Finance And Teachers

Compound interest has been called the 8th wonder of the world and for good reason.

Imagine you saved RM10,000 a year for 40 years and earned 7% on your money while doing so. How much of your final portfolio value is saved at which point in time?

This is what the chart above illustrates. As you can see, over half of your final portfolio value is saved in the first 10 years of savings thanks to the compound interest on those savings.

Why is this true? Because earlier payments grow to more than later payments, all else equal. For example a RM10,000 investment earning 7% will be about RM150,000 after 40 years.

But what if you invested for just 20 years? That RM10,000 would only grow to less than RM40,000. The difference is much, much less.

This is why your earliest investments matter so much for you later in life. In total your first 10 years of savings will grow to more than your last 30 years of savings, assuming you save the same amount each year and earn 7% on your money.

Why should you care about this? Because the earlier you start, the easier it is to succeed financially. This is why my best advice for young people is to save early and often.

Those earlier savings will matter far more than you can imagine. Happy investing and thank you for reading.

PRS - Private Retirement Scheme. Voluntary contribution as second retirement fund needs further development - Tengku Zafrul.

Private Retirement Scheme needs further development, impovements -- Tengku Zafrul Tengku Zafrul, PRS, Capital market, World Bank,

Pelepasan Cukai bagi Tahun Taksiran 2020

Hari ini kita lihat update investment Unit Trust (UT) nak akhir tahun 2020.

Investment setiap 3 bulan sekali withdraw, invest untuk average balik cost. Cost averaging ni kena buat betul.

Dulu time update bulan march 2020 tu baru down time Covid19 ada rasa tak berapa confident. Tapi ini peluang sebenarnya! Jadi kita masuk sikit duit tu untuk average cost dan fund yang diskaun kita beli & masuk.

Cost averaging ni bila harga unit dia jatuh kita beli, untuk kurang kan cost jika kita beli dulu tinggi. Selagi dia turun harga, kita beli. Bila recover kita untung. Jangan la kita jumpa agent cap jari sahaja tak tahu apa.

Pilih fund pun kena tahu risk appetite kita. Kalau kita ni risk taker pilih aggressive. High risk, high return. Macam fund Equity. Kalau kita risk averse, pilih fund yg low risk mcm money market tapi return dia low lah dalam 3% to 4%. Jadi ambil tahu lah sebab ni asset kita hari tua nanti.

Duit ni pun guna dari Kwsp akaun 1.

Bulan May 2020 hari tu ada tgk investment balik, tapi tak nak tgk sangat, time tu tengah baru lagi market recover bagi dia grow, ada yg cepat naik bergantung kepada fund yg kita pilih. Tak kisah sangat sebab untuk long term.

Satu lagi penting ialah pada saya bukan harga fund, tapi apa objective dan ciri fund tu invest dekat. Business tak penting sgt, sebab Fund manager boleh tukar bila dia nampak peluang.

Saya ni tak s**a invest semua dekat satu fund, sebab kan not good to put your egg at one basket. Jadi sya letak berbagai-bagai.

Semua fund yg masuk ni smua patuh Syariah. Ada yang local dan ada foreign. Yang paling naik sekali foreign Asia - China. Yang growth fund ni pun ada peningkatan banyak juga.

Most fund sini ialah Public Mutual Syariah fund.

Dapat juga lah masuk sikit time turun awal tahun haritu. Takut pun, kena ada alokasi betul baru dapat la hasil nampak prestasi dia. Bole la yg untung lebih sikit tu kita keluarkan bayar apa yg patut dulu.

Tapi yg ni masuk akaun 1 balik. Nak pakai tu memang tak dapat lah.

Tapi dengan announcement baru KWSP ni ada dlm ketogorinya bole lah nak keluarkan sikit. Kena tgk kriteria boleh ke tidak dan berapa dpt melalui i-Sinar.

Semua yang patut kita claim sebagai pelepasan cukai Malaysia 2020.

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It’s hard to offer advice to people during the best of times but right now there is such a wide range of financial hardship going on that It’s even more difficult to offer.

No piece of advice or perspective can help everyone but here are some of my thoughts on navigating your personal finance through before withdrawing EPF Account 1 retirement saving’s.

1. Understand where your job stands.

2. What about other avenues of funds saved? Can you do other side jobs to build cash outside your comfort zone?

3. Negotiate EVERYTHING. This could include.
- Rent
- Mortgage
- Credit cards
- Car Insurance
- Car payments

4. Imagine you decide not to take RM50,000 to spend. Thanks to compound interest that RM50,000 would grow to RM 90,969.84 if left to grow at rate of 6% over 10 years, but it will surge higher to RM165,510.22 for 20 years.

5. Most decisions have time element. Time changes a lot of things. Compound interest needs time to grow it can be challenging to catchup for replacement in the future. When inflation kicks in you will have to know how to balance this.

6. In Malaysia, we are fortunate that the government does not tax capital gains. A good example is EPF contributions. They accumalate tax free.

Budget 2021: Economists oppose EPF Account 1 withdrawals A Budget 2021 proposal that would allow members of the Employees Provident Fund (EPF) to withdraw their savings from Account 1 is unprecedented and not a good idea as most of them already lack a sufficient amount for their retirement, economists say. Even EPF, which has been urging members to ensure...

Malaysia cases up to date as of today Thursday 1st of October 2020

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Dear Investor,

Proper retirement planning enables you to live your preferred lifestyle during your golden years. Start planning for your retirement as early as you can.

Here are some tips to help you plan ahead for your retirement.

Formula untuk kira peningkatan dalam pelaburan.

Sebelum ini dah tahu nak buat ni dan adakah ia membantu?

A formula on how to calculate gain on your investment 💸

Did you already know how to do this and was this helpful?