Mar 7 2024, 02:30 PM
QUOTE(LostAndFound @ Mar 7 2024, 02:03 PM)
I have maxed out 8k every year (mostly 16k since both for myself and wife) since opening accounts when the kids were babies.
If you're asking whether the tax relief of 8k is worth it.... it's about RM2k less I have to pay to government at my tax bracket. And its not like every other tax relief where you actually have to spend and buy something, its literally putting aside savings for your kid's education. The dividend used to be decent too, now seems a bit worse, but lose 1% on there is not an issue when gaining 2k every year from tax relief plus additional 1% on full amount during ganjaran kesetiaan month.
Roughly calculating, definitely the dividend + ganjaran over the years is 20+k so far. Income tax benefit slightly more, maybe 25k between me and spouse. That's total roughly one third of the amount I had in the account as of 31st December 2023. Most of the ganjaran is from pumping a few hundred k just for those months la, but as you can see the income tax benefit is more worth (obviously, it's at 26% for me, compared to ganjaran 1%, but ganjaran is much much higher cap).
Another way of putting it, I saved X amount for my kids over the past 10 years, and due to income tax benefit and dividen and ganjaran I now have X+50% saved up. Bitcoin/AAPL/NVDA would have given more of course, but this is savings not investment.
one more way of looking at at is you deposit the whole RM 8k at mid of Dec yearly and by early Apr (around 3.5 months later ) you actually getting a one off 25% return, also based on the above mentioned tax bracket. Subsequently, you will be getting the standard return of about 3+%If you're asking whether the tax relief of 8k is worth it.... it's about RM2k less I have to pay to government at my tax bracket. And its not like every other tax relief where you actually have to spend and buy something, its literally putting aside savings for your kid's education. The dividend used to be decent too, now seems a bit worse, but lose 1% on there is not an issue when gaining 2k every year from tax relief plus additional 1% on full amount during ganjaran kesetiaan month.
Roughly calculating, definitely the dividend + ganjaran over the years is 20+k so far. Income tax benefit slightly more, maybe 25k between me and spouse. That's total roughly one third of the amount I had in the account as of 31st December 2023. Most of the ganjaran is from pumping a few hundred k just for those months la, but as you can see the income tax benefit is more worth (obviously, it's at 26% for me, compared to ganjaran 1%, but ganjaran is much much higher cap).
Another way of putting it, I saved X amount for my kids over the past 10 years, and due to income tax benefit and dividen and ganjaran I now have X+50% saved up. Bitcoin/AAPL/NVDA would have given more of course, but this is savings not investment.
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