Hi people, I am really new into finance, so please pardon me if the question sounds extremely stupid to you guys.

So I just know that we can invest in EPF. With the recent 1MDB issue, I sort of like lose hope in everything offered by gov that seems to be "independent, strong etc".

May I know is EPF really a safe place for investment?

Can you says NO, if you falls under this ACT
"the EPF Act 1991 in 1991. The EPF Act 1991 requires employees and their employers to contribute towards their retirement savings, and allows workers to withdraw these savings at retirement or for special purposes before then".

I think the risk is MUCH higher when buying new in progress properties for investment than putting monies in EPF...
"is EPF really a safe place for investment?" .....how do you interpret investment?

If EPF, ASN, ASW kind of funds are not safe, then I can tell you no fund is safe.
If that 3 I mentioned are not safe, trust fund are much more worst than not safe.

Go to a bookstore looked for a book namely the EPF Act..

It stated that the government not only need to guarantee the funds in EPF, but need to also pay a minimal of 2.5% interest per annum..

What will only happen is when politics become unstable, our currency drops then inflation happens (as what we are experiencing right now)

So.. the end result, your EPF depreciates in value due to the inflation..

This post has been edited by smartinvestor01: Jul 16 2015, 11:21 AM

Yes, if those funds are not safe, then we would say there is no place safe to put the funds..

This post has been edited by smartinvestor01: Jul 16 2015, 11:22 AM

Trust funds depreciate faster than inflation, if government says inflation at 3%, funds gone at least by 6%

I trust EPF

I trust nobody, but I willing to let EPF to cheat me because they are offering 6% dividend
Still better than trust funds saying 10-20% but 2-4 years only give out distribution/dividend once for 1-2%

when supersound opens mouth...bull's arse opens...and a whole load of faeces are unloaded

This post has been edited by Pink Spider: Jul 16 2015, 11:32 AM

Yape, i can imagine how regret i am to put my RM200 into my monthly unit trust fund which the value is now dropped.

The money works better for me in EPF, ASM and AS1M than that bloody fund.. Now can only depend on averaging method nia...

2-4 years only give out distribution/dividend once for LESS than 1-2%
2-4 years only give out distribution/dividend once for 1-2% or
2-4 years only give out distribution/dividend once for MORE than 1-2% or
2-4 years only give out distribution/dividend once for 0%
from UTs funds....DOES it really matters?

doing averaging into UTs funds again?
the funds NAV can continues to drops again.....imagine more regret then?

Berkshire Hathaway...no dividends at all

This post has been edited by Pink Spider: Jul 16 2015, 11:58 AM

can this be the reason that "the chairman, CEO and largest shareholder of Berkshire Hathaway, and consistently ranked among the world's wealthiest people"?
wondering how many investors he got? how much asset under management does Berkshire Hathaway has?

hope you know what i am imply

12+11% totaling the money of ALL Malaysian employees flows into EPF EVERY MONTH.

MOST POWERFUL fund in malaysia.

In fact, 13% + 11% for those who earns < 5k

of course I know!

although last few days got increase, but the increase is only limited..

at least i am not putting majority onto this..

Yape, just imagine everyone who is employed are regularly contributing to this fund..

So from what i understand through all the posts here, EPF is the safest yet giving out 6% increment annually right? So lets say if my income is RM10000, i decide to put 30% into EPF every month and my employer bank in another 12%. This means there will be RM4200 entering my EPF every month. With 6% interest rate, after 35 years i would have roughly Rm5 mil. Is that correct?

EPF allows you to put in 30% monthly?
this 6% can fluctuates..min is 2.5% though...see historical rates
http://www.kwsp.gov.my/portal/en/web/kwsp/.../dividend-rates
here is a calculator you can check the est future value
http://www.hcuonline.com/HCU_Calc_PeriodicSavings.html

Btw, do take note of the other "devil" at the opposite of this future value equation....
Inflation rate...the real one, NOT the published one (most people said that are available)

This post has been edited by T231H: Jul 16 2015, 02:19 PM

It's quite rare to see ppl putting more into their EPFs. And 30%?

No dividends given but the stock price increase much more that dividends given by normal companies. That's why Warren Buffett is call the "Oracle of Omaha".

Yes as employee can choose to top up in xcess of 12%

any idea what is the max % allowed?

Max 60K per annum.

Mind that the tax relief part for personal is capped at Rm6K pa.

60k max is for total input by means of self + employer + voluntarily self contribution (over the counter top up, etc, etc)?

Not to sure, I guess it is total.

As not many may encounter this "problem", as then money goes in, need to wait until retirement age only can withdraw.

There is no tax relief after 6K, so doesn't have much incentive for individual after 6k.

If you are employed? Then do you have a choice? You question becomes irrelevant right?

If you are self employed? Then you have a choice. Your choice becomes where can I get to put into a fund that gives > 6% return p.a. where the unit price is fixed? Beware, beware.... there are plenty of insurance agent that will try to sell you saving plans. If you do not know how to calculate xIRR, you will be easily swayed by their sweet talk.

Now, from my part, my salary income must go into EPF because I do not have a choice... but I have a small choice to take out partially to participate in MIS (private UT)

Income that I received from commission and rental and what not... I choose not to put into EPF because I am confident I can get higher than 6% ROI p.a. elsewhere.

I hope my posting can give you some perspective.

Xuzen

This post has been edited by xuzen: Jul 16 2015, 02:55 PM

Yup, you keep on buy, buy and buy while the agents keep on make money
When this happens, then congrats, you already have syndrome, the gambler's syndrome.

