Lowyat.NET: Latest topics by maxmahen87

How your life changed after increase in income

maxmahen87 — Sat, 26 Mar 2022 19:36:31 +0800

Your lifestyle and spending habits
Your personality
People perceptions and behavior around you
Things you wish you had or hadnt done

My wife wants a second kid, but I’m not keen.

maxmahen87 — Wed, 23 Mar 2022 10:58:48 +0800

We’re in our mid-thirties and have a 2-year-old daughter.
My wife has a very good relationship with her siblings (5 of them), so she feels life without siblings is boring.
I’ve lived far away from home, most of my life, almost independently, struggled through without much help, so don’t feel so strongly about our daughter having a sibling.
Her biggest concern is that once we both are gone, if our daughter remains the only child, she would be all by herself in the world, with no one to share her life, with other than her spouse.
My argument to this – there are millions of kids like that, so what?

This is not a financial related decision, I have a well-paid job and am financially stable. I think I've been a great father to my kid and have done the absolute best for her and will continue to do so.
But I have to admit, parenting has been hard. Takes away a lot of your time and interest in doing other things. Adding another just going to overwhelm me psychologically.

Too add fuel to fire, this topic of another child started when I told my wife I got another job, with a significant increase in pay compared to my current job but we have to relocate to another state (KL to JB).
Initially, before I received the offer, my wife agreed to relocate.
However, after accepting the offer, when I was looking for places to stay online, she dropped the bomb having another child.
She told me, if I don't agree, she and my kid will not relocate and she has given me a week to decide.

I got no issue of relocating on my own (I would do it anyway even she disagreed to relocate the first time) but to emotionally blackmail me using my kid here is unfair.

What are your thoughts about having another child? Have you had a similar experience on this topic? Would like to hear your thoughts and feedback.

Save save save and then die

maxmahen87 — Mon, 21 Mar 2022 23:53:44 +0800

Am I getting too paranoid about saving/investing, too worried about the future that I'm not enjoying the present?
Sometimes I think what am I doing trying to save all this money if I don't enjoy it. Gonna enjoy after retirement? Looking at how healthy our generation is, its a bonus to cross the 50s.

Im 35, I own a 220k house in KL (fully paid) I now got a job >rm10k/m and liquid saving/investment of rm200k (not inc EPF) Note:I worked in the US in the past that accelerated my savings

I drive a used IRIZ I bought cash 2 years ago. I'm debt free. With my new job now, I can save 70% of my income.

Now here's what hit me recently. After this new job that I'll be starting in May, I've been searching for a nice cool luxury place to rent within rm2k - I was looking at cars that would cost me rm1k-2k/m. When I find something that I like, I switch back to this mindset of "ah! this is a waste of money, better just stay as how I am now". Then the next day, I go back house/car hunting again and the loop continues, its driving me nuts.

I understand I'm in a very privileged position financially and I'm grateful for that, Im not trying to undermine anyone here.

Not sure what I'm expecting by posting this, just want to let it out of my chest. It would be great to hear your thoughts and advice in terms of finding a balance between NEED & WANT

Best place to rent and live in JB? budget rm2k

maxmahen87 — Sat, 12 Mar 2022 14:14:31 +0800

Hello, good people of Lowyat. A question for those who live or have experience living in JB.

I recently landed a job in Senai, JB - I'm looking to rent a fully furnished unit with a budget below rm2000

I have looked up a few locations within my budget

1. country garden
2. Puteri harbour
3. princess cove
4. any others you might suggest looking into

Few things I want close proximity - supermarkets, groceries, gym, mamak and eatery shops/stalls - I am someone who likes to walk

The 1st three options - seems too good to be true - fully furnished luxury unit (2B or 3B) with unblocked sea view going for only average rm1500
What are your thoughts - obviously not a good rental investment - but as a tenant, isn't this a steal?

