Posted by ks55 > 2015-04-28 09:25 | Report Abuse

EPF made a commendable returns for the workers. Just compare with CPF Singapore, what is the retuen?? 2%!
EPF makes your nest eggs safe. Unit Trusts? Do you feel safe?? What happen if you bought into BHL or Southern Bank UT?? All Public Mutual Funds give you the same returns? You are equally good compare with PB China Funds if you buy into China market seeing your investment goes down by 50% then come up 50%, and only to go down again another 50%.

Play safe. If you are not good in stock market, please keep your money with EPF.

For those who plan to work until 60, don't take out all your money at 55. Try to make good your expenses within your means while still enjoying full employment. Just leave EPF money for your golden years.......No worry...... Don't think of rely on your children....They are having commitment more than what you may think.......

Posted by Ny036 > 2015-04-28 09:30 | Report Abuse

I think the most factor people concern is the depreciation of ringgit . They afraid after keep for another 5 year or more, a half of million is no more much value. Everything is expensive by then. Our country trend now is in reverse gear both political, economy and even education. Any opinion, ks55?

Posted by sosfinance > 2015-04-28 09:57 | Report Abuse

Besides mutual funds, there is private manage accounts (for higher employment income). Anyway, EPF's formula only permit very restricted withdrawal for investments. Just an alternative. Some did very well with alternative, turning RM40k into RM220k in 15 years. This may be the exceptions. I also have seen some turn RM300k into RM1 million in about 12 years.

The moral is, there are alternatives. But, some are stopped by EPF wef 1 May 2015. EPF always act on the prudent side, because majority did not do well under non-discretionary, and punished those who do well. So, welcome to the Bolehland

Posted by ks55 > 2015-04-28 10:01 | Report Abuse

If you are good at investment, you should have invested using your excess saving other than EPF.

EPF is the minimum safety net for individual. Not really enough for you to be 100% rely upon, but it will never make you feel helpless in your golden years.

In the case if hyper inflation do occur in countries like Vietnam, Venezuela or Russia, of course safest is to park your ringgit in USD. Again you must have the knowledge or means to do so. I, myself allocated very big proportion to RMB dominated collectibles.

Posted by sosfinance > 2015-04-28 10:04 | Report Abuse

Similarly with EPF proposed to increase withdrawal age from 55 to 60, if majority do not know how to spend their money, lets restrict everyone. Although this was cancelled, you never know, next round, some illogical proposal will come up again.

Why would the good investors who are doing very well with non-discretionary account being punished by below average return by majority of poor investors? After all, it is their money. Can you stop these people from going to the casinos? Closed down all casinos, and banned all with Malaysian passport to gamble, even outside Malaysia.

Posted by ks55 > 2015-04-28 10:15 | Report Abuse

Good investors are 100% shielded from market risk?
If you were about to retire in 1997/98, do you think you will survive till today?

I strongly recommend if you plan to work util 60, don't take out all your money at 55.

You still can make investment using excess saving other than EPF. EPF is your last line of defense. EPF is to keep you surviving if anything adverse happened to your investment. EPF does not make you a millionaire but to make you feel safe to live on with meaningful and dignity life after retirement.

Posted by NOBY > 2015-04-28 10:40 | Report Abuse

Actually instead of increasing the withdrawal age from 55 to 60, EPF should customize the risk profile for all its investors and allocate its capital depending on the risk tolerance of its members. It doesnt make sense to put 80% of your capital to fix income if >50% of your members are in their 20s right ? Its an inefficient allocation of capital.

Posted by madviruz > 2015-04-28 10:45 | Report Abuse

The average EPF return over the last 20years is wrongly stated here It is not 4.53% rather it is 6.01%. Thus many of the statements are not valid.

Posted by ks55 > 2015-04-28 10:57 | Report Abuse

Safety is the utmost consideration. Do you want EPF fall to the same category as the one in Taiwan where it cannot pay those who retired?

天啊！你知道每個月繳的勞保年金，將來可能面臨勞保破產，一毛錢都領不到嗎？
https://www.youtube.com/watch?v=LpTWwo0WfwM

Posted by sosfinance > 2015-04-28 11:10 | Report Abuse

Dear madviruz - i have updated the figures. I got it from www.advisertool.com and it is not verified. I personally calculated for 10 years is about 5.6%. Please double check.

The issue discussed in this article to share the ALTERNATIVES available from using the EPF money, not about whether to keep it there until 60 or not as advised by ks55.

Posted by repusez > 2015-04-28 14:11 | Report Abuse

hi, what do you mean by "RMB dominated collectibles" ? how do u invest in it

Posted by Lan Yong How > 2015-04-28 15:22 | Report Abuse

Mr. ks55,I'm also curious and interested to know what are RMB collectibles....but sorry I am banana,so pls can you do me a favour?Thank you.

Posted by madviruz > 2015-04-28 15:41 | Report Abuse

hi sosfinance, The site calculation of data is wrong for the 3 averages. The average 4.13% over the last 10years cannot be less than the lowest in that period of 4.5% in 2008. Doesn't seem logical.

Posted by sosfinance > 2015-04-28 15:58 | Report Abuse

madviruz, you are right. Let me update the article to 10 yr (5.6%) and 20 yr (6.01%).