anybody got any idea when PM's fund would start?
notice their fund price currently is at 0.2502.

Thanks for the update. I'm wondering why GE send me SMS to say it was. It's not by personal agent but from 600x number. Weird.

Serong a bit ar - just a caution

600X numbers or "short codes" does not necessarily mean its from where the SMS says it's from.
A person or company can blast out SMSes via short codes and put any donkey thing on them, especially if sent via providers from "more unregulated" countries.
Even phone numbers can be spoofed via VOIP - be aware of cons via phone numbers with caller-lineIDs that looks to be the same as Bukit Aman and stuff. Personal experiences & technically done it before as a prank on colleagues

This post has been edited by wongmunkeong: Dec 29 2012, 08:17 PM

Ouch, ok noted.

To me, the SMS was an advertisement. Like what you get from your credit card banks on some promo.

Glad to know about this.

I always receive 600x sms everytime I use my credit card!

This is a interesting conclusion when you put it this way.. never thought of this. But it appears that PRS fund carries a 0% sales charge, so it means slightly more incentive now?

just realized that we can now buy PRS funds via FSM web site online now. For the moment, only HwangIM PRS funds are available online.

PS: No RSP for PRS funds yet in FSM.

This post has been edited by jutamind: Jan 4 2013, 09:47 PM

For the moment, there are only 2 reasons for PRS:

* tax relief, the better if you are nearer retirement. If retirement is further away, there are more factors to consider which makes it more complex.

* forced savings, if you need to find a reason for saving - this is a good one.

you are investing in PRS with FSM already?

Already started!

As a simple example, a 35-year-old employee who contributes RM3,000 for 10 years is fully guaranteed to enjoy a total benefit of RM65,475 after the retirement age of 55, paid in equal annual income over 15 years. That is more than double the total capital outlay of RM30,000."

Lets me do some analysis with time value of money concept..

eg, FD rate 3.15% p.a, start at Age 27, RM3k per year, 10 yrs.
the calculation should be;
FVIFA method, RM3,000x(1.0315^10 - 1)/0.0315=RM34,630
which mean every year u deposit 3k in FD, 10 yrs later(age 37) u can get RM34,630.

age 37 to 70;
assume u keep RM34,630 in FD for 33 yrs and 3.15%,
FVIF method, RM34,630x(1.0315^33)=RM96,369

At age 70, u can get RM96,369 from FD


Great Retirement Plan RM65,475, divide by 15 yrs(age 55 to 70) = RM4,365 p.a
assume reinvest in FD for 15 yrs
FVIFA method, RM4,365x(1.0315^15 - 1)/0.0315=RM82,083

assume u get 26% tax return for 10 yrs or RM780 p.a and 3.15% applied for interest;
FVIFA method, RM780x(1.0315^10-1)/0.0315=RM9,004
age 27 to 37, ur tax return is RM9,004

assume reinvest in FD at 3.15%p.a until age 70
FVIF method, RM9,004x(1.0315^33)=RM25,056

Total return for Great Retirement Plan at age 70 = RM82,083+RM25,056 = RM107,139


Comparison;
3.15%p.a FD(RM96,369) VS Great Retirement Plan(RM107,139)
with assumption start at Age 27 and 26% tax bracket

FD's advantage is flexible(can withdraw anytime) and protected by PIDM.

Great Retirement Plan can enjoy extra RM10,770(RM107,139-RM96,369) for 43 yrs(70 - 27).
Disadvantage is not flexible and T&C applied.


Conclusion;
Would you willing to pay RM10,770 for 43 yrs flexibility and uncertainly?
It is your choice..
Have a nice day ^^


Read more: Great Eastern rolls out the Great Retirement Plan http://www.btimes.com.my/Current_News/BTIM.../#ixzz2JKcEdIsS

This post has been edited by rtgs: Jan 29 2013, 03:41 PM

List of PRS Providers
The eight PRS Providers approved (as at 5 April 2012) are:

•AmInvestment Management Sdn Bhd;
•American International Assurance Bhd;
•CIMB-Principal Asset Management Bhd;
•Hwang Investment Management Berhad;
•ING Funds Bhd;
•Manulife Unit Trust Bhd;
•Public Mutual Bhd; and
•RHB Investment Management Sdn Bhd.


Where is Great Eastern ?

"FIRST-OF-ITS KIND: It was is designed to meet required criteria of a deferred annuity plan to qualify for new tax relief of RM3,000"
"Deferred annuity plan", get it? Same tax relief - PRS vs Deferred Annuities
http://www.btimes.com.my/Current_News/BTIM.../#ixzz2JMWrDXh1

One post in PRS instead of annuity, another asks the obvious

SO, for annuity is better to post at http://forum.lowyat.net/topic/2170171/+60?hl=Deferred annuity

Dear people,

Just thought of a way to benefit fellow contributors to this fund.

Let's say you join Hwang PRS because of its zero sales charge advantage, however Hwang-PRS charges 1.8% management fee p.a.

We all know that Public Mutual for example charges 1.5% annual management fee but with a 3% sales charge.

Therefore to get the best of both world, enter via Hwang at zero sales charge, thereafter one year switch to Pub-Mut to enjoy the lower management fee.

Best of both world.

Xuzen
=========================================================================
Addendum on 12/2/2013

RHB just launched their PRS. And by far the best PRS available to the market with zero sales charge and 1.5% annual management fee for their PRS Growth fund making it the lowest cost PRS in the market at the moment.

Xuzen



This post has been edited by xuzen: Feb 12 2013, 11:20 PM

Has anybody received their contribution statement from the Private Pension Administrator (PPA) for the year 2012 yet?
I would like to submit my e-filing ASAP to get my tax refund. I wonder if I really need to wait until I receive the statement from PPA before I submit.

Edit:
Just read this from the PPA website.
"Members are to note that notification issued by Providers on contributions made upon creation of units or other statements issued by Providers on contributions made, can be kept as evidence for tax relief purposes."

So meaning the contribution advice from my CIMB is the evidence.

This post has been edited by simplesmile: Mar 1 2013, 07:59 AM

PRS is only cash investment. PRS have it own fund.
EPF is for Unit Trust Investment.

I am contemplating whether to add my tax savings into the PRS on top of the RM3,000 I'm investing annually.

The reason why I'm thinking of adding the tax savings to the PRS is so that I can also see my tax savings grow. The reason why I invest in PRS is because of the tax savings. And what better way to put my tax savings to work than adding it into PRS? Then 10 years later, I can look at my total PRS fund value, less the RM30,000 invested and the balance is the gain. Yes, I treat the tax savings as a gain instead of principal invested.

However, the tax savings I add would not qualify me to additional tax relief. Hence there's no benefit from tax relief point of view. Would I be better off putting this tax savings into my mortgage account to reduce the mortgage interest instead? Should I keep the tax savings to increase my liquidity?

I'm having a dilemma here. How about you guys and ladies? What do you plan to do with your tax savings?

yes, have invested in Hwang PRS via FSM. Now going to enable RSP for PRS....still waiting for bank direct debit approval.

if i were u, i will use max 3k in PRS and use extra savings to invest elsewhere...SSPN for one, if you have kids.