KCLau's Money Tips Forum

[leon]

hi, hope can give some advise abt this.

basically, im considering to increase my epf contribution from current 12%. i understand that i can request higher epf contribution from my employer, but of course balance out with lower salary figure. so the overall income is same. maybe increse it to 15~16%.

however, im considering the following:
PROS
- 5~6% return estimate, which higher than FD.
- can be re-channeled to UT; with better fees than market rate.
- can be used for home repayment, which should take up most of my savings anyway.
- current market situation seems falling

CONS
- maybe higher return from stock market
- maybe the returns will decrease
- less cash savings
- lower salary value (which will affect loan applications, job switch?)

does anyone have any advise on this?
also; just a question: from investment on UT; does the returns all finally go back to the EPF account? (meaning, i cannot receive it?)

hope to hear your points and comments
TQ

[KCLau]

If you want to channel more money into EPF, the main reason I can think of is to save tax.
If your tax bracket is very high, such as 20-27%, then it is really wise to channel more money into EPF. It will be tax free!

just a question: from investment on UT; does the returns all finally go back to the EPF account? (meaning, i cannot receive it?)

When you sell the UT, it will be credit back to your EPF account. You can't touch it until age 55.