3 Reasons to Maximize Your EPF Savings

One of the questions that people always asked #YourFinanceDoctor if they should opt to take out their EPF to invest in Unit Trust Fund. (In case you have no idea about this, read here) My answer will always be YES. Here are 3 reasons why you should totally do that!

1. EPF wants you to do so! 

If you visit to EPF website (click here), there's a list of different types of withdrawals. "Members' Savings Investment Withdrawal" is one of it whereby the purpose is to allows members to transfer a portion of their savings from Account 1 for investments in order to maximize retirement savings. 

2. EPF is not stupid too!

As always, EPF put your best interests in heart! In order to safeguard the members' retirement savings, EPF only allows members to invest not more than 20% from the savings in excess of the Basic Savings amount in Account 1 through the appointed Fund Management Institutions approved by the Ministry of Finance. So that is just a small portion of your EPF savings! FYI, there are a total of 234 trust funds qualified and approved by EPF effective 31st April 2016. (EPF will carry out fund evaluation, funds will be suspended from time to time if fail to meet the strict specified selection criteria)

3. You deserve BETTER! 

Take 2 of the EPF approved funds as comparison. A starting withdrawal of RM100,000 for investment with no additional contribution, after 8 years, the return could almost double the figure of those do absolutely nothing about it! Check out the chart below! 

EPF - 100,000 => 158,761

KGF - 100,000 => 302,104

EISC - 100,000 => 304,373!

Conclusion

Don't get me wrong, EPF is one of the most efficient fund manager. Given such a huge amount of members' savings that EPF gotta handles, it is not easy at all! But there must be a reason why EPF allows us to withdraw for investment right? Well, simply because EPF believes we could do better if given a small portion! So bottom line, always invest in funds that generate higher return than EPF (2015 = 6.4%), otherwise what's the point of withdrawal right? Trust me, #YourFinanceDoctor have seen those that putting in those lower return ones! But do take into consideration on your time horizon as well! So now the question is... can you do better? 

Retire Earlier, Wealthier, and Happier

It's never too late to start maximize your EPF savings and you can get a head start by contacting #YourFinanceDoctor for the latest EPF approved fund tips, retirement planning advice, and the tools you need to make the most of your retirement savings! (click here now)

FinFair 2016 @ E&O Hotel Penang

FinFair 2016, the first ever financial planning fair is coming big in E&O Hotel Penang! Unlike any typical investment fair or any others that only focus in particular aspect, FinFair 2016 will be all about comprehensive financial planning as a whole! It is with pleasure that YB Dato. Haji Mohd. Rashid will be officiating FinFair 2016. 

FinFair 2016 is a good opportunity for the northern region of Malaysian, particularly Penangite, to learn about financial planning thru visiting the booth of various financial vendors as well as thru attending the talks available through out the session.  

Here with the schedule of the talks:

1:10pm - 1:30pm Manulife Asset Management Services Berhad

1:35pm - 1:55pm Affin Hwang

2:00pm - 2:15pm Opening ceremony by Penang State Government

2:15pm - 2:20pm Opening speech for the organizer

2:25pm - 2:40pm AKPK

2:40pm - 3:00pm PIDM

3:05pm - 3:25pm FinFreedom 

3:30pm - 3:50pm Zurich Insurance Malaysia Berhad

3:55pm - 4:15pm PA Group

4:20pm - 4:40pm iFAST Capital Sdn Bhd

4:40pm - 5:00pm Kenanga Investment Bank Berhad

**subject to change**

Best of all, the layout of FinFair 2016 will walk you through the 3D Time Tunnel that consists of various remarkable lifetime memories. Participants will get the chance to take photos with the 3D walls and even complete missions to win exclusive gifts! FinFair 2016 presents it in a way that all the major financial decisions that come along through out the life can be crucial and hence, the increase the awareness on the importance of proper financial planning, which is as a whole.  

Good News for You!

Thanks to Naughty Nuri's, 

we are giving away RM50 Cash Voucher to 5 lucky winners!

