Proposal #2 - Using EPF's money and parks it into Public Mutual

Kuan,

It's my greeting to you again. Without further delay, I am going thru my Proposal #2 - Using EPF's money and parks it into Public Mutual. I believe you could buy my Proposal #2 straight away if you are a happy investor and find no issue about it. It is my best sell proposal since I joined Public Mutual Bhd (PMB) as a Unit Trust Consultant (UTC) three years ago. Not only that, it explains to me why this business leads into my career too.

To give you an idea about the dividend rate EPF has given us since enacted in year 1952 is available here at
http://www.kwsp.gov.my/portal/en/web/kwsp/about-epf/investment-highlights/dividend-rates The relevant portion is from year 1981-2012 if you want to compare apple to apple. So does the result of Employees Provident Fund (EPF) to Public Savings Fund (PSF). The financial statement of EPF financial year ended 2011 can be obtained here at http://www.kwsp.gov.my/portal/documents/10180/155850/8.1_Laporan_Kewangan__BI_.pdf  and other information available in sources if you are interested is at http://www.kwsp.gov.my/portal/en/web/kwsp/annual-report-2011  Alright, I won't elaborate further from here onwards as a picture is worth more than a thousand words.

To summarize it, I personally felt that parking in PSF is a better alternative as in comparison to EPF. Why? It compounded at a higher rate at about 10% annually by compensated slightly higher risk in equity. The trade-off will hence double the amount of your retirement fund after 25 years.

It is not easy to withdraw money out from KWSP because it is governed by Employees Provident Fund Act 1991 at http://www.kwsp.gov.my/portal/en/web/kwsp/about-epf/epf-act/epf-act-reports#intro  Even though one may have already done so, after the investor sells the PSF, the money has to flow back to KWSP. The investor can, if and only if to withdraw his Account 1 unless he or she reaches 55 or 60 years of age. By making a small-step decision, it could be easily a leap forward in your amount of retirement fund once you reach there. This is a way to get financial freedom if one has too much commitment. It is your money, you have choices to gain better control over it. That's about it.

In our quick conversation that day. I know you didn't have an online account to check your EPF. This is where you need to register yourself for first time and definitely will be made convenient to you later. Go to https://secure.kwsp.gov.my/secured/member/register  The first time initialization will need your NRIC and an activation code. For the code, you really need to travel one time to the EPF kiosk. The nearest office/kiosks can be found here http://www.kwsp.gov.my/portal/en/web/kwsp/reach-us/kiosks-location/citibank-berhad  I spotted this one: Bandar Damansara Perdana, Selangor closest to you, check out the map for direction there yourself.

To know how much you could withdraw from KWSP and invest in Public Mutual. Go to http://lvgconsultants.com/epfcalculator.html  Do fill in the amount of EPF Account 1 and your age. If the calculated result in figure is shown to you right there, you are eligible to invest and then you can withdraw 4 times only in a year i.e. each lump sum investment every 3 months apart.

Let me know once you are ready to buy my Proposal #2 and invest it here. I will have to get you the application forms for signing up. I can go to your office next week if you let me have an appointment.


Regards,

Js
016-2591429