Posted by calvintaneng > 2016-09-21 23:25 | Report Abuse

Good warning given,

High living costs are pushing more people to more complex, short-term, high-return investment schemes so that they can have their retirement on track or financial freedom soon, which I don’t think is appropriate. Because of this, many people end up losing money after falling into investment traps or scams, or taking on too high a risk,” he says.


Notice these words which aptly apply to many foolish i3 forum members,

"MANY PEOPLE END UP LOSING MONEY AFTER FALLING INTO INVESTMENT TRAPS OR SCAMS, OR TAKING ON TOO HIGH A RISK"

Posted by Yong Chu Eu > 2016-09-21 23:30 | Report Abuse

very true :) Thanks :)

Posted by ks55 > 2016-09-22 09:56 | Report Abuse

"Contributors to the Employees Provident Fund (EPF) have a few options if the dividend is low. Yong Chu Eu, a licensed financial adviser at Fin Freedom Sdn Bhd, says they can use their EPF savings to pare down debts such as their mortgages or withdraw more to put into unit trusts."

This is the worst 'financial advise' I ever come across my entire life!!!!!!!

What is the objective to contribute to EPF?

Take out EPF and settle housing loan? You think you are discipline enough not to spend the 'extra money' in your bank? You need to strive harder to make thing easier if you you are still struggle with your daily expenses.

Take out EPF money to buy Unit Trust? You don't know Unit Trust like Public Mutual (supposely the best Unit Trust Operator in town) sucks?

Do you know welfare starts from home?
Do you really think Public Mutual is so noble?
Do you know how much commission earned by the agents?
Do you know how much management fees charged by Public Mutual?
Do you know how much bonuses made by Public Mutual Fund Managers?

If you think Unit Trusts suck, wait till you see the Insurance companies' life policies.
No more guaranteed cash value (or surrender value), but the value of the units you have at the prevailing price.
Insurance companies will not take care of your interest, but their own backside.
This is the same as Public Mutual.

Better just buy all the Reits with your money, and that definitely give you better return than any Public Mutual Funds on long run...........

http://klse.i3investor.com/servlets/forum/600104256.jsp



IF YOU ARE NO GOOD, PLEASE DON'T MISLEAD OTHERS FOR YOU WILL MAKE THEM SUFFER FOR THE REST OF THEIR LIFE

Posted by Yong Chu Eu > 2016-09-22 15:38 | Report Abuse

ks55, thanks for your comment, but bear in mind that my suggestion is based on the situation when the EPF's Dividend Rate is almost near housing loan interest rate-below 5%, then you can consider to withdraw to invest unit trust or pay off debt. This is the best advise that i ever made.

Maybe you have bad experience with Unit trust, and i have mine too but i also have experience of getting 100% within 3-4year with unit trust fund.

I totally agree that REITs is one of the good options available but not limited to this

Posted by ks55 > 2016-09-22 17:46 | Report Abuse

Best advice ever have to ask people take out money from EPF?
What is the purpose of contributing to EPF?
That is the minimum safety net for the old and incapables.

When the contributors are still young, inability to make ends meet already show they cannot plan properly by themselves even when they still earn.
The reason is simple, expenditures more than income.
Fail to make proper planning.

Need to use EPF money to help pay mortgages?
Biggest joke I am coming across in my entire life.
If they cannot afford bungalow, can they settle with 2-storey terrace?
If they cannot afford terrace, can they settle with medium cost apartment?
Find something that suit their budget.

About withdrawing EPF and put into unit trust or PRS.
Tell me which unit trust give you return 100% within 3-4 years span?
Be sincere and honest, don't bluff.
How many lose most of their saving by putting into 'wrong unit trust'?

Unit Trusts Suck.
Please refer:-
http://klse.i3investor.com/servlets/forum/600104256.jsp

Posted by Yong Chu Eu > 2016-09-22 22:31 | Report Abuse

ks55, what i want to say:

a) I am not pro any unit trust/insurance/public mutual as i believe every investment tool play it role, investor should do more homework before invest, bad apply always exist in any investment tool
b) EPF is for retirement, this is for sure, the reason of withdraw is to increase more return for retirement when high return EPF cannot offer, this is pro-active way. If you cannot accept it doesn't mean it is bad, respect other for any different idea or approach, don't put emotion or negative word when commenting as it hurt you first even before it come out from your mouth or heart, you can see how i respect your different, be professional, considerate and moderate
c) I think unit trust fund from Eastpring and Kenanga, both offering a good return where one of them offered me 100% return (100% return is for sure but i did not exactly count the total period of holding because i invested several time EPF, mean several batch of investment, i roughly count is around 3-4 year++), i am pulling in second time from EPF again hoping another 100%. I want to compound my EPF money faster on top of EPF return. i am not here to show off the beauty of unit trust or 100% return but just want to say each investment play it role
d) I know what i am doing or advising, i am sure it is at the best interest of public and of course, everyone is different, i can accept people disagree with it, i respect people for different and the right of comment but don't miss-used it just for the sake of commenting

Posted by ks55 > 2016-09-22 23:04 | Report Abuse

19 Unit Trust Funds were removed from PRS.
Out of which 13 was from Public Mutual.
Bearing in mind Public Mutual claimed to be the best managed funds in Malaysia.

