My sister told me about SSPN which she listened over the radio. In Budget 2013, parents with children at school who save their money at SSPN can entitle maximum tax relief of RM6000 starting 2012 to 2017.
This is definitely very attractive to me as I am at 19% tax bracket. RM6000 translates into RM1140 tax saving. Together with my husband, we will be saving RM2280. This is a huge saving!
However, my concern would be the safety of my money at SSPN. I searched the web and know vaguely that SSPN is somehow related to PTPTN. The banks act as their agent to accept the saving only. As for withdrawal, the banks only assist to receive the withdrawal forms and documents supporting the withdrawal. It may take months before the depositors receive their withdrawal. It is also difficult to trace the withdrawal process. On top of that, PIDM does not insure SSPN saving as SSPN is not a bank institution, which doesn't come under the scrutiny of BNM.
On second thought and after discussing with my husband, we decide not to participate in SSPN. This will mean we are unable to save on the RM2280, with fear of unable to withdraw our RM12,000.
Somehow, I suddenly notice that the Genneva Gold case has affected my confidence with the way our country is run. Our ex-XX was at the launching of Genneva Gold, and yet after a few years when 60,000 investors have invested their money in the company, BNM and related enforcement agencies are raiding this company. What is becoming of our country?
Thursday 20 December 2012
Sunday 9 December 2012
Unable to pay premium
From my experience in insurance line, when customers are unable to serve their premium, they will stop taking my calls. I normally will make a few more attempts in several weeks.
When customers are unable to pay their premium, bear in mind that you are not owing the agents any money. Talk to your "responsible" agents. Revise the importance of this policy which you took up before. Find out what is the consequences if you stop paying. You may want to stop for a while because you are out of job or because you have other commitments. Perhaps you can change your annual premium to monthly premium, or use your cash value to pay for the next few months, or opt for premium holiday if it is an investment-linked.
Do not just push the policy aside. If it is a medical insurance, you may face a bigger financial problem if you fall sick when the policy lapsed. After all, you have paid premiums, check how you can delay the premium, whether you want to convert to paid-up policy or extended term insurance.
If you think your agent is not giving you good advise, look for academic qualified financial adviser. Seek advise. There must be a strong reason why you took up the policy.
When customers are unable to pay their premium, bear in mind that you are not owing the agents any money. Talk to your "responsible" agents. Revise the importance of this policy which you took up before. Find out what is the consequences if you stop paying. You may want to stop for a while because you are out of job or because you have other commitments. Perhaps you can change your annual premium to monthly premium, or use your cash value to pay for the next few months, or opt for premium holiday if it is an investment-linked.
Do not just push the policy aside. If it is a medical insurance, you may face a bigger financial problem if you fall sick when the policy lapsed. After all, you have paid premiums, check how you can delay the premium, whether you want to convert to paid-up policy or extended term insurance.
If you think your agent is not giving you good advise, look for academic qualified financial adviser. Seek advise. There must be a strong reason why you took up the policy.
Friday 7 December 2012
Financial MattersTo Teach My Teenagers
It is alarming to know that from 2005 to June 2012, 25% of the bankruptcy was due to default car loan, and about 50% of the bankruptcy due to credit card loan are those below 30 years old.
In Malaysia, cars are expensive purchase next to house. Just compared similar brand and model you pay here to those in US on the web. You would be shock! The national cars are also unfairly expensive. When our government is unable to provide us with good transportation, it is only fair to lower the motor prices!
I came to know that many parents are serving the monthly car loan for their children. I do not quite agree with this. My first car was a 10 year old green colour Honda Civic about 30 years ago. I paid RM6000 for that. As long as it could bring me safely to my office, I am fine. Many Chinese young adults here would not want to drive a used car in KK. They want at least a Myvi or Toyota Vios. It's vanity. :(
According to the newspaper, the government is offering RM0 down payment car loan for final year students. Are we not inviting our young generation to be in debt even before they get their first job? What about petrol, allowance, motor insurance, road toll, parking?
In Budget 2013, the government is also giving RM200 for those above aged 21 to purchase a smartphone. I don't see this a wise move of teaching our young generation in financial matter. While AKPK is pushing "POWER" program to teach our young generation how to do financial planning, the government is encouraging them to spend and to be on debts. What a contrary!
