3 Money Mistakes That Could Cost You Millions

The great investor, Warren Buffet said, “Risk comes from not knowing what you’re doing.” And this seems to be the number one reason why the many Malaysians are unable to climb up the social ladder.

Our research reveals that the average Malaysian lose about 1.5 million during their lifetime. This staggering loss can be traced back to the bad money decisions and unnecessary mistakes made by the majority of Malaysians with their hard-earned money.

These are some of the common reasons why your income just never seems to be enough:

The truth is, the seeds of this financial disaster are planted years before their outcome. People have the tendency to make unnecessary mistakes (either taking too much risk or doing nothing to grow their wealth) which derail them from their rightful financial destiny. The mistakes often seem small and negligible, and may not even look like mistakes at the time. Hence, many do not even realise that they’re making mistakes and would erroneously continue down this path.

Here are three of the most common mistakes being made by the average Malaysians:

Mistake #1: Not optimising the returns on savings

Malaysians love fixed deposits. Most of us will use these as our de facto ‘investment’ tool but is it the right way to think? Putting RM1,000 every month (RM240,000 total investment) in a fixed deposit (FD) account for 20 years, at an average of 3% interest per annum, will net you a total return of RM329,122.75.

However, if you had invested the same amount at an average rate of return of 8% (which is realistically obtainable through various investment options like unit trusts,share trading or even with ASB) per annum, you would get RM592,947.22.

In retrospect, keeping the money in FD would have caused you to lose RM263,824.47.The outcome is even worse for those who leave their money to languish in a savings account, which only sees a 1% to 2% per annum.

Mistake #2: Paying too much on insurance premiums

It’s undeniable, life insurance protection is important, especially when you have financial dependents.

Consider these two life insurance products for a 35-year-old: term insurance for RM500,000 will cost RM1,625 per annum, whereas a whole life policy will cost RM14,225 per annum. Which should he get?

If you buy term insurance instead of a whole life policy, you will be saving RM12,600 per annum, which can be used for other investments. At an 8% return on your investment over 20 years, you will gain RM576,600!

However, by spending that amount on a whole life policy, assuming you receive the entire premium paid (RM14,225 x 20 years), you will only get RM284,500 at the end of the day. That’s a whopping RM292,100 loss!

Mistake #3: Failing to increase savings when income rises

Good money management involves increasing one’s income over time. However, it will only improve your personal finances when your savings increases in tandem with your income.

However, the depressing truth is, when an employee gets a raise, he would spend the additional money on a better lifestyle (generally known as lifestyle inflation). He or she may upgrade his/her car to a better one, get a designer handbag or the latest mobile phone or enjoy a luxurious holiday. All these lifestyle upgrades cost money up front and to maintain, and as a result, savings will be sacrificed. Instead of saving, the average person will spend the extra income.

In comparison, a person who knows how to optimise his wealth, would maintain his current lifestyle and even has increased savings instead. Assuming that he invests RM1,000 per month at an average rate of return of 8% per annum  and increase his saving by 5% every year over 20 years , he or she would be RM863,457 richer.

It is important to note that none of the ‘mistakes’ mentioned above are in itself disastrous. However, their combined and compounding effect has an irreversible damaging consequence to a person’s net worth or wealth, and eventually robbing him/her of achieving financial freedom, giving the illusion that he/she’ll never make enough money.

Every single mistake, whether big or small, will have an impact on your finances when we look at it over a lifespan. So, do yourself a big favour and scrutinise every financial decision you’ve ever made and will make. Not everyone can afford to lose about RM1.5 million in their lifetime, especially not you.           

AZMI 019-2866 957AZMI 

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Starting Smart By Starting Right: 5 Investment Tips For Beginners

If you are frustrated with the returns earned from your savings accounts, perhaps it is time you consider taking your first step into the world of investing.

