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Private Retirement Fund, What the hell is that??
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contestchris
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 Dec 24 2022, 03:31 AM
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Assuming I am in the tax bracket that can get 24% tax rebates on RM3k, what do you guys advise?
In the past, I've always stayed away because I don't think the tax incentive is incentive enough to get PPA. I know of someone who'd worked with one of the fund management company which handles PRS funds, their observation is that the PRS funds were rather neglected and were secondary in importance to the "full" unit trust funds.
Is it still worth going into PRS, to get the RM720 rebate? I'm looking for funds that can return 4.0%-4.5% while invested in fixed income but I can't see any with the mandate and return criteria.
This post has been edited by contestchris: Dec 24 2022, 03:32 AM
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contestchris
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Dec 29 2022, 03:36 PM
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Is it safe to buy PRS via FSM One? As in, if in 5 years time, there is no more FSM, what happens?
If I buy via FSM, can I see my holdings in PPA website or in Principal website if for example?
If I purchase today, will I still qualify for 2022 YA tax rebate? I do not have an existing PPA account.
Thanks!
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contestchris
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Dec 29 2022, 03:42 PM
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QUOTE(honsiong @ Dec 25 2022, 03:21 AM) In this thread, people dunno how to amortize tax relief over the years where they have to leave the $ inside the high fee mutual funds. PRS funds are not cheap to use, apart from the initial RM 1000 1-1 match from the gov, it's terrible for youngsters earning below 24% tax bracket to use. Getting 24% tax relief looks like immediate return, but the years you have to keep the monies inside - the charges from fund managers will offset the tax saving you have. You need to amortise the tax relief over the years all the way till your retirements. Tax reliefs aren't free, you need to think why the gov is trying to encourage and discourage you to do. Yes well explained. I’m not sold that even with 24% tax rebate for the next 4 years, it’s worth it. Especially since PRS funds are like the worst aspects of Unit Trust and EPF COMBINED! |
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contestchris
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Feb 23 2023, 04:54 PM
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QUOTE(!@#$%^ @ Feb 23 2023, 04:09 PM) should at least allow PRS withdrawal if not EPF  Can withdraw 30% with 8% penalty... |
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contestchris
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Feb 23 2023, 06:32 PM
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QUOTE(!@#$%^ @ Feb 23 2023, 05:45 PM) previously allowed withdrawal without penalty. should do that if not for EPF. Open to abuse for tax incentive |
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contestchris
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Oct 28 2024, 03:18 PM
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Are PPA admin fees of 0.04% charged to the fund or you have to pay separately?
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contestchris
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Oct 28 2024, 10:40 PM
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How's the best "long-term" way to buy PRS?
Is it through PPA, FSM, or direct from the fund houses?
If I buy via FSM, will I be able to manage my investment via the PPA or fund house?
Likewise, if I buy directly via Principal, can I view it on PPA and FSM website?
What's the cheapest method?
Can nomination be done for all purchase methods?
This post has been edited by contestchris: Oct 28 2024, 10:49 PM
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contestchris
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Oct 28 2024, 11:13 PM
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QUOTE(Ramjade @ Oct 28 2024, 11:02 PM) Maybe I am bias. I will choose FSM. No service fees. Also the annual RM8.00 fees usually the fund house will auto minus from your investment. You ask FSM about estate planning. If I buy via FSM, will I be able to create a PPA account and view my holdings there? At the moment, I don't have any PRS whatsoever. |
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contestchris
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Oct 28 2024, 11:20 PM
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QUOTE(Ramjade @ Oct 28 2024, 11:17 PM) Where have you been all these years? Lol. All the years of income tax relief. To buy prs, you need to have PPA account. Cannot run away. FSM will ask you or help you to sign up for it. I believed got PPA forms that you need to fill up and and mail it back to FSM. I have been prs since it was intro as I don't believe in paying lots of tax. Maximise income tax relief where possible. I tried to sign up for PPA account but it forces me to buy a PRS fund to complete the registration!!! I went through the whole process, but my account is not created unless I select a fund. This is nonsense! FSM says it is all paperless now. https://www.fsmone.com.my/funds/research/ar...e-details/11419 |
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contestchris
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Oct 28 2024, 11:45 PM
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QUOTE(Ramjade @ Oct 28 2024, 11:25 PM) If you have been there since the days of xuzen, prs is basically buy and forget about it. Buy max RM3k/year as long as govt give income tax relief. That's it. He said it himself. What's there to talk about prs. Buy prs, get income tax relief.😂You cannot withdraw early unless you want to get penalised by 8% penalty. I can get 25% relief but even then it's not a must buy. Lock money for 30 years. Funds can be mismanaged. PRS fund management is lower priority than they normal Unit Trust fund management. Anyways considering now to maximise the 25% since it's been extended to 2030. Should be able to build something decent over 7 years worth of contributions at least. This post has been edited by contestchris: Oct 28 2024, 11:45 PM |
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contestchris
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Oct 28 2024, 11:46 PM
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QUOTE(Ramjade @ Oct 28 2024, 11:25 PM) If you have been there since the days of xuzen, prs is basically buy and forget about it. Buy max RM3k/year as long as govt give income tax relief. That's it. He said it himself. What's there to talk about prs. Buy prs, get income tax relief.😂You cannot withdraw early unless you want to get penalised by 8% penalty. Do you buy and forget or actively manage the PRS portfolio? Seems exhausting to actively manage such a small exposure in the grand scale of things. |
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