Ok back to my original attention to write this blog. Back in 2006, I came to read all the details of my 2005 ASB statement from top to bottom and from front to back. Then one of the sentences attract my attention which explains about how the dividend are computed. It explained like this:
Monthly Lowest Account Balance (Jan - Dec) x Dividend Rate
12 Month
After realizing that, I quickly open excel spreadsheet, grab my ASB book and start to work on that formula. Then the result of my spreadsheet calculation are as per Dividend income printed in my ASB book. Lucky that time my ASB balance not that much it took me very quick to get that computation. With that it answers my thought which all the while was wrong. All the while I thought if I put a large sum of money on the end of the year (particulary December because bonus and extra money sometimes come here) and I can earn 'high' dividend. I also made my own perception that to earn more dividend, timing and volume are very important. But of course with my monthly earning, to get a large volume would be a bit hard. But timing is something that I can control.
With that new knowledge I had share to few of my friend which has the same false thought as me. I still remember, my friend Mr AA. After showed him what I found and discuss with him about this 'volume and timing', he took my advise to get the volume. He sacrifice his own ASB and dump all his money to his wife ASB's. With that he can get his volume especially in long term. About the timing, I suggest to him to add investment in month end (ie 30th or 31st each month[working day]) so that it will be captured the first day of next month. For a case he need a money and want to withdraw that investment, he has to make sure to withdraw after it been there for a month. This will really effect if the amount deposited or withdrawn are huge. Imagine if he has extra money of RM50,000 in February which get could from somewhere (loan etc) and need that to pay to something. Put that RM50,000 for at least a month in ASB and the very first day of the following month quickly withdraw (if urgent) and pay for that something. Imagine how much can get if at least can hold for a longer period.
Here are the examples;
1. For at least 1 mth
2. 2 month..
On how to tackle this volume and timing, maybe can consider to look on ASB Loan. 'ASB Loan' has become very attractive package because it covers our Timing & Volume at the same time. It's called lump sump investment. We just need to pay additional interest monthly but in a long term it still profitable I guess. Usually banks personnel will use this as their selling point.
This story actually happened long time ago where I still don't have my blog. The main reason why I wanted to write is yesterday when chit-chatting with my college where our topic was about ASB investment, to my surprise they didn't know this fact. And all the while they thought is as what I thought back in 2005. I assume they won't bother much about ASB dividend as long as that amount get printed in ASB book every year.
As I wrote this, I believe many people already wrote about this topic. Some give examples of many scenarios and some even attached Dividend Calculators. Here a few blog that I found which is very helpful and informative. A big applause to all of them.
http://invest-made-easy.blogspot.com/2013/11/how-amanah-saham-bumiputera-asb_28.html
http://eimiza.net/blog/form2.php
http://www.nadlique.com/index.php/2007/12/calculating-asb-dividends-bonus/
and a lot more in uncle Google database.
