Just a quick one. Our EPF is mandated by law to deliver at least 2.5% return every year. Also, fund composition normally hovers around 50% equity, 45% bond, and 5% cash.

There's less discussion on incorporating EPF as part of our asset allocation. Our western counterpart have their 401k and IRA stuff alike. With penalty fee, they can withdraw their 401k earlier to meet extraordinary financial challenge like the pandemic. For us, there's no way to withdraw unless one decides to leave the country.

As our EPF fund is illiquid until age 55, I exclude them in my typical 70/30 asset allocation.

This post has been edited by alexkos: Feb 15 2022, 02:45 PM

quite normal. i know of someone who's FIRE... living in KL but his monies are all in SGD. he retired decades ago

This post has been edited by Medufsaid: Feb 15 2022, 02:44 PM

Zero reasons not to have your savings in a strong, stable currency. AKA not MYR.

But..but..local MMF is in that hated currency..MYR 😁

/S

But seriously l, if u want to compare MYR MMF then it should be with MYR Bonds. Malaysia 10 year MGS is 3.75% now.

Versa's still great for emergency fund though, it's what I use them for. I'd rather not have to go through remittance in an emergency.

But yeah, if I wanted bonds I would get non-MYR denominated bonds just because the coupon payment might not even recoup inflation

If I am being honest I trust MGS as much as I trust SC, that's to say I'd rather trust some other country's counterpart

This post has been edited by Hoshiyuu: Feb 15 2022, 02:51 PM

U should trust MGS more than any local MMF and even FD tho..MGS issued in MYR, govt can always print MYR.

Btw u can also consider USD money market ETF as a defensive option.eg SHV.

I feel like that's part of the problem too Plus I don't like being "locked in" by direct bonds...

Agree with this.

For me, I also exclude my emergency fund.

Other deposits n financial investments I consider part of my 100%.

thinking of creating an all weather equity portfolio with the below allocation via
60% cspx
20% smh
10% iefa
10% ieur

any comments ?

yea bond ETFs dividends are around 1-2%.
there's a chance to grow the investment, though really small even after many years.
also a risk to lose some % of original capital if it goes down.
Plus side is the ETFs we buy are in USD.. so can hedge against MYR if somehow our Ringgit drops in value further.

If invest in Stashaway Simple or Versa, plus side is there's no such risk of losing capital.
Downside of Versa is it is denominated in MYR
SS in MYR also, but downside is 3-5days to withdraw.

In the end really depends on one's preference.

For now with so many stocks and ETFs on discount.. I rather put money in those first.
Once they start going up a lot then it is time we start putting more money in these bonds / MMF.

If older 60 yrs old + then good to focus more on FD, MMF, Bonds etc (at least 60% or so of portfolio) since we can't take as much risk to see market drop 30% or more in a month. REITs, good dividend stocks will then be the focus.. those defensive type stocks or ETFs (for remaining 40%). For older people keep add more FD, MMF, Bonds etc according to age.

If sick about to die then just sell everything and put in bank, ready the will to distribute to kids/charity etc. Can't bring money to grave.
(Just a suggestion I'm no financial expert here.)

This post has been edited by Davidtcf: Feb 16 2022, 08:39 AM

The Intelligent Investor’s Road to $1,000,000

This post has been edited by Hoshiyuu: Feb 16 2022, 02:03 AM

If you checks properly SS is in RM buying Amincome MMF

Versa projected rate doesn’t mean you are getting it as it was dismal last year returning 1.8% so don’t expect a lot 7nless OPR increase every month

Selling because most of it already tripled while the upside low

Now looking into buying those beat up stocks

Already bought a lot last week when got beaten big time

Yea i checked again and it mentioned denomination is in MYR. Might as well choose Versa.

Let's see the new one by Kenanga is better or not.

This post has been edited by Davidtcf: Feb 16 2022, 06:41 AM

Kenanga better in terms of 3% only for 2022 up to 200k but liquidity for sure slow

Don’t bother Versa you better off putting into OCBC Flex as it is the most liquid and can withdraw anytime

Hw about total wealth distribution between overseas and local funds? What's ur take on that?

This post has been edited by chiacp: Feb 16 2022, 07:42 AM

I'd prefer overseas.. my portfolio has SG and US stocks / Irish Domiciled ETFs denominated in USD (such as VUAA/CSPX, VWRA, etc).
SG focusing on good REITs.
Looking at bonds ETFs also in the future (USD denominated Irish domiciled such as AGGG/AGGU)
Our MYR keep going down so better to put in USD or SGD. (just my preference, I don't know the future if somehow MYR become stronger one day)

Bursa can have some also la, for me only Maybank stock and a few REITs just to earn high interest and ease of withdrawal.
Then local MMF fund (stashway simple, versa etc) in MYR denomination.

This post has been edited by Davidtcf: Feb 16 2022, 08:57 AM

bond in the long run is guaranteed to underperform equity

better leave bonds to those financial institutions with financial obligations

Just a friendly reminder to everyone that, this too shall pass.

Stay the course.

Check your fixed income portion. Good luck to all.

Hi everyone, I am quite a boglehead too. 60/40 VWRA+WSML+small amount of local mutual fund/AGGU+cash with 5% gold.

Normally where you guys park your cash? FD or money market? what are the good options to park cash?

My take on local vs international is incline to international as much as possible depending on size of money... since our EPF maybe already have around 35% in local market if not mistaken (and 15% international)

Been thinking about any accessible alternative asset in Malaysia can't find any good options. REITs, crypto, Rolex are not my type of game, hedge fund too high to climb...