PWM Personal Finance Workbook

Personal Finance Workbook

KCLau.com PWM

Name:

KCLau.com Premium Webinar Membership (PWM) page 1

Table of Contents

Financial Calculator 101: Time Value of Money 4
How to Compute the Annualised Effective Compounded Return Rate 5
Return on Net Worth Analysis 6
Perception & Belief of the Poor, Middle Class and the Rich 7
Top Financial Consideration for First-time Homebuyers 9
Five Ways to Generate Passive Income 10
The Dummies’ Guide to Building a Lifestyle Business 12
What is P2P Financing and What It Does for Malaysia SMEs and Investors? 13
How to Invest like a Banker with Funding Societies 14
5 Things to Know about Unit Trust Before You Invest 15
Introductory Class on Exchange Traded Funds (ETFs) 16
Life Insurance Protection Need Analysis 17
What Young Parents Need to Put in Their WILL, to Ensure Their Children is Truly Protected 18
5 Undisclosed Truths of a Savings Plan that Agents Won't Want You to Know 19
9 Tips to Maintain or Improve Your Credit Score 21
Instant Cash at 0% Interest! What’s the Catch? 22
Essential Principles that Ensure Stock Investment Success 23
How to Read Company Financial Statements 24
Growing Passive Income with REIT 25
How to Invest in Bank Stocks 26
How to Build Your Own Dividend Machines and Earn Passive Dividend Income for Life! 27
How To Value A Stock: The Art and Science of Valuation 28
How Property Investment Enhances Your Net Worth 30
Better Finances, More Properties 31
Top 3 Principles To Property Investment Success 33

10 Essential Must-Know Strategies in Property Investment & Mortgage Leveraging 34
How to Compute and File Taxes for your Rental Income 36
13 Makeover Tips to Boost Rental Income from Your Investment Properties 37


Financial Calculator 101: Time Value of Money

https://kclau.com/webinar/time-value-of-money/
PV :
PMT :
FV :
I/YR :
N :

Exercise:
You have purchased a car priced at RM80,000. A bank offered an interest rate 2.9% if your hire
purchase loan term is nine years.
- How much is the monthly installment?

- What’s the effective rate?

How to Compute the Annualised Effective Compounded

Return Rate
https://kclau.com/webinar/cagr/
What is the formula used in Google Spreadsheet to calculate CAGR?
_________________

Exercise:
Your insurance agent proposed an education savings plan for your newborn baby. You will need
to pay a fixed premium of RM3000 a year for 15 years. At the end of the term, you will receive an
estimated maturity benefit ranging from RM55,000 to RM80,000.
Calculate the possible range of CAGR using a Google Spreadsheet.
PV =
N =
PMT =
FV =


Return on Net Worth Analysis

https://kclau.com/webinar/ronw/
What’s the definition of Return on Net Worth?
___________________________________________________________________________
___________________________________________________________________________
What’s the formula of Return on Net Worth?
List down the method to increase your RONW
1.
2.
3.
4.
5.
6.
7.


Perception & Belief of the Poor, Middle Class and the Rich
https://kclau.com/webinar/poor-middle-rich/
The Poor think that "Money is the root of all evil".
The Middle Class think that "The Love of money is the root of all evil".
The Rich think that ______________ is the root of all evil.
What do the Rich think about affordability?
_______________________________
The Poor & the Middle Class: "The reason I'm not rich is that I have kids".
The Rich:"______________________________________________"
What is their focus?
The Poor - Focus on higher pay to spend more
The Middle Class - Focus on higher pay to save more
The Rich - ______________________________________________________
About Risk & Investment
The Middle Class: "Investing is risky."
The Rich: "____________________________"

About Debts
The Poor - Uses debts to get poorer
The Middle Class - Avoid debts
The Rich - ______________________________________
When your assets are not much in relation to your income level, what should you focus on to
increase your net worth?
________________________________________
________________________________________
When you have lots of asset in relation to your income level, what should be your focus to boost
your net worth?
________________________________________
________________________________________


Top Financial Consideration for First-time Homebuyers

https://kclau.com/webinar/first-home-buyers/
What is MADTR - the top five financial consideration when buying a home?
M -
A -
D -
T -
R -
What is the comfortable level of DSR? ______________
What is your current DSR? ___________
Based on your available DSR, how much mortgage can you qualify? _____________
What is the property price that you can afford comfortably? ________________-
Based on 10% down payment, how much cash do you need to prepare for down payment?
_________________
Estimate how much would you need to pay for transaction cost
_________________
Estimate how much would you need to prepare for furnishing and renovation
_________________

