Compare Savings Increase B.S. Buying More Stocks in Savings Cooperatives

✅ Comparison: Saving more in B.C. (civil service pension fund) and buying more shares in savings cooperatives.

Both options are good savings increases for civil servants, but they have different characteristics and objectives, in which the decision of which one is "better" depends on, the financial goals, the investment period and the acceptable level of risk, of the individual.

💰 More savings in GPF: Government Pension Fund)

It is a mandatory retirement savings system for repackaged civil servants, and can choose to save more from the legal cumulative rate (3%).

Advantage

• Tax deduction: Additional savings can be tax deductible, combined with legal savings, RMF, and pension insurance, not exceeding 500,000 baht per year.

• Increase retirement money: Helps increase the lump sum to be earned at retirement

• Investment Choice: There are a wide range of investment plans available based on risk level, from stability-oriented plans to high-growth-oriented plans (such as equity plans, or foreign stocks), making it more likely to earn a return than a typical deposit in the long run.

• High stability: Administered by the public sector, highly reliable

The downside

• Investment risk: B.C. to invest money. Principal is not guaranteed (except for government contributions and compensation). If high-risk plans (such as stocks) are selected and stock markets fall, savings can be reduced.

• Low liquidity: Marginal savings are refunded. Only upon the expiration of membership (retirement, resignation according to state program) cannot be refunded during membership.

• Yield: There is no annual dividend like a cooperative. The yield depends on the fund's earnings.

🏦 Purchase of more shares in savings cooperatives

It is co-owned in a cooperative and enjoys benefits as a member.

Advantage

• Receives high dividends: usually paid, dividends at a higher rate than interest on deposits, common and dividends earned, not taxable.

• Loan Source: Stock capital can be used as guaranteed securities to borrow common money at a high limit by using the claim on stock money, giving the option to access the loan at a lower interest than other financial institutions.

• Higher liquidity (in some cases): Can resign and request stock housing payback (even with the time required) or can reduce monthly stock remittances

The downside

• Cooperative risk: There is a risk of stability and transparency in the management of the cooperative itself, which can cause corruption or mismanagement.

• No Tax Cuts: More Purchased Stock Money Not Tax Cuts

• Restrictions: There are usually restrictions on buying more shares per month / per year (i.e. not more than 10% of monthly income).

Instructions

1. If you want long-term tax benefits and returns (10 years or more) with risk acceptance: You should choose more savings in B.C. by considering investment plans that are suitable for acceptable age and risk (for young / high-risk people, you should choose an equity-focused plan).

2. If you want a relatively certain return at a high rate (5-7% per year) and want the right to borrow money (liquidity to borrow): You should choose to buy more shares in a savings cooperative, mainly considering the stability and reliability of the cooperative.

✅ The best strategy is to "diversify" by dividing savings into both options:

• Save more in B.C. to full tax deduction or at the level of risk received for retirement goals.

• Buy Co-operative Savings Stocks for Annual Dividends and as a Source of Emergency Allowance Funding (Right to Borrow)

# Finance # Civil Service Pension Fund # Teacher Savings Cooperative