buddy... you still think you are not arguing... i am speechless as I don't understand why you think I am slighted by someone making money from properties and you think that was the issue. You projecting much? read properly what I wrote. I do love it when others use words like wrong or stupid first but think I am arguing.

oh well, no point anymore... this is a EPF thread and we all should stick to EPF. I wonder whats your contribution to this EPF thread? lets hear it from you directly. I suspect I know... haha.

It is the last day of the year again. This year is quite fruitful for me and hope everything is going well next year.

Contributed RM 195k into EPF this year, until this moment i still think i did the right move and will continue to do so.



Hope they will agree to increase the self contribution limit to be RM 100k and i will aim to contribute RM 280K-300K next year.

Have a good 2023 everyone!

Good explanation there. I agree with you.
Cmon laa just ask some questions already get label as Troll. The questions I ask did not even hurt anyone's feelings also. Just some noob questions only.

How to survive in real world if in online also can get hurt ?

Did yesterday.

In today

I know of one at 45k at 60 years young with full EPF contribution.

Yes i agree. because they have excess funds aka rich . and i see those arguments about EPF and properties in this thread.  guys , chill.....
my principle is "your money, your choice". no need argue which one is better. If you too obsessed with EPF or properties or any other investment, until wanna argue till sky, my question is "Is everybody got the chance to survive or live till 60 years old to enjoy the fruits of the investment? "  (dont twist my meaning...i didnt mean we shouldn't invest ya) .

look at Batang kali incidents, Korea's stampede, not to mentioned 2 of my friends passed away due to COVID.   

But I do like your final tangent: those who passed away in all these very unfortunate events... what does that have to do with EPF and EPF dividend as this is a thread about EPF? I am really confused, unless what you are implying is if they spent all their wealth, they would be alive now?

It involves some luck, mostly due to my boss fulfilled his promise.
What is top 2%?
Personal name.
Thanks man. But I won't be working for too long, already planning to retire after a few more years.
Mainly due to luck. I am mid earlier-40.

That is why sometimes i feel very angry when seeing they took lots of our tax money but can't even make a quality road.
@prophetjul

I think got some misunderstanding here. When prophetjul said > 5m, i didn't relate it to EPF but rather overall saving.

And about retirement, yup, YOLO.
Latest EPF news. They never stop asking government to allow them to withdraw again : https://malaysiagazette.com/2023/01/05/peng...anyak-membantu/

However many are very good at accumulating but not good at exchanging them for goods and services.

Life is short.

Buy the pair of shoes you like.

Go for the dream holiday, not economy class hoh.

Have a cup of Coasta coffee.

Do remember there is no right or wrong. Do what makes you happy !

Happened to my father's big bro. Never enjoy life and died around 60.

A few years before he was dead due to heart issue / heart attack, he already told his wife he wanted to stop the business (restaurant) and retire to rest and go around to see see look look, but his wife rejected his request and asked him continue working to earn more money. His whole life just worked for others, everyday started working from morning 5-6am till night 6-7pm, wanted to stop working also not allowed by his wife, my parent felt he is pitiful and this is what triggered my parent to set a retirement date.

Shop quality not quantity. Adidas, asic not bata or pagoda. Samsonite or rimowa not urbanlite

Do not stinge on annual medical check up, even four figures pay la.

If you sightseeing Alaska and have a bad back business class is a good idea.

Eat well, nutritious food is not cheap.

Sleep well on a cosy bed mattress, bedsheets high thread count.

Massage at thai odyssey, healthland regularly. hehehe i love this most most.

Use the best shuttlecock yonex50 not protech, or rsl

Macam macam lagi.

 

We know the other "massad" you are not telling...just admit it...

Because of FIRE movement, quite a number of forumers are trying to make the cut. In order to achieve it, most simply lower the bar by saying , i can live with such and such a sum every month.

There should be a targetted approach with high bar with a cutout age. For example :

A. If i reach a sum of RM50 million by the age of 35 then RE.
B. IF not a sum of RM25 million by the age of 40...
C. If not a sum of RM15 million by the age of 45 ...
D. If not a sum of RM10 million by the age of 50...
E. If not a sum of RM5 million by the age of 55....
F. If not retire by the age of 60  or work as long as needed...

My thoughts....

( sorry wrong thread but applicable to current discusssion)

For my retirement fund, I target 50% EPF n 50% outside DIY managed.

I had been wondering about this for a while, but unable to find any stats or public info with regards to proportion of one's networth is in EPF. This would be a great benchmark for reality check.

Of course mathematically, assuming one contribute 11+16% into EPF and in same time, you put in same 27% savings and earn the same type of returns as EPF, one would have 50-50 proportions in EPF vs DIY.

that would be a great overall savings number to achieve: about 50% savings of gross income.

Generally, i am in that portion too.
The DIY part being totally in foreign currency assets, especially SGD and USD.

So far in experience with gold, in MYR terms it has been good going since 2002.
i tended to benchmark it against FD rates in the sense you don't need to do anything.
Since 2002, it has returned 11 to 12% CAGR in MYR terms.
Not too shabby. 

High EPF needs high salary leh.....basics. 

