Dec 18 2024, 11:22 AM
QUOTE(koja6049 @ Dec 18 2024, 10:17 AM)
nope. people who already have 1 mil in their epf would not do that. You don't have 1 mil that's why you don't think like a person with 1 mil.
the reason why a person can accumulate 1 mil in their epf because they trust the system and they like the dividends. If they do not trust the system, then long ago they would have diverted their epf monies to other investment vehicles through i-invest.
people with 1 mil also do not desperately need spare cash till they need to withdraw pennies from the excess. If they really do need money then they can always withdraw from account 3, which is 10% of 1 mil i.e. 100k, still a sizeable amount.
in short, there will be absolutely no scenario that people will want to withdraw the excess, epf can raise the limit to 2 mil and these epf millionaires will still happily contribute more into it
the reason why a person can accumulate 1 mil in their epf because they trust the system and they like the dividends. If they do not trust the system, then long ago they would have diverted their epf monies to other investment vehicles through i-invest.
people with 1 mil also do not desperately need spare cash till they need to withdraw pennies from the excess. If they really do need money then they can always withdraw from account 3, which is 10% of 1 mil i.e. 100k, still a sizeable amount.
in short, there will be absolutely no scenario that people will want to withdraw the excess, epf can raise the limit to 2 mil and these epf millionaires will still happily contribute more into it
QUOTE(kochin @ Dec 18 2024, 10:29 AM)
that's quite well said.
once one reaches sizeable amount of say RM1mil, the snowballing grows much faster.
if one is still an active contributor, chances are the epf amount will grow at 6 digits annually based on own contribution + dividends received. if the person does voluntary contribution, the snowballing grows even faster.
i think some members even grows their epf by 7 digits every 2-3 years or less.
banyak betul. once one reaches sizeable amount of say RM1mil, the snowballing grows much faster.
if one is still an active contributor, chances are the epf amount will grow at 6 digits annually based on own contribution + dividends received. if the person does voluntary contribution, the snowballing grows even faster.
i think some members even grows their epf by 7 digits every 2-3 years or less.
i actually still need 1.5 years to contribute to hit 1 mil, but now with 1.3 mil, i will need around 2-3 years max contribution to achieve that, which is fine by me.
1.3 mil gives a passive 6.28k/mth OR 75.4k/ year @ 5.8% average EPF dividend, and the compounding speeds up after that. at 75.4k/ year, i can easily use it to clear my house loan asap, or change a new car every year (just saying).
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