Showing posts with label Personal Finance and Investment. Show all posts
Showing posts with label Personal Finance and Investment. Show all posts

Sunday, 16 June 2013

Investment Gathering At COOB Coffee, Penang

After gathering in Gurney Drive one and a half years ago, Deric was here in Penang to have investment gathering again. We had our gathering last night at COOB Coffee. Beside Deric and his girlfriend who were ocming from KL, there were also people coming from Tambun, Chai Leng Park, and also Kedah. I felt so glad to see that, especially two juniors from my former university coming from UUM after finished yesterday's exam.


Thanks to all of them, I have a wonderful night. We shared our knowledge, and we learn from each other. Again, I learned a lot from Deric.

Time always the enemy of wonderful moment. We started our discussion and sharing at 6 o'clock and ended at about 10 o'clock. We spent four hours together, but it seems like only one or two hours only. Time passed very fast.

After the gathering, five of us had our second round somewhere around Jetty. We were there until 12 o'clock. I enjoyed this gathering a lot.

Oh ya, also shouldn't forget to thank Andrew as well. Andrew, thank you for fetching me home after the gathering.


Sunday, 2 June 2013

My Respectful Friend in Stock Market, Deric Yee


Suddenly, I am thinking of introduce a friend of mine in stock market, Deric Yee! He is one of the most respectful friend I ever met. 

Even he is young, he have achieve great success in stock market. Fot the past 4 years, he has generated compuded annual growth rate of 77.8%.

Thanks to OSK Investment Challenge. I knew him through the competition. However, our style in stock market are completely different. I am long term investor while he is short term speculator. There is no much common topic that we can talk as we are in two different direction. So, we didn't really chat at the beginning. 

Thing changes after a gathering 2 years ago. He came Penang and we gathered up. He shared about his knowledge and I was impressed. Besides mastering the Technical Analysis, he has also developed some unique technical indicators that work exceptionally well in Malaysia market. His models had allowed him to tap into opportunities that arise in some of the most sophisticated segments of the market.

As he is quite an expert, I felt a little nervous to meet him. But then, I felt surprised. He is extremely friendly. So, that gathering end up to be one of the greatest investment gathering I ever had in my life. Since then, we chatted with each other more frequently. I learned quite a lot of thing from him.

This year, he launched his website called Stocks Trading Malaysia to share his thought on stock market. He is also conducting classes to teach people how to trade in stock market. 

2 weeks from now, he is coming to Penang again. I am going to meet him up for dinner (on 15th June). I am looking forward to that gathering. I am sure it is going to be another memorable gathering.

Monday, 20 May 2013

520 for Year 2013

Today's is 20th May 2013. Many people are posting '520' in Facebook. If 520 is read in Mandarin, it sounds like 'I love you. A lot of people are expressing their love to their love ones today.

Nothing too special I did today. 

It is birthday for one of my greatest friend. I delivered a birthday gift to her. 

After I back home, I continue looking on the stock market.

Nothing special as well in stock market. The market is good like previous days.

But suddenly, in final half minutes of the pre-close session. NTPM (a stock that I am heavily invest in currently) matched at RM0.520! 

I am so happy to it. NTPM closed at RM0.520 on 520 (20 May)! 

I LOVE YOU, NTPM!


Wonder why I am so happy to see it to close at RM0.520? Haha. I have my own reason.


Monday, 6 May 2013

13th General Election of Malaysia

Yesterday was a big day to Malaysia. It's the 13th GENERAL ELECTION of Malaysia. 

A lot of people are hoping for a change with opposition party's slogan 'UBAH!'

It was my first time casting vote to choose the candidate I want for state and federal government. 

There are several new policies were implemented for the election. One of it is the usage of indelible ink. The indelible ink will be painted on our finger to show that we have voted. This is to avoid a person to vote for more than one time.


See! This is evidence that I have voted.

However, I am not sure why it was called as 'indelible ink'. After I washed my hand, then the 'indelible ink' disappear. It didn't happen to me only, but almost all the people.

Last night was an exciting night. My dad, my brother and I were checking updates for the result of election.

There were a lot of rumours on the results. But I was waiting for the official result from SPR.

A lot of people are hoping for a change, but their dream doesn't come true.

Barisan National continues to be the federal government by winning 133 seats.


For the states, Pakatan Rakyat won in Penang, Kelantan and Selangor, while others were won by Barisan National.


And today, after I woke up and log into Facebook. I saw this picture appear in many people's profile picture.