All you need to do is to follow the instruction here:

 https://goo.gl/UAHt2j

Exclusive free gifts worth RM100, lots of fun and laughter awaiting you! It will definitely be a remarkable weekend for you and your beloved family.
Pre-register here:
http://goo.gl/forms/ptHmWXNZdU


Don't miss this golden opportunity! See you there!
Say Hi to #YourFinanceDoctor if you are there! :D

EPF Employee Contribution : 11% or 8%?

As you may know in the recent Budget 2016 re-calibration, our Prime Minister has announced the reduction of Employee Provident Fund (EPF) Employee Contribution from 11% to 8%. However, members are given the option to remain their contribution at 11% by filling in form and submit to their employers. So here comes the golden question....

EPF Employee Contribution : 11% or 8%?

First, let's take a look on what's the difference. 

For instance, a person with RM3,000 monthly gross salary, he would have RM90 more every month for his take home salary. So it's quite straightforward to calculate how much exactly you will get to bring home more instead of going into EPF!

So what are the Good Things about it?  

1. You got extra money to spend!

YES! There's nothing better than having more money to spend! There are so many things you could do with that extra 3%! Especially with the advancing of technology, this is the era where the world is full of temptation! 

2. You can be a really good citizen! 

You could help to spur the growth of Malaysia by being part of the estimated RM8 billion increase in private sector spending! By spending on items that subjected to GST, you will also contribute to the government revenue too!

3. You can be a REALLY-REALLY good citizen!

Apart from all the above, you could also further contribute to the government thru the extra income tax that you have to pay. Logically, tax relief on EPF part would be reduced (if there's no sufficient life insurance to cover) and hence, higher chargeable income to be taxed. Take a look at the following table. 

Assuming only Individual relief (RM9,000) and EPF & Life Insurance relief (RM6,000) are taken into calculation with no other tax relief:

As you may see from above, if you opt for the 8% EPF contribution, your payable income tax will be increased too, but this is only applicable for those annual income within the affected range which is roughly above RM36,000 to below RM75,000. Above that, your income tax makes no difference with or without the 3% reduction as your tax relief for EPF portion has reached maximum of RM6,000. 

***Do take note***

As highlighted yellow in the table, if your chargeable income to be taxed is around RM35,000, then congratulation, you are the TOP CONTRIBUTOR as the tax difference can be as much as RM400 and above! This is due to the fact that, after the drop in claimable tax relief for EPF, you are not entitled to the Tax Rebate of RM400 (chargeable income lesser than RM35,000) . 

What about the bad thing?

1. You will have lesser retirement fund in your EPF!

Since this will only be started from March 2016 to December 2017 which is 22 months, the 3% reduction in EPF will turn into a value of around RM2,800 in 2018 and almost RM16,000 after 30 years! The estimated value is calculated based on the assumption of average 6% annual dividend throughout the years. 

Conclusion

I believe after reading all the above, you should sense the sarcasm of #YourFinanceDoctor. But, back to the question again, 11% or 8%? But honestly, if you asked #YourFinanceDoctor, the answer is really depending on each individual. But here are the option for different types of people:

For Employees with no self-control but is concern about it :

Beginning Feb 2, download the form from EPF Website (Bookmark it!), fill it up and submit to your employers. Once your money is in EPF, you won't be able to take it out to spend until you are retired.

For Employees with self-control :

You may opt to: 

1. Pay down your debt (starting with high interest ones!)

2. Pile up your emergency fund (at least 3 months of expense)

3. Invest it with target return that higher than EPF dividend (Invest as low as RM100 here)! 

4. Buy Life Insurance to max out on tax relief for EPF/Life Insurance (up to RM6,000). 

Whatever it is, seriously, don't bother to put it in bank, as that will be the most stupid-est thing to do!

For Employees who don't give a shit :

Just take it and spend it! Malaysia is proud of you! We are proud of you! :D

(Probably you won't be reading in here too.)

For Self-Employed without EPF (just like #YourFinanceDoctor) :

There's nothing you need to do! Unless if you would like to contribute in EPF-1MRSS!