Five Ways to Generate Passive Income

https://kclau.com/webinar/generate-passive-income/
Method #1:
Pros Cons

Method #2:
Pros Cons

Method #3:
Pros Cons


Method #4:
Pros Cons

Method #5:
Pros Cons


The Dummies’ Guide to Building a Lifestyle Business

https://kclau.com/webinar/lifestyle-business/
What are the benefits of having a Lifestyle Business?
What are the perfect products to sell?
Steps to build a Lifestyle Business:
Tools & Capital Required to Start:
The web services keep updating and changing over time. Email kclau@kclau.com for the latest
recommendation of particular services (email broadcast, web host, etc.)

What is P2P Financing and What It Does for Malaysia SMEs

and Investors?
https://kclau.com/webinar/p2p-financing/
If you are comparing the investment in P2P financing and Equity Crowdfunding, which one has a
higher risk of losing your capital? Why?
What are the two types of products offered for investment through Funding Societies?
What is the protection for investors with Funding Societies?
Do you need to declare income made from P2P financing to the tax authority?


How to Invest like a Banker with Funding Societies

https://kclau.com/webinar/how-to-invest-like-a-banker-with-funding-societies/
How to calculate the effective return rate of an investment note listed on Funding Societies?
Exercise:
Download the latest investment available on Funding Societies, do the due diligence by studying
the financial report of the SME, and calculate the effective return rate using a Google
Spreadsheet
How do you minimise the risk involved?


5 Things to Know about Unit Trust Before You Invest

https://kclau.com/webinar/fsm/
What is a unit trust?
Who are the three parties involved?
A unit trust is priced based on the Net Asset Value. What is the formula to calculate NAV?
In Malaysia, do we use Forward pricing or Historical Pricing?
What are the fees involved when investing in Unit Trust?
List the types of Unit Trusts:
What are the benefits of investing in unit trusts?
Is lower NAV shows that it is a value buy?
Do more distributions show better performance?
Is a fund’s subpar performance compared to the benchmark a bad sign?
Do you need a very long investment horizon to see a return on unit trusts?

Introductory Class on Exchange Traded Funds (ETFs)

https://kclau.com/webinar/introductory-class-on-exchange-traded-funds-etfs/
What are the key advantages of ETF over unit trusts?
List the available ETFs on Bursa Malaysia:
What are the things to consider when buying ETFs?
How to choose an ETF for investment?


Life Insurance Protection Need Analysis

https://kclau.com/webinar/life-insurance-need/
What are the five types of basic coverages a person needs (4D+1)?
1.
2.
3.
4.
5.
List the extra coverages that you don’t actually need:
Determine how much protection you need for each category of life coverages:

What Young Parents Need to Put in Their WILL, to Ensure

Their Children is Truly Protected
https://kclau.com/webinar/young-parent-will/
List down the beneficiaries of your estate (parents, children, spouse, siblings, etc)
List down the possible candidates to appoint as Executors.
Decide together with your spouse who is going to be the best possible Guardian:
Is there a need for you to set up a Trust, besides having the Wills for both parents?


5 Undisclosed Truths of a Savings Plan that Agents Won't

Want You to Know
https://kclau.com/webinar/5-undisclosed-truths-of-a-savings-plan-that-agents-wont-want-you-to-k
now/
#1. Undisclosed Truth:
How do you calculate the Effective Annual Rate of a Savings Plan?
What's the formula you can use in MS Excel or Google Spreadsheet?



9 Tips to Maintain or Improve Your Credit Score

https://kclau.com/webinar/9-tips-to-maintain-or-improve-your-credit-score/
#1. Check your _____________
#2. Check __________________ of your loans
#3. Establish _________________ accounts with bank
#4. What are 5 metrics of Credit Scoring?
-
-
-
-
-
#5. Set automatic ___________ system
#6. Keep credit utilisation __________
#7. Apply for ________________ from _________________
#8. Don't continuously apply for _______________ within 3-6 months
#9. Check your ______________ regularly
What's your current credit score?
What can you do to improve it?


Instant Cash at 0% Interest! What’s the Catch?

https://kclau.com/webinar/instant-cash-at-0-interest-whats-the-catch/
Evaluating a Cash Advance Offer from Credit Cards:
Step 1:
Step 2: Use Formula ________
Step 3: Convert to Annual Rate
Should you take a Cash Advance for investment?
Exercise:
Search the cash advance offer from your favourite banks and evaluate it.


