Thursday, May 30, 2013

Update: Gold Price Outlook (May 2013)


Would you cut loss? Would you cost averaging? Or, would you accumulate at current level? These are a few questions from Gold investors since March 2013. What a difficult questions to answer... Here is our view on gold prices currently:


Our answer is to cost averaging or accumulate now, and hold it at least until September 2013. Why? Let's read on...

Lately, there is some good signs which favors gold prices in the short term:
  1. Federal Reserve chairman signaled records stimulus will continue until economy improves.
  2. Physical gold demand has surged after mid-April drops, especially from Asian consumers and central banks.
  3. US debt ceiling issue will be discussed again in September 2013, in which congressman will most likely to increase again, thus, printing more money.

If you're a technical guy, then let's look at the chart above.

A 'Double Bottom' pattern was formed and gold prices may rebound very soon. It will be a gain of almost 8% if it surges towards 1,500 level. That may not sound sexy, but, what if this occurs in June alone? One month 8% gain enough for you? Anyway, if we look at the chances of gold prices going up versus going down, which side got more potential?

Finance Malaysia blog is only giving all of you readers to have a good discussions here. Any comment?

Tuesday, May 28, 2013

Asiatiska klädföretag på frammarsch!


Jag har skrivit ett ”börstips” i LINC MAGAZINE #4 2013 med titeln ovan. Börstipset kan (snart) hittas här och handlar om två intressanta bolag som jag har följt ett tag; nämligen japanska Uniqlo och kinesiska Meters/bonwe. Dessa två bolag är båda stora internationellt fokuserade klädföretag och därmed konkurrenter till H&M.

Jag har köpt kläder hos både Uniqlo och Meters/bonwe (se bilderna) och är överlag nöjd med dem. Inte minst finner jag att dessa två märken sticker ut i mängden av asiatiska klädföretag, framförallt kinesiska sådana. Jag är alltid lika förvånad över de kläder du hittar i kinesiska ”department stores” och som oftast ser ut att höra hemma på någon av de ryska eller turkiska gatumarknader jag med glädje besöker när möjlighet ges och som är ämnade framförallt för den lokala lägre medelklassen än som konkurrenter till H&M och Zara (dessa marknader har sitt berättigande då ett par skor kostar kanske 50kr). Hur bredrandiga blå-svart-grå gabardin-skjortor och svarta gubb-bälten, ni vet de där med fyrkantiga blanka silverspännen som alla kinesiska män över 30 bär, kan sälja för uppåt 1000kr i kinesiska ”department stores” är för mig fullständigt omöjligt att förstå! Uniqlo och Meters/bonwe tycks vara undantagen som bekräftar regeln!

Monday, May 27, 2013

Do YOU understand what is "Financial Planning"?

We can't deny that everyone of us can't runaway from financial matters, thus, planning it wisely would put you on a better path to achieve financial goals as desired. Does this called "financial planning"? Hmmm... Many people think that financial planning is for high-income earner and the rich. But is this true? If not, what is it actually?


Generally, financial planning is a journey to achieve financial goals set with a comprehensive and systematic step-by-step process. It involves taking a broad view of one's financial affairs covering many areas of wealth management.

What's Included in Financial Planning?

  1. Cash Flow management:
    • assessing your current financial net worth
    • budgeting
    • debts eliminations
    • building savings

  2. Insurance planning
    • ensuring that our assets and family are well protected by having adequate insurance coverage

  3. Investment planning
    • this is the wealth accumulation step, whereby investing a portion of your savings with the aim of getting a higher return.
    • an investment strategy is needed to ensure greater success

  4. Tax planning
    • this is an area largely ignored or forgotten by most tax payers
    • it involves strategies to optimize our income, including from investments, by legally minimizing the tax payable.

