George Soros Doesn't Take Risks?

to be continue.....

Inflation goes up Money Value Go down?

June Inflation 7.7%

KUALA LUMPUR: The consumer price index for June surged 7.7% on-year and also recorded a 3.9% increase on-month, fuelled by the substantial rise in the price of petrol and diesel.

The Statistics Department said Wednesday the CPI for January to June increased by 3.7% to 109.0 compared with that of 105.1 in the previous corresponding period.

“Compared with that of the same month in 2007, the CPI increased by 7.7% from 105.3 to 113.4 and when compared with the previous month, the CPI increased by 3.9%,” it said.

The department said the main reason for this increase was the substantial rise in the price of petrol and diesel announced by the government commencing on June 5. The index for food and non-alcoholic beverages for June compared to the same month in 2007 showed high percentage change of 10.0%; meanwhile the index for non-Food increased by 6.7%.

It said for January to June, there were increases in the index for food and non-alcoholic beverages of 6.1% and non-food 2.6%.

Compared to the previous month, it said the index for food and non-alcoholic beverages rose by 2% while the index for non-food increased to 4.9%.

(source: The Star)

My Advise : With 7.7% inflation, If you have 1000 today, your 1000 value will become half in 9 years.
To fight against Inflation you must put your money in an instrument that will give you a yield of more than 7.7%, the sad news is that most of us don't.
Call me @ 012-2892366 or e-mail : m.jamil.ali@gmail.com to know how you can earns more than 15% a year.

WHAT TO LOOK FOR IN A UNIT TRUST PROSPECTUS?

FREQUENTLY ASK QUESTION:-

Question:
I am thinking of investing some money in unit trust for my daughter, who is turning 17 this year. Hopefully this will encourage her to start thinking about saving and investing for her old age. I’ve
spoken to a few unit trust agents and some times get overwhelmed by the information provided. I have also been advised to read the prospectus of the funds I am interested in first before making any investment decision. What should I look for in the prospectus?

ANSWER:

Investing in unit trusts is usually for the medium to long term. There are many types of unit trust funds that you can consider investing in. Some common ones, especially suited for medium to long term investment include:
n Equity unit trust fund which invests largely in the shares of listed companies.
Depending on the fund, this can either be locally or in overseas markets.
n Real estate investment trusts, or REITS, that invest in property.
n Exchange traded fund, or ETF, which is a type of unit trust that tracks the performance of a particular market index. Unlike regular unit trusts however, ETFs can be bought and sold anytime during stock market trading hours.
n Balanced unit trust funds have a diversified investment portfolio comprising equities, fixed income securities such as bonds, cash and property. This spreads the risk against a downturn in one particular type of investment.
n Shariah-compliant unit trust funds, as the name suggests, only invests in companies and assets that strictly follow Islamic principles.
Before making your investment decision, you need to firstly establish a realistic financial goal. You should also consider, among others, your risk profile which is how much risk you are
willing to bear, type of fund (whether conventional or Shariah-compliant), investment objective and strategy, and time horizon.
Once you’ve determined the above, it would be easier for you to identify specific unit trust funds that meet your investment criterias. Salient points to look for when reading a fund prospectus include:
n The fund’s investment objective, focus and approach, which should match your investment goals.
n Risks associated with the fund, and whether they match your risk profile.
n Performance history of the fund, which can be used to compare against its benchmark as well as similar funds.
Do note however that past performance of a fund is not indicative of its future performance.
n Fees and charges that you have to pay when buying or selling units, as well as the fund’s annual expenses which are also costs to you as an investor.
Compare these fees and charges with similar funds, to determine if they are reasonable.
n Subscription, redemption and switching of units, which may incur costs or disallowed.

When investing in unit trusts, I follow what is called the 4-Step Success
Strategy :
1. Journey (or time period) Unit trust investment is not meant for short-term gain. The recommended time period is three to five years.
2. Discipline Consider investing regularly. This way, the investor rides both the ups and
downs of the market to optimise their returns. This investing strategy is known as “Ringgit Cost Averaging”.
3. Monitoring and review Engage a professional consultant or advisor who can constantly keep you updated with market developments as well as your investment portfolio. The advisor should offer a solid investment strategy for the medium to long term period.
4. Taking action Decide in advance what action must be taken when:
n the investment returns target is met n market conditions indicate change,
either for an upturn or downturn n your risk profile changes n your financial goal changes

Send us an email at m.jamil.ali@gmail.com

How to invest in unit trusts using epf savings?

Question:
I would like to use my EPF savings to invest in unit trusts. How do I go about doing that?

Answer:
Using your EPF contribution is one way to get yourself started on unit trust investment. Under the EPF Members Investment programme, you are allowed to withdraw from your EPF Account 1 to invest in approved unit trust funds, subject to certain conditions. Previously, only those with
savings of at least RM55,000 could participate in the programme.
However, since February 2008, the amount an EPF member can withdraw under the EPF Members Investment programme is calculated according to age and the savings balance in Account 1.
This is to allow contributors to start investing in unit trust at a much younger age, with a lower basic savings, to enable them to plan for their retirement better. The minimum savings to qualify for the EPF Members Investment programme is in the table 1.

Age Min. Savings in Acc I Age Minimum Savings in Acc I
(RM) (RM)
18 1000 37 34000
19 2000 38 37000
20 3000 39 41000
21 4000 40 44000
22 5000 41 48000
23 7000 42 51000
24 8000 43 55000
25 9000 44 59000
26 11000 45 64000
27 12000 46 68000
28 14000 47 73000
29 16000 48 78000
30 18000 49 84000
31 20000 50 90000
32 22000 51 96000
33 24000 52 102000
34 26000 53 109000
35 29000 54 116000
36 32000 55 120000

EPF members are allowed to invest 20 per cent of the amount in excess of the required minimum savings in Account 1 for investment in unit trust.
You can check your latest EPF Account 1 balance at any of the EPF offices or through the online EPF i-account. You can withdraw from your EPF Account 1 once every 3 months, provided your balance still meets the minimum criteria. EPF charges a three per cent service fee each time you withdraw from your Account 1 to invest in unit trusts under the programme. If you decide to exit your unit trust investment, the proceeds will be deposited directly into your EPF account.

From : Ask AnExpert NST 23rd April 2008

Financial Pyramid Life Cycle

Financial Pyramid Life Cycle

Over a lifetime, most people will experience many different financial needs and circumstances that can be summarized into three stages: risk management, wealth accumulation, and wealth preservation and distribution.

In risk Management, the foundation of the financial pyramid, you protect that which you can least afford to lose—your earning power.

With that foundation firmly in place, I can help you accumulate wealth in a tax-efficient manner for specific goals such as your children's education, retirement funding, or a future financial need.

Success in the wealth and accumulation area creates the need to preserve and distribute that which you have worked so hard to accumulate.

DBest Financial Legacy Group

DBFL Group is founded by Mr Mohd Jamil Ali, the Johorean boy who was borned in Segamat in 1970.

DBFL Group mission is to educate and to encourage every individual to take an action towards achieving their Financial Legacy for their family supported by all his business associates and clients.