A lot of this talk in the news lately by our govt, the main problem is, the low purchasing power of Malaysians.

Not talking to the 1.3% of top earners in Malaysia, but the bottom 65%.

Many are already struggling to get by on day-to-day expenses.

When EPF withdrawal age comes, they will cash out and relieve their tight cash flow.
For many, it's a first time in their life, or for a long time that they can splurge on something. Maybe even first time holiday.

If many are facing this problem on a daily basis, even with PRS providers in place, the people who need it most may find difficulty in contributing.

tis is the reality. many ppls strugle to save at least rm100 montly.

Yea. So this product actually is getting the middle income group votes. PRU is getting near~ and many PRU products are coming out soon~~

anyone can answer my question? any minimum saving?

the products not in the market yet

I heard that the Private Pension Administrator (PPA) and the first few Private Retirement Schemes (PRS) will be finally launched next week.

which company?

we have PRS, and then today i read Star newspaper..we have VOLUNTARY PRS....

woot ???

http://thestar.com.my/news/story.asp?file=...3233&sec=nation

This PRS is additional to your EPF. If you are in the highest tax bracket, it make sense to contribute just to get the RM3K tax exemption, right?.

Reference Site for the PRS : http://www.ppa.my/


This post has been edited by whizzer: Jul 19 2012, 12:03 PM

This is very informative
I thank you sincerely

Is this private retirement fund open to foreigners working in Malaysia?

yes. but remember you cant withdraw till retirement age or permanent departure from malaysia

This post has been edited by idoblu: Jul 20 2012, 08:33 AM

the only good thing is the RM3,000 tax exemption
even that is only benefiting the high income earner.

No concrete detail regarding the PRS investment structure, e.g. return, contribution, risk and so on.
How are we going to invest?

i dont see why people would want to invest in this PRS. So restricted. There is no difference if you were to invest it yourself in the same unit trust funds. Only thing missing is the tax relief.

When you cant withdraw the money, you can only stare as the price drops. No returns guaranteed, no capital guaranteed. And they called this a retirement fund? Might as well put more money into EPF

The game IS the tax relief - imagine if one is at the 26% level, one gets "immediate returns" of 26% then only minus the cost of these PRS (service charges lar, what not lar).

In addition, cannot withdraw doesn't mean one can't manage it by switching funds or % in bonds/fixed income VS equities right?
It hasn't been stated so thus far.
Heck, even my EPF $ invested into mutual funds can be manipulated by me by SWITCHING to/fro Bond Funds for Equity Funds, WITHOUT withdrawing from the fund house back into EPF.
Even further to that, one can also use EPF $ to invest into KLSE stocks (self-directed) via some investment houses, instead of the fund manager doing it for one.

There are many ways to manage bro.
Put $ only in EPF and when Gov touch touch, we people scream.
Now have a different channel WITH tax relief, also scream. Susah lar macam ni kan?

---

Added on July 20, 2012, 6:07 pmJust curious - have U ventured into it by calling one of the several fund houses?
Anyhow, normal lar - Boss says "A"... when "A" isn't fully ready yet.
If it's like the current schemes of EPF --> Mutual Funds are anything to go by, then shd be manageable and simple enough. I'm hoping the service charges are even lower heheh

This post has been edited by wongmunkeong: Jul 20 2012, 06:08 PM

I have just attended a PRS briefing organized by Pub-Mut for their UTC.

So this is the summary:

i) Low Sales Charge < 3%, no fix rate yet.... waiting for Sec-Com to iron out the detail

ii) Low Mngt Fee < 1.5%, again still waiting for Sec-Com to iron out the details with the PRS service provider.

iii) UTC need to get a seperate lic to sell this scheme. This lic comes under Sec-Com and not FIMM. UTC will need to pay an additional licensing fee to Sec-Com to sell this product.

iv) For the time being, only UTC with 3 years experience and above can sell this scheme, but they must attend a PRS familiarisation course which is a two full day course to be run by the respective PRS provider. The course will also earn the UTC 8 CPD pts.

v) Those who have less than three years experience need to sit for a Sec-Com exam. Details to be out later.

vi) After Jul-2013, all UTC who wishes to promote PRS products need to sit for the exam without exception.

vi) CFP, IFP, RFP, ChFC title holder are exempted from the exam but they must also attend the two full days familiarisation program.

vii) There is a RM 3,000.00 tax relief, contribution is flexible and is not statutuory. Contributor can only get 1/3 of their moonies post 50 y/o and all after 55 y/o. The govt is mulling extending this to 55/60 years old. If the contributor chooses to exit the scheme earlier, there wil be an 8% one time exit fee imposed.

My thoughts:

i) This product will probably fail if they expect UTC to sell it. The commission will be very low and UTC need to pay for a seperate license. So the drive to push for this product will not be there.

ii) Contributors will most like stay away from this as their money will be lock up until they turn 55 y/o.

iii) This scheme is going to fail as the carrot does not match the stick.

Xuzen

i really pity the 9 providers. do you know how much time, effort, and money they have to spend to sell this scheme? in the end, no one will buy.

the tax relief is only up to 10 years. after 10 years makan sendiri

Any link to confirm that relief up to ten years only
Tax relief for individual.
RM3000 tax relief. If MR A buys RM3000 for every year for ten years =RM30,000 total investment for PRF. Divest other funds to other investments.

So, total tax saving for Mr. A=RM30,000x26%=RM7800.

Cost = RM30k-RM7.8k=RM22.2k

This post has been edited by Denis: Jul 21 2012, 11:31 AM

I agree with xuzen~ just went for the briefing. It might not tempting for UTC to promote this since it might not cover the basic expenses.

while, for deferred annuity, definitely ppl are willing to share it.

i do have financial product for this tax relief cum retirement... anyone are interested to know more can pm me~ if share here, will be deleted by admin..

most ppl know the conspiracy of PRS
- to reduce govt burden to take care of ppl in future
- to push up the capital of share market, as PRS is unit trust. the more capital in share market, the more govt can manipulate.. as we can c in FGVH, world 2nd highest IPO after FB..

therefore, I m just sharing the deferred annuity
- insurance based product
- entitle new tax relief
- stable wealth accumulation
- if u have some FD, perhaps u can compare this with FD

why govt din promote and say about deferred annuity although it can get this tax relief also? pls refer the statement above, govt has not much benefits by promoting this.

here is the link for coming 10 years tax relief, from Malaysia Institute of Accounts (MIA)
(page 98, btm part, the tax relief only starts on 2012 and refer the note 5 at the page 101)

http://wcoa2010kualalumpur.com/new/downloa...ECTION_B/B7.pdf

good luck and happy researching~~

btw, who wish to fully utilise this tax relief by this year, feel free to contact me~
i am representing a wealth management cooperation. I am focusing on utilise of tax relief.

cheers~

This post has been edited by andy_lyy: Jul 30 2012, 11:33 AM