  5. Retirement planning
    • this is crucial to ensure that your golden age won't be miserable
    • start planning as young as possible, the better

  6. Estate planning
    • writing a will is the most common steps in this stage
    • ensuring that your estate will be passed on to your beneficiaries, as you desired, smoothly and to avoid family disputes

The 6 steps of financial planning
According to licensed financial planner, Alex Yeoh (email: alexyeoh@vka.com.my), a solid financial plan should be more than just buying an insurance plan or having some unit trusts. It should cover 4 key areas, namely wealth management, wealth protection, wealth accumulation and wealth distribution.


The next question is: "Who should you sit down with to discuss financial planning?"

Stay tune for more...

Monday, May 20, 2013

EPF Rules on Nomination (MUST Read)


There is a chain email spreading about some EPF rules, that makes members worry such as below:

If ONE of your nominees in the EPF nominees list dies, automatically the whole arrangement (EPF Nominees list) is VOID. Meaning if, you only put in ONE name & unfortunately he/she dies before you? Automatically EPF will channel your EPF money to trustee of AMANAH RAYA upon your death.

Upon surrender to trustee of AMANAH RAYA, your children will have to battle the money through 3 channels;




  • Majlis Agama
  • Pejabat Tanah
  • Mahkamah


Is it TRUE ???

According to EPF, if a member has more than one nominee, and one of the nominees dies during the member’s lifetime, ONLY the portion that was bequeathed to the deceased nominee will be invalid.


Should the member later dies without updating his nomination, the other nominees will receive their portion accordingly. Only the portion that was bequeathed to the deceased nominee will be subject to procedures under ‘EPF savings without nomination’ in which the first priority for the right to claim the member's savings goes to the nearest next of kin or the appointed administrator of the deceased member’s estate.



Therefore it is NOT TRUE that if you, as a member, have named more than one nominee, the entire nomination will be void if one of the nominee dies before you. It follows however that if you have named only one nominee and he or she dies before you, the nomination will be void unless a new beneficiary is nominated.



What to do if one of the nominees dies, and I want to change it?

Please note that you DON'T have to produce the death certificate of a deceased nominee to change your nomination. You can change/update your nomination anytime by simply completing a new KWSP 4 (AHL) Form. This will automatically revoke any earlier nomination made.


What if BOTH member and nominee dies together / NO nomination ?

Depending on the amount of savings in the member’s account, if there is NO nomination the procedure will be as follows:



If member’s EPF savings < RM25,000:

  • Initial sum of RM2,500 will be paid to the next of kin.
  • The balance will be paid after a two-month period from the date of the member’s death.


If member’s EPF savings > RM25,000:

  • Initially a sum of RM2,500 will be paid to the next of kin.
  • The second payment (not more than RM17,500) will be paid to the next of kin after two months from the date of the member’s death.
  • The balance of the savings will be paid upon submitting the Letter of Administration/Letter of Probate/Distribution Order/Faraid Certificate from the party that administers estates such as Amanah Raya Berhad or the Court or the Land Office, respectively. The process to obtain these documents is time consuming and certain fees will also need to be paid. On the other hand, with nomination, no fees need to be paid.



As such, this is precisely why nominating is very important. You should also ensure that you update your beneficiary whenever there are any major life changes such as marriage, additional new members or the death of a nominated beneficiary.



Source: EPF

Sunday, May 19, 2013

So you want to be a DIY gonzo financial activist? The Heretic's Guide has arrived!

My new book, The Heretic's Guide to Global Finance: Hacking the Future of Money, is now officially out, published by the superb Pluto Press. Boom! I've set up a dedicated page for it here, and a Facebook page for it here.

3 THINGS YOU WILL LEARN FROM THIS BOOK
After reading this book, you will be an ass-kicking financial fighting monk on a mission to hack the future of money. The book uses a unique three part structure to achieve this:


YEAH, WHATEVER
Part 1: Exploring
This is where you learn the wiring under the bonnet of the global financial system. You'll see the circuitry of investment banks, commercial banks, institutional investors, hedge funds, and private equity funds, and explore investment processes, trading culture, and much much more as well.




