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Monday, May 25, 2015

Invest with Your EPF!

Recently with all the news related to EPF such as the Proposal of delaying full withdrawal age from 55 to 60 and even the EPF investment in 1MDB, many people have raised their concern towards EPF. Well, regardless of the speculation, here's one thing you should know - Members' Savings Investment Withdrawal

What is Members' Savings Investment Withdrawal?
You are actually allowed to withdraw a portion of your savings from Account 1 in EPF for investments with the intention to increase retirement savings. But the investments are only limited to funds that are approved by the Ministry of Finance. (Here's the list of Approved Funds)

How Much can I Withdraw?
You could withdraw not more than 20% of savings in excess of the Basic Savings in Account 1. For the Basic Savings, it increases with age starting from RM1,000 at age 18 to RM196,800 at age 55. Refer to the table below.

Example for Clearer Illustration?
As long as your Account 1 Savings is more than the Basic Savings by minimum RM5,000, then you will be able to withdraw that 20% of excessive amount to invest.
Lazy to do calculation your own? Use this online free EPF calculator.

How Frequent can I Withdraw?
Funds can be withdrawn every three months as long as the balance in Account 1 exceeds your Basic Saving requirement. The three months interval is calculated based on the warrant date given by EPF. 

Can I Take Out the Profit?
No. All the amount withdrawn including the profits are required to return back into Account 1 once the funds are sold. After all, the objective is to maximize the retirement savings


Conclusion:
With the minimum basic savings and 20% requirements, the margin of safety is actually quite high. As long as you stick with the investment objective, whereby to maximize your retirement savings, then it should be fine. Bottom line, always invest in funds that generate higher return than EPF (2014 = 6.75%), otherwise what's the point of taking out right? 

To find out more about it, feel free to contact me at henrytcx@gmail.com

Earn, Save, Invest, Repeat!
Till then. Happy Investing! ;)

22 comments:

  1. Always I think that EPF is a good investment :D

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    1. Yeah because you do not have to do anything right! haha

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  2. i should start learning now~ u shown me a very good example of investment!!! :) thanks

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    1. yup, you should! anything feel free to ask me. ;)

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  3. Thank you for sharing such great information. It is informative, can you help me in finding out more detail on Investment Insurance Plan, i am interested and would like to know more about this field and wanted to understand the basics of Best Investment insurance

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  4. thank you for sharing.just wanna ask so if d person use his account 1 kwsp for investment,he can withdraw the profit?

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  5. thank you for sharing.just wanna ask so if d person use his account 1 kwsp for investment,he can withdraw the profit?

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  6. Yes.. suami I dah guna account 1 untuk bayar yuran belajar.. sangat membantu untuk further study and rawatan sakit kronik. Macam account I guna untuk bayar upah guaman dan kos rumah. Hehe.. kena ambil tahu cara guna EPF ni.. sangat membantu.

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  7. wah.. i dont know pun pasal acoount 1 boleh keluar untuk investment or anything? kena banyak baca lagi ni tentang EPF

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  8. haah ramai orang tak tahu pasal ni...thanks for sharing..

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  9. Agree that EPF is good investment..need to know more about this

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  10. thanks for the info about EPF. i seriously need to learn this EPF thing.

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  11. I thought only account 2 can be used for whatever purpose. Now I know it can be invested

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  12. thank you for the info.. will check my husband EPF on monday.. hee~

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  13. Bagus betul sesiapa yang ada EPF ni..demi masa depan, sayang sis tak ada sb tak pernah kerja

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  14. Wow. Good sharing. Just know that can use EPF for investment. Love the "maximize the retirement savings".

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  15. setelah retired memang harus dipikirkan sejak sekarang

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  16. EPF,satu pelaburan yang bagus. kena tahu cara manfaatkannya

    www.maisarahsidi.com

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  17. For me no problem sbb l keja Kerajaan got pencen...semua org bekerja paling bagus mesti ada EPF

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  18. interesting , nothing to lose to invest with epf.
    need more money when old!

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  19. It is certainly a good option to invest with your EPF. Cheers to the tips.

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