Monday, September 10, 2007

Budget 2008: My View

How i see the budget 2008:

Basically not for average income family like me.

Other things that i do not agree:
1.
Drawing EPF Account 2 for Housing Loan installment.

EPF is meant for retirement, that is against the objective of the EPF. Secondly, only 30% of you income plus employer's contribution go to Account 2. Let say you are earning 4k a month, you contribute 11% and employer contribute 12%, total 23%. 4K X 23% = RM 920. RM 920 X 30% (acc. 2) = RM 276.00. Is it possible for you to keep on withdrawing money from Account 2 to pay your housing loan?

2. Minimum brokerage charge of RM 40.00

If i to buy share that cost me RM 1000.00 in this year, i need to pay RM 12 plus commission of 0.4% and RM 1 stamp duty. Total RM 13.40. If i sell at same value RM 1k, i lost RM 26.80.

That's means i need to sell RM 1030 in order for me to gain money.

Note: For stock price below 2k, you need to pay RM 12. For stock value more than 2k, times 0.6% brokerage fee. Stamp duty charge is based on the stock value you buy, exp: RM 999 is RM 1 stamp duty, if RM 1,999 is RM 2 stamp.

In year 2008, If i buy share cost of RM 1000.00, i need to pay RM 40 plus RM 0.30 (0.3% commission) plus RM1, total RM 41.30. If i sell at same value RM 1k, i loss RM 82.60.

That's means, i need to sell RM 1090 then only i gain few RM. How to invest then......

Which mean in year 2008, i need to buy RM 6,666.67 of share or else i need to pay "Extra" for brokerage fee.

This is not friendly for small investor like me.


One thing good on fighting Global Warming is Tax exemption for CER.

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