INVESTMENT BANK
Part 2: Jamming: This is the part where we learn how to bend the circuits of global finance. I cover how to destabilise investment cases in damaging projects, how to uncover information in opaque corporate structures, and how to design your own subversive hedge funds of dissent.






FINANCIAL FUSION
Part 3: Building: If you're going to bust dams, then you better build canals too. In part 3 we get creative and look at how to start building alternatives to channel money in positive ways. You'll explore alternative currencies, P2P, co-operative systems and open source finance, and learn what insights Jimi Hendrix offers us about the path forward to a more democratic financial system.



    3 THINGS PEOPLE ARE SAYING ABOUT IT
    Just is case that doesn't get you excited, take a look at what my three endorsers are saying.

    Bill McKibben, the epic, inspiring environmental warrior who started 350.org, says: 
    "This is an imaginative, even exuberant exploration of the daunting world of finance - it will unleash a generation of activists, and do a world of good."



    Ha-Joon Chang, the irreverent, ass-kicking Cambridge economist who wrote 23 They Don't Tell You About Capitalism, says: 
    "This book provides a unique inside-out look at our financial system, based on the author's unusual personal adventure. It not only provides us with a user-friendly guide to the complex maze of modern finance but also tells us how to utilise and subvert it for social purposes in innovative ways. Smart and street-smart."

    Tony Greenham, alternative finance guru with the awesome New Economics Foundation, says:
    “Money is power, but so too is knowledge. Tinkering with regulation will not change the world, but empowered citizens just might. Brett Scott’s entertaining and informative book is brimming with good ideas on how we can engage and change global finance on our own terms.”



    3 WAYS YOU CAN HELP ME OUT
    Pluto Press is a bold, independent publisher, which firstly means they produce great books, and secondly means they're not a global corporate megalith with a massive marketing budget. Any help that you can give Pluto and myself promoting the book is thus vital and would be much appreciated! Here are three things you can do:
    • Please can you help share this on Twitter: Here's a tweet you can retweet if you're short on time
    • Please like the Facebook page, and share it with you friends
    • Please email this blog to 1 friend who you think will appreciate it - you can find an email button at the bottom of this post

    And if you feel like ordering it ;)
    You can order it directly from the publisher, or from Amazon, or if you're feeling creative, you can use alternative currencies to get a signed copy (see details at bottom of page). Thanks, and I'd love to hear your feedback on the book - my email is in the right hand panel so please do contact me with your thoughts. Cheers!

    Friday, May 17, 2013

    New Fund: OSK-UOB Absolute Return Fund

    With market continuously rotating between "risk-off" and "risk-on", an absolute return mandate with the adoption of a dynamic asset allocation approach would be a good vehicle to ride out the volatility. With the fixed income market having outperformed over the last 5 years, there is a high possibility that good quality equities - those with earnings growth and clarity supporting healthy dividend payouts would find favour.


    This is a wholesale fund which aims to achieve medium to long term (3 - 7 years) capital appreciation through investments in equity and equity related securities of companies, and exchange traded funds with the potential to deliver total return in excess of the fund's benchmark return (8% growth per annum).

    Investment Strategy
    Asia Pacific region (excluding Japan) will the focus of this fund, either through equity or equity related or exchange traded funds. The manager views the region as a vibrant economic growth region supported by factors such as favorable demographics, improving per capita incomes, positive foreign direct investment flows, and vast natural resources.

    The strategy is to identify such investment opportunities in its early phase and select companies with strong fundamentals and attractive valuations to capitalize on its growth. Undervalued securities are uncovered through intensive and independent fundamental research.


    A Barbell approach - buying dividend yielders coupled with growth (and cyclical) & value stocks would provide a combination of steady cash flows and capital appreciation. This new fund to some extent would allow the portfolio managers to focus more on stock picking without ignoring developments at the macro level.

    Meanwhile, the fund's asset allocation is totally flexible between equity and fixed income / money market, depending on economic conditions.