I don't invest in precious metals over a 3 month timeline. 

assuming you never withdrew from EPF and you had been a salaried persons for majority of your working life, a low % could mean one of the following:
a) a very high savings rate... like 40% of gross pay
b) a superior investment skill better than EPF portfolio manager
c) some or a lot of good luck

I am just at almost 20%, which i attributed to me starting late working in Malaysia...

you've partially answered your question already.
Lets say your gross salary is 10K. 11+12% = 23% of 10K, ie 2.3K will go into EPF.
You also mentioned that your savings is more than 50%. so that is like 5K rm into your DIY investments.

at start, assuming your DIY skills is same same as EPF returns, that would mean EPF portion is 2.3/(5+2.3) = 31% of your networth.
of course, if your DIY returns is higher than EPF's, the EPF portion will shrink as time passes.

btw, 50% savings rate is very high... because that leaves only like 20% of one's pay for spending. In this example, it is like 2K monthly spending on a salary of 10K.  Super impressive really.

Wow..you save more than 50% of your gross salary? Then you should beat EPF.

After EPF and PCB (dont know your tax rate), means u spend only 20-30% of your salary incl for housing, car.
2k sounds only possible if no mortgage/rent and single.

If you can save 50% of your gross income since you start work and regularly beat EPF returns, then of course you can have bigger portfolio outside EPF. Its just simple maths.

Most people cant do that.

During my younger days it was very hard to save at all.student loan, buy car, buy house, save to get married, raise a family. Luckily didnt get into too much debt and didnt withdraw any EPF. Only around mid 30s start to seriously save extra for retirement and learn to invest, with its starting trials and errors. By then , EPF already has a big head start.

Now in my late 40s, my assets are roughly 30% EPF, 30% DIY investments and 40% real estate. Since I dont plan to add any more properties till retire, the property % should shrink.

Well, just need to work backward/with different numbers on why others said their EPF portion is high.
In the example (using your scenario), the EPF portion is 31% of networth. That's from a saving rate of 50%.

But a normal person, most probably the saving rate is closer to 15%. based on that, EPF portion would be 2.3/(1.5+2.3) = 61%.

(haha.... btw, i didn't mean anything with 2K spending amount. I just used the parameters as described by yourself, and asssumed a salary of 10K rm since I don't know your salary. 10K is a simple round number easily scalable)
This example also shows why if someone has more than 1 million in EPF, very possible the person can have many more millions elsewhere. It is all about the ratio. Say for your case, you said EPF makes up 15%: so if you have 1 million in EPF, then you have like 5 million elsewhere. More often than not, a normal person would take out their fund from EPF the first chance they got.... and if they still have 1 million inside, well......

yes, i would have to say that you are a odd one out.

u by any chance a biz owner?

There is a sure fire way to get more funds into EPF... but many won't like what I am suggesting.

implement tiering, but pay more div % to those with more balances in EPF. I can guarantee you, money will flood in.

say those with balance between 500 to 1 million, get extra 1%
those 1 million to 5 million, get extra 2%

btw, this is one reason why banks offer higher rates for larger FD sizes. and not for small FD size.

edit:
I forgot to add that this is a lot more logical than the tiering to reward smaller balances.
Simply because the ones with low balances already shouting like mad they want to withdraw their funds... Anyone think these group can throw in extra say 100K rm inside???

Such a thought provoking subject on a Sunday afternoon. High respects to forum Seniors. Unker smallhat thinking :

1. If kwsp allows a 1 time unlimited deposit. Unker will exit ASNB,  SSPN, Bursa, FD & dump into KWSP.
    KWSP becomes my Private Banking.

2. Unker cannot fathom the unintended consequences to market liquidity and monetary policy.
    KWSP will cannibalize Bank FD, Bursa n ASNB VP n ASM2,3.

3. Further widen wealth gap.

Logically, no abuse in my opinion. Say a B40 has RM50k in KWSP. A M40 or T20 has RM500k in KWSP. If EPF dividends pays 5%, each gets a fair share of their investment worth, RM2,500 and RM25,000 respectively. In fact, if the M40 or T20 voluntarily deposit a further RM500k, technically, it provides EPF more money to diversify their investment. If the returns improve in subsequent years with higher dividends, the B40 will benefit in terms of % returns, even though he/she has the same amount with no additional deposits. The pie is shared proportionately as there isn't a tiered dividend payout ratio, which I agree should not be discriminatorily implemented, to punish those who are prudent with their lives.

Unker finished work matters...byk mass lepak.

To the highly respected Seniors n Sifus,

If we can have ASB Loan to supplement income of Bumis, cant we also do something similar like KWSP Loan to support B40?

Nobody can change past year performance.. The dividend is almost decided and our amounts in our EPF for 2022 is also historical data now.

The only thing worth discussing now is, should we continue additional self contribution into EPF this year? This depends on whether we believe EPF dividends for 2023 will be superior to alternative investment channels out there. Even within EPF we have the option of diversifying out into any EPF approved funds, which means our EPF funds can be earning anything from -20% to +20% depending on which fund we tembak.

I think that's a lot more fun than main tembak with EPF's 2022 dividend rate.

so best to FPX on 27 Feb to get dividend for March 2023 calculation

Agreed. Unwarranted risks with litle benefits. You might earn a few more days of interest with wherever you are putting the money now, but risks losing 1 whole month of interests in EPF.

Unless the 3 days interests in your current place can earn 1 month dividend in EPF, it's simply not worth taking the rlsks. Always weight risks over reward ratio when investing.