It's called don't put all eggs into a single basket. 

I think you totally were not well informed by your agent on the benefits of PRS. Do you even know what fund he chose for your PRS?

One of the most important benefit of PRS is TAX RELIEF.

If you have earned enough to pay tax, the returns you get from LDHN you must consider also. But of cos if you don't pay tax then don't bother with PRS.

Dear PRS Member,

Effective 15 March 2020, PRS Members can make pre-retirement withdrawals from PRS for the purposes of housing and healthcare without tax penalty, as announced in Budget 2020.

This move will help Malaysians to use a portion of their retirement savings for their needs. Withdrawals will come from Sub Account B, which holds 30 percent of PRS Members’ savings.

In recognition of rising healthcare cost, withdrawal for immediate family members is also allowed and can be used to cover 91 types of illnesses, including the cost of medical equipment or medication for the approved illnesses.

For housing, withdrawals can be made to buy or build a house as well as to reduce or redeem a housing loan.

Below is a list of forms, guides and documents which you can download to facilitate your withdrawal application. If you have a question that is not answered in the FAQ, you can call PPA at 1300-131-772 for further assistance on this withdrawal measure.

anyone here plan to withdrawl the RM1500 from your account B with each PRS provider?

i did a brief calculation of how much my account has made (pure profit for 2019), since don't have the actual official numbers on my profit.

The recent market tumbles wiped out all of my profits made for 2019. despite that, when you withdraw, you are merely withdrawing your past years' profit and you still let your capital run in it. at least for my case lah. Yes, now is really a buy high and sell low situation, but my own argument is, look back at the main reason for me to invest into PRS and that is the tax relief of 3k each year.

Now that you're able to withdraw at least some money back at no penalty, why not take this chance and cash it out a little.

so the cash out from account B is merely withdrawing some of the profits that you have made in your past years.

Minus the investment concept, letting the monies remain in your account, be it, EPF or PRS, is because you want to let the magic of compounding to work for your future retirement pot. i assume your EPF will certainly has much bigger pot of money and the compounding effect can definitely works better than your money does in the PRS right? (let's just assume, say 5% p.a. for each).

So let's say you have 2 providers and both also more than RM1500 in your account, won't you withdraw RM3k from PRS instead of EPF?

ok got your concept.
additional question, i get confused after reading your post or some other posts. Withdrawing from PRS is not equivalent to income right? you're not gonna add this 1.5k into your tax return as income right? it has no more tax implication, right?

while waiting for further news/info from the authority ...
I bet/think is, one need to put in RM3000 + what ever that had been withdrawn under this special perks, to qualify for the max tax relief of RM3k claim in next year April tax submission.

my reason is being,
that is current non tax penalty withdrawal of RM1500 is to help those in need of money to tie over the cash flow problem due to the impact of Covid19,
since if one can have "surplus money" to put into PRS, then it just shown that one did not have cash flow problem anymore,....thus they need to put back that withdrawn money back too   

why u wan buy reit?
it no performing

Come'on, its PRS, cannot suka-suka sell anytime. 

   

Affin moderate          IRR 8.01%  ROI  31.37%  (almost 4 year )

Principal Asia Pacific ex Japan        IRR 12.83%    ROI 38.67%  (3 year )

Am Reits              ROI  3.82% (6 month)
Overall  :  IRR  9.94%  ROI  23.97%

EPF how many % i dont know ....

the Reits PRS is special one bcoz i purposely wanna buy at low (current situation), wanna see can fly in future or not....   nvm, 3k only
havent reach 3k yet.....still waiting dip , will reach 3k this week or next week ......then stop .

A word of advise. FSM statement is not recognised by LHDN as buying PRS. How I know? Was queried by LHDN and give them my FSM statement. Told me, we don't recognised FSM statement.

Told me I owe them RM2k instead. Now in process of reversing
the debt afterr giving them statement from fund house.

Make sure to get your yearly statement from your fund house.

Think long term. The time to make money is when market is red. No when it's green.

In my view,
Items are tangible. They are bought for consumption or to be used. They have "fair value" or normal price
On the other hand, piece of business or shares are intangible and are owned as investment.

I get the idea, just that its a bad comparison if think objectively.

Open to abuse for tax incentive