Moved…………
I have officially moved my blog to http://www.winson-talk.com/. Since today is a new year for Chinese calendar, I would like to have a new start for my blog as well. This blog will no longer be updated.
Thanks.
The Year of the Rat
Chinese New Year is just five hours away. I would like to welcome everyone to the year of the Rat. For those who born in the year of Rat, look for OX as he/she is your personal secret friend. Dragon and Monkey will be your allies. These secret friend and allies have special affinity to you and will help you achieve your endeavours.
The “Rat” is the first sign of the Chinese zodiac.Legend has it that the Jade Emperor invited the animals for a party. The first 12 to arrive was the Rat, followed by the Ox, Tiger, Rabbit, Dragon, Snake, Horse, Sheep, Monkey, Rooster, Dog, and lastly, the Pig. All the animals were named after the 12-year cycle that governs Chinese life thereafter.
Various versions of the Rat’s story are particularly revealing about his character.
One version has it that, towards the end of the journey, the animals had to cross a celestial river, and the Rat asked the Ox to ferry him across. When they arrived on the other side, the Rat jumped down off the Ox’s head and that’s how gained first spot in the order of the Chinese zodiac.
Those born in the “Year of the Rat” are clever, ambitious, creative, hard-working, fastidious, charming and sociable, but can be a bit stingy when it comes to sharing their wealth or possessions.
Rats are compatible with Dragons, Monkeys and Oxen, but should avoid Horses at all costs.
In the “Year of the Rat”, we can expect 12 months of plentiful opportunities and prospects not to mention being relatively free of turbulence, (which is great to know especially if you’re planning on making some long-term investments, starting new projects, or keeping the home fires burning brightly).
It’s also a rather fine time to socialise and grab a sumptuous meal or two with friends and family!
Source: http://www.theholidayspot.com/chinese_new_year/more_zodiacs/rat.htm
RBA lifts interest rates again
The Reserve Bank of Australia (RBA) has raised its official cash rate to 7 percent from 6.75 percent in a move to control the country high inflation rate which were running at about 3.5 per cent. Interest rates are now at the highest level since 1996 after 11 consecutive increase.
Low Tax First Home Saver Accounts
This article is taken from the Official Website of the Australia Labor Party, dated February 05, 2008. Labor Government will help the first home buyers to achieve their dreams by establishing a new, law tax, First Home Saver Accounts. A couple with an average wage and saving 10% of their income are able to save a deposit of $64,000 over five years. This deposit is 30% more then the ordinary saving account. The fund in the account can only be accessed to purchase a home four years after the establishment of an account. Total contribution in each year is cap at $10,000. $5,000 will be apply to contributions made from pre-tax income each year and the remainder may only be after-tax contributions. This saving account works pretty much like a superannuation.
Case Study
Tax Rate
| A$30,001 – A$75,000 | $3,600 plus 30c for each $1 over $30,000 | 12% – 22.8 |
If you are earning $45,000 a year, your after tax income will be $36,900. If you are putting the maximum allow to the First Home Saver Accounts which is $5,000, your after tax income will be $33,400. $5,000 is tax at the rate of 15%. This means that you are saving ($33,400+$4250) = $37,650 / year which is $750 more.
Winson’s Thought:
Although this may sounds like a good deal as you will be getting 30% more then the ordinary deposit account but four years is not a time frame that I am willing to commit. 30% extra is within 5 years period. That means a year is only 6% more. The 30% extra is calculated base on average interest rate of 6%/annum. If any point of time you are getting 12% perannum, it will be better off not to put your cash in the FHSA.
A Rudd Labor Government will help aspiring first home buyers save a larger deposit by establishing new, low tax, First Home Saver Accounts.
Over the first three years Federal Labor’s First Home Saver Accounts will help around half a million first home buyers save a bigger deposit by establishing superannuation-style low tax savings accounts.Federal Labor’s First Home Saver Accounts will help boost national savings, with the accounts anticipated to hold around $3.5 billion in savings after three years.
Federal Labor’s First Home Saver Accounts will allow a couple – each on an average wage and saving 10 per cent of their income – to save a deposit of around $64,000 over five years.
This $64,000 deposit is around $14,500 – or 30 percent – more than could be achieved by saving through an ordinary deposit account.
This benefit amounts to $2,900 extra a year in savings towards a home deposit.
One of the greatest obstacles to buying a first home is saving a deposit.
A larger deposit will also reduce the debt burden for young homebuyers and can help them avoid incurring costly mortgage insurance.
The new First Home Saver Accounts will build on the arrangements for superannuation – allowing potential first home buyers to access similar tax breaks on their first home savings and unlock higher returns.
