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Bursa Malaysia

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Everything you must know about 6% of GST

Goods and Services Tax (GST) is here in Malaysia on 1st April 2015. Still don't know anything about GST? We'll tell you everything here.

Financial Legacy!


Legacy

The topic that we are going to discuss about this week is on Legacy. Legacy is defined as the transmission or receive from and ancestor or predecessor.
Parents are undeniably the breadwinners in a family. However, should an unfortunate event happen, parents should prepare a contingency plan so that their children (if they are not of age) would not have any financial problems. A reduction in quality of living is inevitable but the degree of reduction should be modest in such a way that it still enables the child to fulfill their basic needs. Problems would still arise even if children are all grown. One of the most common disputes among siblings is the dispute of the distribution of assets.
Through a thorough research by BYIC’s research team, it has been estimated that the monthly cost of leaving a non-working spouse and a child studying in UNMC is RM6000. If one is only depending on the interest fixed deposit (which provides a 4% interest) to cover their living costs, the deposit would have to amount to RM1.8 million! Another low risk investment tool with a higher return rate would be the insurance plan.

Planning for the distribution of inheritance

Planning how ones inheritance would be distributed is crucial as not all children take care of their parents well and the law may distribute ones inheritance in such a way that the siblings might seize the assets.
(child A --> father --> child B)

Parents
Spouse
children
Situation 1
¼
¼
½
Situation 2
X
1/3
2/3
Situation 3
1/3
X
2/3
Situation 4
½
½
X

One of the most common ways for us to plan out the distribution of assets is through will. Will is a legal document with details about the distribution of inheritance. The advantages of writing a will is that it is cheap with only a cost of under RM300 and the procedures to write one are easy and simple. However, writing a will means disclosing private information publicly in court. A will is usually written when there is a change in family members who are eligible for inheritance such as the coming of age of a child. Next, a significant change in the amount of assets own would also result in the change of will.

The other alternative for distributing assets would be preparing a living trust. Living trust is the legal arrangement for the trustee to manage the assets on behalf of the trustor. This way, private information will be kept secret and assets will be managed by professionals. However trustors would have to pay a higher legal fees.

credits to:

Kim Kim
Kim Pham
Lara Tan
Terence Then

Oil Prices Crashing!

On Thursday, oil prices crashed.

And now on Friday, shares of oil companies around the world are following suit.

Here are some of the biggest losers in pre-market trade on Friday:

BP (BP), down 5%
Royal Dutch Shell (RDS.A), down 5%
Total (TOT), down 7%
Statoil (STO), down 11%
Exxon Mobil (XOM), down 3%
ConocoPhillips (COP), down 4%
Marathon Oil (MRO), down 4%
Occidental Petroleum (OXY), down 3.5%
Anadarko Petroleum (APC), down 6%
Linn Energy (LINE), down 5%
Whiting Petroleum (WLL), down 8%
Oasis Petroleum (OAS), down 12%
Kodiak Oil & Gas (KOG), down 10%
And this list can go on.

Every area of the oil space, from international behemoths like BP, to state-controlled companies like Statoil and Total, to US shale producers like Whiting and Kodiak, is getting hit on Friday.

On Thursday, while the US markets were closed for the Thanksgiving holiday, OPEC, the 12-member oil exporting cartel, announced that it would not cut production.

Many in the market had expected OPEC to announce a production cut to combat the global supply glut that has been blamed for some of the massive decline we’ve seen in the price of oil over the last several months.

Instead, OPEC said it would maintain its current production level of 30 million barrels per day, which has been in place since December 2011, and OPEC said it would meet again in June 2015.

On Thursday, West Texas Intermediate crude futures fell below $70 for the first time since June 2010. Thursday’s one-day drop in WTI was also accompanied by a drop in Brent crude prices, and both benchmarks fell more than 6% in a 24-hour period.

In early trade on Friday, crude prices were around $69.50.


An incredible 24 hours for crude oil.

On Thursday, Russian oil tycoon Leonid Fedun told Bloomberg that OPEC’s decision not to cut production is part of an effort to flush out US shale producers, which have ramped up production significantly in the last few years.

Fedun said that the US shale boom is “on par” with the dot-com boom.

In a post on Business Insider on Thursday, former PIMCO CEO Mohamed El-Erian wrote that while the market’s reaction Thursday indicated clear surprise at OPEC’s decision, the market shouldn’t have been shocked.

