In tis case, it is better to keep yo investments 'outside' as it generate higher ROI unless u practice risk management via country allocation

wah not bad eh better to keep it

danmooncake,

1) I am assuming that you can claim that you are abandoning Malaysia Citizenship. Then, you can pull out your EPF money

2) You are assuming that RM will not drop to a level that will wipe out your 6% dividend per year.

Dreamer

Tks Will,...Yeah,...I know,... put wherever to maximise gain... But I too practise country allocation, or geography diversification. So,... I must not miss out on Msia, must always put a small portion into this place.

Tks Nexona,...I know and I am putting more focus and time into the overseas stuff now. However, I still am forcing myself to look back here every now and then for diversification purposes.

Assumptions on assumptions :-

1) And assuming too that the EPF is still able to give back the full amount when Dan intends to pull-out.

2) And assuming too that the EPF is still able to give out 6% or higher throughout the years when Dan's funds are still inside.

Hansel,

Come on.. He is doing a favor for many of us. He is keeping the leaking ship floating with his money while more of my family members cashing out EPF and moving their money out of Malaysia.

Dreamer

Yup, very much agreed on this part, country allocation diversification.

Frankly speaking, every country has its own problem as well.
No single country or investment can be said totally "safe".

USD denominated - USD debt fundamental is not pretty to look at.
Aud/NZD - Consistent trade/current account deficit.
Yen/Euro - QE prospect which make the currency at weaker side.

Equities - you never know what could happen in the future, who ever think of Lehman (an investment with so long history) can go under, so do some old famous name stocks that never recover until now.
Somemore today darling/bluechip may be last forever. Whoever think of Motorola, Nokia current faith in phone market 15 years ago.

Bonds - if interest rate rise int he future, bond price dropped.

If look thoroughly, EPF which is less riskier than bond and sitting next to sovereign bond risk (or may be safer as well), and potential able to give 5~6%, it is actually quite an attractive asset for diversification purpose.

So if see EPF from diversification part of asset allocation, it is an good option.

Thank you, Cherroy,... your writing strengthens the conviction that my thinking and my actions are on the right track.

And then Unker d will come and weaken your confidence.

That's fine,... more opinions, more deliberations, more check-and-balance, better decisions made...

I called epf today and confirmed (assuming the lady that pick up the call is correct) no top-up is allowed for employee. The 60k is only allowed to top up if you do not contributing any epf. She suggest me to increase my salary contribution rate if I want to contribute more, the max is 100% of your salary .

My fren was a wage earner
He just top up RM60k b4 merdeka tis yr n was endorsed by EPF in Sep 2015

No top-up allowed for employee / wage earners? something wrong only?

what I know can add max 60k on top of the "normal" salary contribution

I think you may want to double check on the part that says "100%" of your salary.
If you're already earning more than 60K/year, I sure they won't allow you to max it out that way.

EPF Dividend Based On Investment Performance
Payout guaranteed not less than 2.5%

KUALA LUMPUR, 26 October 2015: The Employees Provident Fund (EPF) wishes to clarify that the dividend rate declared for the current EPF fund will continue to be based on actual performance of the investments for any particular year and will not be less than 2.5 per cent annually.

This, however, does not apply to the proposed EPF Shariah fund, which does not guarantee the minimum returns as any guarantee of fixed return will tantamount to interest (usury) that is prohibited under Shariah. Unlike the current fund, the dividends for the Shariah fund will be based on actual performance of the investments made under the Shariah portfolio.

The option for the EPF Shariah fund was one of the initiatives proposed to members during the EPF Members’ Consultation Campaign conducted in April this year. The results of the survey, which was conducted online, showed that 71 per cent of respondents agreed with the proposal by the EPF to allow its members to switch to a Shariah-compliant fund from the existing fund.

In response to the strong demand from EPF members, the proposed amendment to the EPF Act will enable the EPF to offer a choice to all members, regardless of race and religion, to elect for their funds to be managed according to Shariah principles.

Regardless of the members’ choice of account, the EPF will maintain its strategy of managing its investments to give stable and competitive returns to all our members.

http://www.kwsp.gov.my/portal/en/web/kwsp/...ge?newsId=34202

Technically, EPF guidelines says cannot, however counter staff and hotline CS says can. Quite a number of us at FD threads has done it for a number of years. I max out together with my wife every year. I m sure dividend are paid as i have calculated it at every payout. Hope you dont pursue it further as it may close the loophole.

thanks for sharing.

I hope tis clear everything about the 2.5% divvy thingy

cybpsych,

Which means the dividend yield rate between those 2 funds can be different.

Dreamer