if every year 3% return only also just breakeven, if this goes on in the long run, you're better off putting your money in FD too.

ok fine, got a point. that one immediately got some few hundred bucks back in cash.

but don't forget also, you cannot withdraw the money until you're 55.

so assuming if the tax relief thing is only until 2022 and the gomen didnt extend the tax relief perk.

then your money is stuck in there for another dunno how many years.

let's throw in a scenario, if you're 30 this year and you can still qualify for the tax relief for the next 2 years.

assuming RM3k x 24% tax savings = RM720 per year x 2 = RM1440 for the next 2 years and no more after that.

then assume your fund is stuck inside until you're 55, means 55 - 32 = another 23 years to go.

assuming the fund only make 3%, or 4% which means you stand to gain 1% p.a. for the next 23 years.

wouldn't you be better off in the long run until 55, having your money in the FD with compounding effect than the tax savings + PRS?

This post has been edited by tehoice: Aug 4 2020, 11:04 AM

but it is pretty difficult to "time" the market, the general idea of DCA is to eliminate all the noises, doing it regularly would smoothen your costs out and at the same time stay invested.
There's this theory where "time in the market" > "time the market", right?


Thanks. Corrected the tax relief of up until 2022.

One must also consider what they're up to.

Like Ramjade rightly pointed out, picking the right fund is very important especially in this PRS because you are going to have your money stuck in there for the next many many years.

unless you only have a few more years left until 55, then you can stand to fully capitalise the tax relief.

yeah, i've been doing both. with the regular monthly DCA.

plus, buying extra when there's bad news regarding the market. been doing that quite a bit especially in stashaway.

on the tax relief, thanks for the correction, i thought it is until 2022. so in this case until 2021, means the last tax filing to claim such tax will be by April 2022.

those who are going in now just to get the tax relief gotta be extra careful if you don't want your money stuck there for the next many years.

agreed. but gotta bear in mind, picking the right fund is equally important.

The argument was, there's no point if the return of the fund is 3-4% p.a. and you're paying 3% annual fees for that fund. This will kill you in the long run, hypothetically.

is this confirmed already?

yup ok found it. will continue put in money for the next 5 years then. hehe

you have robo investment and not PRS?

Has anyone of you withdraw the 1,500 for each fund house you have investment with from Account B of your PRS as permitted by the government?

hahah potential loophole, but sounds fantastic if this can be done ehhhhhh

anyway, if you put in 1.5k = tax relief for 1.5k right.

withdrawal also can claim tax meh?

ohhh.... i don't see any thing that prevent one from doing such thing. highly possible if you ask me.

oh? i thought we could do via PPA website?

Yes, the only dilemma is last year those funds didnt really make positive returns, so in another words, selling at a loss.

hmm, still thinking if I should withdraw the money and put it into elsewhere like stashaway or others.

but what is stopping me is the negative return for 2019. But also not to forget, we also do have instant profits when we claim our tax relief.

so it's kinda even out.

ok thanks for the info. i think i will withdraw from one of the 2 providers i invested in.

i have cimb and kenanga.

Withdrew RM1500 without penalty under the PENJANA.

withdrawal reflected in PPA account already, but still yet to receive the money.

Kenanga Investors Berhad.

I was so happen in KL that day, so went to do it together.

not too sure about others, but for KIB, yes, you can email the scan copy first, but your physical copy must reach them within 5 working days.

I see, alright then, money should be in, soon for me.

no worries~! you have final 2 days to do it....

i think there is a fine print in the disclosure from your fund house, you should take a look.

i remember receiving a letter from a fund house updating me of the change in its classification and according to its age group, etc.

bro, read again.

It says, by default option. so you can actually select a "non-default option".

So by default, it will switch for you automatically, unlesssss you have instructed otherwise......

so meaning to say, you still have a choice of not switching to a more conservative fund when you attained that age group.