@AznRicy

This has been taken from an old thread
which has been closed.


You gave your girlfriend excellent advice.

I have been telling my nephew, as well as those in the
Fixed Deposits forum, to do the same, but they can't
see very far and don't seem to realize how important our
EPF will be in old age.

Like your girlfriend, my nephew and those in the FD forum
listened to silly rumors from their friends :

" Government is cheating us. EPF very hard to take out. "

" My friend's father said very hard to take out EPF. They give
him all kinds of reasons. "

" Goverment is going bankrupt. They are using our EPF. "

" EPF is a ticking time bomb. "


Did your read the papers ? 70 PERCENT of those reaching 55
have less then $ 50,000 in their EPF.


EPF sounds alarm as most contributors have less than RM50,000 at 54.

http://www.themalaymailonline.com/malaysia...n-rm50000-at-54


There are over 4 million people hitting 55 and over in the
country now.

This means that at least 3 million have less than $ 50,000 in
their EPF.


Like this woman in my ex-office. She said her brother, single,
an engineer, is now in his 60s with just $ 15,000 in his EPF.


If you are married, your children may not bother about you in
old age. Like my aunt in her 80s - I had to use my EPF to take
her see the doctor at the hospital just two months ago.


EPF is FORCED savings.


EPF is the only GUARANTEED support you will have in old age.
Nobody else is going to take care of you.

If you put everything in an FD, chances are you'll spent most
of it away by 55.


I told my nephew, either :

Direct his employer to deduct extra, say $ 500, to his EPF
every month, and/or :

Pump in yourself, as and when you can, up to the $ 60,000
limit EPF allows per year.


EPF interest has remained relatively stable between 4.25 and
8.50 percent for the last 50 years.

Take an average of 6.375 percent.

If you have the money, put in $ 10,000 in the EPF for a start,
rather than any of the fixed deposits.

Then fill in the required EPF form to direct your employer to
deduct an extra $ 500 from your salary every month.

If you are 30 now, you'll have over $ 400,000 by 55.

http://www.calculator.net/interest-calcula...it=0&x=106&y=13



Compounding interest separates the rich from the broke. The great Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it.”


http://www.thepennieswesaved.com/compound-...-eighth-wonder/


https://www.youtube.com/watch?v=LK7iadUBPWw/

https://m.youtube.com/watch?v=LK7iadUBPWw

This post has been edited by Tham: Feb 15 2018, 03:50 AM

👍

Difficult to withdraw or not, I can't say as I have no experience doing so. My father however has done so a couple of times to my knowledge and he has yet to complain about their procedures or processing lead time.

But as to whether EPF is worthy investment platform, unless you have the appetite for high risks, then EPF is a very sound platform. Have yet to see a FD offering higher return than EPF so far. But would be happily corrected if anyone knows otherwise!

As mentioned, those are just rumors.


They were probably referring to the 30 percent limit to Account 2
for medical fees and housing, before 55, or voluntary full withdrawal
only from this account between 50 and 55.

Once you reach 55, all you have to do is take your IC to the
EPF office, tell them you want to withdraw.

The counter will take your thumbprints, ask how much you
want to take out (mininum $ 2,000), print out the form
and that's it. All done within half an hour.

They will then credit your bank savings account two working
days later.

There is a 30-day period required between withdrawals (i.e.
you can withdraw only once a month), so make sure you are
taking out enough for your needs each time.




This post has been edited by Tham: Feb 15 2018, 04:32 PM

The main advantage of EPF over everything else is not that it is
just a sound investment platform - as emphasized - it is FORCED SAVINGS.


During the mid-80s, at least two people - one, a Prudential insurance man,
the other my ex-office manager - warned me not to ever touch my EPF,
not even to buy a house, if I can help it.

They emphasized that EPF is the ONLY surefire financial guardian who will
take care of you in old age.

The insurance man said the Government was actually making a mistake
by allowing members to take it out to buy property before 55.


I'm lucky I heeded their advice.

Otherwise I'll be begging on the five-foot ways for food now.


https://www.thestar.com.my/news/nation/2017...ert-to-11-rate/

EPF forms.

http://www.kwsp.gov.my/portal/en/web/kwsp/...o-contributions

This video illustrates how fast compound interest will increase your EPF over time,
if you were to channel funds in every month, or as and when you can, rather than
just putting a lump sum in a fixed deposit and leaving it there.


https://www.youtube.com/watch?v=AdWczjgaD5c



This post has been edited by Tham: Feb 16 2018, 04:35 PM

Our EPF is no different from all the rest of those "" INVESTMENTS FUNDS " in all other countries around the WORLD .

However the way to RATE is always to look at END OF YEAR DIVIDENDS !

Our EPF has a history of VERY IMPRESSIVE DIVINDENDS , hence returns which means their investment strategy is VERY GOOD !
But compared to the whole world , it appear the whole world is doing VERY POORLY !

So the EPF team is doing like BEST INVESTMENT MANAGER beating all the HIGHLY PAID INVESTMENTS throughout the world .

Why we wonder ------- these SUPERB INVESTMENT people are so UNKNOWN to the rest of the world , when they are CREATING HUGH WAVES giving STELLAR RETURNS ???

I think you are adult enough with thinking powers to know what is happening !

You still can't get the message.

The EPF is completely different.

I emphasized FORCED SAVINGS twice.

So did the people in the news link given.

Once you decide to put your money there, you can't take most of it out until you are 55.