(Read more here: http://yourfinancedoctor.blogspot.my/2015/12/1malaysia-retirement-savings-scheme-epf.html)

Earn, Save, Invest, Repeat!
Happy Saving!
#YourFinanceDoctor

1Malaysia Retirement Savings Scheme - EPF for Self Employed

After #YourFinanceDoctor quit from engineering to become #YourFinanceDoctor, one of the biggest concern is to save for retirement on our own. Being self-employed, it is not compulsory to contribute in EPF. Worst of all, self-employed is not getting the contribution from employer as well. So if you self-employed or individual without fixed income, you should read on!  

1MRSS - Specially for Self-Employed!

As you may know, employer contributes at least 13% on top of your own 11% contribution, so that sums up to 24%. So for self-employed like #YourFinanceDoctor, you gotta always remember to save at least 24% on your own as you would not have EPF to cover you at retirement! But thankfully, I came across this 1Malaysia Retirement Savings Scheme (1MRSS) from EPF!

What is 1Malaysia Retirement Savings Scheme (1MRSS)?

I know what you might be thinking, 1Malaysia huh? Is it reliable? Well, 1MRSS is a retirement savings just like EPF to ensure that the self-employed and individuals without fixed income have their own savings plan upon reaching retirement age. It is designed to encourage them to contribute voluntarily based on what they can afford.

Why should I enroll in 1Malaysia Retirement Savings Scheme (1MRSS)?
The only reason #YourFinanceDoctor would apply because of the contribution from the government! In other words, instead of employer contribution, now government become the contributor as well. So apart from the yearly dividend, government will contribute 10% or maximum amount of RM120 effective from 2014 to 2017. The other reason would be the tax relief on EPF portion which up to RM6,000.

How much should I save into 1Malaysia Retirement Savings Scheme (1MRSS)?
The minimum contribution amount is RM50 up to the maximum limit of RM60,000 annually. But if you asked #YourFinanceDoctor, the right amount would only be RM1,200 annually. The sole purpose of RM1,200 into 1MRSS is to earn the contribution of RM120 (10%) from government.

P/S: Of course, if one does not have a proper financial planning, then you should put more in 1MRSS or typical EPF account as it would be more efficient than putting in bank savings account.

Can I see an example of 1Malaysia Retirement Savings Scheme (1MRSS)?
#YourFinanceDoctor invested RM1,200 into 1MRSS in the beginning of 2014. So thru 1MRSS, #YourFinanceDoctor will be entitled for RM120 from government contribution. On top of that, the yearly dividend for EPF in 2014 is 6.75%, so total amount at the end of 2014 will be RM1409.10! That's roughly 17.425% of return! Check out the break down table below!

Check out how to invest with your EPF! (Click Here!)

Am I eligible to apply for 1Malaysia Retirement Savings Scheme (1MRSS)?
You are eligible if you fulfilled ALL the following:
1. Malaysian citizen
2. 'Self-employed' refers to any individuals who are working with income and not an employee
3. Member of the EPF
4. Has registered to contribute in the 1Malaysia Retirement Savings Scheme
5. Minimum contribution payment amount is RM50

(If not yet a member, registration at the EPF counter is required by using MyKad or via mail by submitting the Form KWSP 3 and a copy of MyKad) (Click here to download Form KWSP 3)

AWESOME! I'm interested! How do I apply?
1. Register and submit the Application Form for the 1Malaysia Retirement Savings Scheme (KWSP 16G(1M)) at the EPF counter or via mail. (Click here to download form KWSP 16G(1M))

2. Submit the 1Malaysia Retirement Savings Scheme Payment Form – KWSP 6A(2) form together with the cash/cheque at the EPF counter/mail at the appointed bank agent counters, i.e. RHB, MBB, PBB and BSN. (Click here to download form KWSP 6A(2))

Act fast as 1MRSS only effective from 2014 to 2017! 

3 Years left to earn RM120 per annual from Government!

Earn, Save, Invest, Repeat!
Happy Saving!
#YourFinanceDoctor

KWSP-i, Yay or Nay?