Savings with Labor’s First Home Saver Account will receive preferential tax treatment in two key ways compared to ordinary savings accounts:
- Savers will be eligible for a low tax rate of 15 per cent on the first $5000 of income they deposit in their account each year – rather than the ordinary tax rate they would pay.
- Interest earned will be taxed at 15 per cent or less.
Under an ordinary savings account both contributions and interest earned on savings are taxed at the individual’s relevant income tax rate.
As a result, the tax benefit provided by the First Home Saver Account will enable most first home buyers to save substantially more than they otherwise would.
In addition to the first $5,000 in tax-preferred contributions an additional $5,000 a year may be contributed towards a First Home Saver Account from after tax income without paying any further tax on that contribution.
This will allow parents to help their children to save their deposit.
Even though it typically takes first homebuyers an average of five years to save an adequate home deposit, Labor’s plan will allow savings to be withdrawn after four years to provide a reasonable degree of flexibility in an ever changing property market.
The minimum savings period of four years will also enable superannuation funds to achieve higher rates of return on First Home Saver Account deposits.
Withdrawals from the accounts will only be permitted for the purchase of an eligible first home and will be tax-free.
The newly-created accounts will be separate to individuals existing superannuation and individuals will not be able to access their existing retirement savings.
A Rudd Labor Government will forgo $600 million in tax revenue – in the first three years – to give first home buyers access to the newly-created accounts.
Coin Operated Mobile Phone Charger
My hand phone run out of battery since this afternoon. Was watching Wasabi Mon Armour just now and I saw a coin operated mobile phone charger kiosk. Good to have such kiosk around when your phone battery runs out. But it is not something that people needs it every now and then. If your phone takes an hour to charge, does that mean that you will need to wait for an hour at the kiosk ? It will be good if there is a number operated lock when you place the phone in to charge. With such feature you can just leave the phone there and goes for shopping and when you are done just collect the phone from the kiosk.
The Yuki Charger is a Coin operated public mobile phone charger.
Yuki is a low cost, multi-functional and “highly intelligent” public coin-operated mobile phone charger says the manufacturers web site.
As I am writing this, I am ask myself: is there an actual market for this device? My mobile phone goes at least 2 days without charging. Additionally my charger is small and i have it in my bag when i am traveling.
Anyway, the Yuki Charger is compatible to most mobile phone brands and models. It comes with 10 different charger plugs. The Kiosk also features a display to run commercials. While charging users can use their phones. Yuki comes with a UV sanitizer compartment that kills germs and bacteria while battery charging is in progress.
The Yuki Charger is made by Singapores InfiniTec Pte Ltd. The distribution price of the device is S$650 ($370.00).
Specifications:
- UV sanitizing compartment.
- Accepts coins.
- Allows conversation while charging.
- 10 travel charger plugs for most models.
- Light box advertising.
- Input: AC 110 – 250V 50~60Hz
- Output: < 12 V 1C 5 A x 10
- Size: 29 cm x 20 cm x 51.6 cm
- Weight: 5 kg
Source : http://www.i4u.com/article555.html
Tax Rate in Singapore, Malaysia and Australia
| Singapore Tax Rates | ||
| S$0 – S$20,000 | 0.0% | |
| S$20,000 – S$30,000 | 3.5% | |
| S$30,000 – S$40,000 | 5.5% | |
| S$40,000 – S$80,000 | 8.5% | |
| S$80,000 – S$160,000 | 14.0% | |
| S$160,000 – S$320,000 | 17.0% | |
| S$320,000 and above | 20.0% | |
| Australia Tax Rates | ||
| A$0 – A$6,000 | Nil | 0% |
| A$6,001 – A$30,000 | 15c for each $1 over $6,000 | 0% – 12% |
| A$30,001 – A$75,000 | $3,600 plus 30c for each $1 over $30,000 | 12% – 22.8% |
| A$75,001 – A$150,000 | $17,100 plus 40c for each $1 over $75,000 | 22.8% – 31.4% |
| A$150,000 and above | $47,850 plus 45c for each $1 over $150,000 | 31.4% – 45% |
| Malaysia Tax Rates | ||
| RM0 – RM5,000 | 1% for amount over RM2,500 | 0% – 0.5% |
| RM5,000 -RM20,000 | RM25 plus 3% for amount over RM5,000 | 0.5% – 2.375% |
| RM20,000 – RM35,000 | RM475 plus 7% for amount over RM20,000 | 2.375% – 4.357% |
| RM35,000 – RM50,000 | RM1,525 plus 13% for amount over RM35,000 | 4.357% – 6.95% |
| RM50,000 – RM70,000 | RM3,475 plus 19% for amount over RM50,000 | 6.95% – 10.39% |
| RM70,000 – RM100,000 | RM7,275 plus 24% for amount over RM70,000 | 10.39% – 14.48% |
| RM100,000 – RM150,000 | RM14,475 plus 27% for amount over RM100,000 | 14.48% – 18.65% |
| RM150,000 – RM250,000 | RM27,975 plus 27% for amount over RM150,000 | 18.65% – 22% |
| RM250,000 and above | RM54,975 plus 28% for amount over RM250,000 | 22% – 28% |
Before I graduate, I was considering if I should work in Malaysia, Singapore or Australia. Working in Malaysia definitely not a problem. Working in Singapore is a matter of applying for a working permit. To work in Australia, I will need to apply for PR. There are a few things that I took into consideration before I made up my mind. Three major factors that comes to my mind were :
a) Starting Pay
b) Tax Rates
c) Living Expenses
Why do I only take these three factor into consideration ? These three factors will determine the amount you will be saving in a month.
