Gold Target Cut by Morgan Stanley Seeing ‘More Pain to Come’

goldGold will extend declines this year as gains in equity markets reduce the need for haven assets and increased regulation hurts risk appetite, according to Morgan Stanley, which lowered its bullion forecasts.

The 2014 target was cut 12 percent to $1,160 an ounce and the prediction for 2015 reduced 13 percent to $1,138, analysts Peter Richardson and Joel Crane wrote in a report today. Gold remains under pressure as the global recovery gains traction, increasing the risk of higher interest rates, they wrote.

Bullion’s 12-year bull run ended in 2013“…………………………….

Read more here on Bloomberg

Everybody was swearing by gold as the best investment until it turned stale last year. Maybe it is time to relook at your investments and consider investing in Mutuals or Investment Link Life Insurance. Of course Investment Link Life Insurance gives you an advantage over Mutual in that there is the insurance that no other investment can give.

Do you know that in the event you were diagnosed to be suffering from one of 36 Critical Illness, you have the opportunity to:-
* Get a Lump Sum payment
* Allow other coverages like the “NOW VERY IMPORTANT” HOSPITAL & SURGICAL Insurance to carry on
* your investment can still grow, especially now that it is Zurich, that will be continuing your investment payment on YOUR behalf?
 
Call me to find out more on how you can enable yourself growth in your investments while enjoying Insurance Protection
 
RAMA KRISHNAN
+6012-3208475

Malaysia’s King of Mini – Marts

0304_speedmart-lee-thiam-wah_398x265

A fine example of an  entrepreneur who never let his handicap get in the way of success and who can put many a fully-abled person to shame. Truly an inspiration to me

Lee, 42, the founder of the 99 Speedmart chain of stores is Klang’s undisputed “Mr Mini Mart” and runs his business empire from a wheelchair.

At eight months, he was struck with polio, rendering his legs unuseable. The disability had in no way affected Lee’s zest to succeed in life and business. Pointing to his wheelchair, he said: “This is nothing.”

Life should not be lived bemoaning what you don’t have. Rather, it is about using what you have to build something for yourself, your family and the community,” added Lee, whose journey to success has been one of blood, sweat and tears.speedmart

Life has thrown challenges at Lee at every turn. He was born into a poor family and his hawker mother and contract labourer father fended for their 11 children as best as they could.

However, the financial burden was just too much. His parents cried when they told Lee he could not attend secondary school because the journey was too far and they just could not afford the transport fare.

“I was sad but undeterred. I borrowed textbooks from neighbours and read them at home. I also read the newspapers and magazines,” Lee recounted.

At 23, he opened his first grocery shop in Jalan Tepi Sungai here.

“I took to trading because there were not much employment opportunities for me. Let’s face it, a man in a wheelchair with a primary education is not exactly in high demand.”

In a few years, his shop became the best grocery store around – known for its good customer service, fair price and variety of goods.”

“I took to trading because there were not much employment opportunities for me. Let’s face it, a man in a wheelchair with a primary education is not exactly in high demand.”

In a few years, his shop became the best grocery store around – known for its good customer service, fair price and variety of goods.

Business was good but Lee wanted more challenge. He sold the shop to a relative and opened a mini-market in Klang Utama with RM300,000 seed money in 1992.

“I was not afraid, having been in business for five years. I knew I could do better and at that time, the big hypermarkets were not around yet,” said Lee, who now owns 44 convenience stores here and in the Klang Valley. While the business has given Lee a tremendous sense of achievement, it is his wife Ng Lee Tieng, 27, and their two children, aged four and six, who have brought him much joy and a sense of completeness.

“Lee Tieng is my source of strength. Her vivacity complements my more reserved nature.

“More importantly, my wheelchair is invisible in her eyes and those of my kids. Their love allows me to walk tall, run, sprint and race towards success.”  

