so you don't like clouding of content, but you are ok to allow factually false info and unsound advice to remain uncorrected?

obviously you have not been paying attention.... I better not cloud this thread right? so I just keep quiet.

Sometimes these type of silly fearmongering can work in one's favor. When young, I always assume I will never see any money from EPF and so I never factor that in as my networth.....
and then one day came and I learnt from a colleague who was retiring about naming a bene and how it is handled separately from one's will...

u can imagine my surprise, on the day.... went to EPF office at Raja Laut to print my statement and behold, the digits there.... Basically feels like kena lottery

why the story: sometimes it is good not to know that one can demand gov to withdraw money from EPF to spend.
problem now is the B40 everyday is thinking how to get the funds out.... and the fearmongering news is definitely compounding to people's distrust about EPF.

This post has been edited by Wedchar2912: Apr 9 2023, 02:29 PM

https://www.thevibes.com/articles/news/8998...-to-rm100000-pm

just saw this article on another thread...

"Govt agrees to increase EPF voluntary contribution limit to RM100,000"

This post has been edited by Wedchar2912: Apr 9 2023, 08:33 PM

It just means kwsp 4K is one limit...

the other 3K rm limit can be used for life insurance and EPF also....

ie, if one never bought life insurance, then now 7K rm into EPF is tax relief.
but if one already existingly used up 3K rm due to life insurance purchase, then total EPF tax relief one can get is still 4K rm.

that's my understanding.... don't know why gov had to make it so cumbersome.

that's most probably true....

no wonder I didn't pay any attention.... of no use to me this tax relief.... B40 of zero taxable income....
the sms of Fasa 2 Sumbangan Tunai Rahmah on Saturday was more rewarding to me...

but at times these programs can backfire also... all depends on how EPF implements it...
the old people were so looking forward to taking out all their funds that any attempt to "slow" their withdrawal will be the basis of conspiracy theory.
Imagine say EPF set a rule that anyone who is retiring will need to attend a compulsory course about retirement and financial education. Free buffet will be provided and will be help in a nice hotel...
lol... sure someone will say it is MLM....

if they provide free flow food and decent coffee, I sure will go everyday at around 2:30pm for my afternoon coffee and snacks. In fact, I don't mind volunteering to help them explain....

have to start slow and consistently... and human nature, they will only trust you if you yourself are doing what you preached.
need to sit down with them and show them (I used excel.... need to let them "touch" and see the numbers) why it works and why EPF is way safer than any local banks in Malaysia.

I am proud to say that 2 of my closer friends and almost all of my ex-staffs have above 1 million in epf because they choose not to withdraw from EPf and in the same time contribute extra each year. (ok, the ex-staffs one got a bit of coercion... and peer pressure... haha)

yeah ... that's why we are getting dumber and dumber as a population.... cos the herd is getting worse and worse....
what to do....

200/150/21 I don't think is the right way to calculate.... nonetheless, maybe this is the arithmetic annual returns I guess... overstates the return way too much.

even the formula (350/150)^(1/21) is not right, because deployment of cash is not a bullet at start.

by right need to layout all the cashflow and find the discount rate/compound rate to make your entire cashflow after multiplied with the compound rate to sum up to 350K rm.

your returns is most probably between 6.3% and 4.1% ( = (350/150^(1/21) )

If your tenant been paying all the monthly installment, then it is just 30K outlay that grew to 350K rm... that's a fantastic 12.4% return.

" 156,000 contributors out of 275,000 members (56 percent) who are 54 years old now "

275K members are not everyone who is 54 years old...

regardless, focusing on EPF may not even be the solution if it turns out all Malaysians who are 54 years old are order of magnitude above 275K persons.

agree..... 208rm per day should be the daily spending budget

Just change the employee salary contribution to a higher %.
This option has always been there.

Changing the self contribution limit will just add noise to the whole political arena and serves no purpose. Also very hard to justify... someone who can have excess 200K rm consistently every year is not the target market of EPF to help...
(personally, I also prefer unlimited amount, but reality in Malaysia doesn't allow such limit)

your question is a theoretical one.... too many factors to account for.

EPF is a sovereign and hence it needed a certain size to be able to operate properly. Too small, it will be burdened by cashflow movement.
What many in public do not realize is that all fund managers do not like disruptive cashflow movement, especially withdrawals... Each time a large transaction needed to be executed in the market, it impacts price and one will be disadvantaged.
(an example: try to sell 1 billion rm worth of CIMB shares in a day and you will immediately see CIMB price slip. If the market knows you needed to sell, lagi teruk)

So, if EPF is just a fund of 100 billion rm worth,... you get my point... malaysia would be badly hit during covid period. EPF could not have saved all of us.


What I really do not understand is that for EPF, a 100 billion type withdrawal during covid period should be relatively easy to stomach, simply because EPF is still receiving positive net cashflow. But it looks like our EPF managers have yet to fine tune their drawdown skillset... very important as our nation's population gets older.
(eg: may not be the most accurate comparison, but lets pretend you as a individual have a networth of 10 million. How hard is it for you to drawdown 1 million to pay for emergency for 2023? If you are worth 100 million... 10 million to pay for emergency? That is my confusion.)

This post has been edited by Wedchar2912: Apr 12 2023, 04:28 PM

Agree with your point about concentration risk. So those who are too young or no where near 1 million rm mark, need to really look into all scenarios. But if it is about putting extra 100rm each month into EPF, its ok lar... won't change your wealth risk profile much.

Yeah, even at my last firm, I was the first person (HR told me) to increased my contribution rate to way excess of 50% and she was in shocked. It is all to do with the rubbish fearmongering rumors like: EPF is risky, gov is here to steal your money, some racists rumors also which I shall not spell out, etc...
Of course I did it because it is a safer, more efficient and rewarding way of parking my cash.

This post has been edited by Wedchar2912: Apr 12 2023, 04:29 PM

I think could be your HR dept too lazy to calculate for everyone how much they can contribute because salary still need to be net positive.

You are kidding rite?

If you are still alive then, take the epf money, divide by 10 and spends that number every year.
If you are still alive by 110, then either god or devil or both really hate you. Lol. you have a much much bigger problem...

This post has been edited by Wedchar2912: Apr 12 2023, 07:50 PM

ah... this is the part where they were thinking out of the box... needed these who auto-disqualified ones to submit application... else how to now start farming them with "low-interest rate" personal loan?

hehe

marketing at its best.