    Tuesday, May 14, 2013

    A Malaysian Guide to Home Buying Fees & Charges

    Like any other country, buying a house and taking a home loan / mortgage in Malaysia involve legal fees & charges - which many people fail to take into consideration especially when they’re buying a property for the very first time.
    So to all Malaysians buying your dream houses right now, allow iMoney to show you ALL the fees and charges involved when you buy a house or apply for a home loan.




    Friday, May 3, 2013

    13th General Election and the Property Market


    General Election is coming. One of the hotly debated topic would be the escalating house prices and the needs to provide more affordable houses to Rakyat. In line with that, iProperty.com has done a survey on "The 13th General Elections and the property market" with 2275 Malaysians respondents. What did they said?


    iProperty.com Malaysia  -  #1 Digital Property Advertising Business in Malaysia


    Created by Iproperty MY, the number one website in Malaysia. Whether you have a house for sale or are looking to buy.

    Thursday, May 2, 2013

    3 Possible Election Outcome & Share Market Reaction

    * Note: This is NOT a political post. Instead, we're talking about share market movement based on possible election outcome. Abusive comments are strictly prohibited and will be remove automatically.

    Local investors have been staying sideline for months ago. Do you started to feel itchy now? Honestly, this is the feeling of mine as an investor, from being active to passive lately. I can't wait to start investing again in share market. However, we shouldn't simply jump in next Monday, right? Let's see the 3 possible election outcome and how market may react accordingly...

    OUTCOME #1: BN retained power
    Judging by the strong influx of foreign funds flooding local share market prior to election, this is definitely their expected outcome. If materialize, Monday market generally will rally. However, I expect this kind of rally will be short-lived, and turning downward after that. Why? Simply ask yourself these questions: When is the better time to take profit if not that time?


    OUTCOME #2: Opposition Alliances won
    Many people predicted that market will react negatively to this kind of election outcome. It's not strange. Anyway, once all the worries have settled down, new cabinet was formed, share market will recover. So, an U-shaped rebound is my bet.

    OUTCOME #3: Almost 50/50 for Both
    This is the worst outcome for share market. A hung parliament does not bode well for the nation. In this situation, very likely, elected assemblyman may jump-ship to another coalition vice versa. So, share market very likely will through months of instability. Dead share market was expected.


    Even said so, Bursa Malaysia will definitely still be operating, not as published in one of the advertisement by political party. Hahaha. It's funny to see that kind of advertisement.

    Wednesday, May 1, 2013

    The 3rd Way of Shopping ?


    Most probably you are reading this while shopping, waiting for your wife/girlfriend trying on a new dress or shoe? Congratulation... You're never be more relevant to read this article. Wait, what is the 3rd way?


    1st way ---> Cash

    2nd way ---> Credit Card
    3rd way ---> ???

    Introducing the NEW concept of shopping...


    The whole idea behind 3rd way is to promote responsible shopping within our community. With proper planning, you can avoid spending all your cash on the item you want.


    Instead, you can shop and be rewarded with the interest rates from saving the extra cash reward. You can plan to spend your money for a gadgets, a journey or whatever items and get amazing deals and pay in the future, helping you to get the things you want hassle free.

    After changing the buying concept, you will arrive at an interesting question: "If shopping could be free from pain of credit and the guilt of cash, what would I buy?". Happy answering...

    Yup. This is the new concept that is similar to what introduced by Mach by Hong Leong bank such as its Dream JAR Saving account.
    What is Dream JAR Saving account?

    • To set your own golds (Samsung S4?)
    • Start with just RM50 or more plus a bit of good planning
    • Choose the period to achieve your goals in 6, 9, 12 or 18 months
    • Save the amount of money set monthly
    • Get rewarded and save more with extra cash when you complete your goal through prompt monthly deposits
    • Get (not pay) an interest of 2% p.a. on ALL balances compared to regular savings accounts which offer tiered based interest rates - calculated on daily basis

    By using the 3rd way of shopping, you don't have to worry about repayments or overspending anymore. What else? Cash rewards !!!