Recently people around me start asking about the KWSP-i that will be introduced by EPF if the amendments to the Employee Provident Fund (EPF) Act 1991 are passed in the Dewan Rakyat today. 

Here are a few things that you should know about KWSP-i:

What is KWSP-i?

KWSP-i is a Shariah-compliant account that will be an additional option on top of the existing normal account. Which means EPF contributors may choose between the Shariah-compliant account or the normal account. So the "i" would probably stands for Islamic. 

How is KWSP-i account different from KWSP account?

The main difference would be the annual dividend pay out as per below:

Dividend for KWSP normal account = at least 2.5% per annum

Dividend for KWSP-i account = any rate according to the actual investment return

KWSP normal account will still be the same while KWSP-i account will be handled by a new establishment of a Syariah Advisory Committee as well as Investment Panel to ensure Shariah compliance.

Why implement KWSP-i?

With the implementation of KWSP-i, Muslims friends would be able to practice their ethical investing which would be in line with the Shariah principles. Besides, according to CEO Datuk Shahril Ridza Ridzuan, the current EPF portfolio consists of around 40% of Shariah-compliance assets out of the total fund of RM600 billion. So with KWSP-i, it would further strengthen Malaysia's position as the world leading Islamic Financial Hub. 

What do you think?

I have seen mixed response on this issue. Personally I think it is fair to have the added option of KWSP-i for our Muslims friends. But I would think that EPF should be more transparent on their investments and their financial report, afterall we are like the shareholders (contributors) to a huge sum of RM600 billion of fund! 

Yay or Nay?

Which would you choose?

What You Can Invest Instead of An iPhone 6s?

As the clock turns to October 16th, Apple iPhone 6s and iPhone 6s Plus are available in Malaysia. Sure enough that they are all so much more expensive now than their predecessor by crunching an upwards of RM3,000!  

Wait what?! Yes but I bet many would still buy it anyway. Sometimes it got me thinking, so many people are complaining about the recent toll hike, petrol price hike, goods with GST price hike and whatever hike, yet they could afford the hike in iPhone? But of course, they could be giving a lot of explanations or excuses on how it shouldn't be compared together. 

Nevertheless, do you know that the price is almost equal to the median monthly income of Malaysian based on the latest survey in 2014 by Department of Statistic Malaysia? It could easily costs more than a month of salary for most of the young Malaysians especially the fresh graduates. But why would they still buy it? Instant gratification? Peer pressure? Keeping up with the Joneses?  

Malaysian Monthly Household Median Income : RM4,585 

Taken from http://gstmalaysiainfo.com/

Taken from http://gstmalaysiainfo.com/

What You Can Invest Instead of An iPhone 6s?

For whatever reason it is, here's a list of What You Can Invest Instead of an iPhone 6s! Let's follow the life cycle of wealth namely, wealth creation/accumulation, wealth protection and wealth preservation/distribution.

Wealth Creation/Accumulation

Invest RM3,000 in Private Retirement Scheme (PRS)

Wake me up when September ends, yes it is the last quarter of 2015. Which means it is time to invest in PRS for the sake of RM3,000 tax relief for YA2015 as well as a small contribution to your own retirement fund. And if you are the first timer and below 30? Bingo! Government will top up for you the youth incentive of RM500! (Read More)

Invest in Unit Trust Fund
Based on the statistics from Securities Commission  Malaysia, currently there are 641 approved unit trust fund from 37 asset management companies up for you to choose! Unit trust fund is a very popular investment vehicle as it is quite affordable where you could invest as low as RM100! You should not be surprised that there are 17 million of accounts out of 30 million of Malaysia population. Total net asset value (NAV)? A whopping RM340.6 billion! (Read More)

Invest in Shares
Prefer to trade on your own? For RM3,000, you can open a trading account at any brokerage firm. Using your own money to buy shares will let you experience the pain and joy and of course greed and fear of investing (trust me the emotions that you will go thru will be a lot more than what iP6s could offers). One simple strategy is to act like a boss to buy a company that you are familiar with. (Sunway, BJTOTO, STAR, COCOLND, NTPM, PADINI and so on)

Wealth Protection
Buy or increase life and medical insurance coverage
Insurance plays a major role in wealth protection in term of transferring your risk, be it for yourself (critical illness and TPD) or for your family to sustain the living expenses (death). Don't be surprised as it is getting very common that people buy a million dollar of coverage, especially those with high debt on their own house.

