Planting seed money to my children at early age

As the cost of living is rapid increasing, seed planning also need to be done for my children account. As a result, by the end of 20s, will not have any problems especially regarding education, fund, transportation, cost of living and other aspect as well.

Seed planning need to be done as we want to take the advantage of ASB as ASB only limit one person for one account and the maximum value to be invest is up to RM250,000 only.

How much money do I have in the coming future?

As a preparation, this is the provision of accumulated money :

1) Investment :

i - RM10,000 = RM132,676.78

ii- RM20,000 = RM265,353.57

iii-RM30,000 = RM398,030.35

iv-RM40,000 = RM530,707.14

v -RM50,000 = RM663,383.92

2)EPF and KWSP

with minimum constant income of R

M2,500, It will contributed around RM500 every month and RM6,000 every year. (Ignored increment in salary)

So, With 5.5% divided by KWSP, the future value is = RM434,612.87

3) Properties and Assets (Ignored)

4) Business (Ignored)

Summary :

i - RM10,000 = RM132,676.78 + RM434,612.87 = RM567,288 (RM4,254 monthly income)

ii- RM20,000 = RM265,353.57 + RM434,612.87 = RM699,965 (RM5,249 monthly income)

iii-RM30,000 = RM398,030.35 + RM434,612.87 = RM832,642 (RM6,244 monthly income)

iv-RM40,000 = RM530,707.14 + RM434,612.87 = RM965,315 (RM7,239 monthly income)

v -RM50,000 = RM663,383.92 + RM434,612.87 = RM1,097,995 (RM8234 monthly income)

How much to invest at present value?

How much should I invest today in order for me to get some value that reasonable to live in the coming future after taking into account the inflation and market value.

Should I invest RM10,000, RM20,000, RM30,000, RM40,000, RM50,000 or any figures that are relevant to my income capabilities.

Invest in ASB with 9% dividend every year for 30 years time :

RM10,000 = RM132,676.78

RM20,000 = RM265,353.57

RM30,000 = RM398,030.35

RM40,000 = RM530,707.14

RM50,000 = RM663,383.92

Or combine investment with my spouse in a separate account :

RM10,000 + RM10,000 = RM265,353.57 (Will generate income of RM1,990)

RM20,000 + RM20,000 =RM530,707.14 (Will generate income of RM3,980)

RM30,000 + RM30,000 =RM796,060.71 (Will generate income of RM5,970)

RM40,000 + RM40,000 =RM1,061,414.28 (Will generate income of RM7,960)

RM50,000 + RM50,000 =RM1,326,767.85 (Will generate income of RM9,950)

How profitable is the business

The calculations are as followed :

~ Calculation for 1 year basis

1) Secretarial Fees :- RM60 X 12 Months = RM720.00

2) Accounting Fees :- RM1,000 (preparation of full set of account)

3) Taxation Fees :- 10% - 30% of Audit Fees

4) Audit Fees :- RM1,500 (Higher than this amount as this Audit Fees is based on the turnover/total asset of RM150,000)

Total Amount

= RM720 + RM1,000 + RM300 + RM1,500

= RM3,520

Let say the total companies in our service line is around 100 companies :-

= RM3,520 X 100 companies

= RM352,000 per year (Minimum income)

ARM Technology affiliated OneThink Enterprise

Well basically for this company nature of the business. The nature of the business is generally involve in technology and computer. But, we are moving forward to provide an extra-ordinary service to them. Re-Branding of the company is one of the concept that will be apply.

How Secretarial Fees being calculated

Every company in Malaysia need to have a certified secretary to perform a secretarial function for their company. Usually, the charge for maintain the statutory books and any other relevant book and report of the company.

The charge for the company for every month is basically around RM55-RM65 as SSM

has provide minimum par for secretary fees.

So, RM60 X 12 Months in year

= RM720.00 just for secretary fees.

Any other service offered will be charged separately.

The time given for tax submission

The Schedule of Taxation Fees

Quotation of Taxation Fees for individual, company and others :

The Schedule of Audit Fees

The Table below shows the Fees of Audit Service that will be charged to the client

according to their turnover or asset which ever is higher :-

Saving for my bird nest

Planning for the future as a preparation for the following years after my retirement. Just need to set this earlier in case my short term planning are not wholly achieved. From the day, I am writing this post. I still have another 32 years of preparation of doing seeds planning. Better start now before its too late. Normal life of people only start worrying their retirement life at early age of 40s (10 years of preparation is not enough as we already has too much commitment such as our child education, cars, housing, loan and even credit card commitment).

Just a basic calculation to shows how important to start now investing for the future :

FV = RM30,000(1.09)^32

= RM472,899.86

With this amount, it will helps us and contribute our monthly income around ~RM5,000

ASN Investment

Permodalan Nasional Berhad (PNB) launched Amanah Saham Nasional (ASN) fund on the 20th of April 1981. ASN was PNB first fund & it is only eligible to Malaysian Bumiputera. The fund objective is to generate reasonable level of income distribution and capital appreciation to the Unitholders through a diversified portfolio of investments.

