Dividend Magic

Saving and Investing towards Financial Independence in Malaysia

Financial Independence

Dividend Magic’s Yearly Review

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Filed Under: FI/RE, Financial Independence, Investment Portfolio 0

I’ll be using this anchor page to keep track of my overall investment portfolio. Updated yearly so I’ll be able to track and show a yearly gain/loss.

Moving forward, I’ll aim to keep my recording simple and clear-cut. So I’ll be able to track my yearly gain more easily. No more IRR, just simple yearly gain, including fresh capital and dividends reinvested.

The Year 2021

It has been a turbulent year. In terms of my portfolio, it has more or less stayed the same, which I am grateful for. The first half of 2021 saw prices plunge and then go up again in the latter part of the year.

My dividends have also increased ever so slightly to RM15,595.07 per annum in 2021. This is despite me having a smaller portfolio compared to 2020. Which is a win. Still, a long way to go to RM36K a year in dividends.

I’ve also managed to maintain a respectable savings rate in 2021 despite a drop in my income. Got a sizeable war chest ready to be deployed and I’m keeping an eye on a few local stocks as well as US ones. It has been a while where the Freedom Fund has been stagnant around the RM500K mark.

On the other hand, my crypto portfolio almost doubled in value from a year ago, this is after factoring in the huge year-end dip. I’ve also been consistent in putting money into my StashAway account. Returns have dropped compared to last year, but in the long run, I’m confident. My US portfolio has seen a drop come year-end, but we’re still positive.

My Investments

The Freedom Fund

Market value: RM501,858.09
Cash: RM100K
Dividends: RM15,595.07
Dividend yield: 3.33%

The Freedom Fund (US)

Crypto Portfolio

Gross investment: RM10,273
Market value: RM67,004
Capital gain: +552.23%

StashAway

Dividend Magic – Risk (36% Risk Index)
Gross Investment – RM48,000.01
Current Value – RM48,575.13
Time-weighted return – 10.19%
Money-weighted return – 2.79%

Dividend Magic US – Risk (30% Risk Index)
Gross Investment – RM10,000.00
Current Value – RM11,433.23
Time-weighted return – 14.33%
Money-weighted return – 14.33%

StashAway Simple
Gross Investment – RM4,500.00
Current Value – RM4,769.28

TOTAL
Gross Investment – RM62,500
Current Value – RM64,777.64
Gain/Loss: +3.64%

My Overall Investment Portfolio

Freedom Fund: RM601,858.09
Crypto: RM67,004
StashAway: RM64,777.64
Total: RM733,639.73

Goals for 2022

I will focus on getting my dividends up. I’ll be adding more positions throughout the year. I’m looking at you Scientex!

Also, will be looking to do a monthly DCA into Vanguard’s S&P 500 ETF. As of now, I’ll be purchasing it through Rakuten Trade until a better brokerage becomes available.

The Year 2020

What a year it has been. My portfolio tanked in March when Covid hit. It even went into the red, a first for me. I missed the glove boat.

Bet on the recovery and my portfolio managed to sail through 2020 with an almost 10% gain y-o-y. As the portfolio increases in value and diversification, long gone are the days of 15-20% capital gains. I’ll be aiming to rebalance and refocus my portfolio next year. Cutting underperforming stocks and adding more winners.

I’ll also be focusing on my US portfolio moving forward. I’ve also made a decision to keep my US portfolio hidden to maintain some form of privacy. Don’t worry you’ll still be able to view it in percentage (%) form.

My Investments

The Freedom Fund

Market value: RM545,778.21
Cash: RM46,350.83
Dividends: RM15,415.64
Dividend yield: 3.33%

The Freedom Fund (US)

Crypto Portfolio

Gross Investment: RM13,808
Market Value: RM34,424
Capital Gain/Loss: +149.30%

StashAway

Dividend Magic – Risk (36% Risk Index)
Gross Investment – RM14,001.00
Current Value – RM15,378.03
Time-weighted return – 8.01%

Dividend Magic US – Risk (30% Risk Index)
Gross Investment – RM10,000.00
Current Value – RM10,603.19
Time-weighted return – 6.03%

StashAway Simple
Gross Investment – RM12,500.00
Current Value – RM12,559.17

TOTAL
Gross Investment – RM36,501.00
Current Value – RM38,540.39
Gain/Loss: +5.6%

My Overall Investment Portfolio

Freedom Fund: RM607,544.68
Crypto: RM34,424.00
StashAway: RM38,540.39
Total: RM679,125.07

Goals for 2021

The Freedom Fund and StashAway performed solidly for me in 2020. Obviously, I’ll want to see my dividends go up in 2021. It dropped a little this year with a few companies in my portfolio electing to withhold dividends.

