If you are in Malaysia, and you’ve just started thinking about how to save and invest for your retirement, you might get started by learning more about the Employees Provident Fund (EPF). Once you’ve gathered the necessary information, you should be prepared to consult with a specialist who can help you get the process started.
So, what is the EPF Members scheme for investment about, and how can it help you prepare for the years when you’re not working? You can choose to put part of your EPF funds in an approved trust fund. This account is intended for to grow your money so it will be sufficient to support you during your retirement years.
Where to Begin
Members can put up to 30% of available savings in the primary account, with a specific minimum set at RM1,000. Your first step to start securing your life after retirement with EPF investment in Malaysia is to work with a financial professional at a fund management institution that will manage the funds as described by the investment scheme. Any earned dividends are put back into the EPF account, for withdrawal after you reach retirement age.
When you consult with a representative, you’ll be able to select from an array of approved funds. The list includes mixed funds, equities, money markets, and bonds. For example, you might choose an income plus fund if your goal is to have a steady income over a longer term. Perhaps you’ll want a money-market fund or a cumulative-growth fund with a slightly higher risk, so you get more capital growth.
As you plan your EPF investment, make sure you understand the funds may not be guaranteed to protect your capital. You must be prepared to sustain both losses and enjoy income earnings. This basic fact means it’s wise to work with a trusted fund-management institution, so you’ll get the best advice and guidance possible. They’ll explain that, with an EPF program, you are in control of your money because you decide how you want to invest. This decision is based on your tolerance for risk.
Dividends vary, of course, depending on the choice you make. You can rely on 5% to 6%, though it’s probably possible to earn much more if your investment choices are right. Naturally, you can always reinvest and make your portfolio even stronger. When you use the EPF program, you don’t have to make changes in your lifestyle, just because you don’t dip into your savings to invest.
To get started right away, get in touch with a representative of a management institution to discuss the benefits of building toward your retirement with this scheme. Do some research first and consult with your adviser as an educated consumer.