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i-Sinar – A Good Idea Or Bad Idea?

i-Sinar - A Good Idea Or Bad Idea Blog
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In the past, you had to meet specific requirements if you wanted to touch your EPF Account 1. However, thanks to a new government policy that took effect on the 8th of March 2021, all applications for i-Sinar will be promptly approved if the applicant meets three (3) criteria.

Criteria For i-Sinar Approval

Under the new regulation, three criteria to meet for approval are;

  1. The applicant must be an EPF member.
  2. The applicant must be under 55 years of age.
  3. The applicant must have a minimum savings balance of RM 150 in their EPF Account 1.

However, this access to your EPF savings raises a fundamental question; should you access your account first? Here are things to remember when making a decision here.

Choosing To Or Not To Use i-Sinar To Withdraw Your EPF Savings

Even now, many Malaysians are still reeling from the impact of the pandemic. This policy might be a god-sent gift for these people who may have lost their sources of income and yet have to pay utility bills, rent, feed themselves, and take care of other expenses. However, if you’ve still got your job, can quickly pay all your bills, and don’t need to tap into your emergency funds, then you might be better off leaving your EPF savings as it is. One thing you need to always remember down this road is that withdrawing from your EPF for whatever reason automatically diminishes the amount of reserve you can call on when it’s finally time to retire. While that mightn’t seem like a big deal now, time flies, and no one knows what tomorrow holds. As such, it’s always better to play things safe and keep as much as possible to take care of yourself even in your old age.

Is Taking Money Out Of Your EPF To Invest a Smart Play?

Everyone knows that leaving money to sit there is always a waste. As such, it’s only natural to consider digging into your EPF so you can put money into something more rewarding. But, before you take this step, consider the possibility that your money is already in the best investment stream possible!

What Do We Mean?

In 2020, the EPF declared a whopping 5.2% dividend! Nine years before, they paid an average bonus of 6.1%. The most that other safe and reliable investments like ASB and fixed deposits have been able to pay in the same time frame is 4.25%. And while you can always get more profit in the stock exchange market, remember that even professional brokers and investors often suddenly lose it all.

Our Opinion

This access to a stream of funds can seem enticing to capitalize on, but you should leverage it with caution, if at all. While survival today is essential, you should also try not to jeopardize your future.

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