What do I do with 25k and no income?

[verysad]

Im a uni student who recently got access to my raya/cny/general savings account ive had since a kid. I don't have any consistent income, just packing jobs here and there for my food and gas which are the only "commitments" i have. Talkin abt less than 300 a month. Im a bit of a anxious person esp with a 20 yr car so have abt 1k in an online tabung. Is this enough??

The account is still a joint RHB MaxSave account, and i dont mind changing banks (i like Maybanks app way more). I have put abt 10k into PMO with the advice of my mom and her investor friend (also gets commission from PMO). Its been doing well? Returned ~2k in almost 2 years. My dad is more conservative w investments, only buys stock at where he works besides maxing ASNB, EPF etc etc.

Im aware their experience is very biased so thats why i wanna ask this sub.

Most of the advice is to those who already have consistent income streams/commitments so a few questions i guess;

1. How much should my emergency fund be?
2. Is there an account you think i should transfer the money to?
3. FD, TnG, UOB, are the ones i see that are brought up that might be beneficial to me. What are your thoughts on this?

I know this isnt a large sum of money, but it feels like it to me lmao. Im also not a fan of putting all my eggs in one basket, and dont mind trying stocks, just want more advise to how i should split them and some stuff to try out.

And yes, i do have fun and understand i can also invest in myself. I keep my daily needs as low as possible so i can go eat out and have small trips with my friends. This has just been a looming thought cause its mostly just been sitting there.

Thank you for your time!!

 

[winecountry]

@verysad Just a quick tip -

Public Mutual, along with any other mutual fund that charges a high management fee to help 'invest' your funds, are basically scams that profit off you. There is no fund that can consistently beat out the market over a long-term period.

The reason you profited well in your current Mutual Fund can most likely be attributed to luck - recent market has been very good over the past year, and you may have picked a lucky fund - it is akin to gambling.

My recommendation is to DIY and buy stocks via a diversified index fund. It requires you to do some research, but is ultimately better in 99.9% of cases ( and my personal recommendation for investments )

Below is a short guide outlining my personal investment strategy that I have shared to a few friends, feel free to take a look at it too.

https://docs.google.com/document/d/...Ca7YU4i4Nui3EanHSJ6LtR0OrA1LOwVL7l-jH09QT/pub

Hope this helps! ended up typing more than i thought i would

 

[honkytonkangel]

@winecountry Thanks for the doc! Are there any online articles that I can read on why EPF is guaranteed and suitable? I do not doubt you; I just want to know how investing in EPF works and why not everyone is doing that.

 

[winecountry]

@honkytonkangel You should doubt me in fact, always DYOR especially when it comes to money

I don't really have sources beside 'trust me bro' - but here are some of the common pros and cons of investing in EPF, hopefully someone else can provide sources here

Pros
- EPF is government backed, means your capital is mostly guaranteed
- EPF has a very good track record of >5% a year, and is expected to stay steady and not deviate from this too much

Cons
- People hate the govt because waaah waaah govt stupid and bad (stupid reason)
- Illiquid funds - the bulk of your funds are unable to be withdrawn until 55 (This is partly mitigated by Accounts 2 and 3, and the fact that you can withdraw any excess balance of 1mil)
- Currency risk (MYR bad, bla bla you get it)
- Lower potential returns than other options out there (Global stock market averages 10% yearly, note that this is over the time span of multiple decades)

TL;DR : good stable returns, but won't make you rich overnight

 

[jilo147]

@winecountry Thanks for your info. I'm 53 and working in overseas and I have been away since 18 yrs old. I don't even know how much I have in my EPF. I have 50,000 ringgit and can I invest in EPF. Thanks in advance for your advice

 

[winecountry]

@jilo147 as long as you're a malaysian resident you should be eligible, your best bet would be try to register on the app and see if you can create an account, if not, try to go to an EPF branch and ask the staff there for advice on your situation

 

[verysad]

@winecountry Im slowly making my way through the reading list of the ETF booklet. Damn hit me with how much i dont know. But super easy read but have a few questions and would like to ask from your experience;

1. How often should one rebalance their investments? i see some ppl recc dont touch it for 5-10 years, some say every few months. That range is kinda huge
2. Is the profit you make through investments taxed in malaysia? Does it apply to someone with no income? Googling it gives me more questions than answers haha

 

[winecountry]

@verysad 1 - personal finance is personal, there's not really a hard rule. for example, i save a bit every month, so I just invest in whatever weighs my portfolio towards the weighting i want.

a general guideline tho, is that the closer you get to retirement, the safer your investments should be. ( read : sequencing risk)

rebalancing isn't really the largest deal, unless something happens to change your outlook and choices on investing, even if you go 100% EPF / ASB, as long as you consistently save, you'll end up fine

2 -

capital gains (the profits from buying and selling shares) are not taxed in malaysia

dividends are taxed by the relevant country before being paid to you

Does it apply to someone with no income - it applies either way

 

[verysad]

@winecountry Yea i had a feeling that was kinda scam too, esp with the earn through commissions thing. Thank you for the info!