Tip #1: Planning

Before you start investing, consider your:

a. Financial goals

Set a clear goal of what you want to achieve by investing. You may set more than one goal. Are you looking to grow your money or generate income? For example, are you investing for your retirement (growth), or are you looking for a source of passive income (long-term)?

b. Time frame

After you have determined your goals, set a time frame for when you would want to achieve them. From there, you can figure out the rate of return required in order to achieve your investment goals within the set timeline.

c. Risk appetite

Understanding the risks, as well as your ability to stomach them (i.e. if you lost your capital) will have an impact on your financial strategy. If you want your money to grow significantly over a shorter period of time, be prepared to invest in riskier assets to achieve that growth. However, if the potential downsides are greater, you may have to consider realigning your goals.

d. Affordability

Be realistic about how much you can afford to invest. Assess all your liabilities, such as debts, insurance premiums and living costs, to see how much cash you actually can afford to invest.

ip #2: Always start with the basics

Often times, novice investors mistakenly believe that to make real money in the market, you have to invest in individual stocks. But that’s not actually true. There have been many investors who have made their fortunes using unit trust funds (UTFs) and exchange-traded funds (ETFs), and these vehicles are a great way to make investing for beginners an easier  process.

UTFs and ETFS tell you exactly which stocks you own and in what proportions, which gives you predictable exposure to the stocks of your choice. You can also adjust your risk level as you get closer to your goals.

Although avoiding individual stocks can be a smart move for novices, there is an alternative way for beginners to invest. If you focus on stocks that tend to be less volatile than the overall market, you can get specialised exposure to stocks that have promising long-term prospects.

Types of stocks that you should look for are blue-chip stocks, those which are offered by large, prominent, stable companies with strong competitive advantages trading at reasonable valuations. In the Bursa Malaysia Kuala Lumpur Composite Index (KLCI), the top 30 companies by market capitalisation are mostly banks, food and beverage sector, and telecommunications sector companies.

Tip #3: Invest regularly to minimise losses

It is impossible to pick the perfect moment to invest in or to beat the market. You will never consistently buy at the lowest point and you will never consistently sell at the highest. We recommend you improve your chances of maximising returns by drip-feeding your money into a fund on a regular basis (once a month), rather than investing a lump sum. This is also known as Ringgit cost averaging.

For example,  supposing you invest RM200 monthly in your UTFs or ETFs. When the market is up, your investment will give you less shares. When the market is down, your investment will give you more shares (due to the cheaper price). Over time, you would have averaged the cost of those shares and accumulated more shares. When the market goes up again, you will make more money.

Tip #4: Diversify 

Most investing beginners may not be ready to put a lot of money into their investments. However, channelling all your hard-earned money into just one investment, stock or company is not the best idea either.

The best method of protecting capital is to diversify, which involves dividing up your lump sum across a portfolio and investing those portions into a variety of companies, asset classes or global markets. As some markets fall, others will rise and cancel out the losses. How you spread your money will be determined by your attitude to risk. For example, cautious investors shouldn’t invest too much in equities. Instead, opt for bonds or money market funds.

UTFs and ETFs will provide automatic diversification even if you have a lower capital. Every Ringgit you invest gets split across different stocks, protecting your portfolio against potential catastrophic events that can hit an individual stock. These are good investment products for individuals who don’t have enough assets or experience to manually create a diversified portfolio.

You are never too young to start putting away a small amount of money on a monthly basis for investing. The longer you invest, the more money you can potentially make. That is the beauty of compounding interest. Despite the possibility of ups and downs in the market, by starting to invest for example, at 25 versus 35, you will most probably end up with more money because you started earlier and were able to take full advantage of the compounding effect.

Time is a key ingredient in becoming a successful investor and maximising the benefits of compounding interest. So start smart, start right and start fast!

AZMI 019-2866 957

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Pelaburan dalam mutual fund, ASB, PRS, dan investment link produk

Pelaburan dalam mutual fund, ASB, PRS, dan investment link produk  sila hubungi

019 28 66 957 AZMI

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Pelaburan Unit Amanah Melalui KWSP Akaun 1 atau Melalui Cash.