Will talk about the starting pay. For a graduate programmer, in Singapore, you will be expecting to get around S$21,600 a year. In Malaysia for the same position, you will be getting around RM21,600/year. In Australia you should be expecting around AU40,000/annum. At this point of time Australia seems to be a better place to work as the starting pay is higher. But we have not take tax into consideration.
In Singapore, earing for S$ 21,600 will be tax at the rate of 3.5% and the net income will be S$20,844. In Malaysia, earning for RM21,600 will be tax at the rate of RM475 + 7% for amount over RM20,000. The net income will be RM21,013. In Australia, earning for AU40,000 will be tax at the rate of $3,600 plus 30c for each $1 over $30,000. The net income will be AU33,400.
After taking tax into consideration, you will still save more by working in Australia. Will write about living expenses on my next entry.
Sky High at Mt Dandenong
SkyHigh is located on the uppermost reach of the Dandenong Ranges and it is less than 1 hour drive from the Melbourne CBD. You will have a spectacular view of the melbourne city and surrounding suburbs. Entrance fee to sky high AU4 for a car and AU2 for motorbike. You can enjoy the wonderful view of melbourne suburbs while having lunch at the Bistro Bar. They have wide selection of food ranging from salad, pizza, fish and chip, burger and steak. Getting married soon ? They have a function room where you can host your reception lunch/dinner.
More Photos
HEINZ Smooth – Custard with Banana
Just bought this from the baby food section in coles. Past by and saw that there is discount for this. Bought this for 79 cents. So just thought of trying and see how does it taste like. Brought it to the office for breakfast. My colleague was laughing at me for taking baby food. It taste more horrible then I had thought. I thought it would be sweeter.
Co-Contribute to increase your super fund.
ATTENTION : This post is written for those whose income is less then $58,980. If you earn more then $58,980, don’t bother reading this as you are not eligible for the government co-contribution.
I got a letter few weeks back informing me that AXA has received the co-contribution from the Government for 06/07 financial year. It took them more then half a year to process the co-contribution.
For those who has started working, you should have heard about co-contribution. Although many has heard about it, how many people is actually is making used of the fund that is allocated by the government? The reason co-contribution exist is assist eligible individuals to save for their retirement. Under the co-contribution scheme, the Government contributes $1.50 to super for every $1 in after-tax or personal contributions by a low-income earner. The maximum co-contribution is payable to those earning up to $28,980 a year. The amount is reduced by five cents for each dollar of income over $28980. The maximum co-contribution phase out at an incresed upper threshold of $58,980.
Example :
If you are earning $40,000/year, with the maximum contribution, you will be getting
$1500 – ( ($40,000 -$28,980) x $0.05) = $949 if you contribute ($949/3 *2) = $633 within that financial year. You will need to contribute $77.75 in a month.
If you decide not to contribute, you should be thinking what kind of investment actually gives us 150% in return in a year? Do consider not to contribute only if you are making use of the $77.75 to generate you more then 150% profit in return. If not it will be better off putting the extra money into the super fund.
Part of our income has gone to tax and now government is putting an offer back to us. There is no reason why people does not grab this offer.
Lessons from the 1987 market crash
This article is taken from the Star, Business section, dated January 30, 2008. The word that you should take note on in this article is “Cash is KING” when the market is down. During recession when people cant meet their repayment, bank will just put the house to auction and that is the time when you have money you will be able to buy a house at a cheaper rate. As share prices goes down, that is the time you are able to find cheap shares around. Have you heard of YTL Corp before ? How did YTL Corp manage to acquire Lot 10, Star Hill and JW Marriott during recession period ? When other company was doing badly in their business during recession period, that was the time when the company make use of the cash they have on hand to acquire property at a cheaper price. Most people sees opportunity when the economy is good. But when you have cash on hand during recession, it will be a better opportunity compare to the good times.