It goes back to parents of how you teach your children about financial matters. I should think that children must learn how to be responsible for their own expenditure. I discuss with them about the car loan, mistake we made in changing car that caused us some losses, mobile phone post-paid and pre-paid, household budget, insurance, bank matters, credit card, unit trust investment, stock investment and so on. We don't hide about our financial status. When my husband was out of job, we told them and they willingly take part in money saving. We believe all these are helpful to instill good financial concepts to them.
We hope when they have their own family in the future, they will make less mistake and be rational in spending, and to do their planning properly.
In Malaysia, cars are expensive purchase next to house. Just compared similar brand and model you pay here to those in US on the web. You would be shock! The national cars are also unfairly expensive. When our government is unable to provide us with good transportation, it is only fair to lower the motor prices!
I came to know that many parents are serving the monthly car loan for their children. I do not quite agree with this. My first car was a 10 year old green colour Honda Civic about 30 years ago. I paid RM6000 for that. As long as it could bring me safely to my office, I am fine. Many Chinese young adults here would not want to drive a used car in KK. They want at least a Myvi or Toyota Vios. It's vanity. :(
According to the newspaper, the government is offering RM0 down payment car loan for final year students. Are we not inviting our young generation to be in debt even before they get their first job? What about petrol, allowance, motor insurance, road toll, parking?
In Budget 2013, the government is also giving RM200 for those above aged 21 to purchase a smartphone. I don't see this a wise move of teaching our young generation in financial matter. While AKPK is pushing "POWER" program to teach our young generation how to do financial planning, the government is encouraging them to spend and to be on debts. What a contrary!
It goes back to parents of how you teach your children about financial matters. I should think that children must learn how to be responsible for their own expenditure. I discuss with them about the car loan, mistake we made in changing car that caused us some losses, mobile phone post-paid and pre-paid, household budget, insurance, bank matters, credit card, unit trust investment, stock investment and so on. We don't hide about our financial status. When my husband was out of job, we told them and they willingly take part in money saving. We believe all these are helpful to instill good financial concepts to them.
We hope when they have their own family in the future, they will make less mistake and be rational in spending, and to do their planning properly.
Thursday 6 December 2012
Astro
I rejected the idea of installing Astro. When our children were young, I did not want to install Astro because I felt that watching cartoons on national channels and NTV7 were already hard to control their TV time. With Astro, there is a channel with cartoons and children shows round the clock. I would be getting myself into having more scolding to my children to control their TV time.
My husband said Astro can give you instant news break. Who would want to sit in front of the TV whole day long to watch news? My sister-in-law said TV shows are on air before NTV7. Why is it necessary to watch new shows ahead?
I couldn't give myself good enough reason to subscribe to Astro. Partly because we were on tight budget before and Astro was never my priority.
Anyway, I saved on the commitment subscription fee and saved a lot of time doing more constructive things instead of watching TV.
With good internet access nowadays, and my children have grown up, I don't find any reason to subscribe to Astro.
My husband said Astro can give you instant news break. Who would want to sit in front of the TV whole day long to watch news? My sister-in-law said TV shows are on air before NTV7. Why is it necessary to watch new shows ahead?
I couldn't give myself good enough reason to subscribe to Astro. Partly because we were on tight budget before and Astro was never my priority.
Anyway, I saved on the commitment subscription fee and saved a lot of time doing more constructive things instead of watching TV.
With good internet access nowadays, and my children have grown up, I don't find any reason to subscribe to Astro.
Financial Concept
What kind of financial concept do we impart to our children? You may not realize it but we impart our financial concept to our children when we deal about money matters with them.
My friend is a single mother. She has two children, in their early 20s, are working. Their take home pay is about RM1000 monthly. Her son recently announced that he wanted to quit his job (which he has worked for 1 month only) because he couldn't see any future for himself in this company. He wanted to venture into pearl milk tea business together with his friends. He requested his mother to let him change his kancil into hilux so that he has enough room in his car to carry his stocks. To my surprise, my friend agreed with her son. She even told her son that it is alright to try out different business. Whether the pearl milk tea is successful or not is okay.