Wealth Preservation/Distribution
Set up a will or trust
Be it to distribute your estate efficiently or minimize taxes on your estate, a will or a trust is a good start for your estate planning. With RM3,000, it is more than enough to write a comprehensive will or even set up a private trust with more than 30 clauses. You would want to ensure you and your family can maintain the lifestyle you have worked so hard to establish and eventually distribute to them and their heirs. Make a difference in lives that follow!

Invest in a Financial Plan
Creating, accumulating, protecting, preserving and distributing wealth can bring a sense of freedom and accomplishment in life. But financial success does not happen by chance, a lot of sound decision making, a plan to achieve your financial goals as well as the discipline and commitment to revisit your plan throughout life as circumstances and priorities would change. Depending on your annual household income, but RM3,000 is more than enough for most of the people in Malaysia. So, begin with the ends in mind, start with a financial plan! (Hire #YourFinanceDoctor)

So unless your current phone is not working anymore, otherwise it would be wise to practice delayed gratification and like the saying goes, the best thing in life is always worth waiting for! Bottom line? #YourFinanceDoctor always in support of...

To put it simply...

Don't wear a big hat without a big head! 

Cheers & happy investing!

Which PRS Fund to Invest?

If you have yet to know about Private Retirement Scheme (PRS), check out my previous post on what is PRS. So supposed by now, you should know all the benefits of PRS. At this point of time, you are a ready buyer, so to continue the last question from the previous post....

Which PRS fund Should I buy?

Since minimally, you will put in RM3,000 to maximize your tax savings, you will have a variety of 47 PRS Approved Funds. So how to choose one out of 47 funds?

Method 1: Based on Age & Risk Tolerance

Age and risk are correlated as older age should take lesser risk since it is getting nearer to retirement and vice versa. So here's a general guideline on the fund selection based on the age and the risk tolerance. Based on your category of core funds, you can then narrow down to a few options. 

Method 2: Based on Past Performance

Well, since #YourFinanceDoctor is representing client only and does not represent any fund houses, the past performance should be taken from a neutral website - Morningstar. (Click Here). So sorting with Annualized Return, you will see as the following figures. You will realized that there are a lot of negative one during this market situation.

Taken from Morningstar on 27/8/2015

Method 3: Based on Agent

I believe this is the most common case! Whichever agent that came up to you regardless of representing any particular fund house, as long as he could persuades you, you will buy. But is it the best in the market for you? You will never know until you read this post! Heh! 

Conclusion:

Like the saying goes, "Don't invest in what you don't know. Learn first then invest." PRS is definitely a good vehicle as one of your investment option and it should be used deliberately! So I supposed those of you that are reading this, you are doing a great job! Cause you must be learning, that's why you stumbled upon here. Well, sharing is caring! Do share out as well! ;)

Recipe To Achieve Your Financial Goal

I read an article from CNBC which reported that "Study shown 33% of Americans have NO financial plan!" and it's alarming to them. But what about Malaysia? Think about it, how many of you actually have one? Or do we even know what is a financial plan? Well, here's a good definition of financial plan that I really like. 

It's true isn't it? When we look back at our lives, we made so many bad decisions that we wish we had not. Yes, some said that we may learn from mistakes and never repeat again, but some said opportunity only knocks once too! If you were given the chance to make an informed decision, wouldn't you wish to make the right one?


I really can't stress enough the importance of having a financial plan, it is like having a recipe to cook. So I will walk you through about a Lemon Cake from a website that I really like!

Let's start making Lemon Cake!