TAIPING GROUP: YTL to buy properties from ailing firm
—————————————————–
Construction and power group YTL Corporation may emerge as
the “saviour” of financially troubled property group
Taiping Consolidated when it agreed to buy properties and
possibly participate in Taiping Consolidated’s
restructuring scheme yesterday.
YTL Corp yesterday said it had entered into a sales and
purchase agreement to buy three prime properties — two
shopping malls known as Lot 10 and Star Hill and the five-
star JW Marriott Hotel — from Taiping for 323 million
Malaysian ringgit (S$137.7 million) in cash.
In addition, YTL Corp managing director Francis Yeoh Sock
Ping said the group is interested in taking a strategic
stake in Taiping “as a vehicle for future business
development”. However, he said the purchase of a stake in
Taiping is subject to the completion of a due diligence and
a viable scheme approved by all interested parties of
Taiping.
Taiping Consolidated secured a six-month court protection
on July 30 and is currently trying to put in place a scheme
of arrangement with its creditors. Analysts estimate
Taiping’s debt at some RM600 million, of which RM370
million are short-term.
A separate statement by Taiping Consolidated to the Kuala
Lumpur Stock Exchange yesterday said the sale of the three
properties is the first stage of its restructuring scheme.
The second stage will see a capital reduction and
subsequent injection of fresh capital into the company,
including from YTL should it agree to take a stake in
Taiping.
Source : http://bankrupt.com/TCRAP_Public/981022.MBX
Written by: OOI KOK HWA
Investors need to be cautions and hold more cash because cash is king when the market is down.ARE we heading for a bigger market crash like the one in 1987 or have we seen the worst of the market corrections?The recent global stock market crashes, especially the big sell-off on the Hong Kong market, prompted investors to recall the big market crash in 1987. In this article, we will look into the causes of the US crash.
In 1987, the rapid technological progress and reduction of entry costs to the market caused a real expansion and entry of many new investors into the US stock market.
As a result, the crash in 1987 was partly attributed to over-inflated prices generated by a speculative bubble during the first nine months. The US market experienced more than 30% gains during the period. At the peak, the average price-earnings ratio was about 30 times.
G. William Schwert, in his research titled Stock Market Crash of October 1987, postulated that the various strategies involving stocks with options or futures contracts on stock indices (called “programme trading”) led to an unusual level of selling volume on Oct 19, 1987.
As a result, the specialists were unable to find enough buyers to meet the demand of sellers. The lack of liquidity caused further big drop in prices. Traders were caught by surprise by the speed of the price drop.
On Oct 14, 1987, the US reported the largest trade deficit. To a lot of investors, it was hard to understand how the announcement of its largest trade deficit could cause such a big sell-off in stocks. One of the possible reasons was the potential reversal of the trade deficit. Lowering trade deficit might imply lower capital inflows, which would cause lower stock prices.
The largest fall in the US stock market happened on the Black Monday of Oct 19, 1987. The Dow Jones Industrial Average tumbled 22.6%, or 508 points, within a day. It was the largest single fall since 1929, in both absolute and percentage terms.
In Malaysia, the KL Composite Index (KLCI) tumbled 12.4%. The main reason behind the fall was on the night of Oct 18, a soldier ran amok with an M16 in Kuala Lumpur. This triggered a panic. Then, as a result of the overnight crash in the US, the KLCI plunged another 15.7% the following day.
Could we have predicted the recent market crash?
A lot of investors were unable to escape the recent crashes. Retailers did not know how to deal with their money after selling stocks. Furthermore, most of them would not sell anything as they could not spot the exact top of the bull market and sell out in time.
Harry D. Schultz, in his book titled Bear Market Investing Strategies, highlighted that there were signs of the ending of a bull market or the beginning of a bear market.
According to him, one of the most important indicators was investor sentiment remained bullish while the economic fundamentals started to get worse. Investors ignored all the negative aspects of the companies’ fundamentals.
Besides, business leaders, brokers and advisory services were bullish as well. They would view any downturn in the stock market as a temporary setback and healthy correction.
In addition, the aggressive rate reductions by the US Federal Reserve might confirm that the US economy was heading towards a recession.
Besides, the stock market might be trading at high volume but not much change in prices. Normally, this implied that long-term investors were selling stocks while short-term traders were supporting the market.
The US bear markets have been as short as two months and as long as five years, the average being about 18 months. Hence, we need to be cautious and hold more cash because cash is king during the down market.
Source : http://biz.thestar.com.my/news/story.asp?file=/2008/1/30/business/20165550&sec=business
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