For me it's never retirement savings. It's always tax relief (pay less tax) and keep my money. Money paid to income tax is no longer your money but money put into prs will always be your money.

My retirement will be dividend investing. I intend to live off my dividends.

This post has been edited by Ramjade: Apr 30 2020, 12:01 AM

LOL - not just you, most likely most who invest. Instead of PRS, it should be renamed as TRF (Tax-Relief Fund). That way, they will be no misunderstanding and they don't need to hard-sell that they can make money for you (which in my experience, it is pitiful - just putting the money in FD alone makes way more than my PRS returns over the past several years).

Just have to remember - TRF.

Since we know that EPF (I guess it will never fail since there is always income going in) will be around and I guess guaranteed by the government, what about PRS? Is there a chance it will collapse? After all, it is a supposed Private Retirement Fund? Luckily, maximum (for Tax-Relief) is only RM 3k per year x # of years invested. That is the total loss scenario. It could happen, I guess, if there is no guarantee - at least I don't recall reading it...

Now SSPN is another story - it gives around 4% returns per year, for many years in a row. PRS should model itself after SSPN - if SSPN can do it, why not PRS? SSPN gives you the same tax relief (this year RM 8k!) and virtually returns FD like or better rates! So you actually benefit upfront AND back-end, cumulative (provided you don't withdraw).

Apparently you didn't know that prs can have double or triple FD return. Been there done that. Most prs is rubbish returning below FD returns but there are selected few which give you double or triple returns.

It all comes down to
1. Picking the right fund
2. Picking the right time

This post has been edited by Ramjade: Apr 30 2020, 12:42 AM

Yes, you are right. I never did much research but since there is time aplenty now from the never-ending MCO, should start looking. Any pointers?

Good place to start
https://forum.lowyat.net/topic/4193169

If you are lazy buy amasia reits/pacific Asia dynamic income. Can't remember the full name.

Thanks!

What is the withdrawal procedure like? Do via PPA or need to go back to the fund provider? Any idea?

PPA asked you to deal your PRS provider.

Easier for Principal PRS members to withdraw cash

KUALA LUMPUR: Private Retirement Scheme (PRS) members under the Principal PRS Plus and Principal Islamic PRS Plus schemes may apply to withdraw a maximum of RM1,500 from their Account B starting from Thursday, says Principal Asset Management Bhd (Principal).

Principal said that in light of the Movement Control Order, members may submit their application via email, followed by a call to its customer service to verify their application.

"If the call-back is successful, the request will be processed and payment will be made within 10 working days after receiving the necessary paperwork, ” it said.

https://www.thestar.com.my/business/busines...o-withdraw-cash

This should be the way! Salute to Principal!

this is only for those who buy directly from them right? if buy via fsm or eunittrust, got to go through them

As I said PRS you bought from FSM/eUT is not using their nominee account, it is under your name and NRIC.
I believe the PRS provider should have records of your holdings even though you bought from FSM/eUT.
PRS provider demanded original handwritten copy of forms in black to be returned to them even though you bought from FSM/eUT.

This post has been edited by GrumpyNooby: Apr 30 2020, 08:04 PM

yup, for affin hwang when i emailed them few weeks back they ask me to go through the platform where i bought the fund - unfortunately got to send it hard copy.

maybe i shall shoot principal an email.

If PRS fund declares distribution, FSM doesn't send tax voucher to you.
It is sent out by PRS provider.

My retirement only from EPF and ASNB and rental.

FAQ on PRS Pre-Retirement Withdrawals that are Exempted from Tax Penalty
6. Can I request to withdraw all the amount in sub-account B from one or more PRS Providers?  Yes, members may request to withdraw all amounts from sub-account B of more than one PRS Provider. However, for withdrawals above RM1500, the balance will attract an 8% tax penalty



That mean withdraw below RM1500 is zero tax penalty right?

then can withdraw and throw back again this year …?

Yes.

Anyone already applied for withdrawal on the 1,500 without tax panalty?

wanted to redeem account B, but Affin Hwang just had dividend distribution on 15 April. how long will it take for it to enter my account?

Affin Hwang PRS Moderate?

yup