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 EPF SELF-CONTRIBUTION

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Kilohertz
post Feb 22 2018, 02:37 PM

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What will happen if the person passed away before EPF withdrawal? does it gets pass along to his/her immediate family member?
lonestar2017
post Feb 22 2018, 07:05 PM

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QUOTE(Kilohertz @ Feb 22 2018, 02:37 PM)
What will happen if the person passed away before EPF withdrawal? does it gets pass along to his/her immediate family member?
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I believe the person has to state a beneficiary for their EPF.
SUSTham
post Feb 23 2018, 05:28 PM

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QUOTE(Kilohertz @ Feb 22 2018, 06:37 AM)
What will happen if the person passed away before EPF withdrawal? does it gets pass along to his/her immediate family member?
*
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.





SUSTham
post Feb 23 2018, 05:38 PM

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QUOTE(prozdennis @ Feb 21 2018, 01:11 AM)
I invest 12k in 2014, my dad epf account and now i got 15500. can withdraw anytime i want cos my dad already pass retirement age.
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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


SUSTham
post Feb 23 2018, 06:10 PM

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QUOTE(Tham @ Feb 20 2018, 05:47 PM)
You can also try the Private Retirement Scheme started by Najib in 2012.

If you are between 20 to 30, and you put in at least $ 1,000 by the end
of this year, the government will also put in $ 1,000 for you.

Note that this offer ends this year.

The funds are similar to unit trusts, maybe a little less risky.
http://mypf.my/investing/prs/

https://www.ppa.my/

Several of the banks are managing it.
https://www.cimbbank.com.my/en/personal/pro...ent-scheme.html

http://www.aia-prs.com.my/en/index.html
https://www.fundsupermart.com.my/main/resea...ober-2017--9012

Note they also charge fees.
https://www.ppa.my/prs-providers/fees-comparison/
*
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



SUSTham
post Feb 23 2018, 06:10 PM

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This post has been edited by Tham: Feb 23 2018, 06:13 PM
SUSTham
post Feb 23 2018, 07:03 PM

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QUOTE(hydrocloric @ Feb 20 2018, 05:32 AM)
@tham that @TheRealist guy is a just a nuisance only or just plain stupid.. well it is hard to talk to a political motive asshole reply anyway... there is a saying with this kind of people..

"Aku mampu berhujah dgn 10 orang berilmu tetapi aku pasti kalah dengan yang jahil..." latterly means that dont argue with stupids that all
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QUOTE(hydrocloric @ Feb 20 2018, 05:32 AM)
@tham that @TheRealist guy is a just a nuisance only or just plain stupid.. well it is hard to talk to a political motive asshole reply anyway... there is a saying with this kind of people..

"Aku mampu berhujah dgn 10 orang berilmu tetapi aku pasti kalah dengan yang jahil..." latterly means that dont argue with stupids that all
*
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




SUSTham
post Feb 23 2018, 07:27 PM

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QUOTE(woonsc @ Feb 17 2018, 12:32 PM)
What if i contributed less, and invest in UT myself? isnt that more cost efficient?
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QUOTE
“ The 30% saving is not solely from the salary as 11% is contributed by EPF,
so you need to save 19% from the salary. If you can save that money and
invest, you will be on the path to financial freedom.” Yap says.
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
prozdennis
post Feb 23 2018, 11:41 PM

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QUOTE(Tham @ Feb 23 2018, 05:38 PM)
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
*
thanks sifu.. but do you know is there any rules state that once the person reach certain age then no more dividend any more? hmm.gif

The interest in EPF is compounded by daily?

This post has been edited by prozdennis: Feb 23 2018, 11:44 PM
SUSTham
post Feb 24 2018, 12:37 AM

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QUOTE(prozdennis @ Feb 23 2018, 03:41 PM)
thanks sifu.. but do you know is there any rules state that once the person reach certain age then no more dividend any more? hmm.gif

The interest in EPF is compounded by daily?
*
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
saiga
post Feb 24 2018, 07:50 AM

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Investment in EPF is safe. If EPF failed in future, Malaysia itself already gone case like Greece.
limeuu
post Feb 24 2018, 08:51 AM

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As long as new workers and contributors continue to grow and out number withdrawals, there will be enough money....but like all pension funds, the problem will come in future when the society matures, and there are less young people, and the current youths reaches retirement....there may not be enough money to pay out....