I hope to see dividends surpass RM20K per annum barring any unforeseen circumstances.

Also, I want to eventually have my total investments (excluding my US portfolio) reach RM750K in 2021 and RM1 million by 2025. Setting the bar a little low there I know but I’ve learnt that the key to happiness is low expectations. And with RM1 million in investments, I should be able to hit my dividend target of RM36,000 per annum.

On the other hand, I will also be pumping money into my US portfolio (which as mentioned above will be tracked only in %).

Now, to the best performing asset for me in 2020 – Bitcoin and Ethereum. Almost at a 150% return for me at the time of writing and it is increasing. I set out to keep crypto to a maximum of 10% of my portfolio. I’ll continue to hold onto them coins for now.

dividendmagic.com.my

I consider every one of you reading as a stakeholder of Dividend Magic. So an update of the website at the end of 2020 would be apt.

As mentioned on my About page, at the rate the blog is growing, we will definitely be hitting a million (and more) views next year. A big thank you to everyone that has been frequenting the blog and interacting with me on social media. I appreciate every follow, like, comment, and share you’ve been so generous with. I love the community we’ve built and the friends I’ve made along the way. We’re a small but tight-knit bunch in Malaysia.

If you haven’t already, follow me on Facebook, Instagram, and now YouTube to keep up to date.

To those that have been wondering if I’m making money via ads on the blog, the answer is finally a yes. But it isn’t much, unfortunately.

I’ve opted for the minimum amount of ads as well as the best-optimized placement for readers.

Right now, ad revenue itself is able to cover the running costs of the blog which I’m super grateful for. I don’t see this growing significantly, maybe I’m doing something wrong with the ads. With running expenses covered, Dividend Magic will be here to stay.

End.

Dividend Magic - We can do it!

That is all there is to update. 2020 was scary, thankfully, my investments are doing all right now. As always, it is important to stay invested and to attack when the opportunity presents itself. There will of course be some missed opportunities and lessons to be learned along the way. All my mistakes, all my wins, you’ll be able to see them here on the blog.

I’ll be updating my portfolios on a monthly basis as usual come 2021. Have a happy new year and I’ll see everyone in 2021.

Best Premier Banking in Malaysia

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Filed Under: Fixed Deposits, Savings Accounts etc, Other Investments 6

Premier Banking vs Priority Banking

The article is a work in progress and I’ll be updating it as and when new information becomes available. Thank you everyone that messaged and emailed me with your experiences.

First, let me clarify that premier banking and priority banking aren’t the same. They are miles apart. You need to have RM250K and above to be eligible for premier banking. For priority banking, it is at least RM3 million.

In this article, we will be talking about premier banking primarily because I am only eligible for that and have experience with it. Hopefully, in the not too distant future, we can talk about priority banking. I’ve also spoken to some of my friends as well as readers to collate their experiences here for you to make a decision.

If you’re thinking of upgrading from being a mere standard customer to joining the higher ranks in premier banking, let me start by telling you that premier banking isn’t all that it’s cracked up to be.

Premier Banking in Malaysia Ranked – The Good and the Bad

The reason I’m writing this article is because I myself am looking to switch away from my current bank – Maybank to one that offers better services. And since I’ll be doing my research on premier banking in Malaysia anyway, I might as well jot everything down here and share this with everyone.

The list below is based on my 1-year long experience with Maybank’s Premier Banking as well as the experiences of my friends and colleagues with other banks as well. The general good and bad are listed here and we will go into each bank’s good and bad later in the article.

No long queues

Let’s start off with the good first. In the day to day running of my businesses, I require weekly (sometimes daily) cash deposits over the counter or through ATMs.

