Friday, July 1, 2016

(理财师) 不卖产品,根本找不到吃! 对吗?

“理财师” = Financial Adviser
“代理员” = Agent
顾问收费 = Advisory Fee
财务方案 = Financial Solutions

日前有专家提出,本地财务规划师因同时身兼“理财师”及“代理员”二职,收入也受佣金结构影响,在利益冲突下,可能会倾向于向客户推介自己佣金最高的产品,而非最适合客户的产品。(AskChong: 看你遇见的是有诚信的,还是商业化的理财师)
因此有关专家建议,我国应学习欧美国家的模式,将理财师及代理员区分开来,朝向以顾问收费为基础的模式,只提供适合客户的财务方案,不卖产品。(AskChong: 可是‘产品’就是‘方案’)
先说第一项,绝大部分国人对理财的觉醒还不够,即不认为理财重要或必要,也不认为需要找专业的理财师提供这方面的咨询。即使有,许多国人都误认为理财师或财务规划人员收取的顾问费很昂贵,给不起,或不舍得给。(AskChong: 绝对认同)
第二,在理财方面觉醒度较高的国人,则仍不舍得付顾问费,因为认为自己会理财,没必要给理财师赚这笔钱。(AskChong: 绝对认同)

更甚的是,时至今日,仍有许多国人误解理财师最终的目的,是要卖自己的产品,而非纯粹站在客户的利益。(AskChong: 认同,好的理财师需要努力,改变国人的观念)

Saturday, June 18, 2016

Why create a Trust (when you have written a Will) ??

You don't need to be rich or super rich to create a Trust.

Trust can do many things that the Will cannot:

  1. Distribute immediately;
  2. Protect against creditor in bankruptcy (conditions apply)
  3. Provide confidentiality 
  4. Provide for beneficiaries secretly (by using discretionary trust).
Despite advantages of Trust, Will must always be written to cover the rest, i.e. you can have both Will and Trust together.

How to fund the Trust?

No one will put all money they have now into a Trust, so how can create a Trust now? Actually, one can create Trust and fund it later with something like Insurance Policies.

Insurance policy and Trust can work hand-in-hand towards common goals, e.g.
  • financial support to you and your loved one in the event of death or total permanent disability (or even critical illness)
  • pay for children's future education and expenses
As there are short-coming of named beneficiaries in the insurance policy, the alternative is using a Trust to distribute the insurance proceeds. An insurance policy cannot do the following:-
  • Conditions to distribute (it is not possible to set conditions)
  • Periodical distribution to beneficiaries (it pays one lump sum)
  • Pay to Minor (it pays to surviving parent or ..... Amanah Raya Berhad as public trustee)
Who can benefit from Insurance Trust?
(A Trust funded with Insurance Policies)
  • Anyone with Minor (young children) / Dependents
  • 2nd Family
  • Children with special needs 

Sunday, June 12, 2016

Want to be an Uber Driver (for income)? You must think twice.....

Some folks in Kuala Lumpur claim a full time Uber driver can make up to RM8,000 per month.

Uber claims its drivers can earn up to RM30 per hour. If it is true then...
  • RM30 per hours x 8 hours a day = RM240.
  • RM240 a day x 26 days = RM6,240 (do you agree we must rest 4~5 days in a month)
Based on many statistics and report, most working Malaysian earns less than RM4k a month. Anything above RM5k is very interesting and attractive sum to attract many people give up their full time job and be a full time driver.

However, you might have to think twice before fire your boss and be your own boss (be Uber Driver). There are many factors to be considered. Uber paints nice glossy pictures into your head without telling you many other issues, that income not equal to net profit, e.g.:-

  1. Profit Sharing. Uber takes 20% (or 25% if you register now) of your 'income'.
  2. Petrol. Will be at least 1/4 to 1/3 (easily 20% ~ 30%) of your income. Some trip are not profitable as rider's destination may not give you a paying return trip, e.g. the rider destination is 30km away from your home or the Urban area. You might have to drive a distance for next ride request.
  3. Depreciation. Not really a problem if you already have that car (perhaps fully paid off) but if you going to buy a car for doing Uber business, then you have to factor in RM per KM.
  4. Service and Maintenance. The higher the mileage you clock, the higher the cost of service and maintenance. Lousy car may cost you your driving privilege with Uber if riders give you bad rating for your poorly maintained vehicle. Beside that, it costs to clean the car, in and out.
  5. Toll. You get reimbursement from fetching rider to their destination but on return trip, you are on your own. Going to KLIA or KLIA2 is no fun if you can't get a rider for return trip back to the city. No wonder so many Uber driver hanging around (for hours?) till they get a request.
  6. Occupancy rate. You will not be occupied full time. Some hours are very quiet, no rider. RM30 per hour for 8 hours in a day is impossible.
  7. Rating system. Uber uses a 5-Star rating system to 'manipulate' driver. It is good way to improve with feedback but bad in the way that driver have to drive to places they don't want to go in order to maintain good rating.
  8. Destination. You don't get to choose your rider or rider's destination? Yes or no. You have to accept the request, then you can ask (call or text) rider's destination. Either rider or driver may then cancel the trip IF can't agree on the destination but rider may put bad rating to you.
  9. Short trip. Some trip can be as short as 1~2km but you might have to drive 5 minutes or 5 km to get there.
  10. Bad riders. Bad attitude, damage to your mood or vehicle. 
However, if conditions are right, driving Uber isn't that bad, IF
  • you have too much free time. Going out will cost you money but Uber around may make some.
  • your current income is really not that high thus extra RM500 a month is a relevant sum.
  • you already have a car but under-utilised, why not optimize it for extra income.
  • you want to know more people, perhaps a potential girl friend.
  • you think Tier 2 Hour Guarantees is good enough (from RM16 per hour before commission and expenses) and you will earn more by hitting to Tier 1 (higher acceptance rate). Click here for details.
Latest Promotion
Effective 28th July 2016 at 12.00am – this overrules all prior incentive announcements

