same disclaimer: sharing what I know or what I think I know. may be wrong.

If both husband and wife traveling together (say in a flight), and the aircraft and all passengers gone, the law states that the husband is deceased first and then the wife second. In this case, if the member is a man, then 98% of the funds follow the wife's will.

If the Spouse died first (ie very clearly in a separate incident), then the 98% nomination becomes invalid and basically the Administrator of the member's estate will have to claim the 98% money.

yeap, your understanding matches mine. cos somehow, I really don't think EPF allows direct generational transfer of wealth using EPF, as funds in EPF get big legal protection benefit.

yeah, contributing back as self contribution is separate matter.

This post has been edited by Wedchar2912: Nov 13 2023, 10:20 PM

Wah. Extra 2% from what I hope.

Can consider upgrading my iPhone 8 already. Old man eye sight settling in now.

This is a known practice by Epf since time immemorial... It is not new.

One can basically call this robbing from Paul to pay Peter, where Paul and Peter are different members at different stages of their life with diff EPF amounts.
EPF claims this is to build buffer to smooth out the dividend yield and to be so called fair woh...
(I remember reading this in some old articles by kwsp, but it was so long ago so I don't even know how to find the article anymore)

unfortunately, what is the yield on these high grade bonds, as you mentioned? high grade rated by whom?

yield is a important factor, but there are more to it than just that. Safety is the other.

So different currencies. Best to compare in ringgit denomination so as not to introduce fx risk.

I was just trying to show you why people still keep their money in EPF, vs your statement of putting the excess fund into high grade bonds.

there are many more reasons why some prefer EPF: it is not all just about yield when it comes to managing one's finances. that is also provided one can even find something high enough in terms of yields with similar risks, including currency risk. GLCs can go bankrupt also...

This post has been edited by Wedchar2912: Nov 18 2023, 06:13 PM

This goes back to some of the earlier discussions here.

if one has 4 million in EPF, would one find 6.5K rm per month a adequate spending money?
also one would also assume said person would have like another 4 million outside of EPF rite? so that makes his spending be like 13K rm per month. This is someone who is almost a deca-millionaire.

But what if the said person is a old chap say 65 years old. (there would not be many youngsters with 4 million in EPF to begin with, so this scenario is more relevant I think).
he most probably can live for another 15 to 25 years, give or take.
Better to spend 4 to 5% of said 4 million in EPF and enjoy life a bit : 20K rm per month sounds doable.
65 years old, kids also 30 to 40 years old already. Hopefully they are on their own already.

This post has been edited by Wedchar2912: Nov 19 2023, 09:41 PM

Of course. Better do so especially when one's spare cash is all inside.

Secretly hoping that an extra one 0 suddenly appear. Haha.

I wanted an EXTRA 0, not to be shown 0 by the app.... really got hearing problem this EPF... haha.

eitherway, the new app seems to be fix already now.
btw, the old app was fine this morning, while the new app showed 0 as balance.

not long enough how to make it sound difficult and earn youtube income?

liquidity access aside, the difference of 1% can compound decently across the years....slightly more than 20% diff

lets pretend 20 years horizon, 100K will end up as as 219K rm for 4% vs 265K rm for 5%. (diff of 21% or 46K rm)

regardless, agree that lack of access to said fund until after 55 years old can be an issue.

I am also keen to see the stats on those 248 who has above 10 million...

if they can add also top 5000 persons receiving highest pension cashflow from gov. that would be very interesting also.
(pretty sure we all know who they are)

It's how some people talk. Many people have billions also. Just Google and you will see thousands. Lol.
So easy to be a billionaire. Haha.

The stats was like 70K people has more than 1 million in epf. Is that many vs 15 million members?

This post has been edited by Wedchar2912: Nov 22 2023, 03:24 PM

in grand scheme of things (btw, it is a damn good thing that you are rich enough to consider doing this), it doesn't really matter the 15K rm.

if it gives you satisfaction, just put it in. If you like to keep it in FD or USD FD, that is fine also.

what made you changed your stance on keeping more than 1 million in EPF?

home loan's interest rate (ie using amortizing rate formula) is the same type as EPF's compounding yield formula. so, the diff of 1.2% is there.
(same argument I used to justify throwing all my FDs into EPF)

problem is you need to get a housing loan where the bank allows you to pay the interest only.
Also, you are taking interest rate risk vs EPF dividend risk.
And finally the real question : how much you can borrow and at same time throw into epf? 100K means 1.2K rm difference per year.

the formula to calculate interest is the "same type" for FD, home loan and EPF returns.
So, when comparing taking a home loan of 4.2% vs FD rate of 4.2%, both technically same same.


the one for car loan is different.

simplest to remember is this way. car loan different because it is flat rate calculation.

I have never taking personal loans, but personal loan maybe the same type as car loan calculation. Anyone who has taking personal loans before, can share?

The compounding of EPF is technically yearly, and based on calendar year.

If it is partial year, then it is flat rate for the partial year, based on modified daily balance. Hard to specify in words what the modified daily balance formula is, but I think EPF website got definition.

I only ever used the kwsp website official... didn't know the app also can.

my experience lately been T+2 and always in the evening only the cash appears in my bank account.