I get to skip ahead of the queue to conduct my usual banking. Oh, and you also get to park in a designated spot for premier banking customers. But this isn’t great because, at my branch, the parking is always occupied.

Better and faster service

With a premier banking card, and at branches where they have premier banking, I’m allowed to head to a specially designated floor to do my banking, deposits, and whatnot there. At some branches, you get coffee and canned drinks while you wait. You get WiFi if you’re lucky.

I’ve also seen some branches where they provide newspaper, a tv that reports on financial news. Some even have PCs for you to do your online banking or stock trading if you choose to.

Better mortgage and loan rates

You’re able to procure slightly better rates when applying for mortgages and hire purchases. As a premier banking customer, you’ll also be afforded a less stringent loan approval process.

A personal relationship manager

I’ve been a premier banking customer with Maybank for about a year now. As a premier banking customer, you’re assigned a personal banker, also known as a relationship manager (RM) that acts as a liaison and caters to your banking needs. Instead of having to head over to the branch directly, you’re able to make certain transactions over the phone.

Your experience as a premier banking customer is highly dependent on the RM that’s assigned to you. Unfortunately for me, I’ve been assigned one that is very pushy and sales oriented and sees fit to constantly bombard me with product offers every other week. And being the nice person that I am, I have to come up with excuses to politely reject his proposals.

The products offered to me have always been unit trusts, packaged products that consist of unit trusts and more unit trusts.

Idle Cash

Now this is the worst part for me. All banks in Malaysia will require you to either have cash/investments or loans with them to be eligible for premier-ship.

Personally, I place my cash in fixed deposits and treat this as my emergency fund. I practice FD Laddering. Yes, you often are able to get slightly better FD rates but still, I don’t like the idea of RM200K or more sitting in the bank generating measly returns.

1. Maybank Premier Banking

  1. Service: Good (Sitting area)
  2. Parking: Designated spot, no sticker was provided to me, had to show my debit card to prove I’m a customer.
  3. Requirement: RM200K AUM
  4. Special Credit Card: Didn’t opt for it.
  5. RM: Pushy
  6. Products and services :
    1. CASA
    2. FD (Mediocre rates)

I’m fortunate enough to be able to be eligible for premier banking. I park the minimum amount in fixed deposits as emergency funds and invest the rest.

The best thing about Maybank’s premier banking for me is actually being able to conduct my banking transactions quickly. What usually takes me 30 mins to an hour can be done in probably 10-15 mins.

Perhaps I got a pretty pushy RM and also it is because I’m well versed in finance and investing that the products offered were of very little interest to me. The only time I put money with my RM is when he offered the bundled ASM product to me where I managed to get some of the coveted fixed priced units. I write about it hERE.

All in all, premier ain’t nothing much to shout about so the next time you see someone walking up the stairs or to the premier banking section, you know that it really isn’t that big of a deal.

2. Alliance Privilege Banking

  1. Service: Good
  2. Parking: Designated spot, able to park no questions asked.
  3. Requirement: RM300K AUM
  4. Special Credit Card: Lifetime fee waiver
  5. Products and services:
    1. CASA (2.25% for deposits more than 350k)
    2. FD Slightly higher compared to standard board rates.
    3. Dual Currency Investment
    4. Foreign currency retail bonds

This one was provided by one of Alliance’s own RM.

3. AmBank Signature Priority Banking

  1. Service: Posh waiting area.
  2. Parking: Designated spot, able to park with car sticker, no questions asked. Usable in all AmBank branches.
  3. Requirement: RM200K AUM
  4. Special Credit Card: No particularly attractive benefits
  5. RM: Standard
  6. Products and services :
    1. CASA
    2. FD (Slightly higher rates)

Special products: Yet to be discovered.

This one was provided by Mr. T, a fellow reader who wishes to remain anonymous.

4. OCBC Premier Banking

  1. Service: Excellent
  2. Parking: Designated spot
  3. Requirement: RM300K AUM
  4. Special Credit Card: Platinum credit cards
  5. RM: Pushy, salesman
  6. Products and services :
    1. CASA
    2. FD (Mediocre rates)
    3. Bundled UT with FD (FD slightly higher rates but high UT fees)
    4. 24hr loan approval status!

