EPF's gross income was RM39 billion in 2014.

To get some indication on how big is 1MXX's RM42 billion debt, then 0% dividend for a year if that was used to bail it out. Not saying EPF will bail it out, just using the income as a comparison.

I really hope and pray that after this 1MXX debt is settled, those responsible will be charged and xyz etc.

Bad investment is one thing is bad enough. Siphoning some of the billions away is another thing.

Sorry, off topic.

25 billion is about half of EPF's yearly gross income, if my brain cells are still working well despite the recent & current excitement 1MXX - I am alone - You are not alone - NothingToHide - NothingToTell - ??? - ??? - ???

EPF total assets was about RM640 billion (I rounded it off to 40 for easier calculation, now cannot afford to buy a calculator), 80 billion of that is about 80/640 = 1/8 =13%.

13% is still ok to me. Ha.

Good to see some professional integrity in EPF. Get out when one does not agree with what they are doing (reported that EPF was asking why the high premium in FGV's deal).

Hope to see more of this professionalism, not just in EPF but also other companies especially the GLC.

Cheerio.

With AS1M 2015 at 6.4%. Downward trend for 2 ASX so far.

EPF was 6.9% for 2014. Have a guess at its 2015 %.

My guess is 6.5% (jacked up a bit vs actual to give some element of positive sentiment for the general public). Ha.

Your view and reason?

Cheerio.

P/S Will compile EPF quarterly revenues, compare with previous years and see how 2015 stands out.

I nominate you as the CEO/Chairman of EPF!!!

Saw the EPF retirement article in The Star. That prompted me to do some analysis as one thing bothers me.

They stated the required amounts at different ages to achieve 197k at age 55. I did some back-calculations to find out what were the dividend rates they used to achieve the 197k. See picture below.



AA
Surprised that they used different rates for different ages. Requires a return of

* 8.25% pa with 27k at age 30,
* 6.6% pa with 143k at age 50

to achieve 197k at age 55.

If they used 6.6% for the age 30 case, then the amount will be larger than 27k to get 197K at age 55. Wonder why did they use a larger %.

BB
Monthly expenses at RM820?
* not realistic to me. Should be at least RM2000 for the average Msian.
* the RM820 is not inflation adjusted. Even at 3% pa inflation (as reported by our nice govt), the RM820 will be RM1480 20 years later.

CC
The table is also misleading. For those in their teens, good news! All they need to do now is to put RM1000, 2000, 4000 for ages 18, 19 & 20 in their EPF and by the time they are 55, they will have 197k in there. Their retirement funds are now taken care of! Ha. For the age 18 case, the required return is 15.4% pa to get 197K by age 55. Realistic? Yes, the power of compound interest but this is twisting it too far.

DD
They used 6 - 15% pa in their studies. Wah! Maybe I should expect a higher % from EPF now. They know EPF better than most of us.

Cheerio.

AA spells BIG trouble ahead. So EPF money will find its way to banks and banks to Ah Jib.

I thought BB is what they have been doing. No?

Wondering how has EPF performed so far this year and thus put some data together. See below.



Best so far based on Q1 & Q2. Even if Q3 & Q4 are as low as 2014, it will still be the best year for 2015!

With KLCI's roller coaster ride, Q3 & Q4 are expected to be ???

Cheerio.

FYI if you have seen this.

http://www.freemalaysiatoday.com/category/...-a-minefield-2/

Saw this in The Star (Letter to the editor). I was not aware of the change Goh has raised, i.e., 2.5% for the non syariah EPF fund.

True? Or a miss-interpretation of the amendment?

Thanks.


THE proposed amendment to the EPF Act 1991 tabled at the Dewan Rakyat on Wednesday has come as a shock.
It proposes for EPF to pay a minimum of 2.5% dividend if contributors have not elected for the accounts to be managed according to Syariah principles.
What is the rationale in introducing this amendment?
It would appear to be ill-advised at best and possibly agenda-laden at worst.
As a long-time EPF contributor (over 30 years), I have always assumed and expected EPF to manage our retirement funds in a fair, transparent and efficient manner, which it appears to have done so far.
Is EPF asking us to make an investment decision, which is what the amendment seems to be proposing?
It would appear that the proposal is a way to authorise EPF to penalise or reduce returns from contributors who do not elect for the accounts to be managed according to Syariah principles.
On what principles the funds are managed is EPF’s to consider and hardly one for the depositors to decide.
What we are interested in is that our funds are managed with good stewardship and bring the best returns, so this proposal deserves the suspicion it is drawing.
I am afraid the proposed change does not sit well with me nor, apparently, with many online readers of the news who have overwhelmingly indicated their anger or shock at the proposal.
Please do not divide this country any more than it already is.
Drop this proposal.

2 interpretations on this:

AA
Minimum is 2.5% as in the original clause. So status quo.

BB
Like what Goh said, with non syariah EPF funds, they will give 2.5% only.

My gut feel is AA. But want to confirm and deal with this if it is indeed BB.

Cheerio.

Thanks.

I should have read the proposed amendment first and then decide for myself, instead of echoing what other people reacted to/interpreted it.

Hope it is still AA.

Cheerio.

Tried here and there looking for the amendment clause(s). Saw The Star article but that was just the reporter's interpretation. Like to have the actual clause(s).

Thanks.

This CEO will be getting a few tongue whip lashes from Ah Jib on his too risky to invest in Msia remark! Ha.

Govt wants GLC & Msian companies to bring their money back and EPF is doing the opposite.

Or he was just joking.

And states later no more press announcement from him from here on.

More and more incompetent things surfacing now like the tip of a giant ICEBERG!

Did a quick and dirty estimate on 2015 EPF div % based on historical & 2015 revenues and div rates.

With 68% confidence level, it can be as low as 6.0%.

With 95% confidence level, it can be as low as 5.3%

No need to do the high side estimates as 2015 has not been a good year. Ha.

From my POV, even 5.3% is considered OK for me. Why? My benchmark is FD rate. Ha.

Did not see the value in doing that calcs earlier. Now still as lazy as before. Ha. Sorry Sifu.

In 2007-2008, dropped by 1.3%.

So, still in the been there before region.

Cheerio.

Call me cynical, I am not a computer graduate, this programming can be done within weeks.

I have my own spreadsheet for similar net worth, expenses projection.

Yes, it may be on a different platform (net vs PC) but still can be done within weeks (expert can even do it within days or hours).

Another project for companies with inside connection?

Yes, confirmed that I am really cynical!

My lay-person on probability ...

Assuming 4 categories:
AA definitely will happen
BB may happen
CC may not happen
DD definitely will not happen

My take is CC towards DD. Ha.


This post has been edited by plumberly: Jan 1 2016, 01:21 PM