Content home loan is a fixed repayment schedule, where


I suggest Joshua not to pay off his housing loan with this
RM200000. The interest 3.63% in his loan package is lower compare to current
Maybank housing loan interest about 4.43%. In addition, the loan package that
Joshua applied was a basic term home loan. This basic term home loan is a fixed
repayment schedule, where the monthly installment that Joshua pays is the same
throughout the entire loan period. If pay off the debt in advance with
RM200000, Joshua merely clears his debt earlier but never got any saving from
interest. Based on the amount RM 388740 paid by Joshua, he has completely
cleared off the loan interest. The remaining amount RM200000 that Joshua has to
pay in another 102 months is to clear the principal amount. Since Joshua’s
housing loan interest is low and the loan period is downsize, I would suggest
Joshua to remain current practice to clear off his installment monthly.

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Joshua is a low risk taker; hence I suggest him to invest
RM200000 money in fixed deposit, gold investment and balanced portfolio of unit
trust. These 3 investments are in the position of low and medium risk. In
Chinese there is one sentence to advise the investor, never put all your eggs
in a same basket. Meaning that, we have to diversify the investments in order
to reduce the risk. Hence I suggest Joshua invest diversified to ensure he is
earned at last.

First, I suggest Joshua to withdraw RM60000 and invest on UOB gold
investment account. Gold has been known as valuable commodity since ancient
times. A gold investment account is an account that
allows you to invest in gold commodity without the need to keep a physical
gold. The advantages of having physical
gold, Joshua can keep the gold with his in bank. There is no risk of losing
gold investment even if the bank Joshua has purchased from goes bankrupt.
He still can sell his gold to other banks or trading companies
if the need arises. Despite the low risk, gold can always yield a high reward
as well. There are 4 banks (Maybank, Public Bank, CIMB bank and UOB
bank) and 1 Finance house (Kuwait Finance House) providing such investment in

Generally, the smaller the buy-sell spread, the better for
investors. UOB offers 2 types of Gold account, premier gold account (PGA) and
gold savings account (GSA). Both accounts can buy and sell without physical
gold delivery. The differences of these 2 accounts are the size of gold, where
PGA is the gold holding recorded in kilograms (kg) while GSA is recorded in
grams (g). I suggest Joshua to invest in gold saving accounts (GSA).