Akaun 1 KWSP tidak boleh dikeluarkan sehingga sampai umur bersara ia boleh dilaburkan ke institut dana pelaburan (IPD) yang dibenarkan. Dan kami CWA, adalah antara syarikat unit trust yang bertapak kukuh di Malaysia dan performace dana paling outstanding di Malaysia..

Faedah pelaburan:

Dengan potensi pulangan pelaburan yang berbaloi-baloi, ia membantu membantu meningkatkan nilai modal pelaburan anda. Setelah anda bersara, jumlah wang KWSP yang anda terima adalah lebih daripada yang dijangkakan (selalunya mereka yang selalu semak penyata tahu berapa wang KWSP yang diterima setelah pencen).

Katakanlah jika anda jangka 100K anda akan terima setelah bersara dan ada 20-25 thn untuk bersara, anda harus ingat nilai 100K yang akan datang tidak sama seperti nilai 100K sekarang. Kos makin hari makin meningkat dan nilai semakin susut dan siapa tahu 100K akan datang hanyalah 30k seperti sekarang.

Konsep ini sama seperti selalu orang sebut 'kalau dulu rm1 boleh dapat macam2 kuih, sekarang rm1 hanya dapat 2 atau 3 biji kuih sahaja.'

Dengan peluang yang ada, anda haruslah manfaatkan faedah yang boleh diperolehi dengan pelaburan melalui akaun 1 KWSP ini.

Dan manfaat yang sama diterima sekiranya melabur/menyimpan melaui cash.

Jangn lepaskan peluang keemasan! Sekarang masa terbaik untuk anda menyimpan/melabur di dalam unit amanah

AZMI
tel/SMS 019-2866 957
Whatsapp/Telegram 019 2866 957
email : azmi.mdali@yahoo.com

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Melabur Unit Trust With A Return 10% - 25%

Peluang melabur Unit Trust Patuh Shariah terpilih CIMB Principal.

Dengan strategi mudah dan berkesan, anda mampu mendapatkan pulangan hebat 15%-25% pulangan setahun. Teknik yang betul mampu menurangkan risiko anda... Low Risk, High Return.

Anda ingin melabur PERCUMA dengan menggunakan EPF anda?

Perlukan khidmat nasihat dan pandangan professional secara PERCUMA?

AZMI
tel/SMS 019-2866 957
Whatsapp/Telegram 019 2866 957
email : azmi.mdali@yahoo.com

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Pelaburan Unit Trust

Berdasarkan kepada senario pasaran semasa, kami mencadangkan pelaburan dipelbagaikan ke pasaran Asia Pasifik. Pemilihan ini berlandaskan kepada kadar faedah global yang rendah, polisi kewangan yang menarik, peningkatan pasaran di Eropah & China, harga minyak yang lebih rendah yang telah membantu peningkatan pelaburan di Asia Pasifik.

Kami ingin mencadangkan dana syariah yang telah memenangi anugerah, CIMB Islamic Dali Asia Pacific Equity Growth Fund* (sebelum ini dikenali sebagai CIMB Islamic Equity Fund) yang telah memenangi The Edge-Lipper Fund Awards sebagai The Best Islamic Malaysia Equity Asia Pasific Ex Japan untuk 3 & 5 tahun dan CIMB Islamic Dali Equty Fund**. Kedua-dua dana menumpukan pelaburan di Asia Pasifik.

Pelaburan boleh dimulakan dengan 3 cara:

1. Pelaburan tunai sekaligus minimum RM500

2. Pelaburan tunai minimum RM500 & pelaburan seterusnya minimum RM200 (tetap - bulanan)

3. Pelaburan melalui akaun 1 KWSP minimum RM1,000

Pelaburan dalam unit amanah boleh mempelbagaikan simpanan anda & boleh dikeluarkan pada bila-bila masa sahaja.