1. Decide The Dish You Want to Cook - Goal Setting

Always begin with the ends in mind! Before you start cooking, you simply gotta know what's the end product first! So in this case, we are going to bake a lemon cake! And we always gotta be specific and measurable, serving for 2 as tea break and serving for 6 as dessert could make a huge difference! 

Tips: So be it a big goal such as buying a private island in 10 years time or a small goal like owning a car in 3 years time, you just gotta be specific and know how much the future value is needed to achieve the goals.

2. What Ingredients You Already Have - Current Position

We always do that, aren't we? We opened up our cupboard and refrigerator to look for egg, lemon, flour, sugar and salt. And we also checked the quantity of those ingredients and if they are enough to bake our lemon cake. In fact, instead of just checking, we would even take all those needed out and put onto our table so that we can have a clear look. 

Tips: Start with finding out your current financial position, record down and calculate everything from your income to expenses and asset to liability. You need to be able to have a top-down clear view of all of your personal finances.

3. Get All Ingredients and Put All Together - Filling The Gap

After having a clear look of what we have, we can start shopping for what we do not have! This is straightforward right, just go and grab whatever we need. Once everything are on the table we can start putting all together. Beat the eggs, mixed all the ingredients together, pour the batter and put into the oven. Now wait for some time to bake! 

Tips: Once you know the gap or the shortfall, plan and execute, maximize the resources to fill the gap. This is the critical part where you will need adequate financial literacy as well as the experience. With the right vehicles and sufficient amount of time, success is not far away!

Now, did you realized the importance of recipe? 

A financial plan is like the recipe, you will need to set your own financial goal, find out how much is needed for the goal, how much is the current financial standing, how much is the gap in between and most importantly, how to fill the gap comprehensively.   

Interested to find out how much the financial plan cost?

Click here to hire #YourFinanceDoctor

Enjoy the cake - Goal achieve

Time's up! Take the cake out from the oven!

But wait.....

Recipe is not working?!

Be it under-cooked, flat-as-pancake, burnt, sunken or cracked, this is what usually happens right? So what went wrong even with the recipe? That's very common right! Even with the recipe, we can still fail! 

A recipe can never tell you everything, afterall, there are a lot of variation, such as the type of oven, brand of ingredients and every other little details that need to take care of. And experience would come in handy, which explains why those bakery chef success most of the time! 

Life is short

It works the same for financial plan as there is no financial plan that could one-size-fit-all. Each individual will need their own customize or tailor made financial plan. There's where a financial advisor like #YourFinanceDoctor comes into the picture to add in the personal touch.


In cooking, you can trial and error, learn from experience and finally baked a lemon cake successfully! But in our lives, just like his favorite quote, "人生有多少个十年? (How many decade do we have?)"

How many bad decisions you can afford to make?

To answer the question that I have asked in the beginning, I supposed we both know that probably it would be less than 1% for Malaysian that have financial plan! Sad to say that one of our Vision 2020 is to become a high income nation, but with 5 years to go and the lack of financial literacy, can we really make it? Or just the rich becomes richer to bring up the average of income? 

Well, I hope after reading this post, you will be on the "right" side to make more right decisions and be on the rich side to get richer! Cheers!  

Start Your 1st Right Decision by Engaging #YourFinanceDoctor!

p/s: cake and ingredient photo taken from my favorite website - eatlittlebird.com.

Easiest Way to Prepare for Funeral Expenses

I came across this article "Even in death, no escape from rising prices" and I was surprised that the funeral expenses skyrocketed so much that people have to rebury as many as three of their dead in a single grave! Isn't that shocking? According to the article, if you choose to bury, the whole funeral expenses could cost up to RM50,000 on average. Even for cremation, it could easily costs above RM10,000!

For Chinese, we always use the word "棺材本(coffin cost)", which some refer it as pension fund or retirement fund. But literally, the word itself would mean the funeral expenses, which many of us would have missed out in planning and preparation!  