“OPEC has a history of opting for strategic rather than tactical decisions; and, this time around, it may have done so from a position of caution rather than overwhelming strength,” El-Erian wrote.

And early on Friday, oil companies are feeling the pressure.

Source (Business Insider Malaysia)

What is financial freedom? How can you plan to be financially free?




Financial Freedom?

Financial freedom is quite a famous term, but do we really know the real meaning of it? It is used widely by people intending different meanings. However, there is a recognized definition for it.


The Common Misinterpretation

 The common misinterpretation on financial freedom is having a lot of money. This can be disproved by examples of people who make abundance of money yet having huge financial constraint due to high consumption. On the other hand, there are also people who has an average income who consider themselves to be financially free. It is possible as this people might have fewer needs, thus, having less constraints financially.  


The Definition

The best way you can put it is financial freedom is the ability to spend our time as we desire, without financial constraints. You should think of financial freedom as what defines you. It’s what you want from life and it doesn’t necessary have to revolve around dollars and cents.


Why strive for Financial Freedom?

  • Enables you to pursue what makes you happy
  • Boosts your confidence 
  • Able to be the curator of your life
  • Helps to foster healthy relationships
  • Peace of mind





Robert Kiyosaki (A prominent figure who strongly advocates "Financial Freedom")

  • A Japanese American investor, businessman, self-help author, motivational speaker, financial literacy activist, financial commentator, and radio personality
  • Author of  Rich Dad Poor Dad series of motivational books
  • His book series ‘Rich Dad Poor Dad’ is an international bestseller
  • He talks a lot about the importance of financial freedom, which concept is even included in a game he invented called "Cashflow"

Passive Income

The simplest example of a financially free person would be someone who has a passive income which exceeds the total expenses. In this example, the person is now free to do whatever he/she loves to do since there is no more responsibility of working to cover the expenses. This is what we call freedom. To be specific, financial freedom.

Passive income:


Wikipedia : Passive income is an income received on a regular basis, with little effort    
                     required to maintain it. It is closely related to the concept of "unearned income".


Investopedia: Earnings an individual derives from a rental property, limited partnership or  
                         other enterprise in which he or she is not actively involved.



Examples of passive income:

·      -   Earnings from royalties

·    -     Rental income from Property

·    -     Interest earned (e.g. fixed deposit)

·   -      Revenue from Internet advertisement

·    -     Pension

·    -     Stocks

·   -      Bonds


Steps one can take to be closer to financial freedom

Step 1 : Visualise your goals and write them down

·         How old do I want to retire?

·         What kind of lifestyle do I want to live in the next 10-20 years?

·         What will make me truly satisfied and happy?

·         How much money will actually satisfy me? (topic of concern as ultimately money by itself will not bring you happiness)


Step 2 : Think about where you are currently at financially

·         How many streams of income?

·         Am I spending within my means?


Step 3 : Educate yourself

·         Books

·         Seminars

·         Workshops

·         Internships

·         Part-time jobs


Step 4 : Track your expenses

·         Writing them down

·         Phone apps


Step 5 : Plan your finances

·         Leaving aside a fixed amount every month for certain reasons


Step 6 : Accumulate assets

·         Property

·         Paper assets

·         Commodities


The Crossover Point

The crossover point is when your passive income/returns from investments is more than your expenses. By achieving this you have just bridged a huge milestone. For some, the journey will end here. For others, it would have just begun. This is when the fun begins! Learn to play the game and play it wise. Don’t forget what/who you are doing this for and your purpose along the way.



Peace.

Credits to:
 Dhivyamaaran Anparasan @ A.D.Maaran
Nelson Liew
Fabian Au 
Jeanne Chong
Tan Shen Tze

The 15 Characteristics of People that Succeed in Sales




            Have you ever been involved in sales? If you are, you will know that it’s not for the faint of hearts. There is a saying that goes: salesman are born, but not taught. Undoubtedly, some may have been gifted with the characteristics of a sales person. However, these characteristics would be learn and you would be just as successful as them.

1.Conscientiousness

It is said that this trait is found in people who take great pride in their work, are organized and efficient. But, if you are not organized and efficient, you can learn to be. Conscientious also means you keep going in your job, no matter what.

2. Respectful
Founder of Searchmetrics, Marcus Tober states that “our top sales reps respect our customers' time above all else. You have to make sure that your customers and potential customers are treated like gold." Part of doing this is making sure that they have time and you schedule time for work. People want the bottom line. Old tactics don't work. People are busy, respect their time above all.

