No way gold can achieve 11% CAGR over 15 years. That's just some pipe dream. The actual figure should be less than 5% CAGR

This post has been edited by Singh_Kalan: Jan 25 2018, 12:40 PM

Gold is traded in USD. It should be use as reference to calculate the compound gain from gold investment over time. You should not confuse forex gain as part of the gain in the gold value when traded in local currency (other than USD).

This post has been edited by Singh_Kalan: Jan 27 2018, 12:31 AM

If gold performance is based on local currency and forex gain/loss is consider as part of the gold value, different countries will have different CAGR figure which can varies widely depending on the local currency performance againts USD. Zimbabwe may hv CAGR +100%, while Japan may be -3% (just example). Which sound even not logic considering that its a same item.

This post has been edited by Singh_Kalan: Jan 27 2018, 09:22 AM

No doubt you can't separate the forex part from GOLD when investing in local currency. But when comparing performance of GOLD over years against other investment, Gold quoted in USD should only be used. This is not to confuse people with the part from forex gain/loss.

I earned in muti currency. MYR, SGD, USD
NO and that s not relevant. Try understand what i meant again.

That s my point. Others not relevant.

This post has been edited by Singh_Kalan: Jan 27 2018, 10:25 AM

In MYR, since this is your personal investment.
What i mean is when u to compare the performance (CAGR over years) in general, gold quoted in USD should be used.

EPF investment is not relevant

This post has been edited by Singh_Kalan: Jan 27 2018, 10:33 AM

Nvm...u will understand it when u get wiser.

EPF is a gov sanctioned Ponzi scheme. It can pay dividend higher than its income. No problem paying 6%

RM drop like shit, not difficult to get 7% as most investment in foreign currency.

I may also withdraw too, to invest in other high yield investment product as I expect the overall dividend rate will be lower in the future.

Moving forward I think KWSP will be used as a tool by the politician to gain more vote. Start with the conventional and syariah dividend convergent then Account 3.

This post has been edited by Singh_Kalan: Apr 28 2024, 11:13 AM

If you are talking about Bursa, then it depends.
There are many other investment products out there.
Even gold returned about 10% p.a annualised in MYR term over the past 10 years.

My guess is this Account 3 is created to appease B40, at the same time it does not cause much resent to the rest, a balancing act. Dividend probably will be the same across all the accounts for a foreseeable future at the expense of lower overall dividend payout.

Don't think the dividend rate will be different in the near future.

I think the dividend will be the same across all 3 accounts in perpetuity coz the amount in Acc 3 will mostly be withdrawn. The leftover in Acc 3 will be insignificant compare to overall.

Thus I think even for those that don't hv intention to take out the money, it's good to move any allowable amount to account 3. This will create some liquidity for emergency.

Many of those that make the transfer to Acc 3 is from low to lower middle income contributor. This group of ppl likely will withdraw most of the money from Acc 3.

Then you have groups from upper middle and upper income that hold a huge pie of contribution.
Only a small % will make the transfer thinking they do not need the money and the uncertainty of lower dividend yield at Acc 3 in the future.

Thus my conclusion is, the percentage in Acc 3 will be less than 5%, making it insignificant for dual rate. Plus the main reason for gov to introduce Acc 3 is to help lower income group. Thus lowering the DY for Acc 3 defeat this purpose. I don't think the gov will give a damn about higher DY for less liquid acc.

Gov is also smart to come out with locking mechanism that prevent contributor from making future transfer when they realised the dividend is the same across all accounts.
Note that the transfer Window is until 31st Aug 2024 only.

This post has been edited by Singh_Kalan: Jul 21 2024, 11:32 AM

Liquidity + Emergency fund.
This out weight the risk of lower DY.
You also need discipline on money. For those who can't, better don't.

Make sure u dont keep it under the pillow.