In fact, nobody wants to think about it, but eventually someone has to pay for it. Like it or not, death is one of the inevitable life event. Hence, funeral planning is something that must be done at some point. So I have written this post to share on the easiest way to prepare for funeral expenses, be it for your own or the elderly. It's straight forward but many are not aware the usage of it!

Hence, to prepare for the funeral expenses, go for those Personal Accident (PA) plan for senior citizens may just solves it all! 

What's good about it?

Basically, the first main feature would be the 100% Guaranteed Acceptance and No Medical Checkup Needed. So for those that been rejected by insurance company, this is the last chance! Besides the sum assured, if death by accidental, the benefit would be multiply up to 5 times according to the age range! 

How does it works?

Unlike the typical insurance, the insurance premium of these plan are fixed and it does not increase with age. It is sold by units which is RM50 per unit and minimum 1 unit per month. So the sum assured can be easily calculated by multiplying the number of units you bought. Here's the sum assured table! 

Who should buy? Any example for better illustration?

To make it easy, here are few scenarios for the best illustration.

Scenario 1 : Mr Tan Age 50 Bad Health

Main Attractive Point : 100% Guaranteed Acceptance, No Medical Checkup

As Mr Tan was rejected by all of the insurance companies due to his bad health condition, this is his last chance as no medical checkup is needed! Be it to leave as estate for his next of kin or the preparation for funeral expenses.

Scenario 2 : Mr Lim Age 50 Low Income

Main Attractive Point : Low Premium (RM50 per month)

Even though Mr Lim is healthy but due to the low income, he could not afford any other insurance. In this case, he can take advantage on the low premium of RM50 per month, to at least, prepare for his own funeral expenses without adding burden to his family. 

Scenario 3 : Mr Ng Age 75 Old Age

Main Attractive Point : High Entry Age (Max Age 80)

At the age of 75, Mr Ng is unlikely to get any insurance without being charged with expensive premium. So again, he can takes advantage on the high entry age even though the sum assured is lower relatively. But it would be sufficient for funeral expenses!

Scenario 4 : Mr Cheah's Son buy for Mr Cheah Age 60

Main Attractive Point : Children buy for Parents

Another great thing would be children buying for parents as the policy holder could starts from age 18 and above! In most of the cases, children would usually buy this as a funeral planning for their parents as death is an inevitable life event, so that the funeral arrangements could be done according to their parents' wishes. 

Great! I'm interested! Any company offering this?

As far as I know, company G used to offer this plan with the name of Great Senior Care. But now left with company Z with SeniorGold and company AI with SeniorCare. Here's the side by side comparison that you can check it out! As these are just for illustration, do contact #yourfinancedoctor to find out the full details. 

Conclusion:

To cope with the rising price of funeral expenses, one should really need to plan for it. Not just the arrangement of the funeral but also the expenses. (Take note that to estimate the future value of the funeral expenses, inflation should be taken into consideration) Do it for yourself or at least help to lift the burden of those you love. Money should be the last thing to worry about while mourning for the loss of a loved one. 

If you are interested, feel free to contact #yourfinancedoctor (Click here!)
p/s: All the above are solely my personal point of view, if there's any mistake feel free to let me know. ;)

Get Out of Rat Race : Cashflow 101 Competition

Hello! If you have never heard of Cashflow 101 or Cashflow 202, you are so outdated! And I really mean it as this was the game I played 10 years ago! =p (Yes, I'm serious! Can you freaking believe that?) Surprisingly, the game will never be outdated as it aims to teach the players concepts of investing and achieving financial freedom. Like I have always mentioned, Malaysia education lacks of the teaching of personal finance. Well, fret not, here's your chance to get to know about this game! 

Get Out of Rat Race : Cashflow 101 Competition

Remember the traditional Monopoly game, where you trade four green houses for one red hotel or even getting bankrupt for stepping into that last most expensive house? Well, Cashflow 101 is a step more advance where you don't just buy houses only! Most importantly, Cashlow 101 focuses on getting financial freedom or what we known as getting out of the rat race! (Begin with the Ends in Mind!)

