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SUNDAY STAR, 2 AUGUST 2015
special
MONEY & YOU
Learn to grow your wealth
THE digital investment magazine The Fifth Person is hosting an
investment summit in Kuala Lumpur The Level Up Your Wealth 2015
summit, which aims to bring real-life investment knowledge and
financial literacy to Malaysians.
It will be held at Mid Valley Megamall, Kuala Lumpur, on Aug 8
and will feature speakers Victor Chng and Rusmin Ang, full-time
investors and international authors of the book, Value Investing in
Growth Companies, who will share their insights and strategies on
how to invest profitably in regional stock markets.
Chng and Ang are regulars on the CIMB Securities speaking
circuit and have spoken about the securities broker on multiple
occasions, including in Penang, Sibu, Miri and Kuala Lumpur.
They also appear regularly on programmes on Singapore radio
station 938LIVE and their investment articles have been published
on The Business Times online and in Business Insider Singapore and
Business Insider Malaysia.
Chng and Ang will be speaking about value-growth investing and
dividend-growth investing, the two areas of investing that they
specialise in. They will also talk about why investors who seek
solid capital gains and stable dividends should utilise these two
proven investment methods to grow their wealth and generate
multiple streams of passive income.
The summit will also feature renowned wealth coach and
professional investor Adam Khoo who became a self-made millionaire
at the age of 26, making him one of the youngest millionaires in
Singapore.
He now runs Adam Khoo
Learning Technologies Group, one of Asias largest private
educational institutions, which organises educational seminars for
more than 80,000 people annually in seven countries.
Khoo is also the bestselling author of 13 books, including
Secrets of Self-Made Millionaires, Secrets of Millionaire
Investors, and Winning the Game of Stocks, as
Have your best interest in mindIN the face of the rising cost of
living and currency depreciation risks, investors are seeking
strategies to protect their purchasing power.
To combat these risks, a right mix of investment strategies may
be employed to accelerate returns.
However, many still lack understanding of essential investment
principles or how to apply the correct tools to meet their
investment objectives.
One of the most misunderstood and often misapplied principles is
compounding, which is capable of creating the best advantage in
meeting your financial goals.
To appreciate the power of compound interest, you should
understand how simple interest works.
When you make an investment, the amount of money paid is called
the principal and any investment that pays simple interest
calculates payments based only on the principal.
An investment of RM10,000 principal that pays 10% simple
interest means your investment earns on 10% of the principal,
therefore generating RM1,000 annually.
This means that your investment will come up to RM11,000 at the
end of the first year, RM12,000 after the second year, RM13,000
in
the third year and so forth. Investments with compound
interest work differently. They pay a fixed percentage, 10%
yearly in this example, on the entire balance accumulated. In other
words, you earn interest on both the principal and the
interest.
Compared with the earlier example of the simple interest
investment, the investment with compound interest will give you
RM11,000, RM12,100 and RM13,310 at the end of the first, second and
third year respectively.
Compounding is the greatest asset to grow your egg nest, says
William Ng (pic), chief executive officer of TFDC Asiacorp Berhad,
who is also a Certified Financial Planner and Islamic Financial
Planner.
Simply stated, compounding is the idea of earning interest on
interest. As the interest grows, the interest on the interest
grows.
At some point the interest-on-interest portion becomes bigger
than the initial investment.
Similar to a snowball rolling downhill, the more times goes by,
the bigger the interest-on-interest portion becomes. Hence,
compounding can be seen as an
well as a member of the Singapore Chapter of the Young
Presidents Organization, membership to which is available only to
business owners below age 50 who run businesses with a minimum
annual turnover of US$9mil (RM34.3mil).
Khoo, who focuses on stock market trends and momentum investing,
will be at the summit to
share his unique strategies for investing in stocks that have an
upward trending price momentum. He says that he can receive 50% to
60% returns annually by using his method of identifying the best
times to enter and exit an upward trend to maximise returns in a
short period of time.
Khoo has been teaching his methods to investors through
accelerating force to grow your investment.
