Monday, November 17, 2014

Investment Portfolio

Should have start thinking what the way of earning additional income is instead of solely depends on my poor little paycheck.

Well, by starting some simple writing and post it on blog maybe? Hei, that wasn’t helping for earning extra income! Ya,  I m just a attention seeker…. Haha!!

Well, giving ideas on how to invest might some way help others? That still aint wont help you earn anything! So, it is just some sharing, for me future biography maybe?

Ok, I have started my investment portfolio since… err… 2007 maybe? Though that time my investment was under my mum’s account. So, until today I can consider myself a 7years old investor, not an amateur yet far from being a professional I guess?

So, what’s my investment portfolio return? You are nothing if you are unable to gain a handsome profit from your investment right?

So, here it comes...

The biggest profit and fastest profit I managed to earn thanks to “FABER”.

Bought 2,000 unit at the price 1.58 (15/05/13) = RM3,160
Sold 2,000 unit at the price 2.55 (14/08/13)     = RM5,100
Inclusive dividend payout of          RM150      = RM5,250 (net gain RM2,090, 66% return)

Well, handsome enough for getting 66% return over the 3months period?

I could have considered myself lucky to earn fast profit within a short period. To be honest, I was targeting the price up to RM1.98 (25% return) by the year end of 2013 and sell it.

To be surprise, the luck came close to me as FABER decided to buy over PROPEL from UEM under the Khazanah National initiative to merge their asset management entity under one roof. This kind of surprise wasn’t come so often.

As to date, FABER has completed the merging and their revenue expected to be heading north. (Price 2.98 as at 17/11/14, 52weeks highest 3.73, lowest 2.53).

The capital was provided by my mum as the upfront payment for my new car. So, I gained more than she was expected. In the return, she was paying less for my car downpayment, what a win-win situation.

Things should be started with something interesting right? Is that excited you enough?

More to come in future…

Written on 7.15pm 17/11/2014

Honouring my obligations, settling PTPN

After 5years servicing my 1st ever loan – My education loan, PTPTN I managed to settle my debt with the aid from my mum. Finally, it comes to the end.

Thanks to the government initiative for waiver of 20% for those who are willing to settle their loan one-off under Budget 2015, my mum has offered me zero-interest installments  to settle the my outstanding balance and enjoy the 20% discount.

Although the policy has raised a big debate, but undeniable it is welcome amongst the graduates who has the capabilities to settle their debts and being rewarded for their willingness to honor their obligations. Well, it seems like not everyone else were as lucky as me, having a mum who are willing (or should said having the capacity) to help their children and reduce the youngsters’ burden. Some might even questioning those who are able to paid one off why at 1st place was granted the loan? I can’t answer for others, but in my case my mum was retired from her job and received pension from government.

 Well, the world wasn’t always fair, so just take it and move on. (I always feel unfair too why I am still a banker who earns little, but face it ok? Work harder rather than mumbling there.)

So, what has the 20% discount mean to me? Here are some illustrations:

I borrowed for my 3years degree course in IPTA.

Being charged 3% interest as I do not change to 1% flat ujrah (Repayable over 120months instalment in gradual term)
RM  3,821-38

Total amount inclusive interest


Actual interest charged to-date

Actual amount paid to-date

20% Discount

Insurance coverage



RM  48-75


As you have seen from the table above, I should have paid RM23K over the 10years period and I have paid  until to-date for 5years, with total settlement of RM18,751-02 (Paid RM7,814-80+ Final settlement of RM10,936-22). Thus, a cost savings of RM4,750-36 in calculation. However, I have made more payment than the schedule payment, thus, I believe the actual payment will be less than RM23K should I continue the payment until the last payment. That, was only a theoretical illustration.

In fact, for the amount I have borrowed RM19,500-00 plus interest charged up-to date RM2,126-52, total RM21,626-52. I have paid RM18,751-02 to settled,

Cost Saving         = RM21,626.52 – RM18,751.02
                                = RM2,875.50 (13.3%)

For the real saving I received from the 20% discount was solely 13.3%. Despite that, excluded the interest, the PTPTN has only lose RM748-98 of principal. If accounted for discounted cashflow, I believe the government has merely undertaken minimal losses only.

Of course, during FY2014 I entitled for another 10% additional discount (RM220) for monthly installments I have paid on-time. Thus, I actually does enjoy higher cost savings.

It’s fine for me being rewarded for being a good paymaster (because I am, haha!!).

Everything does has a cost, what we have borrowed we should honor and settled it. We have enjoyed the benefits; it’s time to pay back for the sake of next generation.

Just pay accordingly to your ability instead of letting the interest roll and roll.  As you have seen from the illustration, the interest charges might as high as RM500+ a year.

For those who arguing they should not charge interest for the education loan, change your mindset and put it as administration charges, it would be less uncomfortable for you.

Or, pay on time monthly, and enjoy the 10% discount, it’s almost reducing your interest in half.

Don’t ever think that someone who are able to pay installments for Car loans, Housing Loans or even using a credit card and enjoying ZPP to buy electronics gadgets or facial packages are unable to service their obligations. They can but they are just unwilling. Of course there will be argument whereby the car is meant for them to travel for working purpose. There are always excuses to cover their back. So, no point arguing for this.

Of course, there are some friends who are waiting rewards/dreaming presents from sky drop ie cancellation/waiver for PTPTN repayment. Free education at the cost of billions from taxpayer wasn’t a wise decision. Are you willing to pay a higher tax when you are one of the taxpayer (Definitely not for me, I m currently paying PCB RM30 per month and feeling imbalance already!!)?

You will definitely feel the sweetness from your hardship if you work hard enough during your university time and graduate as first class degree holder. Then, you will get waiver…

If you are not, pay the cost and you will appreciate it more. 

Every comment here is just my personal view. No heart feelings...