Lowyat.NET: Latest topics by Avenger_2012

A guide for what to do with your money in EPF Acc

Avenger_2012 — Sun, 12 May 2024 02:33:40 +0800

There has been so many differing opinions on what to do with your money in EPF acc 3. Some say maintain the split, some say change. Some withdraw, some will keep. So after pondering on these options for some days, here are my honest thoughts:

1. Should you maintain the split of 70/30 for your existing fund or opt for initial amount transfer to Acc3? EDIT: To clarify, all future contributions will be 75/15/10 split, this is an option for your EXISTING FUND.
Answer: Best option - Regardless of your financial condition or whether you plan to withdraw, just opt for initial amount transfer. This is because no matter what, the dividends are the same across all 3 accounts. In future, if epf reduce the dividend for acc3, you still can move back to the other accounts. You may have plenty of emergency funds, you swore not to touch epf money but you never know what will happen in the future. Keeping the initial funds in acc3 allows you to use it for your emergency funds.

2. Should I withdraw the money in Acc3?
Answer: This very much depends on what you PLAN to do with your money. So I break it down in questions below.

3. Should i withdraw to close my bad debts - eg. Credit card loan, personal loan, etc.
Answer: YES. As these loans have higher interest rate than epf, then you should withdraw.

4. Should i withdraw to reduce my housing loan balance?
Answer: NO. Your housing loan interest is only 4.x%, and historically epf had been giving 5-6% of dividends, so mathematically you should keep it in epf.

5. Should i withdraw to put in ASB/ASM/Tabung Haji and the likes?
Answer: NO. These funds have been giving lower returns than epf especially in the last decade.

6. Should I withdraw to put in Bursa/S&P500?
Answer: Mostly NO, YES for some cases.
Before you withdraw for this purpose, ask yourself: Do you have extra funds in FD , ASB/ASM etc? So rather than using epf money , you should be withdrawing the other funds that are giving you lower returns.
Generally, epf is a SAFE funds. Withdrawing it to use in the stock market is high risk. You could lose money if you are not careful. So unless you are a seasoned investor and is absolutely sure that you can make money, then yes you can withdraw. But, if you are that good, do you still need epf money?

7. Should i withdraw the money to buy car/overseas vacation/iphone/etc?
Answer: YES. If you need epf money to get these things, then you are hopeless. You need the latest iphone to take photo to record how much of a fool you are.

8. Should i withdraw to buy/build/renovate your house?
Answer: Yes. In fact, this is the purpose of Acc2, to allow you to do this. After all, house is an asset, which will appreciate over time. One might opt to get funds from Acc 2+3 for this purpose. Of course, as much as possible you should try to lessen the amount you plan to withdraw.

What happened to First world hotel booking?

Avenger_2012 — Sun, 05 Nov 2023 18:52:07 +0800

Used to be able to book a hotel room for RM100-200 per night , sometimes lower 1-2 weeks in advance. Now there’s no available room till next year.

What happened?

How to delete a post?

Avenger_2012 — Fri, 01 Sep 2023 19:16:26 +0800

How?

Cost to relocate TNB meter

Avenger_2012 — Tue, 11 Jul 2023 21:42:30 +0800

Dear all,

I am planning to widen my gate from 12 ft to 18 ft. As such , the pillar of gate has to be relocated, together with its TNB meter. What is the estimated cost for TNB contractor for 6 ft relocation.
I am quoted 4k including TNB application. Is this expensive? Note that this is wiring until meter only.
From meter until original wire point back to db box is different cost.

An analytical way to dissect the EPF topic

Avenger_2012 — Fri, 17 Feb 2023 19:36:44 +0800

I call upon all warga /k to dissect the recent news pertaining to EPF withdrawal.

“ The median savings in the EPF accounts of all Malaysians declined 50 per cent to RM8,100 last year from RM16,600 the year before the Covid-19 pandemic hit, said Deputy Finance Minister Datuk Seri Ahmad Maslan.
He said the median savings of Malays, which make up more than seven million members, was RM16,900 in April 2020.
Now, they are only left with RM5,500," he told a media conference in Parliament”.

Now let’s properly calculate whether this is realistic.
Assuming a person earning a minimum wage of RM1500. With EPF contribution of 11% (from employee) + 13% from employer, the monthly contribution is RM360. This means that annual contributions should be RM 4320. In other words, a person earning minimum wage will only take 1 year & 5 months to reach the so called median savings of RM5,500 - provided that the person is an active contributor.

So, don’t be influenced by these biased figures. The numbers can only be low due to many of them are not active contributors to EPF - such as being gig workers or having their own small businesses. Yes, due to all the special withdrawals the overall savings are lower, but it can’t be this low, unless a number of those are inactive contributors.

Assuming a salaried worker earning a figure of RM 3,500 a month, he/she will be contributing about RM840 per month equivalent to about 10k annually. After 5 years, assuming that the worker is low performer with completely stagnant salary- excluding dividends and increments, that’s RM 50k of savings in EPF. For salaried worker - this is a more realistic median.

Best KL landed property < RM 1.9M

Avenger_2012 — Thu, 29 Jul 2021 22:18:53 +0800

Dear /k sifus,

I am currently searching for a landed property in KL for my own stay. I am not in a rush to buy right now, especially during MCO but I am planning to spend the next 1 year to slowly research on the property, drive to it, survey before making a move.
I am currently 33 years old, married and one baby incoming.
My workplace is in KLCC area.

My requirement as below:
- Budget : 1.9 M
- Location: KL , not “KV” area such as Setia Alam or Rawang
- Freehold (must)
- Minimum 2 storey
- No townhouse…
- Preferably corner lot, however if it’s link-house with “atas” feel, I don’t mind taking an intermediate unit eg. in Desa ParkCity
- 4 bedroom, with another +1 utility room.
- individual title, not strata title. I don’t mind paying security fee <Rm400, but I plan to stay here until I grow old, so I’m not keen to pay rm1k of maintenance fee/ month after my retirement.
- Easy access to get chinese food!
- On weekend, I enjoyed going to mall with more non-halal options such as One Utama, Midvalley, Sunway Velocity.

Problem is, this is my 4th property. LTV-70 only. Next year, I should have about 530k in cash, and about 160k in EPF Acc 2.
So preferably, I don’t need to do major renovation, or else I have to mark up loan.

Micron singapore salary and bonus. Anyone?

Avenger_2012 — Sat, 28 Apr 2012 16:44:50 +0800

I am in the midst of signing an agreement with Micron Singapore. Anyone here knows about the salary, bonus, benefits, etc? Any sort of information will be helpful here..

I'm from Engineering background