MrMoneyTV: Achieving RM1 million in EPF is NOT as hard as you think!

But you will need to set aside money APART from this.

Author

The Futurizts
March 20, 2025

On Sunday night, I invited Peter from MrMoneyTV to host an AMA session to address your biggest questions.

The discussion spanned over an hour, and we touched on topics such as achieving RM1 million in EPF, choosing the best medical premiums, starting a business, balancing hobbies with work, and savings tips.

If you missed the live session:

Is it hard to withdraw EPF money after hitting RM1 million?

Shinji: FYI, EPF allows members to withdraw any excess balance above RM1 million anytime—even before 50 or 55.

So, if you're 40 years old and have RM1.5 million saved, you can liquidate RM500k instantly—no questions asked.

Peter: Personally, I find EPF to be one of the most efficient government agencies. I’ve never had any issues with withdrawals.

And here’s some good news: Hitting RM1 million in EPF is not as hard as you think. With a decent-paying job and early savings, most people can achieve (or even exceed) this target in 20-30 years.

Shinji: I agree. I’ve done the math—if you start working at 22-24 with a salary of RM2.4-2.5k/month, you can reach RM1 million in EPF with consistent contributions.

What’s the best business to start in 2025 with a capital of RM50k ?

Peter: Start engaging with an audience by producing content.

A lot of people have the idea of starting a business thinking that it will work, and you start throwing in money. Unfortunately, these ideas don’t work very often and you end up wasting a lot of your capital.

But by creating content, you’re essentially doing a market survey to understand what sort of product that you want to sell later.

So start an Instagram page, YouTube channel, podcast, or whatever that can help you push your brand out. Talk about things that interest you, be it fitness, finance, travel, etc., then pivot to selling a product when you’ve built a healthy audience.

Is saving in EPF still a good idea, considering inflation and our depreciating ringgit?

With gig economy becoming a thing, this will also result in EPF having lesser money. It is a problem that the current millennials and Gen Zs will have to tackle soon.

If your retirement expenses is RM100k per year and you’re only relying on EPF, then you will probably struggle.

I personally would only rely 50% on EPF and use money from my own investments.

Shinji: RM1.3 million may seem like a lot right now, but it will not be enough in the next 20-30 years, which is why it is important to invest in the markets.

That said, EPF is still a very good place to stash your money, especially if you’re a low risk investor. With a 6% return annually and full liquidity after withdrawal age, it easily beats traditional FDs.

What other low-risk investments are there to generate passive income besides EPF?

Peter: EPF has set the bar so high that it’s extremely difficult for other low risk products to beat.

Shinji: My job is to scour the internet and look for the best places to grow your savings, and so far the clear winner is still EPF.

MBSB fixed deposit is the next highest, at 4% pa:

Here are 8 Best Places to Grow Your Savings Right Now

thefuturizts.beehiiv.com/p/here-are-8-best-places-to-grow-your-savings-right-now

EPF is underrated. It beats most unit trusts and PRS funds after fees.

Shinji: According to data from FSMOne, only two aggressive PRS funds out of 29 managed to beat EPF’s 5-year performance of 5.52% pa.

What’s your usual habit once you receive your monthly paycheck?

Peter: I immediately set RM1,000 aside for investment during the start of the month. The remainder is used to pay off all the family stuff—children’s education, car loans, housing loan—anything left is for me to spend.

I don’t follow general budgeting rules.

Shinji: Treat yourself like a bill to pay yourself a fixed percentage of your salary (5%, 10%, or any figure you’re comfortable with). During the start of the month, send that money to a separate bank account or use it to invest.

Now you can spend the remainder of your money without guilt. When the end of the month approaches, carry forward any balance to the next month and repeat the same process.

Imagine you’re earning RM5k and the next month your salary becomes RM5.2k because of your leftover savings - that really is a morale booster.

How will the property market look like in the next 5-10 years?

Shinji: A lot of people in my current generation (millennials) simply don’t have enough money to buy multiple properties.

This is because the market has been propped up by the previous generation owning multiple condos, houses, and shoplots—the more the merrier.

And even if I do have the money, I’d probably only own one property for stay and use the remaining to invest in the market.

