Friday, April 13, 2012

Simple Comparison between Fixed Deposit Placement vs my MAAKL Mutual Funds

I was doing a simple calculation and comparison for the RM5K which I invested in MAAKL Dividend Fund and MAAKL Al-Fauzan Funds in the middle of year 2007. If the RM5K still sit in my bank fixed deposit, by now, my capital will be RM5,796.37 (assuming 3.0% annual interest). The calculation as below:
YearCapital (RM) Interest (RM) New Capital (RM)
Year 1 (2008)    5,000.00        150.00          5,150.00
Year 2 (2009)    5,150.00        154.50          5,304.50
Year 3 (2010)    5,304.50        159.14          5,463.64
Year 4 (2011)    5,463.64        163.91          5,627.54
Year 5 (2012)    5,627.54        168.83          5,796.37

But, because I invested the RM5K in MAAKL Dividend Fund and MAAKL Al-Fauzan Funds (RM2.5K for  each fund), I earned additional RM2,254.03 (based on unit price as at 12 Apr 2012). The fund details as below:
No Fund Name Units Unit Price (RM) Estimated Value (RM)
1 MAAKL DIVIDEND FUND 10,010.63 0.3772 3,776.01
2 MAAKL AL-FAUZAN 9,830.46 0.3538 3,478.02
Total (RM) 7,254.03
Note: Unit Price as at 12 Apr 2012

I am happy for the return on investment for both of my MAAKL Mutual Funds. There were times when I was thinking to sell off these funds, but at the end I convinced myself to give a minimum of 5 years for both funds. Again, of course, fund performance varies from time to time. And always understand and aware that for unit trust investment, there are risk involved. For fixed deposit, the risk is very minimal.

Hope the above illustration can provide some insight for those who are still thinking whether or not to transfer your fixed deposit to unit trust investment. If the fixed deposit are additional cash which you are not going to use for the next 5-10 years,  you can consider to invest in unit trust. Again, as a reminder, there's always risk in investment. Higher risk but higher return. Think about it, make your own decision and be responsible for your own decision.

Monday, April 9, 2012

3 Retirement Stories

Last night I was reading this article Life begins after retirement by The Star Online. There are 3 retirees, each with their own story. I am impressed with the first story of Mr Yap who went for his law degree after retired as a school headmaster. And now, he's an advocate and solicitor. I am impressed with the courage and determination shown by Mr Yap. 

For the second story of Mr Lee, I guess this is quite normal in our society especially now with couple getting married at older age and having children later in their life. This force retiree like Mr Lee to go back to work after retirement to supplement his family income and to support his children tertiary education. Until when all his children can support themselves, then he really retired and enjoy his life.

For the third story , a retiree who declined to be name thought of going back to workforce after retired for some time due to boredom. He said, 'it's not easy at all' to be employed again due to his age. What he meant is that the employer prefer younger candidates. I think I can understand this situation. In our country, the normal practice is - after retirement, just relax and enjoy your life.But, I believe slowly, this trend is going  to change as the living expenses increase and people find better quality of life with employment. 

Each story with its own lesson to be learned. I like Mr Yap story best!

Wednesday, April 4, 2012

Salary Survey By Countries

Found this interesting website, Average Salary Survey 2011/2012 where the visitors from all over the world can enter their salary information. And later can be viewed and compared with others.

Based on the website, I would like to fly to Switzerland or Australia, and work there for a couple of years and then come back to Malaysia and relax for a couples of years :) As at today (4 Apr 2012) Malaysia is ranked 71 out of 187 countries. Not bad but can be further improved. Of course we always wish for improvement, right?

Based on the website, with 1000 entries from Malaysia, the average salary is USD15300 per year, which is about MYR50K (MYR4166 per month). Hmmm... I think Malaysian who entered their salary information in this website must be from above the middle income group. Because I know most of the people I know are earning between MYR2K-MYR5K per month, of course varies between different industries, years of experience and the company they are working with. There are also those from higher managerial level with more than MYR5K, but not many. Anyway, that's just a figure and it also depends on the 1000 entries received as 4 Apr 2012.

