Your EPF money

Week 13.2 Your EPF money

I’m sure you have read many articles on fiat currency and many others’ gurus. Here is some of crucial idea for you to think. One of your biggest saving in your life is your EPF saving.

Housing Withdrawal

I always withdraw everything in my EPF account 2 to settle my housing loan every year since I get into gold in 2008. I ‘m not sure about you but I think by the time I reach 55 years old, the money in my EPF will not be able to catch up with inflation. Thus, you need a vehicle to withdraw your EPF money, thus buying a house using a long term loan 30years (or until you are 55 years old whichever is earlier) from a bank will do this job. If you think your EPF money is for your old time saving never to be touched then by all mean keep it there. Maybe if you bump on me sometime in future, I can talk more about this. I never withdraw for any other EPF’s investment scheme. Please note that you can only take the EPF withdrawal for two houses only. Whether you do well in real-estate investment is another story. However as for me a house is for me to stay and not an investment.

Government staff with Pension option

If you are government staff you can choose either the EPF option or the pension option. Your decision may dependent on your profession, position and age. For example, most doctors are likely to leave for private sector, thus they will take the EPF option where the government will contribute the 11% of the employer portion. This portion of contribution will be taken back if you choose the pension option. It’s a question of timing, cost benefit etc. I have no answer for that.

Worst Case Scenario

Just look at some of the pension fund in USA, Canada and Europe.

http://www.godlikeproductions.com/forum1/message1298746/pg1

http://www.pewcenteronthestates.org/uploadedFiles/Pew_pensions_retiree_benefits.pdf

What is happening there? Whether the same thing will happen here or not, I leave it to your own judgment. If you think the worst thing will happen also by the time you reach 55 years old maybe 60 years as they change the rule along the way, withdraw everything you can under the book of law.

Back then in 2006, I heard for a peak-oil activist, he said I’ve considered my pension fund is gone from day 1.