Essential Principles that Ensure Stock Investment Success

https://kclau.com/webinar/principles-stock-success/
What are the benefits of long-term investing?
1.
2.
3.
Why value investing works?
1.
2.
3.
What are the differences between Speculating and Investing?
The Criteria for investing:
1.
2.
3.
Define margin of safety:
What’s P/E ratio:

How to Read Company Financial Statements

https://kclau.com/webinar/read-statements/
What are the three types of financial statements:
1.
2.
3.
What is the formula used in a Balance Sheet?
List down the line items of an Income Statement:
Item What does it mean?
Revenue
Gross Profit

Net profit represents the number of sales dollars remaining after

operating expenses, interest, taxes and preferred stock dividends
Cash Flow Statement - Define the following:
Operating Cash Flow =
Investing Cash Flow =
Financing Cash Flow =


Growing Passive Income with REIT

https://kclau.com/webinar/reit-portfolio/
What are the main differences between Malaysian REITs and Singapore REITs?
There are two types of profits recorded in REITs financial statements. Which one is our main
focus: Distributable Income or Capital Gain? Why?
How do you assess the income stability of a REIT?
1. _________ rate (%)
2. _________ of leases
3. Top ________________
How do we assess the growth of a REIT?


How to Invest in Bank Stocks

https://kclau.com/webinar/how-to-invest-in-bank-stocks-public-bank/
What are the three things to look for in a bank stock?
1.
2.
3.
How to evaluate loan, advances and financing assets?
What is the Gross Impairment Loan Ratio (GILR)?
What is the Total Capital Ratio (TCR)
What is the Loan Loss Coverage Ratio (LLCR)?
List the three valuation methods to assess a banking stock:
1.
2.
3.


How to Build Your Own Dividend Machines and Earn

Passive Dividend Income for Life!
https://kclau.com/webinar/dividend-machines-2019/
What are the three steps to identify dividend machines?
1.
2.
3.
What's the formula to calculate the dividend yield of a stock?
What kind of business tend to have stable or rising dividends per share?
What is the formula to calculate the dividend payout ratio?
Name three companies that have a consistent dividend payout ratio:
1.
2.
3.


How To Value A Stock: The Art and Science of Valuation

https://kclau.com/webinar/value-a-stock/
What are the three types of value in a stock?
1.
2.
3.
In Asset Valuation, list down the steps involved in a valuation:
1.
2. Find the _______________ per share.
3. Apply the ____________ of safety.
4. Calculate the ___________________.
In the Current Earnings Valuation, what is the financial ratio to use for calculating the intrinsic
value? ________________
What are the pros and cons of using the Current Earnings Valuation method?
Pros:
Cons:

What is the DCF Valuation method?
What are the pros and cons of using the DCF model for growth valuation?
Pros:
Cons:
Action Step:
List down 5 stocks you shortlisted. Determine which valuation method to use for each stock.
Stock Valuation Method
1
2
3
4
5


How Property Investment Enhances Your Net Worth

https://kclau.com/webinar/property-enhance-nw/
What are the three different types of return calculation?
1.
2.
3.
How many properties can you buy based on your financial situation? Set a goal and gameplan.
Outline it here:
List some strategies that let you make more money from properties:
1.
2.
3.
4.
5.
6.
7.

Better Finances, More Properties

https://kclau.com/webinar/more-properties/
What are the three stages of financial planning?
1.
2.
3.
List down the sources of capital for your property investment:
1. Savings & other liquid investment: RM _____________
2. EPF Account 2: RM _______________
3. Equity of your existing properties: RM _______________
Calculate your existing Debt Service Ratio:
Step 1: What is your current monthly commitment?
- Mortgage instalment:
- Car loan instalment:
- Credit cards (5%):
- Personal loan:
- PTPTN:
- Margin Financing:
Step 2: Calculate your loan eligibility.
How much loan can you apply?

What can you do to manage liquidity to ensure that your property mortgage commitment is
fulfilled, even in the worst-case scenario?
What's the Loan to Security Ratio (LSR) in margin financing?
List down your action plan to have better finances so you can invest safely and profitably in
properties:


Top 3 Principles To Property Investment Success

https://kclau.com/webinar/3principles-propertysuccess/
Whether it is buy-to-keep or buy-to-sell, the property must be _________________
What is the rental benchmark?
____________ more than Fixed Deposit rate.
Who is your target market of tenants?
What are the features that are important to your target tenants?