3. Initiative
Sales reps don’t wait for orders. They’re go-getters and take matters into their own hands. Being disciplined like this helps salesmen to stay on track. If something has to be sold, there is a way to do it. The salesman will do what it takes to sell the product. Learn to like the product better, compliment where appropriate (even if they hate it at first), learn how to mirror to connect, then actually care about the connection.

4. They listen
American Express’ OPEN forum says that the best sales people ask their clients and customers “why they want something done.” When you listen to your clients/customers, you find out what they want and need, and how to make that happen. If you don't know exactly how to make happen what your client has asked for, be absolutely sure that there is a way. You just haven't found it, yet.

5. Persistent
You have to have thick-skin to be a salesperson. Why? Because you’re going to become very familiar with the word “no.” You have to be confident and persistent if you want to remain involved with sales. The public is done with the hard sell. However, the average person is not done with extreme kindness, even if you are irritating. "Hello, yes, I'm calling you back because I know you didn't mean to hang up on me."

6. Coachable
According to Mark Roberge from HubSpot, experience isn’t nearly as important as coachability for predicting successful reps. Being energetic, willing to learn and having the ability to adapt are all a part of being “coachable.” Coachable means an early adopter of the suggestion. If you are asked to do things in a certain way, do it that way, even if it's something you have always done a different way. Brainstorm in your one-on-one with you coach.

7. Positive
Who would you rather make a purchase from? The upbeat go-getter or the depressed downer? Having a positive attitude and being cheerful makes it easier to approach customers and keep their attention until after you’ve made the sale. This positive attitude exudes from a person. If you've got a really bad scene going on at home, stuff it! I mean, stuff it! Learn to compartmentalize the aspects of your life. Your work life is positive. Try some psychology, smile, jump up and down, breathe, do what you have to to be positive.
8. Resourceful
The true salesmen is able to shift gears if a sale isn’t going the way that they envisioned. Instead of just taking “no” as an answer, they will attempt a different approach by using their creativity and imagination. Remember though, you have to make it snappy and switch quickly. Learn to read faces. If your approach has not worked within two minutes, change. Have your twists and turns ready. If you have to practice them at home so that you are natural.

9. Passionate
A top-notch salesperson actually enjoys their job. If you hate it, change or get out. Most importantly, the salesman will be passionate about the products or services that they’re selling. If they’re on board with a brand’ message, they can excitedly share that vision with prospective clients and customers. Happy, positive, love it, passionate.

10. Ask questions
Searcy states that there is data that has discovered “that the higher-performing sales representatives ask more questions--often more than twice as many.” But, these salespeople don't ask questions that focus solely on data. They want to know what the implications are. I have personally found that the questions I ask are not about the product. The client got what you are selling your first time around. Don't drone on. This client has something to say. What is it? They have a Zen garden at home? You learn to love the Zen garden quickly and ask more.

11. Independent
Since most salespeople work on a commission, they have to be independent and will take the correct measures in making this a reality. The boss doesn't have to be there to make sure the work gets done. The salesman is a self-motivator. The independent salesperson can build themselves up to do more. They can pat themselves on the back and appreciate their own greatness. Most independent salespeople do not have to be thanked for each call or sales, they know how to say, "Good job, me!"

12. Time managers
Here’s a simple equation: more selling time increase sales and compensation. The best salespeople manage their time effectively, such as finding the best routes from location to location, so that they have more opportunities and time to spend securing a sale. If one place or person takes too long, or longer than expected, the time manager makes up for it somewhere else.

13. Overachieve
Author and sales expert Grant Cardone informed OPEN FORUM that salespeople should "over commit and over-deliver." You have to go above and beyond. True salespeople don’t know when to stop and typically are pushing for more. More people, more clients, more work, more money... just more. The quality more.

14. Personable
A great salesperson has no problem getting along with others. And, most importantly, they enjoy meeting new people and realize the power of networking. It’s not surprising to see salespeople involved with so many local events and organizations. Most sales people love people, and it shows. They are energized by people. They go home and can hardly sleep after an event.

15. Alertness
Salespeople are always prepared. They have to be ready for any situation that they’re thrown into and know how to successfully break free. The salesperson is aware of herself and her body. If she is not alert, she has felt it coming on and taken care of it. Caffeine up, run up and down the block or eat less, they do whatever it takes. Alertness is key to so many of the principles of being a great salesperson.

Source:Entrepreneur