Sehubungan dengan itu sekiranya anda berminat untuk mengetahui lebih lanjut tentang cadangan pelaburan ini, anda boleh menghubungi saya seperti di bawah:

AZMI
tel/SMS 019-2866 957
Whatsapp/Telegram 019 2866 957
email : azmi.mdali@yahoo.com

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CIMB - Asset Management Company Of The Year, Malaysia

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CIMB - Best Asset Manager In Southeast Asia (2010-2015)

CIMB Islamic DALI Asia Pacific Equity Growth Fund

https://smartinvestingtip.wordpress.com/2015/12/10/cimb-islamic-dali-asia-pacific-equity-growth-fund/

CIMB-Principal Global Titans Fund & CIMB-Principal Greater China Equity Fund

TEMPLETON PUTS FAITH IN MALAYSIA WITH NEW GLOBAL ISLAMIC FUNDS

November 26, 2015 —

The world’s second-largest asset manager by market value plans to lure some of the $376 billion parked in Malaysian bank deposits by setting up global Islamic stock and bond funds in Kuala Lumpur next year.

Franklin Templeton Investments, which has more than $801 billion in assets, will seek approval from the regulator to start at least two Shariah-compliant funds to serve as offshoots from the three it has in Luxembourg, country head Sandeep Singh said in an interview in the Malaysian capital last week. That would complement similar investment options available from CIMB-Principal Asset Management Bhd. and RHB Islamic International Asset Management Bhd.

The new funds will beef up choices for Malaysians looking to diversify after this year’s 17 percent plunge in the ringgi.

A looming U.S. interest-rate increase has already prompted global investors to offload twice as many stocks in the Southeast Asian nation as they did for all of last year and to cut bond holdings.

“People are looking at more international investments because the volatile currency highlighted the merits of diversification,” said Singh. “As markets get more sophisticated, it’s a matter of time before global equity and bond funds get more traction among Malaysian investors.” The San Mateo, California-based fund trails behind BlackRock Inc. in terms of assets, according to data compiled by Bloomberg.

‘Healthy Trend’
Franklin Templeton launched its first Shariah-compliant bond fund in Malaysia at a presentation in Kuala Lumpur on Nov. 19, targeted at local individual and corporate investors. It currently oversees more than $4 billion of Islamic and conventional assets in the country on behalf of institutions and high net-worth investors, said Singh.

The firm’s Luxembourg funds have been drawing interest from investors globally, he said. One of those dedicated to sukuk and another to equities have given cumulative net returns of 7.53 percent and 11.1 percent, respectively, over the past three years, according to the company’s fact sheet.

It’s a “healthy trend,” given that the availability of Islamic funds is small compared with conventional counterparts, Singh said. BIMB Investment Management Bhd., a unit of Malaysia’s oldest bank providing services in accordance with Muslim principles, also started a multi-currency global Shariah investment option this month.

source

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OBJECTIVES OF FINANCIAL PLANNING

Achieving your dreams

Someday you would like to quit your job and start your own cafe, or a boutique, or do your MBA, or tour the world. If you don't plan for these things, chances are they'll just remain dreams. You will never have the right resources to go about achieving them.

The difference between someone who plans and someone who doesn't, is that the one who plans, puts it into action, whilst the one who doesn't, just talks. You've met these people before. They keep having little crises in their lives, which they claim prevent them from doing what they want. So it is the time for you to take control of your life.

List down the things you want to do. Find out how much they cost, and embark on a mission towards achieving the right resources in order to be able to afford them.

When your mind is focused this way, you start to be aware of every dollar that you spend and earn. Does it help you achieve your goals? You will have better control of your money, and not be left with very little at the end of every month, and wondering where it all went.

Financial Independence

Can you imagine a time when you are no more a slave to money? When you can do anything you want at any time that you want? The time when you no longer have to work but have enough money not to worry about the major expenses in life, we call that Financial Independence.

It's different from retirement. You may still continue to work if you enjoy it. But your have the resources to stop working anytime should you wish to.

