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evecyanide
20-03-2006, 01:33 PM
Does any of our banks here have a good 'retirement fund' that I can consider buying?

alexhay
20-03-2006, 01:34 PM
what i heard that Public Mutual Fund got such stuff....you could check it out...

evecyanide
22-03-2006, 07:10 PM
I already have a public bank mutual fund. Will check further with them. Thanks Alex

evie
23-03-2006, 11:34 AM
Hi Eve,

Apart from bank, insurance company also have some good retirement plan which comes along with insurance coverage. Ever considered that? Well, I can ask my hubby to explain it to you if you're interested. :)

tupai
23-03-2006, 05:25 PM
just go in to these so-called retirement funds with your eyes WIDE OPEN :eek: :eek: :eek: :eek: and do not even attempt to blink.

Many retirees already got their epf investment down-sized to a third or half of the original sum...do not be misled by all the double digit returns/dividends etc..they will split the units and the value shaved by half again. Remmber that u are down at least 5% of the value the minute you 'invest'...so if the fund roi is 8%, u minus 5% paid upfront, u net 3%. Do your own maths.

My personal view is that I am contributing to their retirement fund with MY retirement funds...I do better at the stock market buying blue chips myself. Period.

Yang Amat Bersaham lato tupai

evecyanide
23-03-2006, 09:09 PM
I dunno much about the digits. I only want to build something so that when I'm old and grey, I can depend on the funds, knowing very well that EPF cannot do much.

patrick
23-03-2006, 11:01 PM
I dunno much about the digits. I only want to build something so that when I'm old and grey, I can depend on the funds, knowing very well that EPF cannot do much.

Eve, no funds can 'guarantee' you a handsome return. At the end of day, one may find keeping one's money in the EPF 'safer' than in some funds. Know what you are in for. Do your homework. Remember too that historical performance of funds are no guarantee of their future performance. Invest wisely and if you are not well verse, always play safe. Know your tolerance for losses too. And good luck.

Me? I do have some funds in Trust but much more in equities like what Tupai suggested. No one person's portfolio is perfect for you. Know yourself.

Joe Gomez
23-03-2006, 11:02 PM
Malaysian mutual funds did not do too well in 2005.
Negative 4.13 % growth.
Frightening !!!!! :eek:
But for an average joe who is not bursa savvy, an unitised fund is still a good option ........but choose wisely !!!!
Of course, a fund is only as good as the bloke managing it & the options available to him for investment.

Investment savvy Malaysians are going overseas.
Any which way ........... the following is good advise :

go in to these so-called retirement funds with your eyes WIDE OPEN ....
Read the following from NST .............. even Bursa Saham is concerned with the movement of funds from Malaysia to greener pastures :

Potential threat to Bursa
By CHONG POOI KOON

February 27 2006

THE number of unit trust funds launched to invest abroad has mushroomed over the last few months and could pose a threat to Bursa Malaysia if the local bourse continues to offer unexciting returns, analysts and investors said.

The domestic market risks losing out from diminished local investor interest if more and more retail investors channel their monies into unit trust funds that are designed to invest in overseas shares, they note.

Bursa Malaysia could potentially suffer an erosion in its valuations, given that local investors now have greater and potentially more attractive investment choices, head of AmResearch Sdn Bhd Gan Kim Khoon said.

"While the immediate threat is not there, they have the potential of becoming more than a thorny issue if the local bourse continues to offer local investors unexciting total returns," he said in a market strategy report in December.

This is because the size of offshore funds is still small relative to the total industry assets, but this type of investment is fast gaining momentum. From last July to January this year, 13 offshore funds were launched with RM2 billion assets under management.

This is about 4.6 per cent of industry private unit trust asset under management, up from 2 per cent in October last year, according to Citibank Bhd's head of wealth management product Charles Sik.

"But much of the RM2 billion raised involved switching out of existing local funds - total industry assets remained flat at RM43 billion since last October," Sik told Business Times.

Even as some existing investors are exiting the local market and switch to global unit trust funds, Sik believes there are sufficient liquidity in the banking system to absorb products that invest abroad, without posing a significant impact on the KLCI.