Other than an oversupply of units - could there be any other issues relating to the low rental prices - i.e poor workmanship, poor maintenance, accessibility to amenities (supermarket, groceries etc), traffic or any issues you are aware of

I do not mind the traffic from work to these locations - so far I have checked google maps during peak hours, they are less than 40mins (approx 30-35mins)
I looked into Senai, seems like a boring place, plus it takes 20min during peak hours for less than 8km and Skudai around 30mins
My current workplace in KL is 1hr - sometimes can be close to 2hr if heavy rain or accidents. Plus 30mins driving close distance in KL is very common.

Obviously, one of these days, I'll be going there to pay a visit but it would be great to get some information before the visit

Looking forward to your feedback

Best place to rent and live in JB? budget rm2k

maxmahen87 — Sat, 12 Mar 2022 14:13:19 +0800

Hello, good people of Kopitiam. A question for those who live or have experience living in JB.

I recently landed a job in Senai, JB - I'm looking to rent a fully furnished unit with a budget below rm2000

I have looked up a few locations within my budget

1. country garden
2. Puteri harbour
3. princess cove
4. any others you might suggest looking into

Few things I want close proximity - supermarkets, groceries, gym, mamak and eatery shops/stalls - I am someone who likes to walk

The 1st three options - seems too good to be true - fully furnished luxury unit (2B or 3B) with unblocked sea view going for only average rm1500
What are your thoughts - obviously not a good rental investment - but as a tenant, isn't this a steal?

Other than an oversupply of units - could there be any other issues relating to the low rental prices - i.e poor workmanship, poor maintenance, accessibility to amenities (supermarket, groceries etc), traffic or any issues you are aware of

I do not mind the traffic from work to these locations - so far I have checked google maps during peak hours, they are less than 40mins (approx 30-35mins)
I looked into Senai, seems like a boring place, plus it takes 20min during peak hours for less than 8km and Skudai around 30mins
My current workplace in KL is 1hr - sometimes can be close to 2hr if heavy rain or accidents. Plus 30mins driving close distance in KL is very common.

Obviously, one of these days, I'll be going there to pay a visit but it would be great to get some information before the visit

Looking forward to your feedback

Finding Tenants and Property Management Fees

maxmahen87 — Fri, 04 Jun 2021 20:15:12 +0800

So I have a property in KL that I would like to rent out. My guest will be out of the house in mid July - so the house should be ready by August
Its a 220k flat 3 bedroom 2 bath -The rental is between 900-1200 , the house is fully paid so I don't have to worry about mortgage fees.

I don't want to go through the hassle of finding tenants or managing the property as Im busy with my career and family

I don't know much about property management - I tried googling for information but its very hard to get concrete info in one place

So my questions are

1. Would PM manage 1 property? Im in the process of gathering funds to purchase another so expect another unit
2. How much would be the standard fees to find a tenant and manage the property of that price range mentioned above?

Please advise. Thanks

Max

Is Interactive Broker Legal in Malaysia?

maxmahen87 — Thu, 18 Feb 2021 13:02:27 +0800

Hi Guys,

I've been using interactive broker for the last 3 months trading US Stocks. I funded the account using my US Bank (I used to work in the US - so got some savings la) I also linked my Maybank for withdrawal (also my transferwise borderless acct, just incase)- yet to do any withdrawals though

However, I found a post on lowyat saying Maybank (or Bank Negara) block transactions from IB due to their affiliation with forex? Hence cant fund or withdraw money to a local bank? Link below
https://forum.lowyat.net/topic/4498867/all

I'm planning to trade stocks full-time as I generate a decent income from it every month, and Ive been investing/trading for last 5 years when I was working in the US (not a newbie la )
Planning to register as self-employed for tax/banking purposes - already discuss with a tax lawyer friend - I have shared the conversation (tax for fulltime trader) in this forum for those interested in self-employment/fulltime trading
https://forum.lowyat.net/topic/5102221

One question I couldn't answer my lawyer friend is that - is IB legal in Malaysia? Will BNM block the funds to be transferred back to our local banks?
I don't find any article/documents suggesting IB is illegal in Malaysia - and seems to the first recommended platform if want to trade US stocks from Malaysia.

