Comments on: Budget 2008

By: ashotiwoth

ashotiwoth — Mon, 10 Sep 2007 15:35:51 +0000

moo_t,
i’m trying hard to follow on how it helps me reduce the home loan. could you assist to illustrate with some example?

lilian – yeah la….

By: lilian

lilian — Fri, 07 Sep 2007 18:14:07 +0000

LOL, sikalang kopi 20 linggit tarak cukup, kena tambah kasi enam puluh baru boleh kenyang.

By: moo_t

moo_t — Fri, 07 Sep 2007 17:29:51 +0000

BTW, the RM5000 tax relief for education is cosmetic. Unless you make RM6000 per month, otherwise you will only save less ~RM50-RM150 tax money. But for the rich salary bringer (RM 5000 above), this help cut down their tax payment margin cap, can easily save them RM800-RM2000 tax money.

In short, rich people getting richer.

By: moo_t

moo_t — Fri, 07 Sep 2007 17:26:51 +0000

zewt, did you calculate the inflation.

Do you know that a house cost 2x the purchase price thanks to the interest fee? Think of this, it is a double stupidity : bank charge you 8% housing loan interest, and EPF only make 5% per year. Do you see the logic? That’s the reason why Singapore do it for many years. The withdrawal just transfer the wealth BACK to the people, instead of letting the banks earn 3% interest from the people. (And 3% interest for 20 years is equal to ~ 55% of you house value )

Without the withdrawal scheme, the inflation will eat into EPF scheme. 1 plate of rice in KL cost RM3.5 today, and it might cost RM20 in next 20 years.

By: ashotiwoth

ashotiwoth — Fri, 07 Sep 2007 16:46:36 +0000

zewt – true enough, but something is still better than nothing rite??

By: Do you feel much safer with the new Budget 2008? by Blog @ ashotiwoth.com

Fri, 07 Sep 2007 16:35:01 +0000

[...] have commented somewhat on the Budget 2008 on my other blog. But i guessed I’d like to mention some of the points that I think i have [...]

By: zewt

zewt — Fri, 07 Sep 2007 16:33:16 +0000

fair enough…

but seriously… unless u are making heaps… 5000 tax savings is nothing.

By: ashotiwoth

ashotiwoth — Fri, 07 Sep 2007 16:23:08 +0000

zewt – when i say i don’t have to worry about the fees, i don’t mean that I don’t have to pay for it. what i meant is what i pay for the fee, i can redeem it back as tax reduction. that means less tax to pay – which essentially mean a little bit more money to spend.

the BNM bonds is only for senior citizens above 55 years old who doesn’t have a permanent job. i believed at that age, they may have some form of savings (in EPF) to help them to buy. different lah…

that EPF thingy, it will help, but not that i’m planning to use it anyway

By: zewt

zewt — Fri, 07 Sep 2007 16:13:12 +0000

excuse me but… when you said you dont have to worry about fees… did you think the govt is going to hand u 5000 bucks to spend or what? the proposal is that 5000 bucks is allowed as a deduction from your income.

and… how can ah long be a thing of the past with govt issuing BNM bonds? in fact… ppl might borrow from ah long to subscribe to these bonds…

ok la… the EPF one is pretty positive but… when one retires… EPF…. gone.