Why You Should Make a Will

It’s incredibly common for people to delay making a will. If we’re not sick or old then we have no reason to think we will die – and who wants to spend time thinking about death anyway? However, creating a will is essential if you own anything of reasonable value, and you want to ensure said assets are left to those that you choose. What’s more, a will can reduce probate fees and the hassle involved in obtaining it. If you don’t make a will then it is the law that decides who will receive your assets, and how much. If you are married and have children then much of your estate will automatically be passed to them.

While this might not seem like an issue if it is your partner and children you want to benefit, what happens if you have an estranged child who hasn’t spoken to you in years? You would probably want to leave more to the child that visits you once a week for a cup of tea and a chat, right? If you failed to leave a will, your assets would be distributed between them equally.

In addition if you are separated (but still married) then your ex-partner would still be entitled to their share, whether or not that is what you want to or believe should happen.

If you are not married but are living with a long-term partner, then not leaving a will could leave them with nothing. They could make a claim for their perceived share, but there is no guarantee it would be granted. There would also be no provisions in place for looking after anybody else that is not an immediate member of your family, no matter what impact they might have had upon your life.

In addition, having a will in place makes the process of obtaining probate much simpler. Probate is needed following most deaths – it is the legal proceeding involved in establishing exactly who is entitled to what and ensuring said inheritance reaches the correct people.

Obtaining probate can be difficult, time-consuming and costly. Depending on the value of the assets, and the complexity of the case, the probate cost can be substantial. The probate cost however will be much more substantial if there is no will. The added time and complications involved in the matter will mean that the probate fees could easily spiral out of control.

The effort involved in obtaining probate is additionally something that nobody would want to wish upon their loved ones following their death. Obtaining probate can be incredibly stressful, yet this stress can be reduced simply by ensuring a will has been written. Surely the security of knowing where your assets will end up, combined with the knowledge that your loved ones will incur no added stress upon your death are enough reasons to make writing a will worth the effort?

Using the Snowball Method to Eliminate Debt

In today's tough times, many of us are trying to reduce our debt burden to improve our financial situation in the face of recession. While there are many ways to approach this goal, one increasingly high-profile and popular method is the so-called "Snowball" method espoused by financial guru Dave Ramsey.

The snowball method offers a way to break your debt down into manageable chunks so you can make steady, visible progress in eliminating all your bills. The method basically involves the following steps:

1. List all your outstanding debt, from the smallest to the largest

2. Determine how much money you can reasonably redirect monthly toward paying off your debt

3. Divide your allotted money into minimum payments on all the bills except the smallest

4. Use the remaining amount of your allotted funds to pay the smallest debt

5. Once the first debt has been paid off, focus all the money you've been paying on the first debt on the second one. You'll be paying the extra amount on top of the minimum payment you've been making.

6. Continue down the line. By the time you reach the largest debt, the amount of money you're paying toward it will have "snowballed," enabling you to eliminate even this larger bill in a reasonable amount of time.

While this process is underway, it's important not to incur additional debt, so don't use any credit cards or take out any additional loans unless absolutely necessary, such as for a medical emergency.

What People Critics About Snowball Method?
Critics of the snowball method say that it makes more sense to pay down the debts in order of which has the highest interest rate. However, Ramsey says that if this is your largest debt, the amount of time it could take you pay it off will be discouraging, making your debt burden seem insurmountable. By starting with the smallest dollar amount, you can see success in a relatively short period, giving you initial success that will encourage you to continue with the plan. By the time you reach the largest debt, it will also be paid down more quickly because of the way you've focused the payments.

There are, of course, many ways to approach this conundrum. You might want to start with the debt that you know will give you the largest emotional boost if it's paid off--for example, the debt that's been on the books for the longest amount of time. And if paying the debt with the highest interest first seems like the best approach to you, that might be a good choice for your personal debt management plan. The point is, whatever approach you choose, get started. The sooner you get a plan underway, the sooner your debt will melt down and disappear.

Points in Choosing Stocks

- Focus on ROE, not EPS.

- Look for companies with high profit margins

- Company that return money to shareholders: raising the dividend or buying back shares.

Adage by Investment Guru

- When you know you are ignorant in a subject, start educating yourself by finding an expert in the field or find a book on the subject.

- Asking question instead of arguing.

- The difficulty lie not in accept new idea, is escape from the old one.

- Fear & greedy are the main causes of investment failure.

- I am more afraid of the return of my money than the return on my money.

Warren Buffett Way
- Above average results are often produced by doing ordinary things. The key is to do those ordinary things exceptionally well.

KLCI Price/Earning Ratio

Year	KLCI	P/E
1990	505.92	20.32
1991	556.22	21.27
1992	643.96	21.9
1993	1275.32	39.24
1994	971.21	25.09
1995	995.17	24.25
1996	1237.96	26.83
1997	594.44	11.28
1998	586.13	60.01
1999	812.33	578.07
2000	679.64	16.46
2001	696.09	23.41
2002	646.32	17.96
2003	793.94	21.28
2004	907.43	17.74
2005	899.79	13.94
2006	1096.24	19.53