All other private investment funds - unit trusts, etc - you can take out anytime you decide to.

And the EPF has the backing of the government.

They are the ones who decide the dividend rate each year.

The others don't. They're on their own.

And why do you bother how and why you get such good returns, as long as you get It, and are GUARANTEED to get it for life ?

The EPF has been around for the past 66 years - probably twice longer than you.

It won't run away.

As I told those in the Fixed Deposits forum - the advice has been given.

Ignore it at your own peril.




This post has been edited by Tham: Feb 16 2018, 09:40 AM

When you travel around the world , and get to know other CORRUPT countries & equally CORRUPT people whom manage these countries ---------- you will find EPF will also ------ be squirelled away by these CORRUPT officials . There is NOTHING that the ENTIRE population of depositors can do when these EPF with their so called SMART investments go seriously DOWNHILL or LOST due to SCANDALS !

The EPF has a guaranteed minimum annual dividend of 2.5 percent.

That's higher than most ordinary bank savings accounts these days.

Moreover, their dividend is compounded on a daily rest. I believe bank interest
is currently on monthly rest.

http://www.kwsp.gov.my/portal/en/web/kwsp/...-act/section-27

http://www.kwsp.gov.my/portal/en/member/faq/epf-investments

What if I opt for the 8% contribution and invest the rest elsewhere

During my earning years i deposited whatever additional cash i had into EPF. My plan was to retire with a handsome sum & live comfortably off the devidant.

Now at 69, live well,travel, even bought a new car a few years ago. EPF will stop devidants on my account when i reach 75,which is not too far away.

Will decide what to do when i come to that bridge!

This post has been edited by SKYjack: Feb 17 2018, 08:55 AM

Honestly, I’ve not heard about anyone actually encountering difficulties in withdrawal.

Even I used it to pay my ptptn and mortgage, fill in form, pass up, a week to approved. All done.

Even the rebate I receive for clearing ptptn was debited back to me efficiently and fast.

On top of that, by having epf, you’ll contribute have while the remain is from company, so 2 party involve.

Those without epf, company won’t pay exact 12% and maybe raise you say 5-8% which you’ll use it indiscriminately

And I think people who actually complain having problem withdrawing are people who have little money in epf, thus make up story to cover line

Self employed? What do you plan to invest in?

The employee's contribution has reverted to 11 percent in January
(luckily for you and the rest of the salaried population).

https://www.thestar.com.my/business/busines...t-from-january/


As mentioned, wherever you wish to invest your money,, that is your prerogative.

But if I were you, I would direct my employer to increase my contribution
to at least 17 percent immediately.

If you are earning $ 5,000, that would mean an additional $ 300
every month (assuming your pay remains constant).

If you are 30 now, you'll have over $ 200,000 more savings by 55,
based on an average dividend of 6.375 percent.

http://www.calculator.net/interest-calcula...tit=0&x=70&y=28


Obviously if your salary and/or the dividend increases over the years,
you would have more.



This post has been edited by Tham: Feb 17 2018, 07:13 PM

So you took the government's option, foresaw the long-term power of
compound interest, and self-contributed.

Very good for you !

That was very smart of you. I believe very few people in this country
have contributed on their own into EPF over its history.

And don't worry, your dividends will keep coming in until you are 100,

You can always drop by to see the PRO at the EPF at Jalan Gasing or
to confirm this. There are two advisory PRO rooms on the left as you
enter the main entrance. At least one is usually there until 4.30.


EPF PAYS DIVIDEND UP TO AGE 100

http://www.kwsp.gov.my/portal/documents/10..._19.07.2017.pdf



EPF CONTINUES DIVIDEND PAYMENTS BEYOND AGE 75

http://www.kwsp.gov.my/portal/documents/10...71_20062016.pdf



http://www.kwsp.gov.my/portal/en/news-list...DetailPage=true



http://www.thesundaily.my/news/1176988

http://english.astroawani.com/malaysia-new...dividends-58470

What if i contributed less, and invest in UT myself? isnt that more cost efficient?

Wow, that is one real success story of the EPF.

This means that early this year, they would have credited you
with a dividend of about $ 34,000.

http://www.calculator.net/interest-calcula...it=0&x=109&y=26

Almost $ 3,000 to use per month. You can live on the dividend
alone. That should be more than enough for three good meals
a day and some travelling/entertainment, since I believe you have your own house.

I've reworked the average dividend over the last 50 years
since 1968, based on this, and it comes to 6.19 percent.

http://www.kwsp.gov.my/portal/en/about-epf.../dividend-rates



Assuming you use up all of last year's dividend of $ 34,000
by the end of the year, you will still have the $480,000 at the
beginning of next year, at age 57.

6.19 percent daily rest is equivalent to 6.385 percent yearly rest.

http://www.calculator.net/interest-calcula...it=0&x=104&y=18


I'm no investment consultant. but this shows from next year onwards,
that you have about $ 2,700 to use a month for the next 40 years till 97.


http://www.calculator.net/retirement-calcu...wmuchtowithdraw


http://www.calculator.net/retirement-calcu...wlongtowithdraw




This post has been edited by Tham: Feb 17 2018, 09:23 PM

" A lot of people are making a lot of money in the gig economy for now,
but the thing is if they don't understand that they need to also save for
the future, then they will be in trouble when retirement comes. "


http://www.theedgemarkets.com/article/epf-...tirement-scheme