Irwan’s

As I have promised, here is the explanation of the ASB loan with OD facility. You can download the Bahasa Malaysia Version in my earlier post. This is not a step-by-step guide as I haven’t try the method myself. Instead, I will try to explain the concept behind this method.

First of all, you basically need 3 stuffs to make this method working.

• A significant amount of ASB saving (this can be either from your saving or loan)
• An overdraft facility against the ASB account above.
• Credit Card

1. When you have these 3 items, the first thing that must do is to pay all outstanding balance in your credit card (CC) account.

This step is to avoid paying expensive 18% charges by CC providers. Instead, you only have to pay (7%) OD fees.

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Maybe a lot of investors especially Malays are interested in the method of using ASB loan and Overdraft Facility. Recently I have been able to have a long chat with Bro Lat who get to know this method through his Sifu Awang. With his permission, I’m going to explain mainly about the concept of this much hyped method in the next posts. Right now, I would recommend those who are interested in this method to give a read-through for the document below. The document describes about this method and step-by-step guide in Bahasa Malaysia.

Pengurusan Kewangan Yg Betul.doc

Any questions are welcome.

clarification : The term loan here is not pointed to specific loan for ASB because loan for ASB can’t be used for OD application. Use of personal loan or own money is some of the options.   

We have received a couple of inquiries from our valued readers on how to use the most recent ASB Calculator V3.3. Here are some tips of using it.

First Step:

Here you can edit the start date of your investment and the amount of your initial investment. Nothing complicated here.
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Thanks to M. Ridzuan’s time and neater Excel skill, he came out with some modifications to my current ASB calculator V2 and improved it here and there. Here are the new features of ASB Calculator V3:

1. Monthly and yearly contributions are editable for every year.
2. Users can now scroll the table without losing the headers’ sight.
3. Mini Loan calculator to show how much you lose to the bank.
4. Starting date and year of investment is now specifiable.

Read more »

Gary asked me about ASB rate for previous year. I got this from cari.com.my discussion forum. It’s just from 1990 onwards.

Tahun Dividen Bonus
1990 8.0 6.0
1991 8.5 4.0
1992 7.5 5.0
1993 9.0 4.5
1994 9.5 4.5
1995 10.0 3.0
1996 10.25 3.0
1997 10.25 1.25
1998 8.0 2.5
1999 10.50 1.5
2000 9.75 2.0
2001 7.0 3.0
2002 7.0 2.0
2003 7.25 2.0
2004 7.25 2.0
2005 7.25 2.0
2006 7.20 1.5
2007 7.30 1.25

Investing world is very personal. Some could take bigger risk, while some prefer secure investment like ASB. To know which side you are belong to, you can fill this short quiz and check the result yourself. Just make sure to be as honest as possible.

Risk Tolerance Quiz

Here What I got:

Your score for risk capacity is 34:
With a score between 30 and 38 you have the wherewithal to take selective investment risks that includes both stocks - which carry higher risk - and bonds, that have much less risk. You might consider a portfolio that is anchored by large company U.S. stocks — perhaps 40 percent — maybe in an index fund. Include small company U.S. stocks, too, at about 20 percent. International stocks should play a role — perhaps another 20 to 25 percent of your portfolio. The final 20 percent could split between short to medium term bonds and some type of hedge, such as a natural resources fund. This type of portfolio could lose about 20 percent in a year.

Your score for risk tolerance is 34:
With a tolerance of 33 to 41, you have a healthy tolerance for risk with the capacity to match. You have the wherewithal to take selective investment risks that could lose as much as 20 percent of its value in any given year

Now, go there and let me know how are you doing.