thanks....i guess just depositing rm5k just to get the tax discount is worth it

Isn't tax relief up to 3k only?

PIDM
$5K
heheh.. i think someone may be confused with SSPN?

This post has been edited by wongmunkeong: Nov 14 2015, 07:31 PM

Too much bro.. 3K is enough!

are UT companies the only ones offering PRS? or insurance companies as well?

Just buy from fsm.

You will realise that many some Insurance Company also have a UT division namely:

i) AIA offers PRS
ii) Manulife offers PRS
iii) AM Assuarance offers PRS

via their asset management division.

Xuzen

I think some people misunderstood how to claim tax relief for PRS.

When you save RM3k in your PRS account, it does not mean you can claim RM3k from LHDN.

This is how to calculate:
Let's say you earn RM100k annually
And you save RM3k in your PRS account

RM100k-3k = 97k

So, RM97k is your taxable income.

I would say PRS is a very good investment scheme
If I can switch EPF to PRS I would do it

Personally I won't.

EPF - principal money is guaranteed, return also guaranteed, just how much the dividend will be only.

PRS - Principal not guaranteed, return also not guaranteed, can be no dividend, and make a lost if market situation is not favourable to the fund.

I would opt for UT instead of PRS.
PRS = UT that cannot be withdrawn until reaching pension age, apart from the tax relief (3K max), there is no incentive to invest into PRS at all.
While invest in UT (without PRS route), you have the flexibility to withdraw or selling it anytime, if one is seeing the market has peak.

Your statement is right. Each investment might look similar but serve to a different objective.

UT is considered active investment where you need to monitor the price every now and then, the objective is to accumulate wealth within a period of time.

PRS has a different objective where it targets for your retirement age, thus it is not advisable to withdraw though you can after 1 year and subject to 8% penalty charge. Employer also can contribute without a fix amount or term. This type of retirement scheme is common in other countries but still considered new in Malaysia. You can also choose the risk profile which suits you whether its conservative, moderate or aggressive. Yes, the return not guaranteed and can be no dividend and all (same thing with UT) but PRS is meant for long term investment and you can switch to other operator if you wish.

What is the interest rate per annum for PRS?

interest rate per annum?

PRS is sort of Unit trust investment......they don't pay interest to you.
they are not guaranteed products like Bank Fixed Deposit.
Your investment in PRS carries investment risks...

Is the investment into PRS guaranteed by the government or does it have a minimum dividend policy?

PRS investments are not guaranteed and it does not have any statutory minimum dividend policy. You are advised to read and understand the Disclosure Document and Product Highlights Sheet to understand the risks involved before investing into a PRS.

http://www.ppa.my/prs/prs-faqs/

Why PRS is created? The truth is out there all this while.

Over 80% of Malaysians worry about not having enough for retirement
http://www.thestar.com.my/News/Nation/2015...ans-retirement/

Retirement crisis brewing as EPF savings suggest pensioner poverty
http://www.themalaymailonline.com/malaysia...nsioner-poverty

Retirees’ EPF funds barely enough to last five years
http://www.freemalaysiatoday.com/category/...o-last-5-years/

USA, no.1 economy in the world, as of today 1USD = MYR4.21704 (Americans do have high purchasing power), settling on Older Retirement Age at 65
http://www.gallup.com/poll/182939/american...rement-age.aspx

Our wealthy neighbor is not doing well either
http://www.cnbc.com/id/100472868

Meanwhile, may not seem much but won't hurt to know>>>

Benefits of PRS:
https://www.fimm.com.my/distributors/prs/pr...ent-scheme-prs/

Another benefit of PRS:
http://www.ppa.my/prs/prs-youth/prs-youth-incentive/

Ini orang pasti ASX / FD punya kaki.... interest rate LOL!

Xuzen

For the default 12% EPF contribution you can't. But if your employer pays more than 12% as an employee perk, a lot of banks offer that; then the additional percentage, you can put in PRS and employer will still get tax deduction up to 19% just like additional EPF contribution

The only trouble is, most HR is too lazy to provide this option as it means more work to them, especially if the employees want to contribute to different funds under different PRS providers

I highly recommend this option to those Sdn Bhd business owners as it is tax advantageous and less sales charge compared to if you take out from EPF account 1 to invest in UT

Yeap the only incentive for me is the tax relief.

Max out EPF first and then go for PRS. After maxing out PRS, I'd go for shares.

1. Tax relief
2. RM500 incentive if you're below 30
3. Potential higher return than EPF

Is it me or do you all realise that this PRS thread is extra active during the end of the year?

So how much dividend do u all expect per annum? Im sure u are investing expecting something in return right?

As usual, last minute mentality
Having said tat, some wud say JIT