Category Archives: Personal Finance

New Pricing Structure for Credit Card User

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Posted by pakdi on June 18, 2008 – 6:37 pm
Filed under Debt Management, Personal Finance

Bank Negara Malaysia introduces tiered pricing structure to promote good financial discipline among credit card users

Bank Negara Malaysia wishes to announce the introduction of a tiered pricing structure for credit card users to promote the use of credit cards as a payment instrument. This is part of Bank Negara Malaysia’s continuous efforts to promote prudent financial management and inculcate good financial discipline among credit card users in Malaysia.

On average, one-third of credit cardholders use their credit cards as a payment instrument, settling their credit card outstanding amount in full every month. More than half of cardholders pay at least the minimum amount due promptly and roll over the remaining balance. For the benefit of credit card users who have a good track record of settling their credit card balances which are due each month, promptly for 12 consecutive months, the finance charge will be reduced from the maximum of 18% per annum to not more than 15% per annum. The ceiling rate of 18% per annum will still be applicable for other cardholders.

Credit card issuers will begin to track the repayment behaviour of their cardholders with effect from 1 July 2007. The details of the new scheme, including the finance charges and its calculations, will be communicated by individual card issuers. The tiered pricing structure will be implemented by 1 July 2008.

Bank Negara Malaysia also encourages debit cards as an alternative payment instrument. The domestic banking institutions are in the process of upgrading all credit card terminals deployed by them to accept their ATM cards. The exercise, which is expected to be completed this year, will enable the 15.4 million ATM cardholders to use their ATM cards to make purchases at participating merchants.

The greater use of these payment cards is part of Bank Negara Malaysia’s drive to accelerate the migration to e-payments. Bank Negara Malaysia and the financial industry will continue to implement initiatives to promote e-payments.

Bank Negara Malaysia
26 June 2007

Official Source is here

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Gold Exchange Traded Fund

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Posted by pakdi on June 13, 2008 – 5:26 pm
Filed under Investing, Personal Finance

These securities offer investors a new, innovative, relatively cost efficient and secure way to access the gold market. All of the securities are backed by allocated gold held in a vault on behalf of investors. They are intended to offer investors a means of participating in the gold bullion market without the necessity of taking physical delivery of gold, and to buy and sell that interest through the trading of a security on a regulated stock exchange. The introduction of exchange-traded gold securities is intended to lower many of the barriers such as access, custody, and transaction costs, which have prevented some investors from investing in gold.

More excerpt:

Why choose Gold?

Gold holds its own in any investment evaluation on its strengths as a hedge against inflation, value in the event of political uncertainties and its traditionally negative co-relation with other asset classes such as stocks, fixed income securities and commodities.

The value of goods and services that gold can buy has remained stable unlike currencies that have seen significant fluctuation. A study spanning a 400-year period has shown that the basket of goods and services that gold could buy over the period has remained the same.

Gold protects your portfolio from volatility because the factors, both at the macro-economic and micro-economic fronts that affect the returns from most asset classes do not significantly influence the price of gold. Just after 9/11, while stockmarkets and bonds crashed across the world, gold held steady and, in fact, rose on that day by six per cent.

For a given level of returns from a portfolio, the risk or volatility can be reduced by adding gold to it. Similarly, crises such as wars, which have a negative impact on prices of most asset classes, have a positive impact on gold prices since the demand for gold goes up as a safe haven for parking funds. It is the only medium of exchange completely free of credit risk as it does not imply a liability for any other entity.

Reading Sources on Gold ETF :

1. ETF Investors Going for Gold
2. Exchange Traded Gold
3. Gold ETFs & how they can make you rich

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12 Investment Mistakes Couples Make

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Posted by pakdi on June 6, 2008 – 6:49 pm
Filed under Personal Finance

by Dana Dratch
Friday, May 9, 2008

If two heads are better than one, do couples have an advantage when it comes to investing?


The reality is that it’s difficult enough for two people to share a closet, much less money styles, financial priorities and investing strategies.

As a result, there are a number of couple-related investing errors that planners and attorneys see again and again.

Investing Mistakes Couples Make

1. Too Many Accounts

More from Bankrate.com:

• 12 Money Gifts for Mom

• Lump-Sum Lottery Payment Is Bad Deal

• Surviving Mob Mentality in Finance

With a lot of couples, investment accounts are spread over a number of banks, brokerage houses and financial institutions.

Result: “It’s a little out of control,” says Karen Altfest, vice president of New York-based L.J. Altfest & Co. “It’s too much for most people to handle.”

Andrew Tignanelli, CPA, CFP and president of Financial Consulate Inc., in Baltimore, sees this often when only one spouse is managing the investments. “What happens to your spouse if you’re not around, and you have money in seven or eight places?” he says.

When he poses that question to couples, either the light finally dawns or one spouse produces a notebook with directions on where all the money is located, he says.

Still, for a partner who is not used to dealing with investments, going on a financial scavenger hunt is going to be a hassle, says Tignanelli. A better alternative: Consolidate investment accounts in one location, he says.

2. One Spouse Deals With the Money Manager and Investment Advisers
Read More »

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1st Islamic Debit Card With Paypass

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Posted by pakdi on June 2, 2008 – 4:02 pm
Filed under Personal Finance

From Bernama:

EONCAP To Launch World’s First Islamic Debit Mastercard With Paypass

KUALA LUMPUR, June 2 (Bernama) — EONCAP Islamic Bank Bhd announced Monday it has obtained an affiliate licence from MasterCard Worldwide and will launch the world’s first Islamic debit MasterCard card with PayPass payment capabilities this Thursday.

The launch will reaffirm Malaysia’s global recognition for its success in obtaining full EMV (Europay, MasterCard and Visa) compliancy, a global standard to ensure that smart cards, terminals and other systems can interoperate, EONCAP said in a statement.

“It will once again place Malaysia on the world map as an innovator and pioneer in new payment conveniences with cutting-edge technology for the benefit of all consumers,” it said.

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Just Stay with Index Fund If …

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Posted by pakdi on May 21, 2008 – 12:07 am
Filed under Investing, Personal Finance, Stocks

Q: What advice would you give to someone who is not a professional investor? Where should they put their money?

Answer from Warren Buffet:

Well, if they’re not going to be an active investor - and very few should try to do that - then they should just stay with index funds. Any low-cost index fund. And they shoud buy it over time. They are not going to be able to pick the right price and the right time. What they want to do is avoid the wrong price and wrong stock. You just make sure you own a piece of American business, and you don’t buy all at one time.

Source: Fortune Magazine (April 28, 2008)

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