read the news today, and the Employees Provident Fund (EPF) has declared a divident rate of 5% this year, higher than the last year’s 4.75%.

i am not a 40-50 year old man, but i know in the beginning (few years back), EPF was giving even higher rate, which is double than the divident rate today. it keeps decreasing. and yes, the minimun divident they ever declared was 4.0%, i dont remember what year (i’ll update this post).

that is why, to me the only way people can do to increas their epf money (which will be spend after their retirement!) is to invest it in the unit trusts. it is not a secure investment like ASB, but yes, it depends on the consultant who keep updating with the investment performance as well.

yet to remember, there’s no chance at all to double up your epf money (by depending on divident).

why?

because epf account holder are only allowed to invest some small amount from their 1st account. let say this person has rm100k in his account 1, so the only amount can be invested is only 20% out of the balance in account one (after minus rm50k - BNM rule)

20% of the balance is equal to rm10k, which is equal to 10%.

see, very small amount. and 10% is from account one, so out of the efp money (which has 3 accounts), how much do you think you can invest? that’s less than 8% out of your epf money.

epf is giving 5%, while unit trust can give you up to 15% annually. so take this chance.. even you cant invest all (when you decided to invest your money, remember one thing, find a good consultant).

when EPF can only give you, in average, 6% divident annually, while unit trusts which can give you even higher divident, you are just not allowed to invest all your epf money, so out of this, all i can say is, work hard, do some business, side business, save some money for your life after retirement~ dont depend on your epf money. it’s not enough at all.

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