One or two funds make fantastic return are coincidence. Probably due to timing of their fund launching. Something like 1999? 2009?

Generally return from Unit Trusts do not beat EPF.
Too many examples, just to quote a few, certain Unit Trusts operated by Ban Hin Lee Bank, Southern Bank lost 90% of their capital.
To get a few good ones may be exceptional lucky.
To underperform is the norm.




Comment from kcchongnz:-

"by winston1 > Sep 14, 2016 01:56 PM | Report Abuse
I have invested some RM130k in Public Mutual using EPF over the past 10 years with current value at RM205k. Returns 75% for the period. It all depends on what funds you have invested.


You are one of the lucky ones investing in unit trust. However, your return in CAGR is only 4.7%, way below EPF.

So if you withdraw EPF and invest in it, then you become the unlucky one as the performance is substantially below EPF return."



"Posted by batman11 > Sep 13, 2016 06:10 PM | Report Abuse
To prevent getting "slaughtered" by the fund house or the market, you can consider to invest in 0% front loading KLCI tracker fund. We have RHB KLCI Tracker Fund to meet your need. Buy handsomely when KLCI index moves above its SMA 200 line and sell when long term up-trend becoming reversed.


The long-term return of tracker fund will mimic the return of the broad market, less the annual management expense ratio. You can actually mimic the broad market return by buying the component stocks of KLSE, without having to pay the management fees.

Then you are talking about market timing here which is not for unit trust, which should be long-term investment to get any decent return."



"Insurance life policy, those participate in the profit ones, has two components; one is life coverage and the other investment. The investment return will probably mimic that of unit trusts or managed fund. The killer is the marketing cost. Insurance agents are rewarded with a few hundred percent of the annual premium paid. With this taken straightaway from your policy, how can one get good return from the investment portion of the life policy?

It is just common sense. However, few policy holders understand it. Even licensed financial advisors, not to mention insurance agents, either they don't understand it which i am not surprised, or they deliberately don't want to know.

Sorry, I am just being very direct. Of course there are also some good and knowledgeable licensed professional financial advisors around, but they are far and few."

Posted by Yong Chu Eu > 2016-09-23 07:28 | Report Abuse

ok, understand what you mean, it is good to be direct, i did lost money also in few funds which is country/sector/new themes specific, so i encourage people to go for more generic fund like Asia or Asia Pac fund, if you see from fundsupermark's top fund, Kenanga Growth and Easpring Small Cap, both are performing very well, around 16-17++ annually (10yrs++), Kenanga Growth even have 17%++ annual since (if not mistake is since 2001) the fund being launched. Norway's Sovereign Fund even allocate some money to Kenanga to invest for them for Malaysia Region. Chen Fan Fai used to be Fund Manager of Kenanga but now jump to Easpring, he is one of the best fund manager in Malaysia. I totally agree, more job need to be done by unit trust industry, not many good fund in malaysia, i also agree passive fund like KLCI tracker sometime can beat those active managed fund.

Posted by ks55 > 2016-09-23 10:35 | Report Abuse

Giving wrong advise to ignorant and ill-informed laymen definitely lead them to grave problem when they are old.

For those with 'extra knowledge', if sincerely want to give 'professional advise' must do it in good faith.

You know the meaning of good faith? Nothing is said to be done in good faith if it is not done with due care and attention.

The EPF ensures that your savings are secure and receive reasonable dividends. It guarantees a minimum of 2.5% Dividend annually.

Unit Trusts never guarantee any return. Read carefully the small prints in the prospectus. Unit Trusts sales personnel and agents won't tell those things. They just produce fantastic return from selected few funds in particular period of time.

If any layman having good knowledge, skill and experience, definitely they won't go for Unit Trusts. What is that to remind them they should have done their homework before they invest in Unit Trusts?

So, what do you have to say about:-
1. Withdraw EPF money to help pay your mortgage?
2. Withdraw EPF money and invest in Unit Trusts?

I rest my case...........