Academics research Accumulated Income Payments AIP

• Tax preferences for education saving: are RESPs effective?, Milligan, K. (2002). Tax preferences for education saving: are RESPs effective?. Commentary-CD Howe Institute, (174).
• The European Union's Foreign Direct Investment into Indonesia: Determinants and Threats, Ramasamy, B., & Yeung, M. (2004). The European Unions Foreign Direct Investment into Indonesia: Determinants and Threats. In Foreign investment in developing countries (pp. 134-153). Palgrave Macmillan, London. For many developing economies, foreign direct investment (FDI) has been the oil that fired the engine of economic development. Typical examples include Malaysia, Singapore, Taiwan and South Korea. For countries that entered the FDI arena in the 1970s, the early-mover advantage provided them with the necessary flow of investment. Having access to cheap labour and natural resources made these economies a haven for MNCs from developed economies. Over time, however, a greater number of players have entered this FDI tournament. The late-comers, such as Vietnam, China, the Central and East European (CEE) countries as well as several Latin American nations, are now able to compete with the early-movers and in some cases are winning the tournament. At the same time, the proportion of FDI flowing to developing countries has decreased markedly in recent years (UNCTAD, 2002). South-East Asia has been particularly hit as FDI declined from USD 27.7 billion in 1997 to USD 10.7 billion in 2001. This dramatic decline has made the tournament among these countries more intense. 
• Analysis of Taxdeductible Interest Payments for Readvanceable Canadian Mortgages, Naseem, A., & Reesor, M. (2011, November). Analysis of Taxdeductible Interest Payments for Readvanceable Canadian Mortgages. In AIP Conference Proceedings (Vol. 1368, No. 1, pp. 221-224). AIP. According to Canadian tax law the interest on loans used for investment purposes is tax deductible while interest on personal mortgage loans is not. One way of transforming from nontax deductible to tax deductible interest expenses is to borrow against home equity to make investments. A readvanceable mortgage is a product specifically designed to take advantage of this tax discrepancy. Using simulation we study the risk associated with the readvanceable mortgage strategy to provide a better description of the mortgagor's position. We assume that the mortgagor invests the borrowings secured by home equity into a single risky asset (e.g., stock or mutual fund) whose evolution is described by geometric Brownian motion (GBM). With a readvanceable mortgage we find that the average mortgage payoff time is less than the original mortgage term. However, there is considerable variation in the payoff times with a significant probability of a payoff time exceeding the original mortgage term. Higher income homeowners enjoy a payoff time distribution with both a lower average and a lower standard deviation than lowincome homeowners. Thus this strategy is most beneficial to those with the highest income. We also find this strategy protects the homeowner in the event of job loss. This work is important to lenders, financial planners and homeowners to more fully understand the benefits and risk associated with this strategy. 
• RESPs and Estate Planning, Carey, F. (2007). RESPs and Estate Planning. Est. Tr. & Pensions J., 27, 124.
• Assessing the adequacy of contribution rates towards employees' provident fund in Malaysia, Saidi, N. A. N., Yusuf, M. M., & Basah, M. Y. A. (2017, April). Assessing the adequacy of contribution rates towards employees provident fund in Malaysia. In AIP Conference Proceedings (Vol. 1830, No. 1, p. 040006). AIP Publishing. The vital role of Malaysian Employees Provident Fund (EPF) is to provide financial support for its participants during retirement years. However, the issues of inadequacy have risen and EPF has been through various improvements in order to cope with current living situations, including making adjustment in the contribution rates. This study intends to provide the projection of EPF accumulations for three different types of contribution rates namely contribution rates at current fixed rate, increasing and decreasing proportion. Then, the replacement ratio is calculated and is used as an indicator to determine the adequacy of retirement income delivered by EPF. The ideal replacement ratio recommended by financial advisors is at 70%. Based on the findings in this study, contribution rates following a decreasing proportion gives replacement ratio that exceeds or nearest to the ideal replacement ratio, while contribution rates at current fixed rate gives replacement rates that fall far from 70%. Therefore, this study shows that the accumulated amount in the fund with contribution rates following a decreasing proportion gives higher replacement ratio and is recommended to be applied by the Malaysian EPF.