The govt has announced that w.e.f. Jan 09, EPF contributions will be reduced from 11% of their salary to 8% for 2 years. This is to give employees more disposable income (YES! The word is “disposable”) to increase household spending to stimulate the economy. It will be applied to all employees. Those who wish to maintain the 11% contribution have to apply thro a special form.Several bodies including CUEPACS are against this reduction as it means less household savings.
If the reduction goes through in Jan 09, we have a great opportunity to get our friends/prospects/investors to put the 3% into a monthly DDI so that they will not spend it.
If they do not want us to know how much they earn, let’s be sensitive & suggest a figure.
As our minimum monthly investment is RM100, it would mean that those with monthly salary of RM3,333 will have an extra RM100 net take-home pay. Those who earn
& use amounts like RM338 or $555, reason we give them is that it will be easier to identify the amount in our bank account. Every additional RM38 or RM55 u can get will increase your total monthly DDI be a lot!
Advantages of DDI Sales:
Ø Building up your DDI sales will build up a passive income for u gradually as the monthly amounts are automatically invested with no further effort from u or the investor.
Ø Investors will not feel the pinch as the monthly amounts are small but the cumulative amounts eventually will be substantial.
Ø U can ask for increase of the monthly amount when investors have more income later.
Ø U can also ask for additional DDI investments when investor has a new child, etc.
Ø Investors get to accumulate more units in the long run becoz of DCA (dollar-cost-averaging).
Ø DCA effect will mean that investors will not suffer big unrealized losses when markets are down.
The best tools to use to close monthly DDI would be “Cost of Procrastination & Dollar Cost Averaging
P/s who want to remain contribution 11%, please fill in and submit form KWSP 17A (AHL).
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