A lot of people changing their profile picture into black. People are disappointed with the 'dirty polling'.

And today, I couldn't wait to see how stock market react to the election result.

The market shocked me!

It shot up 130 points in 5 minutes after the market opens! I never such scenario before since I started my journey of investment!



Saturday, 4 May 2013

Shopping In Popular Bookstore

It has been a long time I didn't buy any book. Yesterday, I went to Popular Bookstore, Gurney Plaza to buy some books.


I saw 'Life of Pi' and I bought it.

The movie was being screened in cinema few months ago. I thought the movie is a boring one. I never thought of watching. But yet, I watched it. I never regret. It was a great movie. There are a lot of meaning behind the story. I love this kind of movie. And so, I thought of buying the book. Finally now, I bought it.

Besides 'Life of Pi', I bought other books as well. But most of them are books relating to investment.






Well, I actually still have a number of books that I haven't read. From now onward, I think I shall spend more time on reading. Or else, I will be wasting my money in buying books.


Wednesday, 20 March 2013

How To File Your Tax Online (e-Filing) - BE Form

Have you filed your tax? If you haven't, perhaps you can do it now.

In recent years, Inland Revenue Board (IRB), or some people call it as tax department, is promoting e-fling (filing tax online). By using e-filing, we no longer need go to IRB office to file our tax and avoiding long queue while doing tax filing. With e-filing, we can file our tax at home.

Have you try e-filing? Perhaps, this is the guideline for you.

If you haven't register as tax payer, you need to register first. 
(click here for guideline on how to register as tax payer online)

For those who have registered as tax payer and ready to file your tax, you may click the following link to log in to your e-filing account:

Then, click 'e-form login' and select 'e-BE'.


After log in, you will able to see your personal information. Check your information whether is it correct and updated


On the left hand side, besides 'particular of individual' you would see:-
- statutory income and total income
- income of preceding years not declared
- deduction claim
- rebate claim/ tax deduction/ tax relief
- tax summary

First, click on 'statutory income and total income' to enter your income.


You would see there are 4 categories of income:-
(i) employment
(ii) dividend
(iii) rents
(iv) interest discounts, royalties, premiums, pensions, anuities, other periodical payments and other gains or profits

So, you just need to enter the annual income for categories of (i), (iii) and (iv)

For dividend income, click the HK3.


Then you will see a form to key in your dividend income


Get your dividend vouchers beside you and key in all the dividend income according to your dividend vouchers. The format of the form above is quite similar to the dividend vouchers.

After all the dividends are entered, click 'back to income'.

After all the income for categories (i) to (iv) are completed, enter the PCB amount. PCB is tax that has been deducted from your salary monthly. 


After PCB is completed, click 'save and continue'

Not only for this part, from time to time, after you entered any part, do click 'save and continue', or else your data will not be saved.


Then, if you have income preceding years that haven't been declared, you may click on 'income of preceding years not declared'.

Or else (if you don't have), proceed to 'deduction claim'.


Here, you can see the items that you can claim for deduction of taxable income. But make sure you do have the receipts as supporting documents. Or else, you may in trouble if IRB investigate on you.


After 'deduction of claim' is completed, you may proceed to 'rebate claim/ tax deduction/ tax relief'



For those who have frank dividend income, the tax can be claimed over here. After the Form HK is filled above, the figure will automatically appear here.

After all these have done, you may proceed to 'tax summary'. Here you can see the summary of tax and tax that you need to pay.

After everything is done, you can click 'save and continue' to submit your tax.


Thursday, 7 February 2013

New Stock Market Website - Stocks Trading Malaysia

Those who knows me probably know that I am currently a full time investor. I resigned from my work August last year to focus in investment. All this while, a lot of people have being proposing me to blog about investment. Seriously, at this moment, I am not going to do that yet.

But nevermind, I would like to introduce you to one new website, Stocks Trading In Malaysia.
It was just officially launched yesterday by Deric Yee. Now you may ask, who is Deric? 

Well, he is a young person as me. Like me, he is very passionate in stock market. Unlike me, he is a trader / speculator rather than a investor. 

As I am a fundamental investor, I rarely give credit to traders / speculators. But I have to give credit to him. 

I know Deric few years back in the stock market contest organised by OSK, the OSKIC. He is one of the greatest traders / speculators that I ever know. 

If you are seeking for short-term trading, sorry, I couldn't help you. I am long-term base investment. But Deric could help you!

