Retirement Planning | Malaysia's Financial Blogger | Financial Freedom Ideas

KWSP Malaysia for Monthly Housing Loan Payment

kwsp_malaysia

I heard a lot of forumer keep on discussing about this issue recently - KWSP steal citizen money! KWSP allow monthly withdrawal from EPF account 2 for the monthly housing loan repayment. But, from their discussion, some of them said that the withdrawal plan is actually a SCAM! I am sure you will feel keen to know more on this issue, right? Let me share with you what I’ve heard:

We take an assumption here:

If you have RM50,000 in your EPF account 2 and your monthly housing loan’s installment is RM1000/month. KWSP will approve your application of withdrawal from your EPF account 2 of RM50,000 and pay you RM1000/month for the next 50 months.

The only thing that KWSP did not inform us in detail is that when the application was approved, will the total amount RM50,000 is removed from EPF account 2? In the other words, it appears to be transferred to an unknown account to effect the monthly payment?

March 13th, 2010 | 3 Comments

Have You Updated Your KWSP Nominations?

kwsp_nomination

Most of the people may think that KWSP is our biggest saving account. Our KWSP consist of an estimated 23% (11% + 12%) of our monthly salary. So, if you calculate precisely, that’s more than 1/5 of our salary. The main purpose is to provide support for our retirement plan.

Have you ever wondered, what would happen if you suddenly have to say goodbye forever to this world? What would happen to your KWSP saving? Will your loved ones or child know about your KWSP savings? Even if they know about it, can they withdraw your KWSP savings in case something happen to you?

Update Your KWSP Nominations Now

October 11th, 2009 | 2 Comments

How To Invest Public Mutual Fund Using EPF?

At first, I would like to take this opportunity to say thank to my friend who is also Malaysia’s Public Mutual Agent - Yeoh Tze Haw as he provides this kind of EPF investment information for me to share with you all.

public mutual fund

For those of you who have not invested in unit trust using your EPF, it’s time to invest. EPF themselves uses OUR money to invest in funds to earn returns to pay contributors smaller dividends. Last year 4.5%. Where else if you invest directly into unit trust you can earn between 10-12%.

As I known, this new investment scheme started since 1st February 2008, all investor can invest but not more than 20% of their savings in EPF account 1. This kind of investment only allows investing once for every 3 months and minimum investment is RM1, 000.

How To Apply?

EPF

1) Photocopy of your NRIC (both side)
2) Fill up KWSP investment form with some personal details
3) Fill up mutual fund companies investment forms.

What Fund Can You Invest?

All funds that has approved by EPF:

i. Public Regular Savings Fund (PRSF)
ii. Public Index Fund (PIX)
iii. Public Islamic Equity Fund (PIEF)
iv. Public Islamic Balance Fund (PIBF)
v. Public Islamic Sector Select Fund (PISSF) - CLOSED
vi. Public Sector Select Fund (PSSF) - CLOSED
vii. Public Select Bond Fund (PSBF)
viii. Public Money Market Fund (PMMF)
ix. Public Islamic Money Market Fund (PIMMF)
x. Public Islamic Select Treasures Fund (PISTF) - NEW!!!

How Much You Can Invest In EPF Approved Unit Trust Fund?

May 31st, 2009 | 41 Comments

EPF Dividend Rate Drop To 4.5%

EPF Dividend Rate

Employees Provident Fund (EPF) is going to declare only 4.5% dividends for the year of 2008.

I’m quite certain this will raise the dissatisfaction among working Malaysians who work hard for an honest living and will depend on the EPF after they retire from active work.

This is the clear fact that WE ARE IN AN ECONOMIC CRISIS?

However, if you look from different angle of views, this is the rate, which still put EPF at a high position globally when equity and trust funds are giving out insignificant returns on investments. For those who are in the banking sector, we all know that the bank fixed deposits is definitely not as much as EPF’s returns.

March 16th, 2009 | 4 Comments

Lower EPF Contribution, Good or Bad?

The reduction of the employee contribution to EPF from 11 % down to 8 % will be made automatically, effective from January 2009 until December 2010. The total contribution is still at a reasonable rate of 20%, which is 12% from the employer and 8% from employee. You will have to fill in the forms if need to maintain 11% employee contribution as before.

*Just for your information, EPF has the highest interest rate, follow by Fixed Deposit. Except in 1997 where the Fixed Deposit has higher interest rate than EPF.

epf_vs_fd

Which Option Will You Choose? 11% or 8%?

November 15th, 2008 | 4 Comments

EPF Top Up Saving

Malaysia’s national pension fund EPF, was ranked the 8th largest fund in the world with US$94.66bil. Do you believe this? Apart from investing in domestic assets, EPF continues to enhance to diversify its portfolio into foreign markets particularly in equities.

EPF_Dividend

Although you are not believe with the above facts, but one thing you should believe is you can top up in your EPF Account 1 in order to maximize your retirement savings. The minimum amount for each top up is just MYR 50.00. This saving can only be withdrawn when the toppee reaches the age of 55, or Death.

There may not have strict policy to be a Saving Topper:
- He/She may be a Malaysian or Non-Malaysian Citizens.
- He/She need not be an EPF member.
- He/She may top up to more than one Toppee.

There may have some requirements need to be met as a Saving Toppee:
- He/She must be a registered EPF member.
- He/She must not exceed the age 55.
- He/She must be either a Malaysian citizen or a Permanent Resident.

September 13th, 2008 | 3 Comments

Withdraw EPF For Investment

Under new “Beyond Savings” scheme, you can now make withdrawals from EPF Account 1 for investment. You are allowed to invest 20% of the amount in excess of the required basic savings in Account 1 and minimum investment for unit trust is RM1,000. For example, the basic savings amount for a contributor who aged 25 (like me) is RM9,000. So, in order to withdraw for UT investment, I must have RM14,000. Do you know why?

Calculation:

Thus, different age may have different basic savings amount.
Calculation

How much would one need for retirement?

Experts say this depends on the individual and his lifestyle. And how much he is willing to reduce consumption such as eat out less often, buy fewer things, live in a smaller house, drive less, and travel less. In fact, financing database Motley Fool have figures which show that even as little as 2% cut on monthly expenses can boost retirement funds by as much as 500%.

More younger people are becoming bankrupt as they are spending “tomorrow’s money”. Which basically means these people are not saving or building their retirement nest.

Stumble it!

May 17th, 2008 | 3 Comments