1 / 11

Annuities Commodity (Malaysia)

Managerial Finance. Real Cases Presentation . Annuities Commodity (Malaysia). Rachel Goh Yik Teng MA0N0236. What is Annuities. “An annuities is a stream of equal periodic cash flows, over a specific time period These cash flow usually annually but can occur at other intervals (monthly)

gauri
Download Presentation

Annuities Commodity (Malaysia)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Managerial Finance Real Cases Presentation Annuities Commodity (Malaysia) Rachel GohYikTeng MA0N0236

  2. What is Annuities • “An annuities is a stream of equal periodic cash flows, over a specific time period • These cash flow usually annually but can occur at other intervals (monthly) • Inflows – returns earns on investments • Outflows – funds invested to earn future returns

  3. Types of Annuities • Ordinary Annuity – the cash flow occurs at the end of each period • Annuity Due – the cash flow occurs at the beginning of each period

  4. Annuity Commodity in Malaysia • Bank Accounts • Insurances • Mortgage • Hire purchase (Car) • Taxes – income tax • EPF

  5. Bank Accounts • Saving accounts – “maintained by retail financial institutions that pay interest” (0.25%/annum) • Fixed Deposit account – “provides investors with a higher rate of interest than a regular savings account, until the given maturity date” (3.0% - 3.2%)

  6. Insurances • “the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment” • In Malaysia, Insurance agency provide customized package based on individual needs • Combination: medical, accident, life, saving, investment & etc. into 1 policy • Insurance for cars & houses • Payment term: monthly, quarterly, bi-yearly, or yearly

  7. Mortgage • “a loan secured by real property” • Based on BLR (Basic Lending Rate) – 6.60% • Fix mortgage – the interests rate is fixed for the whole tenure • Flexible mortgage – interest rate is fluctuated by the BLR, interests rates are varies from different banks • Tenure: up to 40 years

  8. Hire Purchase (Car) • “pay for goods in parts or a percentage at a time”, the rest pay with interests monthly • 10% deposit • Buyer need to prove income status or else guarantor needed • Tenure: 3, 5, 7, 9 years • Interest: varies (depends on the car company and bank)

  9. Taxes – Income Tax • Tax levied on the income of individuals or businesses • Taxable rate (for individual) – up to 26% • Minimum taxable income – RM2,500/mth • Taxable rate (for businesses) – 25% • Filing: yearly (own submission) or monthly (employer will deduct from the salary) • Tax deduction: insurance, books, medical fee for parents, sport equipment & etc

  10. EPF (Employees Provident Fund) • “compulsory savings plan and retirement planning for legally employed workers” • save a fraction of employee’s salary • Both employee and employer have to contribute to this fund monthly • Employee – 11%, employer – 12% (min) • Dividends – EPF only obliged to provide 2.5%. As to-date, EPF provides 6% • Withdrawal is allowed for certain circumstances

  11. ~~ THANK YOU ~~

More Related