EPF A/C 2 Withdrawal - Part 2

and so, I continue from where I left earlier 

I bought my first home (note, I really cherish it and wanted to make it forever...) in year 2000. That time, I was only 2nd year to really working full time. I took a loan from my parents (as an advanced wedding angpow) + savings and bought. Never, NEVER I told myself that I will utilised the EPF money as EPF is MEANT FOR RETIREMENT. So naive. Being 24. What do you expect?

For the next few years, I worked so hard and every penny goes into the home. Left me with very little savings and some times negative in the a/c comes festive season.

When the trigger of change (note, there was a huge change in my life) came in year 2007, I realised time to visit the EPF and use up A/c 2 to reduce the loan.

It was very easy. I really salute EPF Shah Alam Branch for their efficiency.

Documents you need:

The EPF Form which you can download from their web

Photocopy of your IC

S&P

Bank letter to mention the balance of loan

Land Title

It was in year 2007 and I remember vividly that it took 1 month for EPF to send me the cheque. Extremely pleased and by year 2008, I completed the loan for the house we bought at RM280k in USJ 9 in Year 2000.

In year 2008 when I did a second withdrawal, I only needed the form, Photocopy of IC and Bank Letter.

EPF allows contributors to use it for their first house purchased. If you have more than 1 property and wanted to withdraw EPF for your 2nd property, you needed to show evidence and proof that your first house is properly disposed off. a S&P is not sufficient. They need the Land Title to proof.

Anyway in year 2011, I did a withdrawal on my 2nd property. This time, I visited the same branch and within 1 week, I got it approved (approval was 1 day) and 4 days later, the money was in the bank. 

Not sure about other branches, but Shah Alam, the one I frequent is good for me.

I also utilised my EPF A/c1 for UNit Trust Investment purposes and Proud to say, up to today, I have been making good profit..returns at min 10%. If you leave your money in EPF A/c 1, interest is only 3-4% annually. The bulk of your money is in EPF A/c1. So must make full use.

So come 2012, I am going to EPF again to do loan reducing for my property...woohoowhoohoo

EPF A/C 2 Withdrawal - Part 1

Wow! I've left this blog un-touched for a long time. Well, I have some exciting topics to post, therefore I am returning to blogsphere. No point to blog about "mou-liu" or non-sensual stuff right ;p

One of the topics that I want to post is about our EPF A/c withdrawal.

As a working employee in Malaysia, your employer would need to contribute to the Employees Provident Fund (EPF) or in Malaysia, Kumpulan Wang Simpanan Pekerja (KWSP). Here is their website

When your employer contributes for you, your money will be split to 3 accounts, namely Account 1, Account 2 and Account 3. By right, as the fund says, this money is meant for your retirement. However in today's lifestyle, money is never sufficient. Raising debt is another concern.

Once your money is in EPF, it will automatically split to the 3 accounts.

For account 1, you cant withdraw the money until you are at retirement age. However exception is given for "investment". You can withdraw to a certain percentage for buying Unit Trust OR trade in our local stock market. Do note that whatever profit you make from the Unit Trust or Stock Market, you cannot withdraw. It will automatically plough back to your EPF Account 1.

For account 2, you can withdraw the money to buy your first house or 2nd house** or education..and many more.

For account 3, its for medical assistance.

This is a very basic explanation of our EPF System. Of course, to know more, you should always refer back to the EPF officers or their website.

Stay tune for Part 2 when I discussed more about my personal experience in withdrawing A/c 2 for my 2 houses.