On Monday, August 4th, I started an anonymous Q&A on NGL to tackle your most frequently asked personal finance questions.

The response I received was incredible, and I've been working through the week to address all the inquiries.

I've already tackled quite a few of them, but they're scattered across TikTok, Instagram, and Twitter.

To make things easier for you, I've put together a PDF containing some of the most popular questions. It has been sent to our WhatsApp group for all patrons. If you haven't received it yet, download it here.

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This week’s newsletter features part 2 of answering your top questions.

Part 3, which is the final issue, will contain insights from financial experts Hann Liew and Sani Hamid. It will be sent to patrons by Monday or Tuesday (12 Aug).

Q1: I'm a beginner in investing and unsure where to start. Are there any other alternatives apart from StashAway and TnG?

There are numerous investment options and each carry different levels of risk. The key is to identify your risk tolerance and your investment objectives. Are you saving for retirement, planning a vacation, or preparing for a wedding in the next 2-3 years?

With your goal in mind, here are some of my suggestions:

Low risk (3.50% - 4.50% pa): Recommended for short term investment and capital preservation.

i) ASB & ASM.

ii) Fixed Deposits.

ii) Cash Apps (Versa, TnG, StashAway, KDI Save, etc.).

iv) Voluntary contribution to EPF (for those who are closer to retirement).

Medium risk (4.50% - 7% pa): Ideal for medium-term investments, striking a balance between growth and capital preservation.

i) Local bank stocks (Public Bank, Maybank, CIMB, Hong Leong, etc.).

ii) Real Estate Investment Trusts (REITs)

iii) Medium risk mutual funds.

iv) Gold or precious metals.

High risk (>7% pa): For those who prioritize growth, have a longer investment horizon, and can accept unrealized losses.

i) International ETFs that track the US market (QQQ, VTI, VOO).

ii) Local or international tech stocks.

iii) Aggressive mutual funds.

iv) Bitcoin.

Q2: I don’t like to invest in properties due to the hassle of maintaining it. Are there any alternatives?

Don’t like to manage properties? Try investing in REITs.

Modeled after mutual funds, Real Estate Investment Trusts (REITs) pool money from investors, allowing you to earn dividends from real estate investments without having to buy or manage the properties themselves.

There are currently 18 different REITs listed in Bursa Malaysia, and yes, you can buy REITs exactly like how you purchase shares.

As to where to purchase them, you can try out Rakuten Trade or any registered broker in Malaysia.

Q3: Where can I buy international and local stocks or ETFs? What are your preferred options?

To buy stocks locally and internationally, try out Rakuten Trade. The platform is great for beginners and has a low fee structure compared to other brokers.

Rakuten offers Malaysian, Hong Kong, and US stocks, including ETFs that track the S&P and Nasdaq indexes. The registration process can be done entirely online, unlike traditional brokers that require you to submit hard copies of your documents.

When it comes to my preferred options, I generally like index funds that mirror the performance of the S&P, Nasdaq, and Dow Jones.

ETFs remove the risks of handpicking stocks, especially given the S&P’s consistent average annual return of 8-10% over the past decade.

Among these options, you’ll find the Vanguard S&P Index ETF (VOO), Vanguard Total Stock Market ETF (VTI), and Invesco Nasdaq-100 (QQQ).

But as always, remember to do your own research!

Q4: What is the difference between Rize and Versa?

• Versa: 4.3% pa (for the first RM30,000)

• Rize: 5.0% pa (for the first RM5,000)

But both are very different even though they offer stable returns on your savings.

Rize is a banking app from Al-Rajhi Bank, a Saudi Arabian financial institution and the world’s largest Islamic bank by capital based on 2015 data.

Your funds within Rize are protected by PIDM up to RM250,000, and you can use them to make DuitNow transfers instantly.

Versa, on the other hand, is a cash app that offers a variety of investment products, each with a varying degree of risk.

Some of the funds (such as Versa Growth and Versa Moderate) are not Shariah compliant.

Your money is also not protected by PDIM, and deposits/withdrawals can take 1-2 business days.

Q5: I am 26 and quite frugal. Is it worth it to apply for a credit card just to build a good credit score?

Credit cards can be a great tool if used correctly, but some people tend to overspend because you don’t feel the “pain” of purchasing with cash.

It gives you the illusion of affordability.

If you’re a frugal person and are always looking for cashbacks/promos on your purchases, a credit card may be a good option.

As for whether it’s worth it for the credit score, this can easily go both ways depending on how you manage your payments.

Check out RinggitPlus for the best deals.

Q6: I am working overseas. Can I still voluntarily contribute to EPF? Will it be taxed?

Yes! You can still voluntarily contribute to EPF even when you’re working overseas.

The maximum limit has been increased from RM60,000 to RM100,000 per year, and contributions are also eligible for tax relief, up to RM4,000.

But if your foreign income is not taxed by Malaysia, then this relief will not apply to you.

This is the case for individuals who are working overseas and their income has already been taxed by the foreign country.

Q7: Can I open an EPF account if I am self-employed?

Certainly! You can complete the entire process online in just 2-5 minutes!

Simply download the "i-Akaun" app, have your myKad ready for scanning, and follow the on-screen instructions until your registration is successful.

Alternatively, you can visit the nearest Self-Service Terminal (SST) or an EPF branch to open your account.

That’s all for this week’s newsletter!

DISCLAIMER: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice. The opinions of this newsletter are solely that of the publisher.

Get early access to our newsletter and miss nothing from the markets. Join our journey towards financial literacy today.

Our private announcement group will keep you updated with market movers and urgent matters. For only $1/month, you'll receive our weekly newsletter every Sunday night and daily notifications on important events, some with detailed thoughts from economist Mr. Sani Hamid and RinggitPlus founder Hann Liew.

✅ No commitments.

✅ Cancel anytime.

✅ Zero ads, zero shills.