Financial Independence is different for everybody. It really depends on your lifestyle needs. If you can be happy with small flat, you are likely to reach your Financial Independence sooner than if you have to live in a landed property.

Financial Independence doesn't just happen. You have to plan for it. Those who do tend to achieve it sooner than those who don't.

Prudence is a way to achieve the objective

In the book "The Millionaire Next Door: The Surprising Secrets of America's Wealthy" by Thomas J. Stanley and William D. Danko, the authors discovered that the typical American millionaire does not fit the stereo-typical idea of a millionaire. Most of us would think that millionaires are characterized by their big houses, flashy sport cars and expensive jewelry. But what the authors discovered was that most of America's millionaires were average people, living in average houses, driving American-made cars. They tend to have small businesses of their own, and their lives are characterized by long working hours and a high level of prudence in how they spend their money. That's how they amassed their fortune.

So what our parents taught us when we were very young is right. If we work hard and spend little, our chances of making it is a lot higher. If you constantly feel that you need more luxuries in your life, then you may forever be asset-rich, but cash-poor, and certainly a long distance off from financial independence.

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Award winning Funds

Is EPF Alone Enough For Your Retirement?

Most people do not think about their retirement until they are approaching it. They get complacent and put their retirement planning on the back-burner from the moment they begin their career, and usually get too caught up in the rat race to remember checking this off their to-do list.

Just as Rome was not built in a single day, our retirement nest cannot be completed overnight as well. It takes many years of careful planning and discipline to save up for a secure and comfortable retirement. Therefore, it is imperative that we start planning for our retirement as soon as possible.

A key reason for placing retirement planning low in our priority list for financial security is the mistaken belief that our Employees Provident Fund (EPF) savings would be enough to last us a lifetime. But is that the truth or just wishful thinking?

Reality bites. Malaysians would generally agree that their EPF savings do not suffice if they are looking to continue with their current standard of living post-retirement.

As such, the process of saving for retirement must commence as early as possible as funds require time to accumulate. The longer we delay planning for our retirement, the shorter the time frame we have to accumulate savings, effectively limiting the compounding growth of our investment returns. This also means having to make higher contributions to our investments.

Don’t wait until it’s too late ― get started now!

PRS and Tax Relief

Simpan & dapatkan pelepasan cukai maximum RM3,000 dengan menabung PRS dengan kami. 

Sila Hubungi : AZMI +6019-2866 957

Boosting Retirement Fund

Unit Amanah Patut Syariah

KWSP VS Unit Amanah

Kenapa pilih RM200K kalau blh dpt RM500K?

Mr Ali berusia 40 tahun. Dia membiarkn wang RM100K di EPF selama 15 tahun.Di akhir persaraan wang tersebut berkembang menjadi RM239 K sedangkan Mr Abu mengeluarkan sebahagian dari Akaun 1 KWSP (100K) dengan menyimpan di Unit Amanah. 

Mr Abu mendapati wangnya selama 15 tahun di unit amanah telah berganda kepada RM547K iaitu telah nemberi pulangan purata 12%.. Woww lihatlah berbezaan compounding effect kepada dana persaraan anda.. Jom ubah.. Gandakan wang persaraan anda dengan kami. Hubungi perunding kewangan bertauliah Cimb Wealth Advisor kami..
Azmi 019-2866 957

Be A CIMB Star Club Member

Thank you for your continuous support and trust in us. It is you who has brought us to where we are today. And like any great relationships, we are committed to serving you better through your years with us. 

It is our pleasure to introduce you to the exclusive rewards that you will receive as an esteemed Star Club member.

At Star Club, our priority is you. 

We have a host of personalised privileges specially designed for your ease of mind:

• Priority Services such as dedicated priority line so that you do not need to wait in line for any information and assistance that you may require as our dedicated customer service team will attend to your queries promptly. We also make wealth management planning simpler for you by furnishing you with our up-to-date market updates and research.
• Priority Star Lifestyle to enjoy priceless experiences beyond the ordinary with our Star Club lifestyle events. There is certainly more to explore with Star Club. We believe the exclusive rewards that you are about to receive will exceed expectations and beyond.