“The KLCI has closed higher over the past three months despite numerous overseas fund launches and good take-up for these launches,” he said.

Previously, local investors faced difficulties in getting overseas exposure due to the selective capital controls implemented in the aftermath of the 1997 financial crisis.

The rules were relaxed by Bank Negara Malaysia in April last year, allowing local fund managers to invest as much as 30 per cent of their assets overseas, up from 10 per cent before.

The change was greeted with open arms by investors wishing to diversify their portfolios as well as fund managers seeking to boost fund yields.

Including SBB Mutual’s RM200 million Asian Equity Fund, which will be available from March 1, there are now 15 unit trust funds launched to focus on overseas investment, with a total approved fund size of RM3.3 billion.

Response was so great that at least five of the funds were sold out within a short period, and some fund houses have also got approvals to increase the fund size.

It is expected that more of such funds will be launched in the coming months, given their rising popularity.

SBB Mutual Bhd, the number two player in the unit trust industry, is already planning to offer more funds while allocating some money from the existing ones to invest overseas.

SBB Mutual has a fund size of RM5 billion, and chief executive officer Tan Beng Wah said it plans to fully invest the 30 per cent limit in foreign markets within these two years.

“Local monies or funds will continue to be diverted away from the local stock market into regional markets,” Gan said.

Ironically, helping the cause of these overseas funds was the lacklustre performance of the local stock market late last year.

Jason Chong, chief investment officer at OSK-UOB Unit Trust Management Bhd, said the Asia market, excluding Japan, has always performed better than Malaysia. The MSCI ex-Japan index has outperformed the Kuala Lumpur Composite Index in the last five years.

“Our job here is to maximise returns to unitholders,” Chong said. “And yes, it will affect Bursa Malaysia,” he added.

evie
24-03-2006, 09:35 AM
Yes, Eve. I also agreed to what the others forumners said. You really have to do your homework should you want to invest your hard-earned $$.
Frankly speaking, I don't think the savings in EPF is able to bring us through the whole retirement. Especially when the inflation rate kept escalating.
Well my dad retired last Oct. He's currently investing in some equities as what I'm doing. Most important is that you know what are you investing in and feel comfortable with it. Cheerio!!

humbble
24-03-2006, 10:36 AM
Hi Eve,

Apart from bank, insurance company also have some good retirement plan which comes along with insurance coverage. Ever considered that? Well, I can ask my hubby to explain it to you if you're interested. :)


I agree with Eve that insurance co. do have exciting retirement plan.Recently, I just bought a retirement plan for Rm13,601 per year. This is only a 10 year plan which after that, I do not need to pay for this life plan anymore.Total investment to this account is RM136,010.

@41,which is at the end of 10 yr, My yearly passive will be Rm7,000
Total yearly passive income (7000x47 yrs) = RM329000
At age 88, guaranteed maturity amt= RM130000
projected acc. dividend: RM273189.95
Terminal dividend RM69963.00

Total cash received RM802152.95 !!!

That means before retirement age, we start to reap in the profits yearly for 47 yrs!! RM802152.95/47 = RM 17067 income per year!! More than Rm13601 which i am paying for the next ten yrs.

Just my 2 cts opinion,

Humbble

lonewolf8
24-03-2006, 01:12 PM
Hi humbble,

I think your insurance plan is an annuity plan. Some insurance agent recommended this plan to me but I rejected it due to the high cost outlay per month i.e. at least RM1000. Furthermore when I think that I will get RM7000 per year in which about twenty plus year time, effectively per month is RM583 (RM7000/12) and in which the purchasing power of RM583 is very little. This is my personal view only. Nevertheless, appreciate if you can provide some infor on the following
1) When can you start to claim the RM7000 per year?
2) Projected dividend calculation. What basis did they project for you? Is the projected dividend is a binding payment to you.

so that other forummers can share their view on this insurance plan too :)

evecyanide
24-03-2006, 06:31 PM
Thanks for all the advice, guys and gals. I will do further research and consult with the bank officers on what is more suitable for me. Annuity, stocks, bonds, equity... gosh... they all seem alien to me. I'd probably go for something conservative and not so aggresive cos I'm one who is not good at keeping track on what's going up and what's not... :p

Anyway, advices and warnings greatly appreciated. :)

Pak Kadok
24-03-2006, 09:17 PM
Thanks for all the advice, guys and gals. I will do further research and consult with the bank officers on what is more suitable for me. Annuity, stocks, bonds, equity... gosh... they all seem alien to me. I'd probably go for something conservative and not so aggresive cos I'm one who is not good at keeping track on what's going up and what's not... :p

Anyway, advices and warnings greatly appreciated. :)

The so-called funds themselves will tell you that "past performances will NOT represent future performances."

