to make money. We can use almost everything around us to make money. Generally, people use their time or skills to earn money (i.e. active income). Passive income, on the other hand, means the money will “flow” into our pocket even though we do not do anything for them. The things that can help us to generate passive income are the so-called assets. For example, a house or land can be rented out for monthly rental income, a company’s share that gives dividend etc.

However, do you know that your vehicle (e.g. car, van, bus, truck) can make money (generate passive income) as well? Please don’t get me wrong, I am not asking you to be a taxi driver. Instead, I would like to introduce a useful website that could help you to “transform” your vehicle from “liability status” to “asset status” in your “balance sheet”.

Get paid to drive your own car daily?
Yes, it is possible to make money while driving your car on the road daily. But, first and foremost, you need to find someone who wishes you to drive your car on the road daily.

20 March 2012

How to do Home Work Before Buying an Insurance or Saving Production: Common Mistakes & 5 Important Considerations

Firstly, after a very impressive / attractive introduction / explanation about a particular (limited) saving or protection or insurance plan from your (closed) friend or relative, all we should do is to require a sample contract for further study before making any decision.

Common Mistakes
Yes, the agent is your trusted (closed) friend / relative and you should unconditionally support him or her. But please think twice, an insurance plan is a whole life planning, and it deserves your full attention. And you should only support them by buying a suitable product for yourself or your family. Whole life plan means you are required to pay the premium annually until the termination/maturity date of a particular plan. Any early termination of any agreement / contract can cause pain in your financial status. Therefore, we should spend enough time in this kind of whole life (or long term) plan product.

15 March 2012

The Importance of Grow, Dividend, Long Term Period in Stock Market Investment

In any investment, reasonable growing and return are two very crucial benchmarks we should consider about. For stock market investment, the grow can be the grow of a company we have invested. The return should be in terms of dividend for long term investment, generally.

Now, let me give you an example about how grow multiply to dividend equals wealth after few years.

Company A:
Dividend payout 20%,
Growing rate 20%,
Investing period of 5 years,
Entry point is dividend yield (DY) of 5%: Market price: $0.40
EPS of 0.10
Dividend of 0.02

10 March 2012

Insight: Is Fast always better than Slow in investment?

"... teaching a fish to walk; a bird to swim; a dog to fly...."

Maybe Fast is commonly recognized better than Slow. But, is the reality the same? I don't know. Maybe it only got suitable or not. If you want to drive  F1 race car, please keep fast. But if you want to walking, please walk carefully. Both of them have their own  pros and cons.

Driving F1 race car
-You can reach your desire destination faster and even reach some places who walks never reach.
Potential risk:
-You may not able to full control the car movement if the speed is over of control.
-You cannot enjoy the atmosphere along the journey because you need to focus your drive in such fast movement.

05 March 2012

Don't Save Your Money Before Read This: Money, Currency, Inflation and Investment

Firstly, we should understand what is money. Money is a currency which we use to exchange some things we want. Money is a replacement of barter system. This is because the latter system is no convenience and hardly to be implemented fairly. For example, how many fish can be exchanged to a chicken? And how can you carry out those chichens to the market for bartering?

Next, what is inflation. Inflation is an effect that decreases the purchasing power of every dollar we have from time to time. For instance, one dollar in ten years ago can buy a fish or a chicken. But now, a fish or a chicken will probably cause you five dollars. It is worthy to highlight that the 'value' of a fish is still same as a chicken regardless of the value of a dollar. That is, you still can exchange a fish by a chicken today as you did in ten years ago in this example.

The price of one fish is $1.
The price of one chicken is $1.
Therefore, we can sell one fish to exchange $1, then use the $1 to buy one chicken
After 10 years (1990):
The price of one fish is $10.
The price of one chicken is $10.
Now, we can sell one fish to exchange $10. But since the price of one chicken is also $10, we can only buy one chichen after exchange (sell) one fish for $10. In short, the value of one fish equals to the value of one chicken is still the same as last 10 years, regardless the change of the value of the currency.