ASN is a growth equity fund. Initially, ASN was launched as a fixed-price fund with a unit price of RM1.00 but it was converted to market pricing in 1991. The allocated fund size is 2.5 billion units.

The table below is the historical dividend rate since the fund was launched in 1981. Bear in mind that the dividend from 1981 to 1990 was based on fixed unit price while from 1991 onwards, there are elements of capital appreciation or depreciation. This means that the actual returns may be higher or lower which reflect by its Net Assets Value (NAV).

ASB Investment

FUND INFORMATION

Fund Name	SKIM AMANAH SAHAM BUMIPUTERA (ASB)
Type	Income
Category	Equity
Launch Date	January 2, 1990
Objective	To generate long-term, consistent and competitive returns to the Unitholders whilst ensuring the preservation of capital at minimal risk tolerance level.
Potential Investors	Those who understand investment risk and reward and expect to benefit from long-term growth of the Fund through re-investment of distribution (if any) as well as to receive regular income (if any) on their capital.
Eligibility	Malaysian Bumiputera. Akaun Dewasa (18 years and above) Akaun Remaja (18 years and above as Guardian for minors age 12 years old and above but below 18 years)
Investment Manager	Permodalan Nasional Berhad

TRANSACTION INFORMATION

Price per Unit	RM 1.00
Form of Investment	Investment book Certificate
Minimum Initial Investment	Investment book - 10 units
Minimum Additional Investment	Investment book - 1 unit Certificate - Multiples of 1,000 units
Maximum Investment	Akaun Dewasa - 200,000 units Akaun Remaja - 10,000 units
Approved Fund Size	Unlimited.
Sales Charge	None
Redemption Charge	None
Payment of Redemption	On-the-spot.
Cooling-off Period	None
Financial Year End	December 31

The ASB Dividend rates and the bonus rates for previous years.

Retain my investment in gold

As a preparation for the future, I need to retain my portfolio investment in gold investment beside ASB investment. The reason is because the golds are not inflated by inflation. It has strong value and the physical value beyond it.

For reference, the graph below shows the movement of gold price in capital market since 1975.

It is a stable investment.

Agriculture Business - Ternak Lembu

How profitable if I am involve in agriculture business. Let say, investing in 'penternakan lembu'. This is the story that must be told and shared together, One of my friend, his father started to do this business in a small capacity in the year 2006 with total amount of 6 cows (lembu) and now, in 2010, the total amount his father has are around >200 cows. Special about this business is the profitability rate is 555% and it is quite amazing. But the cash flow for this business is quite slow and need to bear some risks.

200 Cows X RM2,000 = RM400,000

I believe, doing this business/investment in a part time basis by using 'pawah method' is a great start. Should try someday :)

Master, PHD and ACCA

Getting my ACCA, Master and PHD at the early age of 20s. My target is to get all these before the age of 33 if possible. I believe by organizing my life schedule very well. Work-life balance will be achieve. Yup, getting my qualification, career satisfaction and at the same time etting rich. But, of course, a greater judgement is required to handle all these. How about the funding to support these. Urm, I am wondering, how we are going to manipulated the money in a good faith.

The Official Website of ARM Group

ARM Group - The Family Business

ARM Group was originally founded in the late 19 centuries. As one of the established group, ARM Group has all but grown into one of today's conglomerates in Malaysia. It has since diversified into a variety of prominent industries and division which includes property, agriculture and plantation, professional services, Information technology and even research development creation.

Our ambitions are still high as we are now ready to set our sights on building a local and global presence. Leveraging on our diversity, we continue to push the boundaries of our success by upping the ante and mastering the standards of excellence in each of our division in the respective industries. We believe the building a global brand presence does not happen overnight, but through small successive achievements aimed at creating recognition and respect. With respect we can foster international relationships that can transcend national borders and become and example of Malaysian branding and business excellence, continuing our legacy of success.

Today, the ARM Group is a conglomerate with various investment divisions in several industries. With more than division under its umbrella, the ARM Group is no longer just synonymous its establishment but also will continue to meet international and consumer standards, creating a cornerstone of branding excellence in product and services as one of Malaysia's leading conglomerates.

Having my own audit firm

What are so special of having my own audit firm. Well, actually it is something that I am looking for, for the past 7 years ( 4 years during my studies and another 3 years of working life). I believe, by having my own audit firm, everything will be under control. Time freedom, money freedom and something that I should proud of. The Income that I am getting by providing my professional services also quite impressive. At least, I can manage my own business and provide job opportunity to fresh graduate who are looking challenging career paths.

Dreaming of becoming a Professional Chartered Accountant

Yes, everyone have their own ambition. Unlike me, I am still confusing which route do I need to pursue. One of the Director in the organization that I am working for told me that the best way to have a very successful career is by having a really tough foundation at early age of my career (Entry Level). So, do I need to work in corporate organization (commercial company) or just pursue to audit line which is working with Big 4 company.