How do you switch from one fund provider to another?

PRS is only for income tax deduction. Don't invest more than the RM 3,000 that you can get for income tax relief. In today's economic situation, look for the cheapest entry and most ultra conservative portfolio.

Time to move everything into the most conservative funds. Can anyone here advise which one is the most ultra conservative in which the exposure to equity is limited? Best is a fund that is 100% based on government guaranteed bonds.

Weather forecast - rainy season with a chance of typhoon...

I have reverted to taking out everything under account B, taking a 8% hit, and moving on.

I take it as a discounted income tax savings. No headache of hoping, wishing, praying.

That unfortunately has to happen with the balance 70%. At least mitigate the risk.

This post has been edited by saintmikal: Mar 5 2019, 09:28 AM

Not impatient. Just don't believe that it works as it totally contradicts retirement principal - just take a look at EPF. With a minimum guaranteed of 2.5%, that is what retirement should be - safe and steady without the need for any fees. EPF manages billions of ringgit but does not charge us any investment fee and every year averages 5-6% returns!

The ONLY reason for investing is for Income Tax deduction. If this benefit does not exist, I will not have invested and maybe a few here will have second thoughts.

Try asking the PRS service providers to do it for free and only take a portion of the profits (if and when there are) and I think the majority will close shop.

Yes only RM 1.5k but it is 50% of the maximum RM 3.0k allowed for income tax relief.

So, this year, can recycle our own money to maximize tax reduction.

How? This one assumes you have a housing loan you want to reduce and you have flexibility to withdraw any extra payment that you pump into the loan. Once it's paid in, you have an extra RM 1.5k to recycle back to PRS - assuming you don't need the money at all. But the paperwork with CTC of bank account statement is a deterrent, especially with the MCO. Adoption rate may be low.



This post has been edited by saintmikal: Mar 27 2020, 09:07 PM

It will be interesting to see how many will still contribute to PRS post 2020 (I believe it is the last year for relief, barring any extensions, or corrections - in case I am mistaken).

I for one, will not as the main purpose is to gain from tax savings. The moment this no longer exists, there will be no significant incentive to even consider this medium.

Their returns (in my case) have been super pathetic and I have tried all permutations - aggressive, moderate, conservative. All super koyak - putting the money in FD even at 3% per year is better. And I have been investing since 2012.

However, I will take advantage of the RM 1,500 and then retop up another RM 1,500 for the final time this year.

This post has been edited by saintmikal: Apr 29 2020, 06:20 PM

It appears that PRS seems to have missed its intended purpose. Retirement savings? I think many people here only use it to save tax, nothing more. The moment the government removes this tongkat, what will happen to it?

I just pray that I don't lose when I can finally withdraw. At least EPF is guaranteed 2.5% per annum (and most of the time outperforms the minimum and FD!). Why can't PRS since it is suppose to act exactly the same as EPF?

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).

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?

Thanks!