This one was provided by my good friend and fellow financial blogger Siva at sivasathish.com.

5. HSBC Premier

  1. Service: Good (Free WIFI, sitting area, financial channel, coffee, tea. Self-service coke, sprite, packet drink.)
  2. Parking: Designated spot, able to park with car sticker, no questions asked. Usable in all HSBC branches, 2-hour limit.
  3. Requirement: RM200K AUM
  4. Special Credit Card: HSBC Premier Master Card (Free access to airport lounge)
  5. RM: Professional
  6. Products and services :
    1. CASA
    2. FD (mediocre rates)
    3. Dual Currency Investment
    4. Unit Trust (Birthday month 1% sales charges)
  • Special products: When you are an HSBC Premier customer, you are automatically a premier customer overseas as well. USA, UK, Singapore, Australia, Hong Kong, China without having to meet their overseas’ minimum requirements. When you transfer your funds between countries, it is a real-time transaction and does not include service charges. You can get a credit card in that country as well.
  • Oversea banking benefit: If you get an HSBC HK bank account. You can trade shares in the HK market (high fees). However, you can apply for HK IPO using margin. E.g. Ant Financial. You can apply for a 90% margin and pay only a 10% investment fund. This will increase your chances to get the IPO share as HK IPO is base on the size of the application to allocate the IPO. For E.g. If the allocation rate is 10% and 1 lot is 100 shares. If you apply for 100 shares, your chance is 10% to get 100 shares. If you apply for 1000 shares, your chances are 100% to get 100 shares. However, to use margin to apply, your address must be HK address.
  • You can get a credit card in other areas like HK. You get the credit line of HKD 200K. The bank requires no collateral.

This one was also provided by Mr. T, a fellow reader who wishes to remain anonymous.

6. Standard Chartered Priority

  1. Service: Good (Free WIFI, sitting area, financial channel, coffee, tea, hot chocolate
  2. Parking: Designated spot, able to park with car sticker, no questions asked. Usable in all SC branches, 2-hour limit.
  3. Requirement: RM250K AUM
  4. Special Credit Card: Standard Chartered PB Priority VISA Infinite (Free access to airport lounges. Free airport taxi. Hotel dining 50% cashback until 30 Dec 2020. Must maintain AUM of RM250K)
  5. RM: Professional
  6. Products and services
    1. CASA (Privilege account gives the best current account interest rate – 2.6% T&Cs Apply.)
    2. FD (Mediocre rates)
    3. Dual Currency Investment
    4. Discount on safe deposit boxes
  • Special products: When you are an SC Priority customer, you are automatically an SC Priority customer in other countries such as the UK, HK, and Singapore without having to meet their minimum requirements. When you transfer your funds between countries, it is a real-time transaction and with no service charges. You can get a credit card in that country as well.
  • Oversea banking benefit: Same as HSBC HK for IPO. Need to go over to HK to open an account. For SC Singapore, no need to go to Singapore to open an account. Can trade world stock (USA, Germany, France, Japan, Hong Kong, Switzerland, Australia). For priority banking customers, 0.2% with no minimum. No custodian charges and no charges to receive dividends.

This one was also provided by Mr. T, a fellow reader who wishes to remain anonymous.

7. UOB Privilege Banking

  1. Service: Never been to the branch.
  2. Parking: Designated spot, able to park with car sticker, no questions asked. Usable in all UOB branches. Limousine service available to pick up from home to the branch and from the branch to any other place in KL. (Contact RM to apply.)
  3. Requirement: RM500K AUM
  4. Special Credit Card: No particularly attractive benefits
  5. RM: Professional
  6. Products and services :
    1. CASA (InvestPro account which gives 1.7% interest p.a. for deposits over RM50K)
    2. FD (Slightly higher rates)
    3. Dual Currency Investment

Special products: Yet to be discovered

This one was also provided by Mr. T, a fellow reader who wishes to remain anonymous.

The Best Premier Banking Service in Malaysia

These are all personal experiences, from different customers, at different branches, with different RMs. Your own experience will very likely be different.