The understanding of compounding and its application allows you
to leverage on its acceleration power to help realise your
financial goals, particularly if your objective is to plan for your
retirement.
However, not all types of investments are inherently structured
to facilitate the effective application of compounding.
For example, in a stock market where pendulum swings of equal
size occur, investing RM10,000 will allow you to earn 10% in the
first year but lose 10% in the second year, meaning you will not
break even and may end up with RM9,900, a loss of 1% of your
principal.
The key to successful application of compounding is to seek
investments that grow the principal sum and interest over time,
says Ng.
Therefore, investments that are structurally suitable to
optimise the application of compounding are those that provide
auto-reinvestments of the returns along with the principal, or
those that provide the short-to-medium
education seminars held across Asia for the past 10 years.
Entry to The Level Up Your Wealth 2015 summit is free but
limited to the first 200 people on a first-come first-served basis
on the day of the event.
n To book a seat, visit
notice.shareinvestor.com/LevelUpWealthSummit
payback of the capital and returns, hence providing reinvestment
options.
TFDC Asiacorp is a boutique property development investment firm
that promotes property bonds and luxury community properties in
Forest Lakes Country Club, Halifax, Canada.
The company is a subsidiary of Terra Firma Development
Corporation Limited, Canada, which is the master developer for
Forest Lakes.
TFDC Asiacorp promotes structured investments and lifestyle
properties to grow wealth using a mix of compounding, global
diversification, and inflation and risk control applications.
TFDC Asiacorp conducts regular investment seminars and
financial
talks. Its next event will be held on Aug 9 at the One World
Hotel, Petaling Jaya. Registration is required.
n For more information, call 011-1222 1998.
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This plan also allows for flexible access to your savings.
Partial withdrawals of cash value are possible if you need access
to funds.
l On protectionIt is only prudent to shield
against the risk of economic fluctuations. With the 5 Years
Guaranteed Coverage, this plan shields you against policy
lapsation
MCIS Insurance Berhad (MCIS Insurance), a leading life insurer
in Malaysia, has 61 years of experience under its belt.
A proud homegrown brand, it has amassed significant
understanding of local market needs. MCIS Insurance takes pride in
going for the mass segment of customers and working to realise the
full potential of this segment.
Driven to serve all Malaysians, it continuously designs products
that not only suit the needs of its customers but also ones that
complement customers stages of life.
In collaboration with its international association by way of
shareholder, South Africa-based Sanlam Emerging Markets, MCIS
Insurance offers its latest innovative investment-linked product,
the MCIS Premier FlexiInvest (PFI).
This product was a result of comprehensive knowledge sharing
between the local product development team and its counterparts at
Sanlam Group.
In essence, PFI is a comprehensive protection and savings plan
meant to grow with the ever-changing needs of customers.
New developments are meant to fulfil the needs of customers as
well as realise the potential of entering newer market segments
while not forgetting its focus on its core target audience.
Kevin Jones, chief executive officer of MCIS Insurance, talks
about the insurers offerings:l On target market segmentsThrough
PFI, we target young
working professionals and professionals who seek protection and
wealth accumulation as well as retirement solutions.
This caters to different life stage changes and most
importantly, helps build a solid financial safety net to assist
them in achieving long-term financial goals.
l On the nature of PFINaturally, we seek to protect
what we hold dear special life events such as the birth of a
child, marriage, starting a family or purchase of a property leads
us to be more protective. We celebrate your special life events
together with you by granting you the privilege to increase your
protection coverage up to 20% of your basic sum covered, subject to
a maximum of RM500,000, free of underwriting requirements.
All you need to do is to inform us of your change in status
(supported by relevant documents) to increase your protection
coverage.
l On its special features We also believe that rewards
and loyalty go hand in hand. In reflection of this philosophy,
this plan rewards loyal customers with an anniversary bonus as
early as the beginning of the second policy year right up to the
golden age of 80.
This bonus will be in addition to the cash value gained from the
investment fund.