Read actual story at The Star,and even more at Forbes

Rama Krishnan

+6012-3208475

More Malaysians to be declared bankrupt, says daily

MARKET9_540_360_100“The number of bankrupts in Malaysia is expected to rise following the recent price hikes in electricity tariffs and other household goods, as well as the removal of sugar and fuel subsidies.

Singapore’s Straits Times reported today that last year, more than 60 people were declared bankrupt daily until September, with the figures up from 53 people a day in 2012.”

………”Credit card debt has gone up. The amount owed to banks for longer than six months to November last year stood at RM426.4 million, compared with RM402 million in the same period in 2012, the daily said.

Credit Counselling and Debt Management Agency (AKPK) chief executive officer Koid Swee Lian said credit card users also “have themselves to blame”.

“In Malaysia, only about half of the credit cardholders pay above the minimum required amount of 5% of total owed to banks each month, whereas in Japan and Korea, it is 89% and 87% respectively,” she said.”

………..”It also highlighted the plight of a 26-year-old salesman who is now struggling to pay off a RM10,000 loan he had taken to foot hospital bills following an accident. He earns RM 2,300 and has no credit cards and he, too, is seeking help from AKPK.

“People like us just don’t earn enough,” he said. “Even insurance is a luxury.”

Read more from Malaysian Insider

Presently, tightening your belt may be necessary, under the present circumstances,

But perhaps it may be time to actually seriously think about increasing your income?

Call me for more information about how you can work with

just about the best financial institution in town

Rama Krishnan

+6012-320 8475

Electricity tariff up 15% next year, minister announces

Following weeks of speculation, Putrajaya today announced that electricity rates in Malaysia will be up by 14.98% or 4.99 sen to 38.53 sen per kWh, effective January 1 next year.

Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili announced the new rates in a press conference at the Parliament lobby today.

This move was anticipated after Putrajaya announced its plans to trim fuel subsidies for power producers in the first quarter of 2014

Read more here

Similar to my previous blog, the question here is, will your pay hike and coming bonus be enough to offset your electricity cost and resulting costs increase

One move you could do would be to cut your expenses. Another would be to increase your income and maximize investment returns. If you are interested in the later, please contact me for opportunities available in Financial Planning.

FP happiest job

Click here for page

Rama Krishnan

+6012-3208475

EPF Retirement & Your Savings

EPF Savings & Your Retirement

See actual KWSP pdf brochure here

*Note that the Basic Savings quantum on pg 9 of the brochure has been revised UPWARDS effective 1st January 2014

Eg for age 55, the minimum amount will be raised to RM168,000 from current RM120,000 . You may contact me for more info

Rama Krishnan

+6012 – 320 8475

Stubborn behaviours can hurt our goals to become rich

13moneymistakesMany years ago I helped someone solve a bad credit problem that saved her a few thousand ringgit.

My advice was that she should place her ‘newfound’ savings into a safe portfolio to build up her emergency funds.

To my dismay, I found out later that year that she had used all her savings to buy another luxury car and her debts started to pile up again!

This is an excellent example of financial stubbornness when the habits in our lives are beyond control.

Such behaviours are financially fatal and if change does not happen, the only way is downhill.

Besides behaviours, there are also stubborn perceptions which can rob us of our wealth building goals.

* Investments are always bad for me.

Investors who do not understand how investments work and have lost money think that investments are not for them.

Losing money does not make the investment “bad” but such perceptions can keep your money from growing.

Create portfolios which are aligned to your life’s goals.Avoid being sold merely on products.

* Insurance is only out to cheat me.

Some may have listened to a bad sales talk, resulting in being under insured and exposed to financial losses due to unforeseen events

Make sure that you understand what insurance you are buying. Normally, a good insurance would provide you with the highest coverage at the lowest premiums.

* I am more clever than the market and hence I can beat it.

No one can ever predict the market movements even with the most sophisticated tools! Even if they can, why would they want to share with you the trade secret? Time, strategy and a purpose should be your focus in building wealth.

* I am too young to plan for retirement.

Retirement isn’t about retiring due to age but retiring from the work you don’t enjoy.