Make or not, the funds will deduct 1.5% from you each year.

And as for the "long term,"(a very commonly used term by the funds) well, in the long term, we will all be dead!

humbble
25-03-2006, 03:51 PM
Hi Lonewolf,

1)I will start collecting Rm7000-00 from the end of 10th Yr.
2) Out of the RM7k, only 4k is guaranteed and 3k depends on the company performance.

I only have to pay for ten yrs and after that no need to pay anymore.
So what says u?

Rgds.

John Tang

Jose Mourinho
25-03-2006, 05:36 PM
The best retirement fund (for women) is to entice Mrs Bill Gates away from Mr Bill Gates and then make Mr Bill Gates her own husband. The best retirement fund (for men) is murder Mr Bill Gates and then marry Mrs Bill Gates (I mean the one who is Mrs Bill Gates Number 2 and not the original one as the original one would be out of the picture completely).

Now that sure hell beats RM7000 at the end of the tenth year (with RM3000 not guaranteed).

:)

evecyanide
26-03-2006, 07:27 AM
Hmmm.... great idea Jose. In order to succeed... 1-> Have to go for an extreme makeover (In order to be gorgeous enough to entice Bill Gates) 2-> Locate where he is and get my hands on him!! :D

Jose Mourinho
26-03-2006, 10:07 AM
Hmmm.... great idea Jose. In order to succeed... 1-> Have to go for an extreme makeover (In order to be gorgeous enough to entice Bill Gates) 2-> Locate where he is and get my hands on him!! :D

Hey Cyanide. Here is his address. Please do not give to others. bill_gates@microsoft.com or bill_gates@hotmail.com. Seriously - my tongue-in-cheek comment on Bill Gates was really aimed at a different message. Do be careful of the many retirement (or whatever) funds being offered in the market. Nothing beats hard work and saving the money in the banks. It may not be very exciting, sexy or modern-savvy but that is a fund which you do not have to spend any sleepless night to worry about between now and 40 years later.

:)

evecyanide
26-03-2006, 10:12 AM
I agree and I understand :)

Pak Kadok
26-03-2006, 10:18 AM
Hey Cyanide. Here is his address. Please do not give to others. bill_gates@microsoft.com or bill_gates@hotmail.com. Seriously - my tongue-in-cheek comment on Bill Gates was really aimed at a different message. Do be careful of the many retirement (or whatever) funds being offered in the market. Nothing beats hard work and saving the money in the banks. It may not be very exciting, sexy or modern-savvy but that is a fund which you do not have to spend any sleepless night to worry about between now and 40 years later.

:)

My philosophy about all these is that no one can help us to get rich except ourselves and why would anyone wants to help us become rich.

And it would be better for you to lose your hard earned money in the stock market yourself than to pay some clowns to do that for you!

tupai
26-03-2006, 01:54 PM
My philosophy about all these is that no one can help us to get rich except ourselves and why would anyone wants to help us become rich.

And it would be better for you to lose your hard earned money in the stock market yourself than to pay some clowns to do that for you!

Not necessarily so. There are investment managers out there who will 'take' anything from 10-30% of your profits. No profits no 'take'.

Then there are also investment advisors from down south who are REALLY more experience than the m'sian advisers when it comes to investing in overseas mkts. The southerners have proven to be better ROI anytime...and the proof is in the $$$$ in hand :p

yang akan berlabur lato tupai

p/s 99% of the local investment advisers are really in the same boat as 99% of us. Some are even wor$t off then Mr Poor. Do you yr hard earned $$$ be managed by people no financial better than yourself? Joker, i mean, clown lah u.