I created “Share it” like below on 17 October 2009. I told myself to put it there for at least 1 month to see the result.

So how is the result? Well, not much traffic from this so call ‘Share it’. Therefore, I removed it immediately to save some layout space. Hmm… Why nobody want to share it? Can you tell me why?

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Which life insurance package should I choose? That’s the question that I ask when I started my first job after university. Everyone need an insurance package (Rich people might don’t need it). We need it on emergency. Therefore, life insurance is a must for me.

There is lot of life insurance packages in the market. Some of them are investment, saving link. And some are just life insurance. And some include 36 critical illnesses coverage. Most of them will come with personal accident coverage too. However, which life insurance package is suitable?

Mutual Life Plus 2 Coverage
The Mutual Life Plus 2 is a term insurance policy which protect you against;
A. Group Term Life (GTL)
B. Group Personal Accident (GPA)
C. 36 Critical Illnesses

I selected Mutual Life Plus 2 from Public Mutual. It is an insurance package especially designed for unitholders of Public Mutual. I still remember that it only cost RM750 for RM200,000 life insurance package coverage when I signed up. The cost increased to RM950 the next 5 years. And RM1100 from now onward. It does not include any investment or saving on this package. Whatever you pay for this package will fully use for insurance. Therefore, you get higher coverage. That’s what I prefer.

On average investment link insurance package in the market, it is priced at RM1800 to RM2000 last 5 years (I did not do research lately, not sure what is pricing for it now). Anyway, I did not select investment link package due to low coverage @ RM50,000 only. Try to ask yourself. What can you do with RM50,000 nowadays? If you caught in an accident, can this RM50,000 manages to cover your life expenses when you are disabled? I don’t think so.

Which life insurance package do you own?

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Should I borrow money to invest in stock market? Actually, the concept is the same as borrow money to buy car or house. Just that car and house is a must for our daily life and not stock. Most of us cannot afford to buy car and house in cash. And need to borrow from bank with interest changes. Same apply to share margin financing. With proper finance management, borrow money to invest in stock market does bring more revenue.

I am using Public Bank Online Share Trading with Share Margin Financing account. The minimum amount to borrow is RM50k (last time is RM100k) and with BLR – 1.8% (around 3.8% based on current BLR) per annum interest rate. Public Bank will borrow you 1.5X money based on what you have in that account ~ cash or stock value. For example, if you have RM100k cash there, you can borrow up to RM150k margin to invest. So total up as RM250k. Same apply to stock value. However, the stock value is determined by bank and not the market value. Some of the stocks do not have such value and bank does not want to take risk to lend you too much money. And if you are not able to pay back the loan, bank can force sell your stock.

Choosing the correct stock to invest is important. You don’t want to invest on a stock have only 2% dividends and without any capital gain at all. Then you need to pay 3.8% to bank. End up you are losing money at 1.8%. So make sure you pick the high dividend yield stock to invest.

Timing is another factor. With economy getting better and in the recovery road, having more money to invest is a nice move. You can easily earn more than 100% during this time. Why? Most of the stocks are undervalue and at a very attractive price. Some stocks can even go up to 300%. Therefore, you can earn a lot more with this extra money.

Borrow money == Make more money

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Never stop study stock market. It had been 4 months since I sold MUDAJYA 5085. Its stock price went up to RM4.10 on 11 November 2009. Up more than 5% intraday. Why? It announced good 3rd Quarter with nine-month net profit 75.844 million. How much did I earn? Nothing. I did not buy back Mudajaya stock after sold it at RM2.00. This is the stock that I regretted most…

Never sell a good stock and don’t buy back. Make sure you buy back at attractive price again after you sold it. Hmm… I still have issue that cannot keep stock that don’t have previous historical high like Mudajaya. I need to change this bad behavior soon.

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When to buy Tanjong PLC stock again? That’s the question I will ask myself after sold Tanjong. Hmm… I just sold Tanjong at RM16.66 on 6th November 2009. That was a good price for me. Why? Tanjong cannot hold on high price based on pass historical record. It will drop after hitting highest point. As expected, it dropped back to RM16.12 after hitting RM16.72.

Back to the question, when to buy Tanjong PLC stock again? Any price below RM15.50 will be attractive to go in again. Let’s wait for it to come…

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