Tuesday, March 23, 2010

EPF Rules - A MUST Read

Yesterday, I received an email from a friend on EPF Rules. I am not sure the source of this information but worth reading. Because there are circumstances which never crossed our mind....

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Subject: EPF Rules- A MUST READ

If ONE (1) of your Nominees in the EPF Nominees list dies, automatically the whole arrangement (EPF Nominees list) is VOID .. Meaning if, you only put in One (1) name & unfortunately he/she dies before you - automatically EPF will channel your EPF money to trustee of AMANAH RAYA upon your death.

Even though if you have few names in the EPF Nominees list, - the whole arrangement is VOID & none of the individual names left in the EPF Nominees list will get their portion & automatically EPF will channel your EPF money to trustee of AMANAH RAYA upon your death.

Piece of advice - if any of the your Nominees in the EPF Nominees list dies, please do immediately approach the nearest EPF counter & present the Death Certificate of the individual & register your NEW / LATEST Nominee in the EPF Nominees list + NEW / LATEST percentage .

If, you & the other party (maybe spouse) involved in the same misfortune (accident / illness) that caused death to both yourself / spouse please, please, please alert your siblings / relatives / parents to immediately approach the nearest EPF counter & share the information within 3 days to AVOID all EPF money to be surrendered to trustee of AMANAH RAYA .

Upon surrender to trustee of AMANAH RAYA, your children will have to battle the money thru 3 channels;

Majlis Agama

Pejabat Tanah

Mahkamah

The normal period via above 3 channels usually takes 2-3 years (except if you have inside/tip top connection) at Amanah Raya.

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Anyone with any experience with the above, feel free to share with me.

Sunday, March 21, 2010

Money Skills

All of us know how to earn money. But, how many of us know how to save or grow money? From what I see, there are a few types of money skills people which I categorized as below:

1) Earn $2000 and spend $2000
For those who just earn their first few incomes, they tend to belong to this group. Because they feel like they deserved to spend their first hard earned money. Many who just received their first paycheque especially graduates students who had been living in limited cash and gone through long hard way always spend most part of their first few income.

Other than young graduates who just joined the workforce, there are also some who feel like, 'there is no need to worry about tomorrow'. To these people, tomorrow will take care of themselves. So, they will just spend all they have.

2) Earn $2000, spend $500 and save $1500
Not many people manage to save 75% of their paycheque. And it is not easy to do that in the current economy situation. For those who managed to do it, most of them are practising frugal living. They are very cautious in their spending and most of the time, they are very good in planning for their spending.

3) Earn $2000 and spend $2500
For this type of people, they are spending their future money. If they are lucky enough, they are getting the extra money to spend from someone else (parents, spouse, other sources). For those who are not so lucky, their extra spending is paid by credit cards or personal loan or worse, money lender @ loan shark. After certain period of time or some tough and hard learning, some of them might be able to drag themselves out from this harmful spending pattern.

4) Earn $2000, spend $1500 and save $500
I believe most of us belong to this group. Maybe not saving exactly 25% from our income but more or less around 25%. Which I consider is quite healthy money skills. To some, 25% is not good enough, but if this 25% is properly managed, within a period of time, it can grow in huge some of money.

For us to lead a healthy lifestyle, money skills is important. We should save some and spend smartly. Which money skills you belong to? Feel free to share you opinions.

Friday, March 5, 2010

EPF@KWSP - EPF Declares 5.65 Percent Dividend Rate For 2009

EPF today declares 5.65% dividend rate for year 2009. That is much higher that 2008 dividend rate which was 4.50%. EPF also announced it earlier than last year which was 17 Mar 2009. The news also mentioned that "The dividend rate was declared on the back of the highest ever net income achieved of RM19.63 billion". Wow... RM19.63 billion @ RM19 630 000 000! Impressive! That is really a lot of money!

How I wish we will be receiving more than 8.50% because that was the highest ever declared dividend which was for year 1983-1987. Anyway I am thankful for the 5.65%.

The 2009 dividends will be credited to its members’ accounts on 8 March 2010, next Monday.

For complete news, please click here.