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Thread: EPF withdrawal

  1. #1
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    EPF withdrawal

    What would you be doing after you become 55 years old and entitled to make withdrawals?

    Would it be (A) total withdrawal (B) partial withdrawal or (C) no withdrawal?

    As EPF is a sort of Pyramid scheme to some and mutual fund to many.......

    Hopefully there would be some suggestions in this thread.
    TASK - Trust, Attitude, Skill, Knowledge - Signatures of those who believe in excellence for any task entrusted to them - Alwin Tan @ all rights reserved
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  2. #2
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    Not at the age yet, but I have been thinking this for a while.
    On average I think it is fair to say that most of us don't quite truly trust EPF and this includes me.

    based on this reason, I feel that I will do a partial withdrawal (B). I will also assume that I have a decent amount of money in EPF, which is a fair assumptions else may as well do (A).

    I would calculate what is the very basic cash flow I need to cover my basic and yet fixed expenses like utility bills or food bills, divided by the prevalent EPF div and keep that amount in EPF and pretend to be an annuity. The above that amount I would withdraw and do some simple investments like bond funds or a diversified unit trust.
    Eg: say have 1 mio myr; monthly basic expenses is 1K rm => 12K rm per year. Recent EPF div is 6%.
    so that means I will keep 12,000 / 6% = RM 200K in EPF. This will provide the recurring min income per year.
    remainder 800K rm. find a few bond funds to invest, some FDs and a small portion in diversified equity/commodity funds? Say, in ratio of 50%, 30% and 20% of 800K rm.

  3. #3
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    This side tracked from the other thread may is applicable in this EPF discussion.

    I am glad I was able to suggest my frugal brother to withdraw his EPF saving to buy a 3 storey house where he can raise his doggies and new car to cruise town when he asked for my POV. After all, all his children were graduated. Yes, by having adequate savings for living expenses is important but you got to enjoy life to the fullest in retirement age. And he is not throwing his monies by buying a bigger property where it is also a hedge against inflation and just as good of by putting it in EPF pyramid scheme. Most of all, he could enjoyed the luxury of spaces of his property. If it stays in EPF, it is just imaginary luxury of being rich.
    TASK - Trust, Attitude, Skill, Knowledge - Signatures of those who believe in excellence for any task entrusted to them - Alwin Tan @ all rights reserved
    [COLOR=Navy]Let's eat 2 taste in www.facebook.com/zinglicious or let's make MY home a better place with healthy views and tasty news in www.facebook.com/zingszangs

  4. #4
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    EPF is a public mutual fund or shares counter which I am considered a shareholder with monies invested in my POV.

    Therefore, any dividend or value depends on the competence and integrity of the board and quality management team. In normal stock or fund management, the counter which has scandals , weakness or questionable conflict of interests would cause the price crashed when institutional or private investors would sell off that counter.

    One important yardstick is annualized return EPF and other mutual funds. EPF annualized returns recorded at less than 6% for the last 5 years whereas if you were to invest EPF approved mutual fund i.e. OSK unit trust to RHB mutual fund, you have more than 15 % in AR.

    Take note ,I am not a dabble or double agent in mutual funds.

    I prefer spicier or riskier investments in the stock exchange in search of geese that would lay golden eggs in my basket. If I were to invest in conservative Nestle (M) counter where there is about 70% capital gains in 5 years period which would outperform EPF counter. However I prefer to invest in QQQ selective counter where I had golden eggs yield of multi folds over 18 months in my past history which had outperformed mutual funds across the States.

    But that is only my own cooking story from my experience.
    Last edited by zinglicious; 23-02-2018 at 09:07 PM.
    TASK - Trust, Attitude, Skill, Knowledge - Signatures of those who believe in excellence for any task entrusted to them - Alwin Tan @ all rights reserved
    [COLOR=Navy]Let's eat 2 taste in www.facebook.com/zinglicious or let's make MY home a better place with healthy views and tasty news in www.facebook.com/zingszangs

  5. #5
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    Wild claims of EPF made by Sarawak Report. EPF should pursue and sue the fake report. http://www.freemalaysiatoday.com/cat...ex-servicemen/
    TASK - Trust, Attitude, Skill, Knowledge - Signatures of those who believe in excellence for any task entrusted to them - Alwin Tan @ all rights reserved
    [COLOR=Navy]Let's eat 2 taste in www.facebook.com/zinglicious or let's make MY home a better place with healthy views and tasty news in www.facebook.com/zingszangs

  6. #6
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    Next Tuesday?

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