You should go to the EPF office and appoint your
beneficiaries, and their respective shares.

They will fill in a form, and then give a copy to you.

You can then also view it in your online account.

If you do not appoint a beneficiary, I believe the EPF will leave it to the court
administrators to decide on your nearest next-of-kins and their shares.

If you and your dad do not really need the money now,
I suggest you leave it in the EPF as long as you can.

After 15 years, based on an average dividend of 6.19 %,
you will have almost $ 40,000.

Compound interest drives up your savings very fast.

http://www.calculator.net/interest-calcula...it=0&x=113&y=16


If you could also put in an extra $6,000 every year,
you will have $ 192,000 .

http://www.calculator.net/interest-calcula...tit=0&x=99&y=25

Maybank also has its own retirement plan. Contact them to check it out.

http://www.maybank2u.com.my/mbb_info/m2u/p...l/INS-Insurance

-


This post has been edited by Tham: Feb 23 2018, 06:13 PM

He doesn't understand the power of :

Forced Savings + Compound Interest.

And he also doesn't realize that time passes by fast,
particularly as you age.

Before you know it, ten, twenty, suddenly thirty years has
passed you by.

It didn't seem that long ago when I was 30.

An average lifetime is just about 25,000 - 30,000 days.

And ten years is only 3,650 days.

As they say, our days are numbered from the start.



He still can't believe that the government will allow him
to withdraw all his money at 55 - everything he contributed
up to the end of 54, that is.

Since they extended the retirement age to 60, all contributions
from 55 to 59 can be withdrawn only after 60. But that's for
your own good. Otherwise you will tend to use up everything
within ten years.



https://www.thestar.com.my/business/busines...for-retirement/


https://www.thestar.com.my/business/busines...tirement-years/


This was in 2010.

http://www.kwsp.gov.my/portal/en/news-list...primaryKey=1901

https://www.thestar.com.my/business/busines...for-retirement/


This means that if you want to contribute only the minimum 11 %
in EPF, you should save 19 % elsewhere.


If you salary is $ 5,000, your EPF deducted will be $ 550.

That means you should save at least :

$ 4,450 x 19 % = $ 845 a month.


I would suggest you put that in the PRS or another retirement
scheme like Maybank's.

Otherewise, some of the banks and insurance companies are also
selling annuity-based insurance plans.


If, however, you decide to put that in EPF, and you are 30 now,
you will have $ 600,000 by 55.


http://www.calculator.net/interest-calcula...it=0&x=117&y=15



This post has been edited by Tham: Feb 24 2018, 05:46 PM

EPF dividends will continue to 100.


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

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

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


Yes, EPF dividend is calculated on daily rest.

This year's dividend of 6.9 % is actually equal to 7.143 % annual rate.

http://www.calculator.net/interest-calcula...tit=0&x=92&y=17



This post has been edited by Tham: Feb 24 2018, 05:21 PM

Correction, the advice given in the newspaper link was to save, ideally, 30 %
of gross income, before EPF deduction.

That means if you earn $ 5,000 a month, of which 11 % goes
to your EPF, you should save another -

19 % x 5,000 = $ 950

You can put this in the PRS or other retirement schemes as you wish.


If you put it in the EPF, assuming you are 30 now, you will
then have $ 680,000 by 55, based on the average dividend
of 6.19 %, which I had estimated earlier.


http://www.calculator.net/interest-calcula...it=0&x=117&y=10



Together with the 11 % deducted, and your employer's
contribution of 13 %, total 24 %, you will have an additional
$ 1,200 going into your account every month.

24 % x 5,000 = $ 1,200


This means a total of $ 1,200 + 950 = $ 2,150 a month.


By 55, you will have $ 1.5 million dollars. Safe and sound
for a good retirement.

http://www.calculator.net/interest-calcula...it=0&x=121&y=20


Even accounting for a bad case yearly inflation of 5 %, you will still have
the equivalent of $ 450,000 in today's buying power.

http://www.calculator.net/interest-calcula...it=0&x=120&y=24


And that does not even include your contributions and dividends accumulated
before 30, and the subsequent dividends compounded on them.



This post has been edited by Tham: Feb 24 2018, 06:03 PM

From your experience, what kind of returns are you getting yearly overall,
from the PRS ?

Are the funds somewhat less riskier than those of the banks' usual unit trusts ?

Do you choose and mix the funds to invest, or do their managers do it for you ?

The highest risk "Growth" funds seem to be returning as high as 20 percent,
and the moderate ones around 10 percent.


https://www.fundsupermart.com.my/main/resea...ober-2017--9012





This post has been edited by Tham: Feb 25 2018, 07:44 PM

The 6.9 % dividend declared in January this year are on last year's savings,
from 1 January 2017 to 31 December 2017.

So what you save from 1 January 2018 this year would earn
dividends, on a daily basis, based on what they declare next January.

If you are investing a lump sum in just once or twice a year, obviously
you would earn more dividends/interest in you invest, say on 1 March,
where your money would be in there for 10 months x 30 days = 300 days,
rather than on 1 December, where you would earn dividends for only one
month or 30 days.



This post has been edited by Tham: Feb 26 2018, 07:32 PM

Thanks for the good advice and tips.

I've never tried the share market (never had the resources,
rather). I know hardly anything about unit trusts, really, and
my sister is selling them, I think.

My ex-office manager told me two days ago that you must
be really patient and need good holding power in unit trusts,
since your money takes years to grow, and must be prepared
to make losses, just like the share market.


