If U really want to "optimize" & assuming tax rate is >=20%+ in future, i'd suggest:
1. Put in a sum NOW, just to open a SSPN A/C for yr child
a. For easier education borrowing and stuff if needed
b. For easier execution of further steps

2. 2 to 3 years BEFORE your child goes for Uni, put in MAX into SSPN (allowable for tax relief).
a. no investments can GUARANTEE U >10%+pa.
The tax relief +interest %pa, even if calculated over 3 years, is like >10%pa
Most mutual funds or stocks' long term average is 7%pa-10%pa
Thus, why not? With very little risks other than PTPTN kaput

Thus, between (1.) and (2.), please channel your cash to planned dollar cost,
OR better yet,
value cost averaging, investment programs
and
buy good companies' stocks at value.
Reason?
Given say 16-17 years (assuming lar child is 0-2 years old), the tax relief + 3% to 4%pa, doesn't match the average long term returns of equities.

Just a thought - no right/wrong

withdraw wor.. bank can ka?

bro - U said can withdraw SSPN from bank
i asked sure ka withdraw from bank?
now U ask me back cannot withdraw partial? er.. English and i'm seriously confused??

This post has been edited by wongmunkeong: Nov 3 2015, 01:13 PM

er.. so far i read and know from calls/emails to PTPTN, i'll have to go to their PTPTN's branch/office, not banks.
i'm trying to figure out why you mentioned "withdraw from banks"?

good gawd.. another forumer posted he/she will go UTC... when did PTPTN's SSPN become a unit trust OR UTC is a place... i'm getting muddier AND muddier..

This post has been edited by wongmunkeong: Nov 3 2015, 08:43 PM

muah muah (no kiss icon wan)

thanks Nexona88 for helping be achieve clarity on that 3 letter word heheh - Urban Transformation Centre..
gawd.. too many same abbreviations floating around + i baka locked-in to "investment jargons" only when see UTC

Works only IF:
1. when withdraw on 6th year,
we willingly "give up" on 6th year's XX% tax relief

2. and on the 7th year, SSPN "resets" as we were "missing for 1 year" (6th year)

I'm interested in doing it BUT unsure whether (2.) happens or not (reset).
If doesn't "reset", like a previous forumer shared - coz on the 7th year, put in $6K pun tak cukup because took out say $20K 2 years ago (ie. net inwards still -$14K)

However, IF the credit card is still acceptable AND can make points/cashback... heheh...
every year withdraw 100% (eg $20K $26K $32K etc as it grows)
then year end or close to Dec,
plonk back in via credit card +$X,xxx

er.. weird
everyone's hitting 4.5% interest for 2015 & 2014?
mine's only 4.25% - without any cash injection, thus clearly from interest

my other account not too clear since mucked-up (can't "see clearly") with last minute cash injection

er.. maybe, the quality of the answer DEPENDS HEAVILY on the question asked.
U asked PTPTN for yourself, doing YOUR OWN SSPN savings?
OR
as a parent/legal guardian, for your children/ward?

either that or.. thanks to the education system, PTPTN "officers" menjawab cam tu je

This post has been edited by wongmunkeong: Feb 3 2016, 08:29 AM

something's seriously not right...

Downloaded earlier



Downloaded today


Suddenly changed from previous years.. this is definitely not right.
Going to call them tomorrow to clarfy.. Malusia...

I don't think there was a mistake, in terms of exclusion - there were terms ADDED to the "March version".

In addition, the calculations was always "a bit off", only the last paragraph (total summary) was correct for mine - see example where my 2014 was the same with 2015's Jan version - similar "miscalculations" for both accounts + no "/DIVIDEN TAHUN XXX.." stuff compared to latest March version



The latest March version:
a. at the third paragraph / 2nd from bottom, they added "/DIVIDEN TAHUN XXX...", which feeds into item (b.) below
b. at the bottom paragraph third line, they ADDED to item C to include "/DIVIDEND TAHUN XXXX..." which was never there for past years, thus dividend is now removed from tax relief amount

This post has been edited by wongmunkeong: Mar 9 2016, 04:19 PM

Note - i asked "how much should i deduct - based on your say, no but based on past 2 years SSP docs - say can".

The 2 officers that came over was unsure with SSPN until i showed them the past 2 years' doc + Jan.

Then the response i got was ok, just follow since it's on the paper - i figure they just don't want to get into the details or was too busy to bother

Side note - maybe these PR or CS folks (unsure from which internal dept) may not be too well versed with certain details as i caught them saying weird stuff for e-filing, which i personally put data in for testing like "other income" and nothing "automatic" came out later in the 3rd section. They told my whole company some data will appear in HK3 or something if Other Income is filled (nope - nothing)

er... simplify lar bro

U get the tax relief, NOT your children
Doesn't matter how many children/SSPN accounts U have

IF NET of cash in LESS cash out of YOUR SSPNs >0, then tax relief on that amount lar

yes YOUR SSPN for the benefit of your children - U own them accounts, just like saving accounts for kids (below age of majority)
If U have 3 children savings account, how many statements U get leh?
3 right? all with your name in them right?
Same with SSPN accounts lor

Simplified?
If not - better keep in FD else headache/pain with LHDN not worth it

This post has been edited by wongmunkeong: Nov 10 2016, 02:35 PM

good also lar - see the reports on non-collectable / non-payments also scary..
1 more year, then close accounts.. $3K relief not worth the worries

er.. i may be blind - didn't be it being insured by PIDM

insured by current Gov?
heheh - well... with the push / popular-vote of writing-off PTPTN debts and stuff (if new Gov comes in & politicians la) + Miss Man Agement & her current staff... i leave it to thee to ponder the imponderables

This post has been edited by wongmunkeong: Nov 10 2016, 03:36 PM

ignorance of the (tax) law is no defence

Adoi.. the user interface..

FYI - check balance = click on the WORDS link lor (2nd column)
U wil get your Account Statement

Dont click on the BUTTON / 4th column "Penyata Hasil"
This i think is for LHDN thinggy statement - which is screwy now

This post has been edited by wongmunkeong: Oct 31 2017, 02:48 PM

Also - no revision la.

from my understanding of the announced Budget 2018, it'll be rebranded to 1Malaysia Education Savings or something AND the tax relief of $6K continues. - please do correct me if i'm mistaken ya.

Also - how to analyze when:
1. We don't know your tax bracket
2. We don't know what U know/dont know about how to use $ / invest
3. We also don't know your timeline for future spending Vs current spending/debts & debts' interest rate.

bwhaahah sigh..
IMHO - best person to analyze one's requirements or worth it/not worth it is oneself

i'm at 24% tax rate and i'm using SSPN purely as a "cash holding" vehicle with some "withdrawal friction".

As U have some UT knowledge and stuff, perhaps the below will help. Please do FILE>>MAKE A COPY or FILE>>EXPORT TO EXCEL ya - else cannot edit
https://docs.google.com/spreadsheets/d/1YDk...vVS8/edit#gid=0

06/01/2018 - i deposited $500 via MBB2U
31/01/2018 - dated in SSPN online, "1078 GERAN SEPADAN-GS500"

Other than the timing Vs "cut off date" by SSPN for their tax statement which i'm unsure, the pain with the above for me is physically getting to PTPTN to withdraw & the time.

Other than that, i think it's good as U've stated the balance of tax relief AND $ in our hands