@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

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

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

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

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

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

Every form of investment is bound to have a certain risk.

But that of the government is quite minimal compared to private ones.


Singapore's CPF contribution rates at 20 percent for the employee up
to age 55, previously 50 is far higher.

And their interest is dismal.

Those up to 55 earns just 5 % and only on their first $ 60,000, above that 4 %.

Those above 55 earns an extra 1 % on their first $ 30,000.

Malaysians are already quite lucky as it is.

https://www.gpayroll.com/blog/payroll/singa...ntribution.html

https://www.pwc.com/sg/en/company-administr...0-chgetocpf.pdf


Yes, the charity homes are in trouble.

https://www.themalaysianinsight.com/s/21577/

You mean you are self-employed and contributing voluntarily ?

If unit trusts are giving you better returns, then that is your choice.

As I have said, you can put your money in anywhere you feel is more profitable.

I'm no investment consultant, but investments are basically all about
risk/benefit.

You can get sudden windfalls with stocks - but look at the risk involved
if the market crashes.

Their CPF interest at just 5 % on the first $ 60,000 for most of the population
is high ?

How do you do your arithmetic ?

Don't factor in the exchange rate.

Say you have $ 600,000 in your CPF.

5 percent on $ 60,000 is just $ 3,000.

4 percent on $ 540,000 = $ 21,600.

Total $ 24,600.


6.9 percent for a Malaysian with RM 600,000 is RM 41,400.

He has received almost RM 20,000 more than the Singaporean.


Look at the earlier poster with RM 480,000.

He just received RM 33,120 early this year.



As I have already said, and several of the others here have also experienced,
there are NO PROBLEMS taking it out so far.

I have withdrawn several times last year and once early this year.

Najib may not be perfect, but he endears himself to people and won't
touch your EPF.



This post has been edited by Tham: Feb 17 2018, 10:43 PM

That's the problem with posting in these local "Kopitiam"
forums and coming across young kids like you, who are not
only dumb, but extremely rude.

(That's why my friends don't post here. They say there's
just a bunch of kids here talking "c**k".

I have been very patient with you, answering your questions,
giving you advice in investing your money, and yet you have
the nerve to flame me ?

This reflects on your upbringing, obviously.

And either you have extremely poor eyesight, and/or you have
an extremely poor IQ.

Did you even bother to look at the earlier links, particularly this ?


https://www.pwc.com/sg/en/company-administr...0-chgetocpf.pdf


As I said, I've lost my patience with you. I started this thread with
the intention of alerting some of you to the importance of saving
as much as you can in EPF while you are young.

No more time for you. Like I said - it's your money. Use it
anyhow you like - even at the casinos in Genting. I don't care.


You'll find out the consequences one day when you are in your
60s like the woman's older brother in my ex-office, with nothing
left but $ 15,000 in his EPF.

The last I heard, he was in severe depression, renting a run-down
$ 200 room (she said it was rat-infested) in one of the shophouses
along the main road at 2 1/2 mile Cheras (a few doors from the
funeral parlour).

And he is a qualified engineer.

The limit to $ 60,000 a year is to prevent money laundering,
according to the advisory PRO in EPF.

Even then, that's not so bad.


If you have $ 300,000 now, it will take just five years to put it all in.


2016's interest of 5.7 % wasn't really too bad either.

If you look at its history, it was 4.25 % in 2002.

And when EPF first started in the 1950s, it was just the minimum
2.5 %, climbing slowly up to 5.8 % 20 years later in 1971.

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


Do you think you can qualify for the 1 Malaysia Retirement Savings
Scheme ?

If so, why not transfer your money there, so they can give you
an additional $ 250 each year ?


https://www.thestar.com.my/news/nation/2012...-54000-members/

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




Talking about lifespan these days.

I usually go to this unisex salon at Mutiara Complex in Ipoh Road
to cut my hair.

The hairstylist looks like Andy Lau, so they called him Andy.

When I went there two weeks ago, the shampoo girl said that
Andy had passed away last December.

Heart attack, 43.


Before that, up to end of 2013, I cut my hair at Taman Tenaga in Cheras,
at a small half-shop unisex salon.

The hairstylist and owner, Alan, passed away in Sungei Buloh hospital
in January 2014.

I don't even know what happened to him - all he said when I phoned him
before that, was that he had some fluid in his lungs.

So I thought lung cancer, but he was looking perfectly healthy before that.

In his 40s as well, I don't know his exact age.


And this Indian lawyer, Raj, whom I met at the pub below my old office
in Sri Hartamas - a really goodhearted caring person who always
bought me a meal everytime he saw me there.

He passed away about earlier last year, just before I lost my job
in June. Heart attack, 46.

Who is really the retard here by accusing people who try to give you good advice
by using that retarded phrase "bullshitting" ?

Who the hell wants to do that , and what does anyone gain, by "bullshitting" you ?

Where are your damned dinosaur brains ?

And who was really "screaming at the top of their lungs" ?

Nobody is trying to convince you to buy of their products - rather do
something for your own good.

As mentioned many times, it's your money. Dump it anywhere you like.


The facts given by the other posters, like Adri Wing and Skyjack, are not
enough proof ?

Adri Wing saved far more than $ 480,000, if you take into account
the expenses he has used on his family over the years - likely close
to a million.

And he just had $ 38,000 credited by the government into his account
in January.

How many people in the country have that much in the EPF ?

Do you think you can achieve that ?

What more proof do you need ?

If you are not interested in the EPF, and you think the government is
going to swindle your money, then you are free to keep your distance from
it and place your money anywhere else you wish.

Seems some of the high-risk unit trusts are getting returns of over 20 percent.

I suggest you take part in those investment sections of the forum.

No, I don't know what happened to him exactly.

His sister said he was not really working all the time, and
those time he was, was more as some librarian in a Chinese
library. He's a Taiwanese graduate.

Then he went into depression several years ago, and was
under heavy treatment with clinics, then UKM.

I think his sister helped to pay for the private clinic in Cheras,
that Leong Polyclinic at 2 1/2 mile Cheras, near his shophouse.

The last I heard, he was taking several really heavy drugs
from UKM.

Wow.

This year's dividend (on last year's savings), at 6.9 % daily rest
is equivalent to 7.143 % yearly rest.

This would mean that the dividend was based on a total of

38,138.90 x 100/7.143 = 533,933.92

This would mean you now have -

$ 533,933.92 + 38,138.90 = 572,072.82

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/



This post has been edited by Tham: Feb 23 2018, 05:53 PM