I was wondering if there’s any online broker in Malaysia, and after a quick search on Google, I arrived on this page.
For those who are curious, you can visit the homepage, and I think you’ll agree that the whole website is just nearly as stupid as Bank Rakyat’s website, as mentioned previously by Khensthoth.
WARNING: Web design may cause seizure. Viewer must be cautious. For safety purposes, an image of the website is included below:
As I was saying, I reached this page, and scrolling down a little, there’s “Wise Investor Game, click here to play” gif image which aroused my curiousity. So, I was clicking through the “game” and came across this:
Money is a great friend once you send it off to work. For example, if you deposit RM500 in a savings account that pays five percent interest, a year later you have an extra RM25 and you didn’t have to do anything to earn it. Your money earned it!
Twenty five dollars might not seem like much but if you deposited RM 25 for ten years while the interest is compounding and building up, at the end of the tenth year you would have RM 6,603.39, comprising RM5000 you put in, plus RM1,603.39 that was earned from the money you invested.
Alright, aside from having an amazing 5% interest rate, it says that the RM 25 is earned without doing anything. Sure, RM 25 extra, but there is no information whatsoever about the inflation rate at that time. If the inflation rate is higher than 5%, which is probably the case, I do wonder how wise the “investor” is. I am not saying that one should not put money in the bank. What I am saying is that nobody will get any wiser playing this bullshit.
Alright, it then says that in total, you have put in RM 5000, by saving RM 25 over a period of 10 years. Assuming the the saving is periodical, a quick calculation shows that one will need to save RM 25 approximately every 18 days….. Right, sure. 18 days is easy to remember. I deposited RM 25 on Monday. Alright, I’ll come back to the bank on Friday 2 weeks later. That’s easy to remember…. Right. So, on the assumption that the interest rate is 5%, and that RM 25 is deposited every 18 days, a not-so-fun calculation shows that one will get approximately RM 7121 by the end of the 10 year period, NOT RM 6603.39
Let’s see what other wise advice is given there, shall we?
If you invest RM500 a year in stocks your money gets a chance to do you a really big favour. On average you will double your money every seven or eight years. A lot of smart investors have learned to take advantage of this; they realise that money is as important as their job.
Double your money every 7 or 8 years? That is between 9% to 10.4% of annual return, and as stated, from investment in STOCKS! On average! Can you believe that?
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