So I won’t do you the injustice of naming the best in Malaysia. BUT, based on everyone’s experiences, I’ll want to go for UOB if I had RM500K. Right now though, I’ll probably give HSBC a try. Will be updating this page with my experiences with them in the near future.

Final Thoughts.

As a final conclusion, premier banking is a nice thing to have. But treat it as a bonus and an extra. Don’t go pooling all your money into your saving accounts and FDs just to meet the required AUM to be eligible. Build up your assets first, and if your emergency funds come up to RM200K and above, opt for premier banking. At the end of the day, you’re parking a huge amount of money with them, earning very little returns when you can for example invest in stocks or bitcoin. Opportunity costs.

Another thing to note is that the banks themselves won’t always offer you premier banking even if you reach their requirements. So take the initiative and ask your bank for it if you’re eligible.

These are all the banks I’m able to write about from first-hand experience as well as from my friend’s and readers’ experiences. I’ll be looking to finish the list and have all the banks in Malaysia listed. Do drop me a comment or email if you’ve got experiences you’d like to share.

Oh, and if you’re thinking of signing up for premier banking, look out for referral and reward programs with said bank. If they have one, drop me an email or comment and I can hook you up with readers who are already clients and you can both enjoy the rewards.

Lastly, a big thank you to everyone who messaged me and shared your experiences. If you have experience with other banks not mentioned here, do drop me an email!

My Portfolio is Built on Frugality

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Filed Under: Financial Independence, Frugal, Portfolio - Freedom Fund 23

The Freedom Fund – A Product of Good Offense and Defense

I’ve been asked often about how I managed to amass an RM400K (almost RM500K) portfolio at 30. This post isn’t about showing off and flaunting my portfolio, so I hope it doesn’t come off that way.

I can narrow it down to two basic parts – Offense and Defense.

The first and most obvious is your ability to generate income and returns – your offense. With a high income, be it from your day job, side hustles, a business, or from your investments, a good offense is directly proportional to your increase in wealth.

However, based on my experience, a good and solid defense is perhaps much more important than your income. A solid defense is equivalent to having a high savings rate and being frugal.

Let me start off by saying that playing good defense and being frugal isn’t for everyone. I am not telling you to follow and copy what I do to the letter, but this is how I was brought up and how I built my Freedom Fund.

My Childhood / Youth

I’d like to think that my childhood and good early parenting helped make me the person I am today.

I am from a middle-class family. We’ve had our fair share of ups and downs. We’ve never gone hungry or without a meal but food was never EVER wasted.

I got RM10 per week from my mum during primary school. Thus, the first lesson in budgeting was born. If I spent all RM10 on Monday on nasi lemak and french fries, I’d starve for the week during recess. Even at that young age, I managed to save some money every week. That money was then used to buy stuff like erasers for that eraser flipping game.

Fast forward a few years, high school was pretty much the same. I had a bump in allowance of course but I was still saving money every week. I recall looking on enviously at my friends who all had iPods. I had to save money for a year before getting my own. That feeling of achievement at the end though, was worth it.

University – One of the biggest regrets I have to this day is that I didn’t take the time to apply for scholarships after my SPM. I surprisingly got really good results but no one taught me about scholarships.

I had the opportunity to study abroad as well with my parents offering to fund my studies in Australia. Instead, I completed my education locally to save my family money.

Back then, I was fortunate enough that my parents were able to pay for my education. However, I took out a PTPTN loan anyway as the interests were lower than FD rates. It was a no brainer for me. I took my parent’s money for my education and placed them in FDs. And after 3 years of education, guess what? PTPTN was giving out a 20% discount for those who settled their loans early. At the age of 21, I had made a 20%+ return. This was to be my seed money.

Another thing that helped fund my portfolio initially was that I took a part time job when I was studying. The money was one thing but it helped built character and a sense of gratefulness when I eventually entered the workforce full time. So parents, even if your teenage child doesn’t need to get that part time job, I think you should make them work anyway.

Entering the Workforce

In the first week of entering the workforce, I followed my seniors and colleagues around. We mainly ate in the mall costing me RM15 – RM25 per meal. This was when I was on an RM2,800 salary. Thankfully, I smartened up pretty quickly and my staple food was economy rice – chap fan.