What type of properties would your target tenants prefer?
What is the 100:10:3:1 principle?
List out your property selection criteria:


10 Essential Must-Know Strategies in Property Investment &

Mortgage Leveraging
https://kclau.com/webinar/mortgage-leveraging/

1. Perform ________________ on all stakeholders
Developer:
Lawyer:
Real Estate Agents:
Vendors:

2. Investigate the _______________ of chosen location
Population size:
Age group:
Income level:

3. Determine Accessibility

4. LRT and MRT

5. Check surrounding location for ___________________

6. Check for negative marketability factor (MF)
List the negative MF:

7. Where to buy subsale property?


8. Be Cautious on _____________________________ schemes

9. Why "Notorious" areas?

10. Rental on Investment

What are the ten most important strategies on leveraging?


How to Compute and File Taxes for your Rental Income

https://kclau.com/webinar/how-to-compute-and-file-taxes-for-your-rental-income/
What type of Personal Income Tax Form should you file? (BE, B or M?)
Can you classify your rental income as business income? Why?
List the tax-deductible expenses against rental income:
The initial costs incurred BEFORE the property is rented out is non-deductible, including:


13 Makeover Tips to Boost Rental Income from Your

Investment Properties
https://kclau.com/webinar/13-makeover-tips-to-boost-rental-income-from-your-investment-propert
ies/
What are the 13 tips to makeover your property with the lowest budget?
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

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Personal Finance Workbook

KCLau.com Premium Webinar Membership (PWM) page 1

How to Compute the Annualised Effective Compounded Return Rate 5

Return on Net Worth Analysis 6

Top Financial Consideration for First-time Homebuyers 9

Five Ways to Generate Passive Income 10

The Dummies’ Guide to Building a Lifestyle Business 12

How to Invest like a Banker with Funding Societies 14

5 Things to Know about Unit Trust Before You Invest 15

Introductory Class on Exchange Traded Funds (ETFs) 16

Life Insurance Protection Need Analysis 17

9 Tips to Maintain or Improve Your Credit Score 21

Instant Cash at 0% Interest! What’s the Catch? 22

Essential Principles that Ensure Stock Investment Success 23

How to Read Company Financial Statements 24

Growing Passive Income with REIT 25

How to Invest in Bank Stocks 26

How To Value A Stock: The Art and Science of Valuation 28

How Property Investment Enhances Your Net Worth 30

Better Finances, More Properties 31

Top 3 Principles To Property Investment Success 33

KCLau.com Premium Webinar Membership (PWM) page 2

10 Essential Must-Know Strategies in Property Investment & Mortgage Leveraging 34

KCLau.com Premium Webinar Membership (PWM) page 3

Financial Calculator 101: Time Value of Money

- How much is the monthly installment?

KCLau.com Premium Webinar Membership (PWM) page 4

How to Compute the Annualised Effective Compounded

What is the formula used in Google Spreadsheet to calculate CAGR?

Calculate the possible range of CAGR using a Google Spreadsheet.

KCLau.com Premium Webinar Membership (PWM) page 5

Return on Net Worth Analysis

What’s the definition of Return on Net Worth?

What’s the formula of Return on Net Worth?

List down the method to increase your RONW

KCLau.com Premium Webinar Membership (PWM) page 6

The Poor think that "Money is the root of all evil".

The Rich think that ______________ is the root of all evil.

What do the Rich think about affordability?

What is their focus?

The Poor - Focus on higher pay to spend more

The Middle Class - Focus on higher pay to save more

The Rich - ______________________________________________________

About Risk & Investment

The Middle Class: "Investing is risky."

The Rich: "____________________________"

KCLau.com Premium Webinar Membership (PWM) page 7

The Poor - Uses debts to get poorer

The Middle Class - Avoid debts

The Rich - ______________________________________

KCLau.com Premium Webinar Membership (PWM) page 8

Top Financial Consideration for First-time Homebuyers

What is the comfortable level of DSR? ______________

What is your current DSR? ___________

KCLau.com Premium Webinar Membership (PWM) page 9

Five Ways to Generate Passive Income

KCLau.com Premium Webinar Membership (PWM) page 10

KCLau.com Premium Webinar Membership (PWM) page 11

The Dummies’ Guide to Building a Lifestyle Business

What are the benefits of having a Lifestyle Business?

What are the perfect products to sell?

Steps to build a Lifestyle Business:

Tools & Capital Required to Start:

KCLau.com Premium Webinar Membership (PWM) page 12

#7. Apply for from _