Dear Unitholder, We are pleased to attach the market wrap for the week ended 14 February 2014 for your information. Regards Customer Service

here's something for the weekend... it's about annuity and it may seemed out of topic in this UT thread; but it's appropriate for a retirement fund when the retirement fund in unit trusts (due to low and inadequate savings) is not enough.

Paul Merriman: Protect your retirement from future stupidity.
http://www.marketwatch.com/story/protect-y...2-26?link=MW_RM

Some background premise on retirement fund, before reading the linked article:
1) The annual withdrawal out of the fund is 4%.

2) The size of the fund or savings, using this yearly 4% withdrawal, should be 25 times of your yearly expenses for a comfortable retirement. This yearly expenses is purely expenses, since there is no outstanding loans and you had reached stage of 'financial freedom' in retirement.

3) Statistically, a balanced portfolio in UT is expected to return about 8% annually. 4% is withdrawn or cashed out, and the remainder is reinvested back into the portfolio. Thus the portfolio and the 4% withdrawal is adjusted to inflation.

4) A retirement UT fund, almost untouched, can be left to heirs. While an annuity leaves nothing.

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"One mistake a lot of seniors make, for example, is making major decisions based on emotional advertising, without consulting family members or a financial adviser."

emotional advertising!!! worded very diplomatically. Just think of all the scam cases that's on the local news...

Closure of Employees Provident Fund Sales for PAGF, PEF, PGF and PSF with effect from 31 March 2014!

Just comparing the pros and cons here.

There is a risk component that annuity funds transfer from you to them. For that, they take their cut as their profit.

With UT, that risk component stays with you, you take the risks along with the profits.

In most cases, UT funds will win, but it's not a guarantee.

Whereas, annuity is more or less a guarantee, until your guarantor goes bust.

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PS: Sorry, I was talking in general terms about UT, and did not notice I was in this particular thread. In this particular thread, please strike out the following In most cases, UT funds will win. It doesn't apply unfortunately.

This post has been edited by howszat: Mar 3 2014, 11:31 PM

Guys, whats your recommendation for the epf investment scheme?

There are 4 funds that just closed investment to epf.

How would you compare the PRSF and PSSF for epf?

Just for discussion what you guys think

PRSF > PSSF, but PISEF >>> all other Pub-Mut funds.

Listen to Xuzen, he is Pub-Mut expert (self-proclaimed).

Xuzen

How about PDSF? my agent choose this for my epf investment scheme

PDSF is quite a good fund also. Is more of a dividend paying fund i guess, I do my cash investments in this fund where you can see more movement, but since EPF is like super long term, I would opt for something with overall higher returns and proven track record. PRSF is a long proven fund but I see the PSSF seems to be performing rather similarly but is at almost half the price per unit. But in the end of the day the returns on the PRSF looks slightly higher.

@Xuzen
Thanks!

Do you think PRSF will still have alot of room to grow in terms of capital gains and unit price? PSSF is pretty low price fund and could have a huge potential for growth. Thoughs?

Thanks for your information. Then I should suggest my agent to get PRSF for my next withdrawal. Is it a good way or I should get more unit for PDSF since my first withdrawal invest into it.

You can always make investments into multiple funds if you're working with a large and consistent amount. At the end of the day, we are its all about making your EPF fund work for you after your retirement.

I always tell people that at the end of the day, IF the EPF pays out a consistent 6% (for example) what ever extra you receive is considered a bonus weather it is 8% or 12 % or 50%.

Anyway, don't sweat too much about it, every fund has their strengths and weaknesses and just go over to the PM website or read the brochure if you want to know more about your fund.

Can always ask ur agent to advice and explain a little more in depth if you want to know more or you can ask all the sifus around here which have been investing for long time

PDSF < PRSF. Tell your agent F3ck-Off, listen to Xuzen.



PRSF is benchmarked against KLCI-EMAS100. You asked the wrong question. You should ask, does KLCI-EMAS100 has room to grow or not? Fund price is easily manipulate and is not a good proxy to say whether the fund is cheap or not.

BTW, PISEF which is the best fund from Pub-Mut is ranked at a lowly No. 10 among all the M'sia equity. This is from Lipper rank which you can get from The Edge. Which is the best M'sia fund?

Of course it is non other than: Lee Sook Yee fund

and another good alternative:

Chen Fan Fai fund.

Xuzen

This post has been edited by xuzen: Mar 6 2014, 04:00 PM

PM sifu, wanna get advise from u guys regarding my P Sukuk Fund (around 10k)...

Currently, my bond fund looks like not moving anywhere... always maintain the same value (up down up down only)...

In case I want to use the bond to purchase equity, which is the best way to invest?
Sell off and cash in the money back to my Public Bank Account or switch to equity?

Switching from Bond to Equity

I prefer not to switch out 100% of my bond to equity... wanna do DDI monthly.

do ddi monthly into equity is good. bond fund will not really move anywhere but ur money "safer" If want to see movement can switch out to equity

@xuzen: thoughts on PFSF please thanks

my question is which is the best way for me to invest in PM equity?

Either I :-
1. sold off all my bond and parked my cash back into my PB account & from there DDI to equity. Or;
2. switch certain amount monthly from bond to equity.

Both ways will incurred sales charge fees, right? which is better method? 1 or 2? What's the reason for your choices? I need advice from experts here. thanks.

what are all the pro's and con's of 1) & 2) that you think are available? is timing the consideration here?

Answer you on Monday as my data and worksheets are in my office computer, not at home.

However, I do not recall it making into my shortlist.

Xuzen

My only concern is the switching fees or sales charges, depending on what action i take with my bond fund

Timing is of no importance to me coz will do DDI like what I've done with my other PM funds