With RM275 monthly commitment for 4 Years will grow to RM21K. For them who had a small monthly income and still studying. For Business Budget, Buy Houses, Cars and Saving Cash.
This idea is perfect for those who are underpaid and are able to save RM300 per month. If you are students, you can join as well. Use parents payslip.
First year
- ASB financing RM50K
- Monthly Installment: RM275
- Profit of the bank: 5.2%
- Financing Takaful ASB: None
- ASB financing period: 30 years
Apply ASB financing the first year. Pay RM275 monthly installments during the year. After a year, let say 6.75% dividend announced. You will be able to get ASB dividends: RM3375.
Use the dividends money to pay ASB monthly financing installments for the first year. RM275X12 = RM3300. There is another RM75 surplus and bonus time.
Dividend: 6.75% X RM50K = RM3375
SBF Installment: RM275 X 12 = RM3300
The balance of the dividend: RM3375 - RM3300 = RM75
Use the dividend to pay monthly installments for your RM50K ASB financing. That's not include bonus yet. Repeat the same steps for four years.
Apply ASB RM50K every year. Preferably apply ASB financing early November of that year and you will start paying on January.
Second year
Request more RM50K ASB financing. RM275 monthly installments. You have to pay RM3300 per year. As the first step.
Third year
You are already have a certificate GSP + RM50K + RM50K financing. So you will receive a dividend based on a minimum balance RM100K. ASB Dividend: 6.75%, you will be able to get RM6750. Use RM6750 dividend payment for the second installment of your ASB loan. So you do not have to spend your own money for monthly payment anymore. Just rolling the dividend. You can ask for more funding RM50K ASB.
Fourth year
Request more RM50K ASB financing. Currently there is no maximum funding RM200k ASB. Your commitment is only RM275 only.
Fifth year
With a capital of only RM275 a month, for four years, your ASB has reached the maximum RM200k. After got the dividend, you will continue to terminate all your financing ASB.
After you terminate the ASB financing, you've got no commitment anymore. You do not need to pay monthly installments of RM275 again. You go to the bank and said you wants to terminate. ASB Bank will sell certificates of you and you will be able to return the principal.
If you have an CIMB account, the return of your principal will be returned via bank account. If there is no account in CIMB, the bank will return through the ASB.
There is no penalty on ASB Islamic finance if you terminate early. There is no lock-in period on ASB financing . That is no mature time for you to terminate ASB financing.
You will be able to get;
Last ASB dividend: RM13,500
Return principal
First year (48 months): RM3082
Second year (36 months): RM2251
Third year (24 months): RM1461
Fourth year (12 months): RM712
The total return of principal: RM7506
Total gross position: RM13,500 + RM7506 = RM21,006
In summary,
Year One: Apply RM50K (SBF RM50K)
Year Two: Apply RM50K (SBF RM100K)
Year Three: Apply RM50K (SBF RM150k)
Fourth year: Apply RM50K (SBF RM200k)
Year Five: Terminate ASB financing RM200k (RM50K + RM50K + RM50K + RM50K)
Year One: Apply RM50K ASB financing. ASB dividend can make RM50K financing and so on. Rolling dividends to pay for the ASB loan monthly installment. So your commitment to remain RM275.
RM50K + RM50K + RM50K + RM50K = RM200k
What if the dividend ASB down? You still got the balance of RM75 and bonus right there. You can use it. Increase your salary each year. Use wisely.
The fifth year of your existing savings fund is RM21K. Your commitment is only RM275 per month.
With RM21K if you use it wisely you are smart. What you can do is:
1. If you want to get married, make a simple ceremony. Take RM15k and keep the balance. Invite your future husband / wife you do the same. Later after graduation, you've got a family savings, RM42K.
2. If you want to buy a house, use RM21K as a deposits. Buy an apartment house that's sub-sale and rent. Create rental agreement. Make the money activity in your account. After 6 months, buy another house again.
3. If you want to buy a car, buy wisely followed your ability. Make sure the monthly installments of no more than 15% of your salary. Want to buy a used car that is cheap to use money in cash last RM21K? That was smart!
4. Save RM21K in ASB for your future.
5. No need to terminate all your financing ASB earlier. Add more for ASB financing 2 equal monthly installments of RM275. So with your existing equal installments ASB and ASB 2 of less than RM400K as a retirement plan.
What is important essence of this technique?
- Even if you are underpaid but if you force the saving of RM275 in 5 years you will have RM21K.
- You do not need to apply personal loan for your wedding.
- You already have a deposit to buy a house.
- You have some savings to buy the car in cash, without having to owe the bank for 9 years.
- You are able to buy the house and rent. Can make positive cash flow for your money.
ASB Islamic finance is not like personal finance. You can not get a dozen money of private financing. So, if you terminate your ASB loan, no need to pay any debt whatsoever. It is good debt. You use the bank money to invest with greater value. You pay RM275 a month on a bank account and in your ASB seems to have RM50K. Dividend rate this RM50K.
CIMB is not the must Takaful option and ASB financing period of 30 years. So you must not need to take takaful (because intention to terminate) and lower your monthly installments.
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Disclaimer: (PLEASE READ):
1. A rough estimate only.
2. If ASB dividend announced by the ASNB over 4 years is: 6.75%
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your monthly installment RM50K ASB financing too expensive? That's why you need the consultants to help you.
source:
CIMB Wealth Advisors
Financial Advisor
AdGroup