My friend has already been living on overdraft. Insurance policies and hire purchase have taken a big chunk from her income. Yet she allows her son to spend money this way.
I highlighted to her that we should help our children to stop relying on us for financial support. She should not pretend as though she is their ATM machine which they can always withdraw money from. Starting a business is not easy. Do not expect to recover the capital from first few months. Why rush into having his own business when he can't even manage his own money. Since he doesn't have any saving, he will turn to his mother for money. My friend is digging a deeper hole for her personal loan. There were already a few cases which her children spending her money senselessly, and I feel that she is also guiding them senselessly.
When our children have grown up, they would not cling to us like before. It is wrong to use money to gain their dependency on us. When they have grown up, as parents, we should want to see them to be a responsible and independent individual, like us.
Be rational, my friend.
My friend is a single mother. She has two children, in their early 20s, are working. Their take home pay is about RM1000 monthly. Her son recently announced that he wanted to quit his job (which he has worked for 1 month only) because he couldn't see any future for himself in this company. He wanted to venture into pearl milk tea business together with his friends. He requested his mother to let him change his kancil into hilux so that he has enough room in his car to carry his stocks. To my surprise, my friend agreed with her son. She even told her son that it is alright to try out different business. Whether the pearl milk tea is successful or not is okay.
My friend has already been living on overdraft. Insurance policies and hire purchase have taken a big chunk from her income. Yet she allows her son to spend money this way.
I highlighted to her that we should help our children to stop relying on us for financial support. She should not pretend as though she is their ATM machine which they can always withdraw money from. Starting a business is not easy. Do not expect to recover the capital from first few months. Why rush into having his own business when he can't even manage his own money. Since he doesn't have any saving, he will turn to his mother for money. My friend is digging a deeper hole for her personal loan. There were already a few cases which her children spending her money senselessly, and I feel that she is also guiding them senselessly.
When our children have grown up, they would not cling to us like before. It is wrong to use money to gain their dependency on us. When they have grown up, as parents, we should want to see them to be a responsible and independent individual, like us.
Be rational, my friend.
Tuesday 4 December 2012
Time With My Teenagers
My elder son has further his tertiary education oversea. My younger son will be sitting for his SPM next year. We have this idea of sending him to Institute Sinaran after his SPM because his current school doesn't seem to plan properly for senior 3 science stream to sit for their Independent Chinese School Exam.
It will be another 2 years to be with my younger son daily. Driving him to school, cooking meals for him, and asking him to take shower! When they have left home for further study, they may settle down for a job away from home as well after graduation. Should they marry someone who doesn't come from KK, I believe the chances of being physically close to them would be rare.
Someone posted on facebook. If he goes home twice a year to see his parents, should his parents live another 30 years, he would see them 60 times only! This make me really treasure my time with my children.
Mummy loves both of you, but I can't keep you next to me forever. I still carry the sweet memory of both of you wanting me to be with you all the time, and wanting to hold my hands when we went out, and wanting to sit next to me when we dined out. It seems like yesterday, when both of you annoyed me because both of you always fought to sit next to me. When I think back, I wish we could turn back the time.
Nevertheless, you need to grow, and look for your own freedom and way of living. Should we have a chance to live together after your graduation, it is a rich blessing from God for me!
God bless both of you!
It will be another 2 years to be with my younger son daily. Driving him to school, cooking meals for him, and asking him to take shower! When they have left home for further study, they may settle down for a job away from home as well after graduation. Should they marry someone who doesn't come from KK, I believe the chances of being physically close to them would be rare.
Someone posted on facebook. If he goes home twice a year to see his parents, should his parents live another 30 years, he would see them 60 times only! This make me really treasure my time with my children.
Mummy loves both of you, but I can't keep you next to me forever. I still carry the sweet memory of both of you wanting me to be with you all the time, and wanting to hold my hands when we went out, and wanting to sit next to me when we dined out. It seems like yesterday, when both of you annoyed me because both of you always fought to sit next to me. When I think back, I wish we could turn back the time.
Nevertheless, you need to grow, and look for your own freedom and way of living. Should we have a chance to live together after your graduation, it is a rich blessing from God for me!
God bless both of you!
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