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Usually the most significant, even for ministers.

Posted in Personal Finance

Here is an interesting article in NST.com.my Title:[EXCLUSIVE] Declaration of assets: Ministers’ worth revealed to public It shows the assets declaration of three of our newly minted ministers. One is already nearly a multi-millionaire. His debts are also the highest. Another does not even own a car while another owns RM230,000 worth of car(s). Are there anything in common? We just need to look closely and we can see one similarity. Property is the largest chunk for all of them. While it does not say if the properties are fully paid for yet but if we look at the property value currently and add in those small percentages until they retire, the final amount is still pretty decent. At an incremental of 3 percent per year, the property price will double before one retires at the age of 60 even if they bought the property when they were 30.Yes, property is compulsory when we look at investment diversification.

Yes, there is no doubt that unless some unforeseen circumstances happen, the other non-millionaire ministers at this point in time would become a millionaire due to the capital appreciation from their properties. Based on the salaries and allowances, as long as they keep their job for 2 terms, every minister has the potential to be a millionaire, if they are financially savvy. Their responsibilities? Perhaps it’s to help more Malaysians to achieve high-income status even earlier. Seriously, one of the foundation that every citizen should be entitled to? A home. Not many can be disciplined enough to save so much that they become a millionaire. Just make sure they have a property so that the property can be their leverage instead. Plus, if everyone has a home, there’s no need to look for another home elsewhere, right? 🙂  Or even stay at someone else’s home instead! Haha.

Oh yeah, when we look at their declarations again, we can see that all of them have sufficient cash to last a couple of months at minimum. This is pretty important because we may not know if we need some cash when we lose our main source of income for example. Besides, cash is a very important component because it is liquid. Property is not. It takes like ‘forever’ to sell one’s property. I hope the state governments improve on this part. Efficiency is one main key to making the market more vibrant. By the way, cash will always be a foundation but other forms of investments would be the ‘tower’ on top of the foundation. How high should we build the tower? Perhaps a better question is how high COULD we build it. Except for those with rich parents, majority of us are starting from the same block yeah. Happy investing! (follow the ministers..)

written on 11 June 2018

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