I had breakfast at a nearby kopitiam – eggs, toast and coffee for around RM5. Lunch was economy rice which cost me around RM10 or if I’m feeling rich, RM13. I had my dinners at home. This was my life for 4 years. Of course there were times when I splurged occasionally. Birthday meals, dates, the usual.

During this time, if memory serves, I had a savings rate of around 50%. This was when I started buying stocks. I spent the day at work and in my free time, I analyzed stocks. Sunway, Nestle and Scientex were my very first stocks and I still hold them to this day.

Being Frugal Today

A Penny Saved is a Penny Earned

Today, as you can tell from some of my posts on social media, I do splurge a little on food and travel. But let me assure you, every other day I am still in essence a frugal person.

I still play good defense and it is in my nature to be frugal. I still go for that economy rice (now RM15) when my friends and colleagues go for lunch at the nearby bistro.

I still turn off the lights and appliances when I leave the room. I even do it when I’m not in my own house / property.

I still do not turn on the tap to the maximum when washing the dishes.

I make sure to have a fan in my room and office so I don’t turn have to turn on the air conditioning. And at times when I am hot and I have to, I set it to 24°C. That’s the lowest I’ll ever go.

I practice most hacks on frugality like waiting a week before making a big purchase. I pay myself first when I get my salary. I buy in bulk whenever I can. And I love credit cards for their cashback and points.

All these might seem a little extreme to you, but this is how I live. It isn’t tiresome for me (it might be for the people around me), but I believe these are good habits to have. And all these, in a huge way has helped me immensely in wealth creation.

Because a penny saved is a penny earned, a penny earned is a penny invested and compounded.

A few of the stuff I use to save, earn points etc can be found hERE.

Despite everything I’ve laid out, remember to treat yourself to that occasional good meal, to travel and experience the world once you’ve built up your portfolio. Use your dividends and passive income for some leisure. Just remember to flip that light switch off before heading for that holiday.

End.

Both defense and offense are equally important on the road to financial independence. With my savings and frugality, I wouldn’t have much of a portfolio if I did not invest my money. So remember to always invest. And invest for the long term.

I apologize if you came here looking for tips on how to invest and how to pick stocks and build wealth. But the truth is, with me at least, it was discipline and good solid defense.

It’s a boring route and definitely not for everyone. So please do not feel bad about yourself if you are a big spender. Your huge income capabilities could very well outweigh your bad defense.

It is however my intention and wish that perhaps after reading this, you just might turn off that switch when you leave the room.

Do not confuse frugality with being cheap.

Onwards and upwards!

For the next article of the FI/RE and Savings Series, check out article 003 – Passive Income in Malaysia.

What to Do During a Bear Market in Malaysia

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Filed Under: Dividends, Financial Independence, Investment 8

What is a Bear Market?

In general, bear markets are markets in which the prices of securities fall by more than 20% amid widespread negative investor sentiment and fear. It can last from weeks to decades.

So, don’t be so quick to call a market a BEAR.

Things You Should Do During a Bear Market

Always Stay Invested

I’ve said this countless times, and it stays true time and time again. In the long term, you’re always better off staying invested.

And if you’ve been a reader of the site, I would like to assume – like me, you’re a long term investor.

”Wouldn’t it be better to sell off my stocks now and buy when the market bottoms out?”

This is the most frequent question I got during the last few weeks of turbulence. I even came up with a standard reply to copy and paste.

The above theory is sound, but I for one will never know when a market ‘bottoms’ out. And neither would you.

Instead of chasing that bottom, I’d suggest averaging down your stock positions regularly. And when a market rebounds, and trust me it will, you’ll be in prime position for the biggest upside of your life.

Remember the Fundamentals

Don’t panic. Don’t sell. Don’t panic sell.

Remember the reasons you bought into the stock and your portfolio in the first place. During a bear market, the company’s fundamentals will not have changed.

Do not just sell because the stock price is dropping. That goes against conventional wisdom.

What I am Doing

The Freedom Fund isn’t spared the current market downturn. In fact, my return right now is at a measly 0.91%. Since inception.