You can ‘retire’ even if you are in your thirties or forties.

If you are not planning early, there is really no time to accumulate when you are ‘forced’ to retire in your later years.

Being financially stubborn also means being financially arrogant. There is no point being arrogant and yet ending up poor.

16 money mistakes you are making

1) You don’t save
2) You don’t have a budget
3) You don’t have a rainy day fund
4) You buy unnecessary things
5) You don’t have a retirement goal
6) Paying unnecessary fees
7) You have inadequate insurance
8) Falling for gimmicks that make you spend more
9) Not looking for better prices
10) Making bad or emotionally-driven investments
11) Falling into credit trap
12) Not investing in career advancement
13) Applying for bad loans
14) Spending too much on habits
15) Ordering drinks when eating out
16) Eating out for lunch

Read full article here

Rama Krishnan

+6012 – 320 8475

BANKER, 41, can afford to retire in the next 3 years: HOW ABOUT YOU?

bankerThe diversified investment portfolio that Australian banker Anita Yadav has compiled with her architect husband over the years will allow them to retire some time in the next three years – before they both turn 50.

Instead of planning to retire at a certain pre-determined age, Ms Yadav, who has been living in Singapore for about three years, told herself that she would do so only when she earns about $250,000 a year on passive income on all her investments.

……We are biased towards property because my husband is an architect and it does not require intense monitoring on a daily basis. With two children and demanding careers, we are normally short on time for day-to-day monitoring of the portfolio.

I like investing in direct cash bonds and bond funds over shares mainly for their running yield and low risk.

Insurance-linked unit plans provide insurance benefits and help to set aside money for the children’s education and their personal expenses…….

…..Q: What is your financial goal?

It is to achieve at least 8 per cent returns on investment in order to retire on my passive income within three years. God is merciful and we seem to be on track to achieve this. However, my lifestyle needs keep changing…….

….I think it’s better to actually make a small investment than to keep on thinking about and planning a big investment.

Q: What advice would you give to others?

Don’t wait for a sizeable pool of funds to build up before starting to invest.

Money can be made in every field and every asset. Focus on an asset class that you understand.

Focus more on increasing your income than controlling your expenses.

Focus more on your money working for you than on you working for money.

Read full article here

Rama Krishnan

+6012-320 8475

How to waste £10,000 on life cover

st-money-scamBuying a life insurance policy from a bank or building society could mean   wasting tens of thousands of pounds.

That is because lenders – without telling the customer – add their own markup   of as much as 50pc to the price available elsewhere. Even going direct to   the insurer will, bizarrely, sometimes end up costing policyholders far   more.

The difference between the best and worst prices for the same cover, if you   add up the premiums over the term of the policy, can run to many thousands   of pounds.

So where is the best place to buy your policy?

Read full article here

Comment from the Sales Adviser, yours truly  ” Well, this seems to be in the British context. How it is in the Malaysian scenario, I’ve yet to be updated. What is important is that your whole life could be riding on how well you secure yourself financially…” 

Rama Krishnan

+6012-320 8475

Protect yourself from the cost of serious illness

 

cancer………”The choice between the two depends a good deal on whether you   are a man or a woman. Around 75pc to 85pc of critical illness claims from   women across the industry as a whole are for cancer, and about half of these   are for breast cancer, but the proportion of men claiming for cancer is more   like 45pc because they are much more prone to cardiovascular and other   conditions.”…….

………Another option worth considering is income protection, which pays a regular   income in the event of being unable to work because of long-term sickness or   disability………….

Read full article here

Rama Krishnan

+6012-320 8475

Maternity & Children Expo @ Midvalley

Come one, come all to the hottest Maternity & Children Expo at Midvalley

Date : 22/11/13 to 24/11/13

Time:- 10.00 am to 9.00 pm

Why? Lots and lots of goodies to be won and also gotten free or on promotional prices

Maternity expo posterMore info here http://www.tce.com.my/baby/

Rama Krishnan

+6012-320 8475