So, do visit his website : http://stockstradingmalaysia.com/
And like his Facebook page : http://www.facebook.com/StocksTradingMalaysia


Wednesday, 26 December 2012

Simple Explanation on Taxation and Deferred Taxation

Recently, depreciation, capital allowance and deferred taxation have become one of the hottest issues among my investment friends. My friends asked me to blog about it.

Okay, it’s time to utilize my experience of working in audit firm. I think I shall explain what’s that to my investment friend through my blog.

First of all, let me explain what is depreciation.

When a company purchases an asset, such as a machine, it would be recorded as an asset in account and then being depreciated when time passes. There are several method of depreciation such as straight line method, reducing balance and sum of digit. Commonly, straight line method is being used. Straight line method means, the asset will be depreciated equally throughout the useful life. Thus, useful life has to be determined. Useful life will be determined basically base on how long can the equipment being used.

Example: Company XYZ bought twenty computers that cost RM60,000 with estimated useful life of 5 years. By using straight line method, the computer will be depreciated RM 12,000 a year.


Year 1
Year 2
Year 3
Year 4
Revenue
200,000
220,000
250,000
280,000
Cost of sales
100,000
120,000
130,000
135,000
Gross profit
100,000
100,000
120,000
145,000
Marketing expenses
10,000
20,000
25,000
40,000
Depreciation
12,000
12,000
12,000
12,000
Other expenses
13,000
10,000
15,000
17,000
Profit before tax
65,000
58,000
68,000
76,000

After the profit before tax is computed, tax computation is required to compute the taxation.


Year 1
Year 2
Year 3
Year 4
Profit before tax
65,000
58,000
68,000
76,000
Add: non allowable expenses
            - Depreciation
            - Greeting and gift


12,000
2,000


12,000
3,000


12,000
2,000


12,000
3,000
Adjusted income
79,000
73,000
82,000
91,000

In computation of tax, we need to add back all the non-allowable income, such as depreciation to derive to adjusted income. Depreciation is not applicable for deduction for tax. However, there is application of capital allowance for tax. Capital allowance is similar to depreciation. The asset purchased will be deducted portion by portion year after years.

There are two common types of capital allowance, which are initial allowance and annual allowance. Initial allowance are tax deductible for the first year of purchase (20%), while annual allowance is deducted annually until the value is fully claimed. The rate for annual allowance for each type of asset is different.


Year 1
Year 2
Year 3
Year 4
Adjusted income
79,000
73,000
82,000
91,000
Capital allowance
36,000
24,000
-
-
Statutory income
43,000
49,000
82,000
91,000
Tax payable (25%)
10,750
12,250
20,500
22,750
* initial allowance and annual allowance for computer are 20% and 40% respectively

Tax payable is tax that needs to be paid for the year by the company.

However, as there is capital allowance method doesn’t fulfill the concept of matching principle by accounting standard. Deferred tax exists to reconcile the taxation part.


Year 1
Year 2
Year 3
Year 4
Year 5
Net book value
48,000
36,000
24,000
12,000
-
Residual expenditure
24,000
-
-
-
-
Difference
X 25% (tax rate) =
24,000
6,000
36,000
9,000
24,000
6,000
12,000
3,000
-
-
Changes from last year
6,000
3,000
(3,000)
(3,000)
(3,000)
Net book value = Cost of asset – accumulated depreciation
Residual expenditure = Qualified expenditure (value asset that qualified for tax deduction) – accumulated capital allowance

The difference will be the figure appear as balance in statement of financial position (formerly known as balance sheet) while the changes will be appear in income statement.

Thus the final part of income statement and notes to the account will be look like this:-

 Note to the account (to see the real report, you may refer page 77 of Power Root Berhad’s 2012 annual report)


Year 1
Year 2
Year 3
Year 4
Major components of income tax expense :
Current tax expense
Deferred tax (income)/expenses
-          Origination and reversal of temporary difference

10,750

6,000

12,250

3,000

20,500

(3,000)

22,750

(3,000)

16,750
15,250
17,500
19,750


Year 1
Year 2
Year 3
Year 4
Reconciliation of effective tax expense
Profit before tax
Income tax using Malaysian tax rate
Non-deductible expenses


65,000
16,250

500


58,000
14,500

750


68,000
17,000

500


76,000
19,000

750

16,750
15,250
17,500
19,750

Income statement:


Year 1
Year 2
Year 3
Year 4
Profit before tax
65,000
58,000
68,000
76,000
Taxation
16,750
15,250
17,500
19,750
Profit after tax
48,250
42,750
50,500
56,250