If you enjoy ad hoc windfalls such as bonuses or salary
increments, you can also perform ad hoc or regular top-ups to your
favourite investment-linked funds and witness the potential growth
of your savings.
2 money & youSUNDAY STAR, 2 AUGUST 2015
Flexible investments guarantee your future
Features of the MCIS Premier FlexiInvest.
MCIS comprehensive investment product caters to all your
different life stages.
even if your policys investment funds falter during unfavourable
economic climate.
The 5 Years Guaranteed Coverage starts at the inception of your
policy until the fifth policy year, subject to terms and
conditions.
You may further enhance your protection by adding our available
features ranging from medical, hospital benefit to critical
illnesses
and other protections. Your wealth should be protected
too and this plan not only safeguards the wealth that you have
worked hard to create but also protects the lifestyle and
aspirations of you and your loved ones.
With this plan, you can rest assured that your retirement plans,
property, dream car and childs education funds, among others, are
well protected in the event of death or other unfortunate
events.
Kevin Jones, chief executive officer of MCIS
insurance.
l On the fund options available
The product also boasts of four funds from which customers can
choose the Balanced fund, the Equity fund, the Jati fund and the
Dividend fund.
By having a variety of funds, we cater to the different risk
tolerance level of customers.
We enable you to switch between funds depending on your
financial needs and investment appetite and waive any
fund-switching fees.
The company also has plans to introduce more funds to meet
customers evolving investment appetites.
We want to cater to everybody regardless of age, status or
current circumstances. In other words, the everyday Malaysian.
With the array of options provided by MCIS Insurance, you can be
assured that you and your family members are being taken care
of.
Giving you the instruments you need to shape and secure your
financial future is the aim of MCIS Insurance.
n For more information, visit www.mcis.my
It is only prudent to shield against the risk of economic
fluctuations.
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3SUNDAY STAR, 2 AUGUST 2015
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4 money & youSUNDAY STAR, 2 AUGUST 2015
Manage your creditYOUR credit score can have a major impact on
your life and finances. Everyone should take time to review, manage
and boost their credit score.
Your credit score will not only affect whether you can get
mortgages, credit cards and loans, it can also affect attainment of
mobile phone contracts, monthly insurance premiums, opening of bank
accounts, job applications and more.
Every individual has a unique credit score. It is a three digit
number calculated based on the credit history from your credit
report. A credit score makes it easier for individuals to
comprehend their credit standing.
Five components determine the outcome of your credit score
payment history, length of credit history, credit limit
utilisation, new credit applications, legal history trace.
In many instances of interactions with consumers by RAM Credit
Information Sdn Bhd (Ramci), an accredited credit reporting agency
in Malaysia, consumers shared that credit reports can be a bit
confusing as they contain a huge amount of data.
It is also sometimes difficult for an individual to determine
which part of the data is considered important to lenders.
Nonetheless, a numerical expression in the form of a credit
score can help explain how a persons credit standing is
categorised.
The credit score developed by Ramci ranges from 201 to 781. A
higher score makes a consumer more credit-worthy. Generally, a
score of 621 or higher indicates that you have managed your credit
well.
When it comes to locking in an interest rate, the higher your
score, the better the terms of credit you are likely to
receive.
Your credit score is a key indicator of your credit risk, used
by lenders to determine your creditworthiness at the time of any
related applications.
Good credit management leads to higher credit scores, which in
turn lowers the cost that you need to borrow. Living within your
means, using debt wisely and paying your bills consistently and on
time are smart financial moves.
Good credit management helps improve your credit score, reduces
the amount you pay for the money you borrow and puts more money in
your pocket to save and invest. It is always a good idea to make
monitoring your credit score a part of your financial routine.
This will allow you to be better prepared to work with your
credit standing when you are about to make major purchases such as
buying a house, car or taking a loan to start a business. If you
are interested to determine your credit score, you may request for
a credit report from Ramci.
n For more information, call 03-2615 1191 or 03-2615 1128 or
www.mycreditinfo.com.my
It is important to maintain a good credit score as part of your
financial routine.
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