i support... and recommend 500K rm as the limit...

most probably... but there is a easier way to do so... just modify the proposal to cover partnerships and sdn bhd and unlisted firms dividend payment distribution to count as income and be taxable that way.

public listed firms exclude... simple...

well, can't blame them... min wage up 200rm, so that is 13.3% extra cost. Then add 12% employer's contribution (I assume would be this), so that is 25% extra cost in 3 months' time.

I didn't want to mention... the foreign workers may even complain cos if the employee's contribution % is 11%, basically their take home increment is 2.3% only... cannot even beat inflation.
Let alone the slightly more senior workers who is now getting maybe 1600rm to 1750rm range... do they auto get 200rm step up? else a senior worker will earn lesser than a fresh. inexperienced one.

so, like what some forumers said, the real beneficiary is EPF. Fresh funds to fill the withdrawal.


This post has been edited by Wedchar2912: Oct 21 2024, 10:33 PM

i hope so... already got some quarters want to have tiering in terms of div by claiming unfairness... I definitely don't want to subsidize the foreign workers too cos their balances at start will be low...
plus how would they take out their funds when they return to their home country? I know, not my problem...

i am of the camp that more money under EPF may not necessarily improve the returns... somemore EPF are limited in their fcy exposure.

lol... not far from what I mentioned earlier...

didn't even count employers contribution too... suddenly EPF gets extra like 25% x salary of all foreign workers into their funds.

See.... our gov is so good. Not just think about citizen's retirement, also think for foreign workers' retirement when they retire and return to their home country till age 100???
And all get same div rate...

oo... maybe that was the plan?... if the chap passed away before 65 in their home country, then how? hmmmmm...

kinda reminded me of what CPF long long ago (as mentioned by old old people)... money is kept in cpf but cannot take out until retirement. long ago story.

the cpf one is old story/rules... not the current rules...
ie heard from my old ex-colleagues, and they worked in SG back in 1970s and 80s.

no idea... didn't bother to find out cos me no cpf

to appease the poor who has tainted morality. they themselves want to spend all their funds and kept on asking for handouts, but became jealous when the rich wish to contribute more.
its the same folks who clamor for tiered dividend rates but in same time green/red eyed when seeing the balances of those in the top 1%.

and now with new proposal to allow EPF funds to pass down to next gen, lagi more headache and silly statements coming.

reserve ratio... payout only like 90% for conventional div...

really? you want to switch over just cos you think shariah performance will be decent this year due to a specific stock?

before you decide, best evaluate the not so subtle diff between conventional and shariah...
I for one love the 2.5 min div rate...

don't worry lar... gov already want foreign worker's funds in... it won't stop own employees from contributing more...

if want to worry, worry about the possibilities of annuities or tiering of rates.

dang... epf is getting more aggressive in getting people to top up...
i hope all is fine inside EPF...

it really depends on your spending pattern, aka lifestyle as poweredbydiscus has said.

Just a suggestion and a starting point to work with.
For every 1K rm monthly spending,
a) if you wish to leave something behind, then using 4% withdrawal or lesser is good enough.
ie 1K x 12months /0.04 = 300K rm in EPF
or

b) if no need to leave anything behind, then using 6% or higher can be considered.
ie 1K x 12months /0.06 = 200K rm in EPF.

I'm using b to calculate what I must have min in EPF, as I do have investment portfolios with div that already more than covered my monthly expenditures elsewhere.

Also do be cognizant... while EPF is very good/safe/efficient, it should not be containing all of one's wealth.

i think the main point is not really the 500K inheritance, but it is more the fact that her parents are not poor and can afford to pass to her 500K. that would mean that she is at least in the middle to upper class, and her expenditure burden is pretty much limited to just spending on herself.

hence the high saving rates...

the real magic is these 3 things: 10% salary increment, 24% "saving" rate and 5% compound return.

for this specific story, it is really the 10% salary increment, cos the other 2 everyone has the same parameters. No excuse there: cannot claim ditindas, unfair, etc.

This post has been edited by Wedchar2912: Nov 10 2024, 04:53 PM

another way to look at it.

covering here and there... if it is so good, then why all UT funds not do it and in fact, SC should enforce it right?
its clearly wrong... robbing peter to pay paul scenario...
imagine some oldie at 70 now with 500K inside are being told EPF is reserving 10% of the income as buffer... and keep on reserving for a few more years... bye bye oldie...

why not? that can has already been open.

owai... isn't that what account 3 is for?

from purely financial point of view, any benefit that shariah brings over conventional?

epf members should look from this point of view.

just like receiving ringgit cash note during a transaction, any particular reason why someone will prefer cash note from Maybank Islamic branch vs Maybank normal branch?

No idea... i didn't bother to figure it out, as I suspect it is not yet cast in stone...

conventional one at least had withstand the test of time of 60 to 80 years.

in this sense, there is extra uncertainty for shariah version and uncertainty means extra risk.