1. FSM free Touch N Go promo until 11 Dec
2. Most suggests Principal APAC ex Japan fund, I buy Manulife PRS APAC REIT.
3. Yes

Edited

This post has been edited by victorian: Dec 2 2020, 11:45 PM

Would like to to know is there any other hidden charges/concerns other than one time RM0.50, if I invest in PRS through cimb bank/topup through PPA website.

Previously invest through Cimb and is having PPA account but not FSM account. Is thinking of open FSM account next year, but is it appropriate to just topup through PPA website this year.

it had been told that if you invest/top up the same fund house as per last year's...then there is a RM8 annual fees

1) Is it better to invest via PPA website or FSM? Any difference?
i'm using FSM, 0% sale charges, for certain fund house, you don't need to mail the paper form to open account. Can manage/invest multiple fund house at the same time

PPA website , never tried.. not sure.

2) What are the recommended funds for high growth long term?
i'm taking Principal PRS Plus Asia Pacific Ex Japan Equity which invest in asia pacific region... For others, most of the PRS fund are malaysia equity based, it depends on personal preferences on region and fund house...

3) Can non-bumis invest in Islamic funds?
can of cos.

Guys, is it wise to pump in to prs just for the sake of the tax relief? Simply buy any prs fund

depends...how high is your tax bracket?

2 scenario

Annual income 200k
Annual income 50k


Should pump in both?

low tax bracket will get lower tax relief deduction compared to higher tax bracket one....

the 50k income will probably kena 1~3% tax bracket while the 200k will probability kena 24%
3k x 1~3% = 30~90 "saving"
3k x 24% = 720 "saving"

both are having the same "lock in" period of 70% of your money placed in....the balance of 30% in normal time if taken out will kena 8% tax

This post has been edited by MUM: Dec 3 2020, 06:43 PM

Let’s say your annual income is 50k, as long as your chargeable income is above 35k, then it’s worth going for it.

Personal tax relief= 9k
EPF= 4k
Insurance= 3k
Lifestyle tax relief= 2.5k

Your nett chargeable income is below 35k, which puts you at a 3% tax bracket. 3% of 3k is only RM90 which is pretty low if you ask me. + TNG RM40 it’s only rm 130 savings.

But if you are at at 60k annual income, your nett chargeable income is 40k after other tax relief. You will be charged 8% on the amount above 35k.

If you can get the 3k tax relief, it’s RM240+ RM40 TNG.

In my opinion, it’s a no brainer to go for PRS if you are paying 8% tax or more. Money saved is money earned after all. Can you get a guaranteed 8% return elsewhere ?

Owh so for the first one should go for it..

Your 720 is the one that lets say after computing the tax to say about 10k... so it’s 10k-720 = 9280 payable tax?

Now I am thinking cuz once put in the until 55 years old can’t take out 100% hmm

And the touch and go applicable to all prs provider?

But speaking of return, since it might actually drop below our initial capital... worth the opportunity cost? Hmm decisions..

This post has been edited by sabrina222: Dec 3 2020, 06:51 PM

Tng is only for certain providers.

Return wise, it can go up or go down, 50/50. But what is certain is, you get the tax savings. That is guaranteed, at least.

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Oh so it means this rm 700 from prs relief is use to deduct the chargeable income? So lets say 200k annual income.. After less all relief such as insurance and laptop etc... It becomes 170k.. Then 170k minus this 700 from prs which becomes 169.3k Then this 169.3k will be taxed accordingly to the tax bracket?

This post has been edited by sabrina222: Dec 3 2020, 09:12 PM

170k - 3k = 167k chargeable income

Oh okok thankss.. Seems like save not that much wo hmm

If you chargeable income is sizeable, then the amount of tax saving is not.

Here's an expected tax saving according to tax brackets:
https://www.fsmone.com.my/funds/research/ar...o=2965&isRcms=N

Refer to Point (3):

3. Below is an example on tax relief.
Let’s say you are an unmarried individual with a taxable income of RM118,000 for Y/A 2012. Assuming that you have no tax exemptions and after deducting tax reliefs comprising of RM9,000 personal relief and RM6,000 EPF relief, you arrive at your chargeable income of RM103,000. Based on the Inland Revenue Board of Malaysia’s scale rate, your tax payable would be RM15,105.

If you had contributed to a PRS for the amount of RM3,000 and above during Y/A 2012, your tax payable would be reduced to RM14,325. That’s a tax savings of RM780!

Hi Guys, I want to ask a stupid question. can I withdraw the PRS money anytime or only can withdraw at certain year like 55 or 60 years old?

1. Anytime before retirement age -> pay 8% for tax penalty
2. Pre-retirement withdrawal under PENJANA -> up to RM 1500 from Account B per PRS provider (expiring 31 December 2020) subject to certain conditions
3. Pre-retirement withdrawal for housing and healthcare -> like EPF Account II

(2) and (3) exempted from the 8% tax penalty.

This post has been edited by GrumpyNooby: Dec 3 2020, 09:56 PM

number 2 extend to april next year? coolz