When that will come, if we look at other matured societies like Japan, even Singapore, we will see the population pyramid change from pyramid to fat man in the next 30 years....

Short of an economic disaster, or gross management negligence EPF should be safe for the next 30 years....
SUSTham
post Feb 24 2018, 05:50 PM

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QUOTE(Tham @ Feb 23 2018, 11:27 AM)

QUOTE

“ The 30% saving is not solely from the salary as 11% is contributed by EPF,
so you need to save 19% from the salary. If you can save that money and
invest, you will be on the path to financial freedom.” Yap says.
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
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
limeuu
post Feb 25 2018, 04:40 AM

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QUOTE(TheRealist @ Feb 24 2018, 10:18 AM)
If it was managed honestly, there will be no issue. Problem is,  I really doubt that it is actually managed honestly.  Your scenario will happen only if epf steals money and make false statement or promises. 30 years is a very long time. Anything can happen. In fact anything can happen within 10 years.
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Even if it is managed properly, it can enter into trouble....once retirees outnumber new contributors.... because it means negative equity and shrinking fund....if caught in a recession, or in Japan's case, prolonged period of low growth, the liquidation of assets to fund the negative equity may be inadequate to cover excess withdrawals....and collapse of the fund becomes a real possibility....

At this point, EPF is quite conservatively managed...albeit needing to perform "national service" at times.... but it's a very sweet pot of honey, politicians always will be tempted to help themselves to the pot....
prozdennis
post Feb 25 2018, 02:15 PM

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QUOTE(Tham @ Feb 24 2018, 12:37 AM)
pro rclxms.gif

i think i should use your advise.. each year deposite my money into my dad EPF account.. btw, the most accurate of timing to deposite the epf is when or after they declare the dividend right? So my gain from this investment can be calculated accurately hmm.gif
aspartame
post Feb 25 2018, 04:51 PM

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QUOTE(prozdennis @ Feb 25 2018, 02:15 PM)
pro  rclxms.gif

i think i should use your advise.. each year deposite my money into my dad EPF account.. btw, the most accurate of timing to deposite the epf is when or after they declare the dividend right? So my gain from this investment can be calculated accurately  hmm.gif
*
Why would u deposit money into your dad's EPF account??? Get your own!
thesoothsayer
post Feb 25 2018, 04:57 PM

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QUOTE(aspartame @ Feb 25 2018, 04:51 PM)
Why would u deposit money into your dad's EPF account??? Get your own!
*
Think he just wants the flexibility to withdraw at any time. I guess his father's probably >55.
aspartame
post Feb 25 2018, 05:28 PM

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QUOTE(thesoothsayer @ Feb 25 2018, 04:57 PM)
Think he just wants the flexibility to withdraw at any time. I guess his father's probably >55.
*
Better make sure his dad name him alone as beneficiary then!
thesoothsayer
post Feb 25 2018, 06:02 PM

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QUOTE(aspartame @ Feb 25 2018, 05:28 PM)
Better make sure his dad name him alone as beneficiary then!
*
Haha. Yeah.


Back to the topic. I'd safe what I can keep aside for long-term, and invest the rest on my own.

A strategy could be to max out the tax deductions for epf and prs(total 8k), and invest the remainder on your own. You'd need good discipline and understanding of the market but you can get higher returns compared to epf. It's not for everyone, though.
SUSTham
post Feb 25 2018, 07:43 PM

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QUOTE(thesoothsayer @ Feb 25 2018, 10:02 AM)
Haha. Yeah.
Back to the topic. I'd safe what I can keep aside for long-term, and invest the rest on my own.

A strategy could be to max out the tax deductions for epf and prs(total 8k), and invest the remainder on your own. You'd need good discipline and understanding of the market but you can get higher returns compared to epf. It's not for everyone, though.
*
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

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