However, I’ve received and will continue to receive dividends every month. Which is why there’s no panic selling from my side.

Of course, there will always be regrets in hindsight where I wished I had sold stocks earlier so I’d have more money to spend now. But I’m happy where I am – receiving dividends while the market goes crazy.

So this is what I’m actually doing – I’m purchasing stocks and averaging down on my positions. And to continue doing this for the next few months or even years, I’d need cashflow. AND Dividends = Cashflow.

The money I’ve actually saved up in Fixed Deposits and in my savings account will be utilized and used to make more buys.

It is the Best Time to Start Investing

If you’re ever on the fence and wondering if you should start investing, the time is now.

You can read up on how to start investing hERE.

If you’ve yet to open a brokerage account, I’d recommend Rakuten Trade. They offer one of the best rates and you can do everything online right now.

And if you don’t want to invest on your own, I’d suggest a robo-advisor like StashAway.

End.

Now, this isn’t a call for everyone to take up arms and buy, buy, buy.

Instead, I am telling you to keep a calm mind and purchase more stocks if you are able to. Do not go over your risk threshold.

It is also a reminder to always, always stay invested.
Onwards and upwards my friends.

As always, Facebook and Instagram. Follow, keep up to date.

Hello 2020!

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Filed Under: Dividends, FI/RE, Financial Independence 0

My Goals

Financial

Let’s start off with my goals set way back in 2018.

  • Dividend yield > 5%
  • Total dividends > RM20,000 p.a.

Those were the goals I set out to achieve at the start of 2019. Here’s where I am at now.

  • Dividend yield:  4.16%
  • Total dividends: RM16,322.27

As compared to 2018, both my yield and my total dividends have dropped. I can attribute this to the bad performance of some companies I hold and the markets not doing well. But at the end of the day, it is on me because I held on to those stocks and I should be ahead of the market.

So, come 2020, I’ll be sprucing up and making some changes to the Freedom Fund. Time to get the dividend yield above the 5% threshold, lock in some profits and cut some losses.

For 2020:
Fix the Freedom Fund. The aim is still 5% dividend yield per annum with the final goal being RM36,000 in total dividends every year.

Thereafter, I’d want to set aside some money to invest in riskier, high growth potential companies.

The Blog

The blog has been making steady progress over the years. Dividend Magic has officially crossed the 1 million views mark. It’ll be exciting to see how the site does in the coming years.

You may have come across a few more Sponsored Posts than usual.
I’d like everyone to know that I vet through and at the end of the day only take on jobs that I personally approve and use. So, the next time you see the tag [Sponsored], do know that it’ll probably bring some value to you.

For 2020:
I’ve made a decision moving forward to focus on quality as opposed to quantity when it comes to sponsors. I’ll be choosing to work with a select few that relate closely to investing and what I’m writing about.

Health

In the past, I’ve been focusing a lot on financial goals but I’d like to keep myself accountable on the non-financial aspects of my life as well. So the goals will be a little more personal this time around.

I’ve been hitting the gym 5 times a week now. Also, instead of the usual strength and vanity muscle workouts, I’ve been focusing on mobility and stretching.

Meditation is also a big part of my routine now. If you all want to be more productive and focused on basically everything, I highly recommend meditation. It’ll take up only 10-20 minutes of your day.

For 2020:
I’d want to continue my 5-times a week work out sessions.

Also, I’d like to make meditation a permanent routine and habit of mine. First thing in the morning and one more in the evening.

And, a better diet.

Personal

I’ll be increasing my budget for travel as well as for food moving forward. So look forward to more posts and photos like this on my Instagram.

and this

I’ll leave you with a little video of my how my 2019 went.

End.

This is how the Freedom Fund looks going into 2020.

Gross Investment: RM392,717.20
Market Value: RM458,476.77
Dividends (2019): RM16,322.27
Dividend Yield: 4.16%
Special Dividend: RM11,970.00

2020 would be a good year to start investing. If you’re looking to start, start hERE. If you haven’t got the funds, please start saving.

To a stellar year ahead. Onwards and upwards.

