Malaysia’s Financial Blogger | imDavidLee.Com

Invest Based On Your Risk Appetite

Most of the people can create income, but what about preserving income? I can see most of the people nowadays only know to spend money but do not have any idea to save money for future usage. Yes, you must have your own savings as well, then you can grow your saving and turn it into investment.

To invest, it is depends on your risk appetite.

Unit Trust

Apart from being a software engineer, I am also a loyalty unit trust investor of Public Mutual Berhad. I have personally invested in unit trust, and my returns are good for a short period of time.

Different between ASB & Unit Trust

I have invested in ASB also but do you know what is the different between ASB and Unit Trust?? These 2 are not a short-term investment. ASB payout is about 6.8% only and you need to keep it there for a year. It is a close ended, and you buy RM1 and sell it at RM1, it just pay you the dividend. Whereas Unit Trust is an open ended and you can buy RM1 and may be will sell it below the initial price.

Stumble it!

Mortgages

Generally, mortgages are an agreement that serves as security for the repayment of loan. This actually will give comfortable to the lender as they may feel more secure rather than trust someone blindly.

When you are on mortgages then the ownership cannot be transferred to someone else. So, before make a commitment, better think twice and get as much information as you can.

Besides that, you also must know that different company will offer different interest rate for mortgage loan. In some country, interest may be fixed for the whole life of the loan but it may be variable also, and can be changed at certain time period. It is important to ensure that you always have the best mortgage rate, and therefore pay the least interest. If you can take 0.01 percent less then you may have huge savings in future.

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My 1st Online Income

Yeah! Previously, many people concern about me whether I have any progress with doing the Internet stuff in order to generate some extra income. At that time, I only build up my networking relationship and traffics but this time I have proven the way of making some bucks from Internet.

Although the amount that I have earned is not much but I felt quite happy with it since it is not the 1^st time earn money from Internet but also can earn 3 times (Because im earning USD while im spending in Ringgit Malaysia). Hopefully can make more and more in future! Now waiting for next month income…Definitely will be more since putting in lots of effort!! Haha…

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US Economy Recession

Back to 97/98, we know that there is no US recession but actually is our Asia’s biggest hit on recession. US recession only comes in 2001 due to the sub prime mortgage issue and it slows down our economy also.

How will it affect Malaysia in terms of:

- Jobs

- Economy

- Stock Market

Job

Generally, the toughest part in recession is out of job as production doesn’t need to sustain the additional cost in maintaining job progress. It’s because demands will become lesser and minimizing the burden is a wise choice for companies to sustain.

Btw, the top of management is usually the first to go during bad times. Why? Because it’s cheaper to hire 2 or 3 people than to sustain. So meaning to say that you’re good than you’re safe in this hard cruel world since potential employee can bring good progress to the organization.

Micro electronic sector is the most affected since that is what we export to the US markets the most. It would definitely affect internationally as you know if US stops or reduce importing, its’ trading partners will suffers. Thus, anything happen in US is reflective in other country.

US economy is in unstable currently. It may not a good news for those people making money from internet (like me) since exchange rates of USD quite low. We should stop quarrelling about recession since nobody knows when it’s going to happen. The important is work hard and smart to make yourself indispensable to your employer. Switch company if you don’t see much prospect in your current career.

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Tactics of Income Tax Reduction

Although im not an accountant or tax auditor but I still want to share my thought with you all on how to reduce taxes without breaking any laws. First of all, it is determined by whether you are a fixed income earner or running own business.

If you are under employment, then you can increase expenditure by:

- Buying life insurance, educational insurance, and medical insurance

- Buying share

- Buying educational books include magazine subscriptions with the condition that self-improvement book only will have such relief. It means if it directly can improve your job service. For example, if an engineer buy accounting book, and then cannot get that relief.

- Getting married, and have lots of children

Or increase your assets by:

- Buying vehicles, hand phone, property

- Buying computer RM3, 500 instant rebate but I think is for every 3 years (This is New Announced Budget, before that is RM500 for every 5 years)

Here is my summarized table of tax payable based on the chargeable income:

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