I have friends working in Singapore & United Kingdom, and family working in Taiwan, Brunei and Australia. I think the information are quite true. A friend who works in Singapore is earning 2.5 times from what she's earning in Malaysia. For example, in Malaysia, she's paid MYR2500. In Singapore, she's paid S$2500. No wonder she's not planning to come back to Malaysia. A friend who works in Taiwan is earning about NTD80K per month. But, needless to say, the living expenses for both my friend in Singapore and Taiwan is also very high especially for their room rental or housing loan. The thing I envy them is that they have higher purchasing power and better quality of life.

Well, we look forward for a better pay scheme for everyone.

Tuesday, April 3, 2012

Direct Selling @ Multi Level Marketing (MLM) @ Network Marketing

Recently an acquaintance referred me to a well-known international direct sales company. The agent,  Ms M contacted me and said would like to meet up. She did not mentioned the company she's working with. I think she knows that 80% would reject to meet up if she mentioned she's from a direct sales company. But, through the phone conversation, I was quite confident she's from that particular direct sales. That is because the slogan and the term she used is similar to those mentioned by a cousin of mine. My cousin is a member of this direct sales company.

We met up. After chit chatting for about 15mins, Ms M opened her files and YES, my guess was right. She explained and shared her company profiles, why her direct sales company is the best and the right one. At the end, she asked me what do I think. I told her, at this moment, I have no confidence in direct sales company and the chances of really successful people is very tiny. Honestly, I really don't like to do Direct Selling or MLM or Network Marketing. This particular business does not suit me. Previously, I did joined several direct selling company but not for the sake of doing the selling but for using some of the products.

Ms M is quite persistent. She keep asking me why I have no interest to join despite all the benefits that she has shared with me. She shared that before she decided to do full time, she did part-time for about 2 years. And now, she had joined full time for 2 years already. When I asked her about her income, she said her income now is triple from what she had when she's working as a Manager with a local agency. That is quite impressive.

I am also persistent, I thanked her for the sharing and I told her I know the products and program she is selling are among the top quality. But, I am really not into direct selling. Some day, maybe I will contact her if I wish to buy those products or program from her. Anyway, I am happy to get to know a new friend.

How about you? Are in in Direct Selling or MLM or Network Marketing business? Or are you considering to join any of the Direct Selling or MLM or Network Marketing business? Well, there are really some very successful people from Direct Selling or MLM or Network Marketing business. I bet they had made a lot of sacrifice for that too. I do admire them for all their hardwork and sacrifice.

Tell me what you think of Direct Selling or Multi Level Marketing or Network Marketing business.

Monday, April 2, 2012

What To Do In My Golden Years?

The other day, I was talking to hubby about what will I do when I retired. I meant, yes, now I am working but one day or when I reach 55, I will stop working. So, what will I do?

I look at my parents, I think they are very lucky. At the age of more than 70 years old, both of my parents still enjoying their farming. They still have some thing to do. And they are still earning good money from their farm. Most importantly, they no need to do exercise as they are already exercising while they are at the farm. I believe these exercise are keeping them in good shapes.

So, among the things I wish to do in my golden years:

1) Own a nursery. I hope this nursery will be able to provide an income to support me during my golden years. I enjoy working with the soil as it reminds me of my childhood memories.
2) Own a stall that sell healthy food. Or maybe some typical local delicacies (like kolo mee) but in a healthy way.
3) Write a book about personal money management based on my own experience.

Hmm.. I used to  have a lot of wishes and dreams in my golden years, but now seems like I don't really dare to write it down here. Wait till I am quite confident, then will update again. Anyway, writing and updating my blog is definitely in my golden year to do list.

How about you, what's your plan in your golden years? Travelling around and enjoying life? That's definitely the wish of everyone in their golden years. But, you can't be travelling and enjoying life 365 days, right? 

Tell me what you think.