Discussions on ASB

http://zaharuddin.net/pelaburan-&-perniagaan/663-asb-a-asn-adalah-harus-majlis-fatwa–ulasan-uzar.html#comments

I can’t find the Security Commission ‘non syariah compliance’ ruling on ASB. I got it somewhere .. you can look up for it if you got time … However, Fatwa Kebangsaan says otherwise based on maslahat … I dunno lah .. But, I take the Security Commission statement to be more relevant coz they are the experts in investments as compared to Fatwa Kebangsaan ..

A lot of people are too focussed in the details (the number crunching) and are totally drawn away from looking at things in the bigger picture.

A lot of people have herd mentality (be it in taking loans for ASB, buying unit trusts, stock market, prpoerties)… e,g when the market is booming, the all rush to the stock market .. when eventually, they got slaughtered (no puns intentended – but stock market work orginates from the cattle stock market … so, if you have herd mentality .. you follow the herds … when the herds get into the pen, you are just getting ready to be slaughtered lah … got it????)

I do NOT believe in taking loans for investment UNLESS the capital gain can be exceptionally high with a low downside risk e,g the right property at the right time (you must understand property investment) and the right IPO at the right time (you must be good at reading the prospectus and exit with predeternined profit percentage – don’t be greedy .. If you can make 30% within a month after listing, just get out!!). KEEP AWAY from open market shares after you sell off your IPO, or less, you’ll give back the money to the market . Open market is very good only when it is retracing or crashing … Wait … be patient. TIMING (and investment strategy) is very very important

For this slow compounding savings plan like ASB etc etc, use your on cash money to save directly lah. NO need to borrow lah. The BANK IS USING YOU to earn interest for THEM and you only get such a small return.

Its non sensical to see people taking loans for these kind of schemes and yet they are very bad in managing their finance. What people should do, is to be focussed on MANAGING CASHFLOW and LIABILITIES. Set aside regular savings plan BEFORE you spend. Accumulate the account and wait for the oppotunites (properties and IPO) to invest. If Cashflow and Liability Management is bad, I am very very very sure, within a few years, you’ll have trouble serving the ASB loan installements. Then you’ll default in your payments. You kena more interest. Then you sell all the ASB and stop the loan … Then you become monkey coz you only got peanuts left .. hehehe …. Like this lah … If your ASB loan officer says you will need to pay RM400 a month for your RM200k ASB loan (people feel great when the see RM200k in their ASB account, but in fact, that money is not their’s. Can they take the RM200k ASB and cash out? They can’t. Ayoo …. looks good but its not your money lah …).

Instead of paying the loan, you should discipline yourself and save RM400 in ASB or Tabung Haji directly

There’s a lot to say … but that all for now lah … All the best to all of you

Iskandar Ngah
Finacial Planner
iskandar@noriskconsultant.com

P/S: ASB is not Syariah Compliance … I prefer Tabung Haji, zakat also settled by them.