In December 2024, EPF published a new retirement framework.

Aimed at giving Malaysians a comprehensive monthly expenditure guide, this framework outlines three recommended savings levels that individuals should aim to achieve by the age of 60.

RM1.3 million may sound like a huge amount of money today, but at just 2.50% inflation, that value will shrink by 46% in 25 years.

By 2050, it wouldn’t be surprising if EPF updates the recommended figures to something like:

• Basic – RM390,000 → RM720,000

• Adequate – RM650,000 → RM1.21 million

• Enhanced – RM1.3 million → RM2.41 million

^ All to account for inflation.

Depending solely on EPF is no longer a practical strategy.

That’s why it’s becoming more important than ever to invest proactively and aim for higher returns — not just for the sake of wealth, but for a more comfortable and secure retirement.

But that raises a common question: Where do I start? And how do I know how much risk I should take?

Understanding Risk and Time Horizon

Retirement planning typically starts with understanding your goals clearly. Most people make the mistake of lumping all their investments into one giant portfolio, regardless of what it is for.

To give you a better idea, imagine you’re planning to save up some money for a down payment for a car in the next 2 years.

Because the timeframe is so short, you shouldn’t be taking too much risk in the market.

Investing in Bitcoin, gold, stocks/ETFs or similar risky assets is considered a bad move, as these assets can and will go through downturns during some months or years.

The last thing you need is to be unable to afford your new car because the market moved against your favor.

Conversely, if your investment horizon is 20 to 30 years, then taking on more risk makes sense.

While markets can and will decline over the short term, they generally recover and grow over time — rewarding those who stay invested through volatility.

Take Bitcoin as an example. During 2022–2023, it went through a brutal bear market, falling nearly 80% from $69,000 to $15,500.

Many new investors who lacked clear goals panicked and sold at the bottom — only to watch the asset rebound later and rally to $125,000.

So, to keep things simple:

• If your timeframe is short, take less risk (invest like a retiree).

• If your timeframe is long, you can afford to take more risk.

If you’re confused on when to buy or sell, ask yourself: what am I investing for?

How my retirement portfolio looks like

My portfolio is built to take as much risk with while still letting me sleep peacefully at night.

You don’t have to copy my exact allocations — and honestly, you shouldn’t, because everyone has different goals, risk tolerance, and aspirations.

By sector:

• 30% in the US market

• 13% in the MY market (MAYBANK, PBBANK, INARI, & TIMECOM)

• 8% in the SG market

• 14% in Bitcoin

• 7% in Gold

• 1% in P2P Lending

• 27% in Fixed Income and EPF (including EPF i-invest, ASM3, TNG Save, etc.)

How I rebalance

Each asset in my portfolio has a cap — a maximum percentage I allow it to reach.

If any asset rallies and grows beyond that limit, I take profits and move the excess into a weaker-performing asset to maintain balance.

For example, gold made up around 5% of my portfolio in January 2025.

I’ve capped it at 8%, meaning if gold rallies and goes beyond that, I’ll trim it back down to 5%.

At the moment, even with gold’s impressive rally, it’s around 7% — near my limit but not high enough to trigger a rebalance yet.

Why I’m Still Investing in the US Market (Despite “De-Dollarization”)

The de-dollarization narrative has been floating around ever since Trump took office, and it seems like every other day, there’s someone saying that the dollar will collapse in the next few years.

I don’t believe that will happen, and here’s why:

• Out of the top 10 largest companies in the world, 8 are American.

• Most of us rely on US-based companies in our daily lives.

Think about it — Apple, Google, Microsoft. These names have shaped how we work, communicate, and live — often without us even realizing they’re all from the US.

Right now, I’m writing this newsletter on an HP laptop powered by Microsoft software, and chances are, you’re reading it on an iPhone.

Sure, the US dollar’s dominance is slowly fading. In the past few years, many central banks have started replacing dollar reserves with gold, which partly explains gold’s surge in recent years.

But that doesn’t mean the dollar will vanish anytime soon.

It may eventually lose its reserve currency status, but it will still exist for decades — perhaps even a century.

Look at the British Pound.

In the early 1900s, it made up over 90% of global currency reserves before being overtaken by the US dollar. Yet, the Pound is still around today and still widely used.

I’m investing in the US market through ETFs that track the S&P, Dow Jones, or Nasdaq.

My investing strategy is very passive and I do not stock pick.

Rather than trading a single stock and timing the market, I choose to buy the entire US market instead.

The logic is simple — how sure are you that a stock you bought will still exist in the next 20-30 years?

If you acquired Apple, are you certain that this company will still be the tech giant it is today in the near future? 🤔

Why I’m Not “All-In” on Bitcoin or Gold

Bitcoin and gold have both performed spectacularly over the past 1–2 years. So it’s fair to ask — why not just go all-in?

To quote Hann Liew, founder of Halogen Capital and advisor of The Futurizts:

I’m a big believer in non-sovereign assets like gold and Bitcoin, but I still hold traditional ones such as stocks, ETFs, and ASM.

Gold and Bitcoin serve as insurance within my portfolio to protect against poor government policies or currency mismanagement.

If governments suddenly make their currencies strong and stable stores of value again, gold and Bitcoin could lose their appeal. My portfolio would take a hit, but it would survive — because it’s diversified.

Now imagine the opposite: you’re 100% in gold or Bitcoin. How would you feel if that asset fell by 30%, 40%, or even 50%?

It has happened before, and it will happen again.

Placing all your eggs in one basket is like going all-in on a single bet.

Sure, you might win big. But if you lose, you lose everything.

That’s not a game I want to play with my retirement money.

I don’t need to be the best investor or the one who earns the highest returns every year. What I do need is a strategy that helps me sleep peacefully at night while still growing my wealth at a rate that beats EPF’s long-term average.

Because at the end of the day, investing isn’t about chasing the highest returns. It’s about staying invested long enough to let compounding do its work.

A portfolio that grows steadily, allows me to live comfortably, and keeps my emotions in check — that’s worth more than any quick short-term gains.

Thanks for reading till the end!

The contents of this newsletter are for educational and informational purposes only and should not be taken as financial advice. Always do your own research or consult a licensed financial advisor before making any investment decisions.

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