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ASNB – Getting Fixed-Priced ASM Units

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Filed Under: Financial Independence, Fixed Deposits, Savings Accounts etc, Investment 15

Updated March 2022

There is a new 2022 ASNB campaign to get more fixed-price ASM units. Got this one from Maybank again and the brief details are as follows:

  • Ratio is now 60% variable price (VP) and 40% fixed-priced (FP); this is an increase from the last one I did!
  • Minimum total investment is RM10K; and
  • VP fund now has a lower sales charge.

I’m still on the fence about topping up my ASM fixed-priced funds. Dividends have been good but I really hate the sales charge of the VP funds from the bundle.

ASNB and Their Funds

Amanah Saham Nasional Berhad, more commonly known as ASNB handles the funds found below.

ASB and ASM

The coveted fixed-price funds are what we will be focusing on today. Not

A thing to note – ASNB provides two kinds of funds. The first is the fixed-priced funds – namely Amanah Saham Malaysia (”ASM”). The variable-priced ones are just your normal unit trusts and mutual funds and are subject to NAV change, which means a potential loss for you. And you all know how I feel about them because of their fees.

I’ve been trying to get my hands on additional units of the ASM funds 1, 2, and 3 for ages now. I managed to get RM17,500 worth of it a few weeks ago and here’s how I did it (in 2019).

Now, if you’re a Bumiputera of Malaysia, you’re in luck. You’re automatically allocated units in the ASB funds. These typically give above 6% returns, with bonuses and stuff it’ll be in the 10% region.

Non-Bumiputeras, you don’t get to touch the ASB funds. The next best thing is the fixed-priced ASM funds I mentioned earlier. These are lower in returns compared to ASB though.

You’ve heard of aunties and uncles queueing up every damn day at banks just to ask the lady at the counter to query the system for available ASM units. This isn’t hearsay. I too do this on occasion.

The common belief is that during festive seasons, there will be a higher chance of available units as people tend to sell their units then. I’ve never gotten it this way.

In fact, I count myself among the lucky few because my mother had got me about RM3K worth of ASM units when I was younger.

ASM vs EPF

A common comparison I get from readers is ASM vs EPF. The dividends from ASM fixed-priced funds like ASM3 is lower compared to EPF of course. Instead, you get the flexibility of withdrawal for your ASM3.

I will probably max out my annual EPF and then put additional money into ASM FP funds.

Getting Additional ASM Units

The traditional way of purchasing additional units is as follows:

  1. You queue up and ask the bank if they’ve got available units. Chance? 0% for me
  2. You sign up at ASNB’s website and try to purchase online. You save time queuing but I have yet to get any.

Here’s the third way. I managed to get RM17,500 worth of ASM3 units a few weeks ago through my relationship manager at Maybank.

A few things you should know beforehand if you’re new to the blog.

  1. I’m a Maybank Premier Wealth customer and I have a relationship manager (”RM”).
  2. This is a campaign by Maybank. I ain’t sure if it’s only for Premier Wealth customers but my RM brought it to my attention.

OK. So this was the text I got:

Upcoming ASNB VP & FP Bundle Campaign 2019- Phase 3

Campaign Period: 10 – 20 Sept 2019 Bundle :
ASN IMBANG 1 or 2 & ASM3
Minimum: RM30k
Ratio: 65% ASN Imbang1/2 : 35% ASM3

The ASM3 units are limited and available on a first come first serve basis.

I had to basically put in a minimum of RM30K in. 65% will go to ASNB’s variable fund and the remaining 35% into its fixed-priced ASM3 fund.

ASNB is basically trying to promote and get you to invest in its variable fund which charges a 4% sales charge. I forgot the management fee per annum. But yeah, mutual funds.

I decided the 4% sales charge was worth it in the long term and invested RM50K into it total. Which gave me that RM17,500 in ASM3 funds.

As you can see, I was charged 4% immediately and the variable fund dropped in value since.

End.

That’s how I got RM17,500 worth of ASM funds. At a cost of RM1,300. Effectively, a 7% sales charge on it. Do you think it’s worth it?

I hope this one will help people get their ASM funds in the future. I’ll be sure to post an update whenever I receive news of new campaigns from my RM in the future. So follow me on Facebook and Instagram to get quick and immediate updates.

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