Tier 1 – Guarantees up to RM2,095

Mon-Fri 6-10am: RM30/hr
Mon-Thurs 4-8pm: RM22/hr
Friday 11am-2pm & 4-8pm: RM25/hr

Tier 2 – Guarantees up to RM1,947

Mon-Fri 6-10am: RM25/hr
Mon-Thurs 4-8pm: RM20/hr
Friday 11am-2pm, 4pm – 8pm: RM25/hrFor all other hours, see below:

Tier 2 – Guarantees up to RM1,887

Mon-Fri 6-10am: RM25/hr
Mon-Sat 4-8pm: RM18/hr
Friday 11am-2pm: RM25/hr
Terms and Conditions
1) Accepting all trips during these hours (maintaining a minimum of 90% trip acceptance rate for the week) (Askchong: Can't be selective on destination)
2) Meeting these Trips per Hour conditions:
Minimum Trips per Hour (TPH)
When does it apply?
At least 1.25 TPH
Monday – Friday: 6am – 10am
Fri 11am – 2pm
Monday – Saturday: 4am – 8pm
At least 1.0 TPH
All other incentive blocks
TPH is calculated by the number of completed trips divided by your total online hours. For example, if you were online for the entire time between 4-8PM on Monday, and completed 6 trips, your total TPH for the period is 1.5.
3) Maintaining a weekly average driver rating of 4.3* and above.(Askchong: not that difficult)
4) Be online in our Core Service Areas. Please note at least 50% of trips during each incentive block must start within these Core Service Areas.
5) uberX and uberXL fares both count towards the RM 500 (Askchongper week) threshold to qualify for top tier guarantee
6) Effective 30th May 2016 at 12.01am – this overrules all prior incentive announcements
7) We reserve the right to take any necessary action in the event that we discover any suspicious or fraudulent activity
Terms and Conditions
1) Accepting all trips during these hours (maintaining a minimum of 90% trip acceptance rate for the week)
2) Maintaining a weekly average driver rating of 4.3* and above
3) Completing a minimum of 0.75 trips per hour on average across all hours online during the week
4) Completing at least 1 trip per incentive block in which you are online (e.g. Monday 4pm-8pm)
5) Being online only in Core Service Areas (Mont Kiara, PJ, Golden Triangle, etc). Please see THIS MAP and ensure >75% of your online time is within this area.
6) uberX and uberXL fares both count towards the RM 600 threshold to qualify for top tier guarantee
7) Effective 18 Jan 2016 at midnight – this overrules all prior incentive announcements
8) We reserve the right to take any and all necessary action in the event that we discover any suspicious or fraudulent activity

All incentive information, the way guarantees work and the calculations can be foundHERE under the “Payments” tab. Information can be seen for all our products (uberX, uberXL or BLACK) and is kept up-to-date
Decided to Drive? Click here to sign up. Learn more tips in order to optimize your income.

Saturday, June 11, 2016

Real cost of vehicle ownership. Not that low as you think...

What are the real cost of own a vehicle (passenger car)? There are many in the list, including but not limited to

  • Depreciation (the newer (and/or less common) the car, the higher the depreciation)
  • Finance charges, or opportunity cost (if you pay cash)
  • Service and Maintenance (including road tax and insurance)
    • Regular
    • Non-regular (or yearly)
  • Petrol
  • Parking

This table show the Cost/KM of using for a vehicle with depreciation of RM15,000 (many new car will have that amount or more), excluding finance charges and parking.

If you are in the category of low utilisation rate, it is better you don't own a car yourselves but just pay per use.

This working may need to improve as cost of repair (^Total Maintenance) tends to goes up higher with high usage as compared to low usage.

Wednesday, June 8, 2016

Maximize earnings with 'part time' Uber?

Early post refers, THAT one of the key reason the poor being poor is they made poor decisions.
Not working hard enough to enhance earnings is one of the money mistake many people made. However, if in your career it is really not possible to make more income, why not try to do something else?
Be an Uber Driver might be a good choice for some people, definitely not for all.
IF you already own a car, you might consider sign up but if you don't, you might also consider sign up. In Malaysia, without a car, life is difficult but why don't using your spare time to earn extra, and let riders help you to pay installment on your behalf.
Here is my recommendation.
Buy a second hand Honda City 1.5 or Myvi, not too old, say year 2010. Register with Uber immediately and start driving.
Why buy second hand car?
Low cost of doing business = easier to earn profit. Your depreciation will be low for you to breakeven and thus you may earn enough easily to pay installment, petrol and maintenance. The rest is your profit.
In order to earn more, make sure you drive around Urban centre, avoid sub-urban area. You can learn more from Youtube.