(Tables were accidentally deleted, I’ll try to remake them soon)

update: Mr KKChow has a better graphic for this

Azwa has posted a question to ask about how Dollar Cost Averaging works. Here two simulation of the averaging effect of regular investment. Basically, the concept of dollar cost averaging is the system buy more units when the price is low and less unit when the price is high.

In High-low-high Market, you started investing at $1.25 and ended at $1.25 too. But with dollar averaging cost effect, you actually have gained 8 cents.

Read the rest of this entry »

Believe it or not, among the people who invest, mutual fund buyers are the ones who mostly do the opposite of what they should do, buy low and sell high.

By studying cash flows (tracking the movement of money into and out of mutual funds), 2 financial research institutions, Dalbar and Morningstar, found that the vast majority of people buy investments when prices are high, and they sell when prices are low. Read the rest of this entry »

The Employees Provident Fund (EPF) or KWSP is a national social security organization. Basically, it helps you to save money for retiring age or in other words, to help you retiring with enough money in the pocket. While you can’t withdraw/use your fund as often as you like, EPF lets you invest some portion of your fund in appointed investment vehicles such as Unit Trust.

Are You Eligible? Read the rest of this entry »

Whoa.. what a boring topic. However this might be the answer for ‘undisciplined’ people to invest. In my posts about ASB, there are a lot of people saying that they make a loan to discipline themselves to invest. Well you don’t have to take a loan for such thing. Make a Standing Instruction(SI) instead. SI is just like an automatic bill payment but instead of paying bill, it puts your money into your investment every month, automatically.

SI works best with unit trust. It allows you to take advantage of dollar-cost-averaging concept by investing both in bear and bull market. If you are not into investment, have it deposit into you saving account, or bonds.

The best part of SI is that you won’t realize that you are saving money. For new investors, I know it’s not a great feeling to put aside some of your income every month if you do it manually. You feel that your monthly paycheck is not even enough for you and your family, let alone for investing.

Sooner or later, you will get used to your currently reduced paycheck and you are saving money at the same time! And you will thanks yourself when you realize that you have tens of thousand Ringgit in your account when you need it the most.

What are you waiting for? Contact your banker/unit trust agent/broker to start an SI for you and start saving now!

Investments do not have to be in the form of equities, bonds, mutual funds or real estate. In the wake of internet, many opportunities have arise to generate money through the internet tsunami. We also heard about Swisscash and other ponzy schemes that have been luring millions of dollar from our people. Internet is not all bad. There are many ethical and legal ways to earn side income from internet. In this post we will discuss about something that I call Online Estate.

As with real estate, online estate is one way generate money by having some sort of assets. If real estate deals with houses and buildings, online estate deals with blogs, websites, domains and other internet related assets.

Blog/Website
The easiest way to earn money from your blog is through advertising. If you have enough hits per day and good ads placement, it is not hard to earn some passive income. In my case, I have two blogs with various type of advertisements. With those two, I’m earning around 100USD per month. It’s not much, but that it’s enough considering I just update it around once in 2 weeks :p.

Besides, it’s not that hard to own a blog and you set your own pace. No need to rush, no deadline and you write when you like or when ideas come.

Domain
You have to be Nujum Pak Belalang in this type of online estate business. Domain Monger is one of the best way to earn money if you know what is happening around you. Let’s say you know that Iphone will be released before anyone knows it. You then purchase several domain that related to iphone like iphonelover.com or iphoneuser.com. If there is any interested party to purchase the domain, you could earn several hundreds dollars for it. Well it’s not easy to anticipate the next big domain but you could try.

Well that concludes small part of online estate topic. If you have suggestion and comment don’t forget to write it below.

There will be a program called “Pameran Hartanah Bumiputera KL 2007″ in Midvalley. The program’s objective is to help developers to advertise unsold spot reserved for Bumiputera. This is a good opportunity for those who are in search for real estate investment or a house to live in.

I’ll be there too. Maybe after Friday Prayer which is around 3 o’clock. For those who are interested to go, maybe we can meet up to have a little chat about real estate. I’m still new to real estate investment so I have tons to ask.

Date: 15 -17 Jun 2007
Time: 10.00 Pagi – 10.00 Malam
Place:

Dewan 3,
Mid Valley Exhibition Centre (MVEC),
Mid Valley Megamall,
Kuala Lumpur