Calculate Investment Withdrawal
You must have more than the required Basic Savings in your Account 1 to become eligible to apply for the EPF's investment withdrawal.
In addition, the amount to be withdrawn must not be less than RM1,000 and not more that 20 per cent of the amount exceeding the required Basic Savings in Account 1.
You can make further withdrawals, for investment purposes, at three-month intervals as long as you meet the eligibility criteria each time you wish to make a new investment.
Investment withdrawals can be made every 3 months after the date of the last application is approved, subject to the availability of the required balance in Account 1.
Reference: www.kwsp.gov.my
You might be approached by UT agent about the EPF scheme for the EPF approved fund investment. So, is it a right decision to withdraw it for the investment? Can it really make money?
Case Study#1: Without Withdrawal
Total: $133,576.24
Case Study#2: With the Withdrawal - Investors
How about the EPF withdrawal for investors (5.5% commission applied)?
Total: $134,435.39
Case Study#3: With the Withdrawal - Agent
How about the EPF withdrawal for Agent (assume reinvestment for the 2.75% obtained commission with 8%p.a. fund return)?
Total: $134,435.39+$946.84 =$135,382.23
Conclusion:
By assuming unit trust fund return is 8% p.a.
Case Study#1's return: 12*RATE(12,-2300,-100000,133576.24)=5.19%
Case Study#2's Return: 12*RATE(12,-2300,-100000,134435.39)=5.91%
Case Study#3's Return: 12*RATE(12,-2300,-100000,135382.23)=6.71%
Emm... Case study#2 and 3's return is not much different from Case study#1 for first year, but the effort of implementing the withdrawal is (6.71-5.19)/5.19 = 29.29% increment.
1 comment:
if you expect for a higher short term return, I think Amanah Saham is better than private UT. Private UT erodes your effective return. Otherwise, holding a longer period for private UT is best strategy to overtake Amanah Saham. I really cant accept a 5.5% lose before we start enjoying effective return. Amanah Saham example: you spend RM1 to buy RM1 NAV. Private UT example: you spend RM1 to buy RM0.945 NAV. To reduce the high service charge, you can apply to be the UT agent, but minimum FIMM membership is applied. Private UT agent: you spend RM1 to buy RM 0.9725 NAV.
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