AZIZI ALI’S BOOKS COLLECTION
My focus here today is to share with some burning questions that people have with AMANAH SAHAM NASIONAL (ASB) i.e. to invest straight into the scheme through monthly wage cuts or take out an ASB loan. Let me put it in another way, is it better to put in, RM500 monthly into ASB a/c or to make RM500 loan instalment on say RM50,000 ASB loan? The answer is simple, as long as you have a good margin spread between the cost of borrowing and the return, go ahead and borrow the money. After all, it’s the basis of all investment decisions in the purchase of property for investments or any other investments for that matter. But can we actually make money through this way with ASB? ASB, Boleh?
In the current interest rate environment, the answer from me is the AGAIN, will be based on the margin spread. Untuk betul-betul CARI DUIT anda perlu pandai merancang bagaimana BOLEH BUAT DUIT dan juga CONSIDER ALL RISKS Jika tidak anda akan kehilangan DUIT anda. Let’s look at my case study below:
Being a fussy accountant and financial planner myself, I naturally did up a special spreadsheet in Excel to compare the returns from savings consistently with the returns from borrowing for ASB. Assuming that I am saving the same amount of money every month that I pay for my loan instalments, I started to chart out the return mechanics. On interest rates, after some shopping around I have found RHB’s ASB LOAN scheme to be the best deal:
First 3 years: BLR -1.00%
The rest of the years: BLR-1.25%
Processing Fee: RM30
Taking ASB Dividend Rates as declared last year:
Dividend: 7.30%
Bonus: 1.25%
Let’s say we take out RM 50,000 loan, with 10 year-loan period, with monthly instalment of RM549. Here is what I found out:
SAVINGS MONTHLY CONSISTENTLY
ENDING BALANCE: RM 98,350.50
TAKING OUT A LOAN/PINJAM DUIT UNTUK ASB
This involves both INFLOWS (Through Capital Appreciation and Dividend