Hope to get some feedback from Sifus here

Full Time Stock Trader - Tax info

maxmahen87 — Fri, 12 Feb 2021 01:00:30 +0800

Last few weeks I asked a few questions here in Lowyat regarding financial transactions, taxes, and business registration related to being a full-time trader. I did not get the answers I needed and continued digging.

Finally - I got to know that an old friend of mine is a Tax Lawyer and runs a tax consulting firm (how convenient) - decided to drop him a message, and he gave me a callback and was happy to answer all my questions.

I hope this will be useful for anyone that want to be a full time trader or doing trading as a side business. I think some of it will be useful for people who are self-employed and freelancing.

I will share my questions and the answers given by him below.

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1. Are profits from stock trading taxable, since its mentioned in LHDN document that capital gains are not taxable

If you're an active trader, yes. There is no specific number (trading frequency) given by LHDN on how they measure an active trader but to be on the safe side, assume that you are since you trade daily and it's your only source of income.

2. Do I need to register as a self-employed entity (sole-proprietorship/enterprise)?

Not necessary but recommended, especially if you earn more than RM100k a year. Register a company (apply for 5 years license) in SSN with your personal tax ID. You may not know what will you venture into in the future so it's good to have a company registered - If you decide to try other businesses, you can always use the same company name.
Registration of a company also allows you to open a corporate bank account which can help separate personal/business funds and it also helps for filing tax in the future.

3. Do I need to open a corporate bank account?

Again, not necessary but recommended. Plus corporate bank account has more flexibility/freedom in terms of transactions, unlike a personal bank account where you can get calls from the bank for above-average transaction amounts.

4. How will my income from trading be taxed? Do I use the numbers from tax statements given by the broker?

For your income to be taxed, you need to show funds in the bank account. As long as the money is in the brokerage account, it won't be taxed as there are no incoming transactions. You can make RM1 million realized gains (sold for profit) but if you never transferred it to your bank account, what will you show to the taxman?

5. Can I use funds from the business bank account for personal use?

I recommend transferring the funds you need for personal use to your personal bank account (from the business account), at least for the first 2 years to have a clean business transaction record and for ease of filing tax.

6. Will I have any problems applying for loans for a car or house, since I dont have monthly payslips to show?

Buying a car should not be a problem - the car salesperson can usually help you "kautim" with the banker. But for a house, yes.
They dont care where the money comes from but they want to know how much tax you have paid (and this is the first thing they will look at). From the tax payments, they can estimate your yearly income and if you are eligible for a loan based on other criteria (i.e credit report)
Again you can have RM1million cash in your bank account but if you have never taken a loan, no credit cards, no utility bills and have clean record with Bank Negara - most probably your loan will be rejected.

7. My initial investment funds from my US bank account (I used to work in the US for 8 years), will that be a problem since I have moved back for good to Malaysia recently and currently trading in Malaysia.

As long as you have paid taxes in the US for the funds and you have the proof (past tax filing statements), then it should be no problem.
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Thats it guys.
I dont know if some of the questions are silly but hopefully, it's helpful.
Let me know what you guys think - do you agree with these answers - do you have other answers from your source/reference
any personal experience to share?
Looking forward to your feedback.

Max

Business Registration for Full Time Stock Trader?

maxmahen87 — Mon, 01 Feb 2021 16:58:31 +0800

Hi,

I'm currently trading full-time for the last 3 months - I'm having this question as I know I have to pay taxes on my profits come next year, and I would like to use all the tax benefits available as you can reduce your taxable income by including business-related expenses (in my case I.e Workstation, Internet, Trading Softwares, Insurance, etc)

Does income from active trading considered as business income by IRB(LHDN)?

Can/Should I register myself as a sole proprietor?

Any full-time trader/tax consultant here willing to share their thoughts?