I had to go look up what IRR was.

With such a low IRR of just 4.8 %, barely meeting the inflation
rate, isn't that extremely low ?

I might join the PRS and invest a small amount into that
CIMB-Principal PRS Plus Asia Pacific Ex Japan Equity - Class C
fund you mentioned, a bit later.

Wonder if they allow someone my age to join.




This post has been edited by Tham: Feb 26 2018, 07:44 PM

Thanks again for the info.

Will keep that in mind.

Yes, unit trusts are still basically the share market, though less riskier, any losses being buffered by the pool of funds the trust invests in.

It's still all about speculation, manipulation and market forces.



This post has been edited by Tham: Mar 1 2018, 11:18 PM

It seems the EPF also provides you to invest under their
Members' Investment Scheme in these unit trusts.

http://www.kwsp.gov.my/portal/en/member/me...ment-withdrawal


For the CIMB-Principal PRS Plus Asia Pacific Ex-Japan Equity,
they invest 95 % in this CIMB-Principal Asia Pacific Dynamic Income Fund.

http://www.ppa.my/prs-providers/cimb/


So if you invest directly from your EPF to this fund, it is
almost the same.

http://www.kwsp.gov.my/portal/documents/10...sh_28022018.pdf


EPF does not charge any fees, but I am not sure if the fund's fees
may be higher than that investing thru the PRS.

Years !

The Net Asset Value = The price at which you purchased the units, minus all fees ?

That means unit trusts are extremely risky, basically the same as the stock market.

@TheSoothSayer


As I said, I know hardly anything about unit trusts, but
this CIMB Principal Asia Pacific Dynamic Income Fund
seems a real performer ?


http://www.cimb-principal.com.my/cimbFunds...ncome_Fund.aspx


If you key the three of them in the chart over 10 years, it way
outperforms both the Dynamic Growth and Ex-Japan funds, which
are already among the top performers.

https://www.fundsupermart.com.my/main/fundi...ter_switch.svdo

Now why did the government choose unit trusts as a tool to encourage
youngsters to save their money, if their savings can actually be wiped out
overnight as easily as the stock market ?

And how do they expect these young guys to have the
technical know-how like you to analyze and wade thru the
all the intricacies and unknowns ?

I wouldn't even know which fund to choose if you didn't
tell me about that Japan equity.

It seems the dividends declared by unit trusts are meaningless -
they just lessen the NAV, and it's just the same as passing from
the right hand to the left ?

That means for unit trusts, you have sell it off sooner or later,
in order to make any gains ?

This would mean those guys in the PRS won't be able to save
anything from the annual returns - i.e. the dividends, unlike
those of EPF, and the only way for them to save throughout
their period they are in the PRS, is from the gains (if any)
made from buying and selling over the years.

How can this be chosen as a medium of saving, as I put
earlier, by the government ?

What if they make losses, and end up with a minus balance
at the end, which is quite possible, since most of these young
guys are inexperienced ?

This would mean that holding a unit trust like that Japan
Equity or the CIMB Dynamic fund as a long term investment
is meaningless, and won't accumulate your savings, like the
annual compound interest by the EPF.

By the way, what does DCA mean ?



This post has been edited by Tham: Mar 17 2018, 03:42 PM

I was at the Shah Alam EPF office on Thursday. The Jalan Gasing
branch has been closed until further notice.

So this young advisor, about 30, I was talking to, told me
that the Members Investment Scheme are meant for those
below 55.

So I can't go in.

Then he advised that unit trusts are too risky - even he
self-contributes to the EPF.

The fixed income funds are mostly those bond-type funds
in the conservative section here ?

Dividends are typically 2 to 5 percent.


https://www.fundsupermart.com.my/main/resea...ober-2017--9012



Seems if you leave it to the PRS Fund Managers, they will select this :

https://www.ppa.my/prs-and-you/structure-of-prs/



This post has been edited by Tham: Mar 18 2018, 04:53 PM

Go to the EPF office, ask to talk to one of the advisors,
and they will tell you what to do and what forms to fill in.


I usually look for Mr Yazid. He's now at the EPF office in
Section 15, Shah Alam. He is usually there until 4.30 pm weekdays.

He was based at the Jalan Gasing office, but that is closed
for the moment.

If Mr Yazid is not there, other advisors, such as Mr Iskandar, will also be
there to help you.


http://www.kwsp.gov.my/portal/reach-us/epf...gor-darul-ehsan

https://www.google.com/maps/place/Pejabat+K...1.5248024?hl=en



Otherwise, download Form 6A(1) here.

http://www.kwsp.gov.my/portal/en/member/me...lf-contribution

You can give them a bank draft for the amount you wish to contribute.

You can also do internet banking - ask Mr Yazid for instructions.


If you are self-employed (even housewives), you can go under the
1Malaysia Retirement Savings Scheme. Government will also put in 15 %
of what you put in every year, or up to RM 250.

You can put whatever amount you wish, as and when you like.

http://www.kwsp.gov.my/portal/en/general/1...-savings-scheme



If you are an employee, you can also direct your boss to
deduct extra from your pay every month to EPF. Fill in Form 17A.

Say, you can ask for 15 % deduction instead of 11 %.

If your boss also wishes to contribute extra on their side for
you, they can fill in Form 17.

Again, you can ask Mr Yazid for advice.

http://www.kwsp.gov.my/portal/en/web/kwsp/...-statutory-rate





This post has been edited by Tham: Mar 18 2018, 04:57 PM