Priority Services

Dedicated Priority Line

Puts you ahead of the queue when you call our Star Club Priority Line at +019-2866 957 for any information and assistance that you may need. 

Financial exclusivity

Enjoy exclusive financial offers and latest product promotions from time to time exclusively for our Star Club members to enable you to create, accumulate, protect, preserve and distribute your wealth. 

Dedicated Star Club member’s page

For your convenience, viewing of your monthly transaction is at your fingertips on Star Club member’s page. 

Free Insurance Coverage*

Enjoy free Group Personal Accident with Permanent Disability Insurance coverage that compensates you should you suffer bodily injury caused by violent, accidental, external and visible means.
 

Up-to-date market updates and investment outlook

Keeps you well informed on market conditions with comprehensive market research and information. 

Quarterly consolidated statements

At Star Club, we believe in simplifying account statements that will make it easier for you to refer to at your convenience. With our quarterly consolidated statements, you may now view all your account statements in one single view. 

Email and SMS alerts on product highlights, promotions and special occasions

Get first-hand information on any of our product promotions, campaigns and even receive special announcements and greetings via our Email and SMS Alert services.

Priority Star Lifestyle

Private invitation to Star Club lifestyle events and financial seminars
• Invitations to selected events that complements your lifestyle from dining, shopping to golfing.• Invitations to financial seminars to keep you abreast of latest financial solutions to create, protect and preserve your wealth.

 

Lifestyle offers

A chance to receive exclusive privileges, discounts and gift surprises on special occasion from time to time* 

Qualification for Star Club membership is based on the following criteria:

Be a Star Club member by maintaining total investment or Asset Under Management (AUM) in Unit Trust (UT) or Private Retirement Scheme (PRS) as follows:
• GOLD : RM100,000 to RM500,000.
• PLATINUM : RM500,001 to RM1,000,000.
• DIAMOND : RM1,000,001 and above.
  OR
• Maintain a minimum of RM10,000 in Insurance or Takaful premium.

How to stay as a Star Club member?

Unit Trust: 
Principal holder of UT needs to maintain a minimum of RM100,000 AUM. Members are given a grace period of 6 months to top up their investment once the AUM falls below RM100,000. 

Private Retirement Scheme (PRS): 
PRS member needs to maintain a minimum of RM100,000 savings in their PRS account. This total amount shall be deducted upon partial/full withdrawals of their PRS account. Members are given a grace period of 6 months to top up their PRS account once the amount falls below RM100,000. 

Insurance or Takaful: 
Policy or certificate holder needs to maintain a total inforced annual premium or contribution of RM10,000 and above. The total inforced annual premium or contribution shall be deducted accordingly for any lapse in the insurance policies or takaful certificates. Members are given a grace period of 6 months to reinstate their lapsed policies or certificates. 

For more information, please contact

STAR CLUB PRIORITY LINE at +6019- 2866 957 

Start Investing

Start investing! There are many opportunities to invest in Malaysia. 

If anyone is worried whether the investment is Non-Halal/Non Syariah Compliance, Not approved by Bank Negara Malaysia, Skim Cepat Kaya... Not sure...???? Then start thinking and take action, invest in Unit Trust withCWA :

- Syariah Compliance
- Potential higher return of 10-15% per annum over medium to long term investment
- Capital gains not taxable
- Professional investment services, managed by Professional Fund Managers
- Diversification of good stocks and bonds to minimize the risk
- Approved and permitted by Security Commission
- Best Asset Managers in Southeast Asia for 6 consecutive years - Islamic funds that won Best Performance funds for 3 years, 5 years and 10 years by The EDGE LIPPER Award.
- Offer wide array of investment opportunities whether in Malaysia or globally and across Asia Pacific countries.