Since my last post about family insurance plans, the lovely JoMel has responded rather promptly and at length to my genuine query. Now I’m not so quick to commit myself into the Education/Insurance plan for Tee. But having said that, I do like the coverage for insurance that she’d get with it. I mean, you just never know……..
*brain wreck*
We already have several unit trust investments and our own whole life policies. Plus medical and personal accident.
So what next?
I really need to discuss this properly with the Hubs and work out some calculations. I wonder how much of his EPF money can be dumped into insurance or unit trusts. Can we purchase property or stocks with EPF money?
I am really a ‘dunggu’ when it comes to finances. As the Hubs will gladly share.
**************************************************************************Who is Mamapumpkin?
Mamapumpkin spent 7 years in London committing crimes to gain her Bartlett degree in Architecture. She then spent 7 years as a Stay At Home Mom raising her children as documented in this blog of over 15 years thereafter returning to the Corporate World stronger than ever as the Country Director of a British Multinational. She sets out to prove to all, that you can have anything and everything that you want; if you have that fire of desire burning within and the drive to work hard. Even better with much love.
Mamapumpkin has not only grown corporate businesses successfully in the past but has grown not one but TWO network marketing businesses in the notorious MLM (Multi-Level Marketing) industry, achieving success in under 2 years. She believes in the MLM business model but realises the DRASTIC PITFALLS and great stigma attached to it, understanding EXACTLY WHY the majority would shy away (or RUN for their lives) from ANY MLM business. But open your eyes and take time to understand it intellectually, remove your hang-ups, confirm your research, and you may just want to seize an opportunity. She did. And no, she never went about chasing people for sales. She had a sophisticated system work for her through technology and a smartphone.
She now impacts lives authentically with proven strategies amassed through the last decade of her own transformation offering online coaching programmes and always supports the underprivileged. She believes that we can all have a life of our own desires to enable real contribution into the world. But first, one needs to understand what this all means.
A beautiful life without limits.
If you wish to learn some tools to propel your life forward guaranteed, be brave enough to make contact as her life's purpose is to build people. She operates through a discovery call after which she will commit to helping you. Or not.
Most lose out on an opportunity because they are afraid they would be sold to, conned or whatever fear resides in their brain without even trying. And that's on them.
Mamapumpkin is a living testimony that women really can have a lot. Being financially and time free has enabled her to travel the world anytime, anywhere, doing anything, and she spends most of her days with her children, having fun, and supporting others wherever she can. Also having fun.
aiyah… you ask this kind of question, I wanna pretend not to see also cannot. 😉
EPF money from Account 1, can be invested in Unit trust, but only for approved funds as determined by the EPF
EPF money from Account 2, can be withdrawn to pay the differential sum between your initial 10% deposit for your new home and the amt that you are lending from the bank. And according to the new Budget, with effect Jan 2008, you may withdraw money from Account 2 every month to pay your bank loan.
EPF money cannot be invested in the stock market.
With regards to investing in Unit Trust with EPF account 1, it is a very very very wise thing to do. In the past, EPF dividend comes up to about 5%. Sorry, if I am offending anyone here… but 5 freaking %????? I thought the money is also invested by EPF into different investment instruments, like Unit trusts?? Why only 5%!!!??? You can do better than that! Invest in Unit trust yourself! Afterall, there’s only a certain limit you are allowed to withdraw. Eg, if you have RM100K in account 1, RM50K cannot be touched. And of the remaining 50K, only 20% can be invested in the approved unit trust funds. Once every three months. Might as well do it right? Unless 5%, you are happy with.
With regards to using EPF account 2 to pay for home, fine. But if EPF is paying 5%, and mortgage interest is slightly higher than that, then you still have to pay from your own pocket. Unless, you manage to get those home loan whereby, you have fixed 2% or fixed 3% in the first or second year, then it’s great to withdraw from EPF account 2 during this time period. Ok, don’t know if this makes sense. I find this harder to explain anyway. Having said there, most people are quite strapped for cash and withdrawing from account 2 to pay for their home does ease a lot of the financial burden, and in this case, I would say go for it. But if you have the extra cash to pay for your home without withdrawing from EPF, better still.