Monopoly

For your information, Cashflow101 is a financial education game that teaches financial management, money management, investment and accounting. Cashflow101, invented by Robert Kiyosaki, the best-selling author of Rich Dad Poor Dad, to increase your financial intelligence and to learn how to get rich and gain financial freedom. It is more than a game, it is a game changer! Cashflow 101 was created as a fun, powerful, and experiential way to teach investing and wealth building. Manage assets and liabilities, trade stocks and fight your way out of the Rat Race.

So here's the eye-opener! 

Get Out of Rat Race : Cashflow 101 Competition

I'm Interested! How it Works?
We will be having 4 rounds of competition, so you will just have to CHOOSE ONE out of four rounds to attend. Among all 4 rounds of competition, 3 winners will be selected based on the shortest time taken to get out of rat race! (The details of competition will be briefed during actual competition day) How good to learn thru playing while still get a chance to win prizes right?

Okay, Sounds Cool! What's the Prize?
The Top 3 Winners will be getting CASH PRIZE of RM300, RM200 and RM100. Not only that, each of them will be getting a FREE Financial Plan that worth RM1000 too!  

Financial Plan - A comprehensive evaluation of a person's current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans, in order to achieve all the financial goals.

Don't worry, there is Consolation Prize of 2 FREE Consultation Hours that worth RM120 for 55 lucky participants too! The 2 Consultation Hours could be used for any personal finance related that required consultation from Licensed Financial Advisor. 

Great! I'm IN! What should I do now?
All you need to do is to CALL/SMS/WHATSAPP Henry at 016-427 0233 to register! Do take note that each round is limited to 15 participants only! So HURRY UP! REGISTER NOW!

What Else do I Need to Know?
Just enjoy playing the game and apply what you have learned thru the game into your real life! ;)

Let's Race! =D

Till then. ;)

Here are the result, will be updated from time to time!

2015 Income Tax Rate

Recently #yourfinancedoctor has heard some rumors regarding income tax for 2015, a lot of people are saying that "Income below RM5,000 is not tax liable under the Income Tax Rate 2015". Are you one of them too? And most importantly, is that true?

2015 Income Tax Rate

How do They get the Magic Number - RM5,000?

Of course, as an analytical-thinker type of person, I would always ask why and how? And as usual, most of the people would answer me "because XXX said so" without even bother to find out the fact. But most surprisingly, some get the magic number from the 2015 Tax Rate table. From the table, they claimed that below RM5,000, the tax rate is zero!  

2015 Tax Rate Table - source from LHDN Website

Is that TRUE?

For a second, I thought I was wrong all these while! LOL! But after confirming with my Tax Guru - Luporti (if you need accountant can find him), fortunately, it is not true! The Chargeable Income in the table is counted annually, which means you still gotta take RM5,000 multiply by 12 months to get RM60,000. It is not their fault for misunderstanding the table. After all, who to blame when we didn't get the right-proper education on personal finance, not in school, not in university, definitely not at work too!(except for those finance and accounting students) But hey! That's why you need #yourfinancedoctor! ;)

So What's the Right Number?

So here's the right number for you. In my rough calculation, the tax relief will just consider those that will get for sure, which are personal relief (RM9,000) and EPF (max RM6,000). Here are two scenarios, namely single and married but spouse not working.

Maximum Income that is Not Tax Liable

Single = RM3,180 / monthly

For married but spouse not working scenario, the only differences are the additional of RM3,000 tax relief for spouse and RM400 tax rebate for spouse. 

Maximum Income that is Not Tax Liable

Married but Spouse not Working = RM4,210 / monthly

**p/s: rough estimation based on round number** 

Conclusion:

Now you know what's the minimum! So if your salary is higher than the scenario above, then you might want to consider some tax saving methods! Same as any other personal finance, it varies from one individual to another! But at the end of the day, all we want is just to Earn More, Spend Less, Invest More and Reach Goal Earlier! Too lazy to go handle it yourself? Contact #yourfinancedoctor! =p

Earn, Save, Invest, Repeat!

Till then. ;)