If we project this trend forward 20-25 years, you’ll see that the demand for property will generally decline (following the birthrate), which will translate to lower growth and stagnant prices.

Peter: My views are quite similar to yours. It’s clear that there is a population decline.

By 2040 and 2050, Malaysia will be an aging population. We’ll be something like Hong Kong and Japan, where there are a lot of expensive properties mainly owned by the rich.

Prices will keep going up because of this, but the poor can’t afford them. So who’s left to buy these properties? Again, it’s the rich.

Now things become interesting - you have a lot of properties, but people don’t want to buy (or can’t afford) them.

The only way to keep this growth going is a booster from the government (something like the JS-SEZ agreement with Johor and Singapore).

However, I don’t think the property sector is doomed, but we’ll see a significant price difference between properties that are in urban and rural areas.

You’ll notice areas like Bangsar and Mont Kiara become more and more unaffordable, while the price of properties in the outskirts will remain stagnant.

How to choose a good insurance (medical card) with investment linked plan?

Shinji: I believe that there should be multiple guidelines on how to buy your own insurance. From my understanding, the high prices come from commission towards agents and Investment Linked Plans (ILPs).

Peter: I worked as an insurance agent previously. To correct your statement, the commission towards agents for ILPs is actually lower compared to the standard plan.

The problem all started from one company.

At one point, this firm decided to come up with a RM1 mil annual lifetime plan, which all competitors had to follow.

With new medical advancements coming in, things will definitely become more expensive, but insurance companies can’t just rework their product and only price up once. They’ll also have to take into account future price increases.

This is one of the reasons why we see premiums going up by such absurd amounts, and don’t forget: private hospitals and insurance companies are for profit companies. They’ll charge you more if they can.

Unfortunately, you can’t buy investment linked plans online. Agents will still have to be involved.

Shinji: But there are medical premiums online. You just have to do some research. Here are a few guidelines I follow:

Another thing about ILPs - a lot of them don’t even keep up with inflation. You might as well you use that extra money to dollar cost average into the markets.

Peter: True. But I still choose insurance with ILP to protect my money. The main reason for it is because of the product structure.

It gives you the flexibility to pay your premiums using the cash value inside the plan, in the event you’re unable to meet your monthly payments.

What’s a good way to start your financial journey as a fresh grad?

Peter: Save more money and find a way to be great at what you do best.

Next, prioritize having a good income. As long as you ensure that you can make good money, you can claw yourself back from unfortunate situations, no matter how severe.

I am the perfect example of it. I’ve made quite a few mistakes in my life, but because of my healthy income, I am able to bounce back from these unfortunate events.

Shinji: There are many ads these days talking about skipping your 9-5 jobs by trading in the markets.

But let’s think about it for a second: global markets are controlled by big players who have hundreds or even thousands of professional analysts working to trade and analyze the ups and downs.

They have the capital and capability to set market trends, so your odds to “make it” as a trader are VERY slim.

The best approach is to invest long term. Time in the market always beats timing the market.

Given the benefit of hindsight, I will invest more in myself by reading books, listening to podcasts, and watching different videos. You are your most valuable asset.

How do you balance your hobbies with work as business owners?

Peter: You’ve got a lifetime to be successful and have a great career, but you only have a limited time to spend it with your family, investing in yourself, or your health.

When you’re 60-70 years old, it’s a bit too late to invest in your health, so I make it my one of my top priorities.

To do so, I block my time for hobbies (ie. golf, reading, and Jujitsu). Thursdays are for me to do sports, so I tell my team to only contact me when there’s an emergency.

Shinji: I have a notebook to list down all the things that I’m supposed to complete by the end of the day.

There are a few days where I finish all my tasks early, (ie. before 2 pm of even 12 pm). Rather than continue working and producing content, I take a rest and watch movies to enjoy myself.

I play badminton once or twice a week, always on Tuesday or Wednesday nights.

Peter: I think what you and I share is a routine.

When you have a set schedule, your life becomes more balanced. There’s a clear boundary between things that are important to you, and things that are just not worth your time.

This summary does not fully encapsulate the thoughts shared by both speakers. Watch or listen to the full replay on:

DISCLAIMER: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice. The opinions of this newsletter are solely that of the publisher.

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