Bye Bye UT RSP

Finally, after much consideration, I have decided to sell my last Unit Trust Regular Saving Plan (RSP) Fund. I don’t think it is suitable with my financial goals. Firstly, I like to see dividend rolling into my account (preferably on a yearly basis) and secondly, I don’t like paying the 3% sales charge anymore (and 1.8% management fees too). In the long run it just eats up on my capital and the return is not that good. One post that I saw on IG made me realize that. Do follow my IG below if you like to see me sharing random inspiring IG stories from others!
Anyway, here’s a summary of my UT investment since 2015.

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I sold my Unit Trust Regular Saving Plan (like finally)! I don't think it's suitable for me. It used to be because it's convenient and I have no financial goals (or knowledge). At that time I choose high risk investment because I don't have any commitment and were comfortable investing between RM104 – RM125 a month. In 2017, I sold my first RSP Fund to put into stock market, making a 1.29% loss (RM21.37). And fast forward two years later in 2019, I sold my last RSP fund, making a 6.2% (RM311.17) profit. Not a good return considering the amount of time and the absence of dividend in recent years. But I still kept the initial investment of RM1,000 for both of the funds (or should I go all in to stocks?) I've seen a lot of people losing money in UT but thankfully this round I didn't. I will put the fund in dividend stocks, building my passive income one ringgit at a time. #SmallIncomeBigDreams #PersonalFinance #PersonalFinanceMalaysia #DebtFree #DebtFreeMalaysia #FinancialFreedom #FinancialFreedomMalaysia #ToBecomeDebtFree #DebtFreeCommunity #DebtFreeCommunityMalaysia #MoneyManagement #SmartFinance #AiryLilM #DividentIncome #RinggitSense #Belanjawanku #SlowAndSteady #SavingMoney #Step2 #KnowledgeSharing #PassiveIncome #Minimalist #SinkingFund #MaybankRSP #RSP #RegularSavingPlan

A post shared by Airy Lil' M (@airylilm) on Sep 20, 2019 at 11:08pm PDT

Considering the market outlook, I should be thankful I didn’t lose any capital. But like I said before, the return is not good. If I were to put the same amount into eFD, I’ll get more than that. And that is just the minimum 3%. But then again, I don’t have 5k when I started to invest. That amount grow from a monthly deduction of between RM104 – RM125. This can be a good way to force us to save some money, I guess, as it will auto-deduct from your account. Kinda like save and forget (and cannot touch too…)

Ouch

I will use this fund to buy some dividend stocks to build my passive income one ringgit at a time. Happy investing…

Little Sprout: June 2019

Slow and steady

Goal for this year is to get RM1,500 from interest & dividend.
Every little bit counts for me. #SmallIncomeBigDreams

This has been a slow year.

First post about this, let me do some explanation.
M2u-i: For “Sinking Fund” (Travel, car maintenance, impulse purchase, “parking” Emergency Fund until it’s enough for EFD placement). Some of the interest from my EFD will go to this account as well.
HLEB: I will transfer a set amount monthly to buy stocks when the price is right. It pays interest if you have a minimum of RM1,000.
Shares: Dividend from stock.
U.Trust: The first investment I did. I have 2 different unit trust with MBB and one PRS. Each counter is supposed to pay dividend but only received dividend from one counter. Last check still no paper lost. (Thankfully)
EFD: My Emergency Fund. Now just 50% of my 6 months expenses target. I try to set so that the interest is added into the principle. But some won’t let me do that.

Mid Year review
This year’s progress has been slow for both investment and dividend. Initially for this year I planned to invest RM10,000 before discovering the Debt Free Community. Right now I’m focusing on eliminating my consumer debt (Hire Purchase) before concentrating on my investment so I can put more fund to it but I will still put a small percentage of my salary into investment.

Investment Progress up until June 2019
JAN – MAR (RM1,350)
Can read from my IG post.
APR – JUNE (RM1,286.50)
APR
Trust account: RM50
RSP: RM125
Dividend: RM79.50
MAY
Trust account: RM587
PRS: RM125
JUNE
Dividend: RM320
Total JAN – JUNE 2019: RM2,636.50 (26.4%) from my RM10,000 goal.

“Slow progress is better than no progress.”
-Unknown.