Thank you.
Max

Business Profit for Personal Use

maxmahen87 — Mon, 01 Feb 2021 16:04:11 +0800

Hi,

I have zero experience running a business so I would like to know how a businessman manages his companies profit for his personal use?

Do they pay themselves a monthly salary?
Do they pay themselves in terms of % of net profit? (the rest is reinvested back into the business)
Do they pay themselves directly using a business account (meaning no sending money to a personal account?)

I don't know if I'm asked the right questions but I hope I got my point across.

The reason why I'm asking is,
I currently trade stocks full-time for 3 months and it's been going well but I have yet to cash out any of the profit (reinvesting it back for now). I know, end of the day is my decision how I manage it but I would like to know how the business brains do it

Looking forward to your feedback,
Max

How to setup to Trade for a Living

maxmahen87 — Sun, 24 Jan 2021 11:01:33 +0800

Im thinking to trade for a living. If I can make decent return every month - how do I go about applying loans (car/house) or even credit cards in the future?
Im sure I need payslips to apply.

I tried googling, but I cant get good information on this.

Do I need register under a company to claim myself as Self-Employed? A corporate bank acct to go with it? Accounting statement to show money in and out?

How about taxes? I know there is no capital gain taxes on stocks but if I register my trading as a business, would the gains be subjected to income/corporate taxes? (Not trying to avoid taxes)

Hope I can get some great feedback from you guys. Thank you.
Max

Venice Hill Condo Cheras

maxmahen87 — Sat, 23 Jan 2021 19:37:20 +0800

1500sq, 3B2R, great view from balcony, big ass kitchen, in Cheras, fully reno but only 220k - 250k? Why?
Sounds too good to be true, did some googling and got some info, hope you guys can validate the info

1. Soil erosion (similar to Highland Towers) - issue brought up in 2012 - no update so far.
2. Too many troublemaking foreigners ( esp. africans and arabs) - but also saw a post that the condo has ban foreigners in 2015 (but some are still there)
3. Haunted (Oh come on).

I would take this unit in a heartbeat but would like to get experts opinions here before I make a visit 😁

Anyone had any experience with these unit in the past/current, kindly share your thoughts on the points given or additional reasons I may have missed.

Thanks,
Max

Selling Stocks to Buy Car/House Cash

maxmahen87 — Sat, 23 Jan 2021 16:37:20 +0800

If I have enough stock equities (invested over many years) to purchase a car or even a house, would that be possible? Does banks allow huge money to be cashed in to the personal account. I do have statements from broker to show proof of investments or where the money came from.

And If im not mistaken, there is no capital gain taxes on equities.

Ive only cashed out small amounts every month for regular expenses, never a huge sum.

Anyone has experience doing so? Mind sharing your thoughts. Thank you

Max

Any Port Dickson condo resorts owners here?

maxmahen87 — Mon, 17 Aug 2020 00:37:08 +0800

Hi Guys,

So I was just searching for properties to invest in. I found couple of old condo in Port Dickson, very close to the beach - all priced around 50-75k. I checked the rentals are around 500-700 permonth. that's a gross rental yield of >8% which is a pretty good number. I spoke to the agent, he too mentioned same numbers for rental.

Any idea on whats the demand for rental in this area - this sounds too good to be true. Any one has experience purchasing any of the condos and trying to rent them out?

Thank,
Max

Trading US Stocks from MY

maxmahen87 — Fri, 24 Jul 2020 00:27:22 +0800

Hi All.

So, i'll be returning home from US after 8 years working here. I have been actively trading stocks for the last 5 years and would like to continue to do so in Malaysia.

What will be the recommended platform to trade US stocks? I will slowly get into KLSE

Should I keep my funds in US bank or is it possible to trade from MY banks?

There are so many info out there regarding fees and exchange rate and I know I have to pay one or the other what would be the least in terms of fees?

Looking forward to your feedbacks.

Thanks and Best Regards,
Max