"No body approached me on this EPF Members' Investment Scheme." That is the most common response when a person is presented the investment opportunity using their funds in the Employees Provident Fund.
Many contributors are satisfied with the annual returns of 3% to 5% they get from the EPF.
Are you still keeping your qualified investment amount in the EPF?
In 1996 the Malaysian government encouraged EPF contributors to withdraw a substantial amount of their contributions to invest in unit trusts of their choice.
Not long after, amendments were progressively made to restrict the money that can be withdrawn. As from August 2010, no withdrawals will be allowed for investments in new unit trusts for the next 3 years!!
"Malaysia will be bankrupt by 2019 if it does not cut subsidies and rein in borrowings," said Minister in the Prime Minister's Department, Datuk Seri Idris Jala.
Speculation vs Investment
Warren Buffet, one of the richest man... and greatest investor... in the world, says, "Invest only with money you do not need for the next 5 to 10 years"... (or money you cannot touch until age 55, in the EPF?)
Benefit from the volatility of the stock market with Dollar Cost Averaging - an investment technique intended to reduce the exposure to risk associated with making a single large purchase by investing a fixed amount on a particular investment at regular intervals (either monthly or quarterly) regardless of the unit price. You can choose to transfer $100 to $200 from your paycheck to a unit trust fund or you can even make a $500 or $1000 investment every quarter.
Speculation is trying to predict the market. Investment is equity, partial ownership of stocks of large profitable corporation, for the medium to long term.
Khoo Boo Yeang
dakhoos@gmail.com
+6012 483 6281
Khoo Boo Yeang
http://penangresort.com/blog/
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