If you keep on buying, then it really does not matters, but you buy once only, it does matters.

you said "If you keep on buying, then it really does not matters, but you buy once only, it does matters".
how? what are the differences?
further more you just mentioned...."you keep on buy, buy and buy while the agents keep on make money"....isn't that contradictory?

For me, buying funds are no difference on buying shares if I need to keep on diluting it to make money.
But if I just buy once, it will be like a savings account.
And buying trust funds need to pay fees, so it is not contradicting.

..you-ah...
you mention trust fund in post 8,
asked about post 8 in post 11
you replied in post 30, i asked about contradictory in 31
now you compared with buying Share

I know you are trying to fish me, so I just be part of your game.
If you are trying to make don't know with such replies, I don't bother also

just wanted to fish for clarification....before judging if post#9 is true or not...

Butcher acting smart by commenting about vegetable farming methods again

Well, an agent cheat and mislead to earn a luxury living.
BTW, you may not trust me, but post #10 also mentioned being cheated
It is quite clear already.
And if I'm not pouring rubbish to those agent's rice bowl, why they so fast come and attack me

community service...rescuing LYN from stupidity

Post #10 (as below) did not mention about being cheated....it just mention the value is now dropped....(the value are mostly determined by the market performance)
as practiced, the investor has to declare by signing on the form (or "tick"for online) that he understood about the risks associated with unit trusts funds as spelled out in the prospectus before buying....
and in post#10, the investor are continuing to buy to average down......would he continue to buy if he felt cheated?

Noe, this is what usually happens when a newbie buying a fund. If the agent never cheat and mislead by boasting how superior is that particular fund perform, I'm sure nobody will buy.

Possibility...
but the forummer of post#10 looks like "Old bird"...
too old to be cheated-lor...
if cheated, will he buy again? (he mentioned he put monthly into his UT fund)
btw,...in FSM or Eunittrust online UTs distribution platforms.....NO agent involved...therefore no agent to cheat and mislead by boasting how superior is that particular fund perform, I'm not sure how many people had bought from them....just read an article published in Dec 2005, that it has asset under management of S$300 million ...... generated by iFAST’s online division, Fundsupermart.com. (Singapore)...if the S$300 millions grew for 10 years combined with other FSM's operation in M'sia, HK and India PLUS Eunittrust platforms .....the AUM would be very huge where - NO agent involves
https://secure.fundsupermart.com/main/artic...ion-In-AUM-1798

This post has been edited by T231H: Jul 17 2015, 07:38 AM


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EPF didn't specify
http://www.kwsp.gov.my/portal/en/web/kwsp/...-statutory-rate

ya-lor..did not specified in the Form too.
googled and found that this had been asked many years back in one of the forum and the Admin provided the "best' answer...ha-ha.
http://www.mylabourlaw.net/forums/896-empl...ontribution.php

This post has been edited by T231H: Jul 17 2015, 01:13 AM


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Read somewhere it is 19 or 20%. One can request their GOOD employer to increase this rather than raise pay so lessen income tax.

As I know, LHDN allow an employer to claim tax deduction up to 19% of employer's EPF contribution

Well, if were to buy oversea funds, I'll play forex

It depends greatly on your EPF deductible salary(basic + allowance), some company set the max at 25%

EPF won't stop us how much to contribute on our side

The form still have to be filled by you, some are 20% like you said, some can up to 25% or the max is 1/3 of your pay.

how u know can max until 25%? I didn't see it
can help me point where u saw it

This post has been edited by nexona88: Jul 17 2015, 08:44 AM

Because my ex company said so
It is more on my salary vs deductions ratio that set the limit.
It won't be logic if your salary is rm3000 but EPF contribution until rm1500, right

What if the person have "others" income not counted for

Nope, the company won't consider this. Still depending another company to another.

from 1 Billion SGD in 2005 to 5.13 Billions SGD in 2014....
SINGAPORE (Wednesday, 10 December 2014) — iFAST Corporation Ltd. ("iFAST Corporation" or together with its subsidiares, the “Group”), an Internet-based investment products distribution platform with assets under administration (AUA) of approximately S$5.13 billion as at end September 2014, and the parent company of Fundsupermart.com and iFAST Financial platforms,
http://www.fundsupermart.com.my/main/resea...?articleNo=5331

This post has been edited by MUM: Jul 17 2015, 12:36 PM

KUALA LUMPUR: Employees Provident Fund (EPF) contributions totalling RM377.8mil have yet to be claimed by 188,733 members over 75 years up to Dec last year.

Read more: http://www.theborneopost.com/2011/03/24/ep.../#ixzz3g7hLP4Fu


Unclaimed Money alone in year 2011 is around RM377Mil.
How to bankrupt? LOL.

do u know 2014 numbers?

Tour friend might use ur epf to invest n bail 1mdb

Tenaga planning to buy over all 1MDB's power assets.

Money out frm left pocket, money in the right pocketq

will some money dropped during the transfer?

Let us pray...

consider as bail-out

I am proud to be a meleisian

any sos?

Cliq link
http://www.thestar.com.my/Business/Busines...sets/?style=biz

u juz came back to Malaysia?

it's all over the news

Yah.. Hardly in msia.. Lol

There was one time when i went to ask my HR in the previous company, the HR mention that better to top up by myself via online than through them..

I guess the HR dont want to have overloaded workload and difficulties in monitoring the contribution.

Yape, actually i am not cheated.. due diligence has been made, but the timing was not right..