Only consider PRS if they can promise you with black and white that every year will be giving you minimum 10% of dividend. The unit bought at rm1, shall be sell back at rm1, like ASW, ASM.
Else just stick the money back in EPF.
Don't just because of to get rm780 of "rebet" and lose out more later on.

My bad

When EPF close shop, Malaysia are taken over by other country

Make it this way, money's value are depreciating by it self over the time. This is global issue.
No doubt US's income are high, to buy the same thing, they are paying double or triple, with their currency(except car).

How to get crisis?
Anyway, both are more or less the same, either die fast or die slow

Initially all funds are "making" money, if not, how people will dump in money?

If they can ensure people that dump money to PRS can have > 10% of dividend annually with 3000Rupiah of admin fees when people buy and sell, then yes, I will make sure my 7 figures savings will be dump in to it.

Now market is bad, my auntie can't go to Europe for vacation and start to look for water fishes from relatives

Only dump money using EPF money if the below condition are met(cannot missed out 1) :
1. dividend yield every year must be 2.5X from what EPF declares
2. price taken out to dump in shall be same as price return back to EPF or higher

Yes, remember, admin fees are charged every year.
So by taking out money from EPF, you will be losing the dividend for that amount taken out, it is quite a sum in long term.

rm100k's 6.75% dividend is rm6750. If taking out rm10000 out, the dividend will be rm6075. Direct lost is rm675 for 1st year, 2nd year direct lost is will be more. If the PRS can't yield 2.5X, you will lost more as you still need to ensure the PRS agent able to enjoy first class vacation in European countries on the admin fees.
So 2.5X is to cover the direct lost on your EPF's dividend lost.

So far I see non.

Just buy only, as by the time it reached 2nd year, it will be single digit yield

From most of the old timers I met that has too much money to dump, non of them make profit of > 1% gain for 20 years run, except my uncle and auntie that are selling which makes > 10% for period of 10 years
All the funds are black box operations, so you won't really knows how it is being operated.
Like annuities, in front they can make hell of returns, but after I cash it out and put back to EPF, after all the calculations, it is only 1/5 of what EPF average dividend yield
Annuities that I dump is governed by government and shall have fixed dividend yield of 5%, so they just make sure it is at 5% only but they still charge admin fees every year.
The main difference on PRS over ponzi scheme is, PRS are legalized by government while ponzi scheme legalized by politicians. Ponzi scheme will blow when certain amount reached while PRS won't blow but will devalue by itself.

This post has been edited by supersound: Jun 23 2015, 05:02 PM

That's why you need to understand what is ponzi scheme

Nope, but extra are dump in to ASW2020
Some of the money are lend to friends and gaining interest from there.

Before you buy, indeed is 11%. Once you buy, if they are giving 1.078% you shall feel thankful that HLA still willing to give some after spending your money

Long time get conned already, I bought it because it guaranteed minimum 5% return, since it is governed by EPF that time. So they only gives 5% excluding admin fees. So when I withdraw it and put back to EPF, the return average at 3% while EPF for the same period of 8 years got 5%.

You need to understand that FD would be fixed on the interest when you put money in. So profit will be fixed.
While trust funds are more you trust the agent won't screw you up and will yield better profit. But most of the time your trust for them are rubbish.
Some can use nice numbers as a tool to cheat and mislead, it will be up to our judgments to trust or not.
I only know 1 fact : Agents always richer than us.