So many license wan... Where got fun? Just to maintain your CPD only will eat up all your time.

Best to get a CMSRL from SC, then apa pun boleh.

"One license to sell them all" - a parody of the lord of the ring quote.

Xuzen

This post has been edited by xuzen: Jun 14 2012, 10:08 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

Kparam77,

what is your thought or opinion on this new development from the perspective of agent and that of a investor?

Thanks,
Xuzen

So many new tax relief for YA-2012, they are

i) Annuity = RM 3,000.00

ii) PRS = RM 3,000.00

iii) SSPN = RM 6,000.00

Tax relief galore for this baget, Najib is sure feeling the heat.

Now, we need to let Ah Jib Gor keep his job while letting the opposition remain strong. Ultimately, the winner is us, the tax-payers.

I like this two party system, I like it very much.

Xuzen

Go to SSPN website under FAQ to verify this info.

I got to know about it from the Nov-12 Personal Money magazine.

Xuzen

Dear people,

Just thought of a way to benefit fellow contributors to this fund.

Let's say you join Hwang PRS because of its zero sales charge advantage, however Hwang-PRS charges 1.8% management fee p.a.

We all know that Public Mutual for example charges 1.5% annual management fee but with a 3% sales charge.

Therefore to get the best of both world, enter via Hwang at zero sales charge, thereafter one year switch to Pub-Mut to enjoy the lower management fee.

Best of both world.

Xuzen
=========================================================================
Addendum on 12/2/2013

RHB just launched their PRS. And by far the best PRS available to the market with zero sales charge and 1.5% annual management fee for their PRS Growth fund making it the lowest cost PRS in the market at the moment.

Xuzen



This post has been edited by xuzen: Feb 12 2013, 11:20 PM

-post deleted-

This post has been edited by xuzen: Mar 26 2013, 08:44 PM

PRS and Deffered Annuity. Both has its pro and cons.

Let me begin:

PRS is flexible, like buying a car. You don't like it, you may change it to another model (aka transfer from one PRS provider to another)

PRS, like car, you can change the colour anytime you want (aka switching, can choose from growth to moderate to conservative fund)

Annuity is like marriage, once sign, you cannot tukar half way, it will be like a divorce i.e, terribly expensive. Die die also must keep.

Understand, Paham, Meng pak Moh, Capisce, Kow Chai Mai?

Xuzen

This post has been edited by xuzen: Jun 4 2013, 03:17 PM

I have access to all the PRS performance. Your statement above which I bolded lead me to believe that you may have invested in a slow lumbering giant known as Public Mutual PRS where you need to pay a high entry fee for sub-par return.

Hence your opinion is skewed; some of us are very happy with PRS generally b'coz we contributed into a zero sales charge provider and getting top mark return.

In a nutshell, the performance of PRS fund are in this descending order:

Hwang>CIMB>RHB>Manulife>>>>>>>>>Public Mutual.

AMBank cannot be counted because they just launched their PRS in Apr-13.

Xuzen

One word Mr Kochin: "LOSERS" with a Capital L. Pub-Mut fund manager suxs BIG TIME.

Xuzen

Sorry, for this one year you are stuck with Pub-Mut. You can only transfer your PRS after one year.

Any fresh injection, go for hwangPRS.

Dump Pub-Mut-PRS.

Xuzen

Just received Hwang-PRS distribution tax voucher. Another thing to cheer w.r.t. this PRS thingy is that the distribution is TAX-FREE.

Yup people, where else can you get to enjoy a unit trust that will give you tax relief, tax exepmtion from distribution and zero sales charge.

If you are still not in it yet... well, don't know what to say.

Xuzen

According to Hwang PRS Disclosure document page 36,

"All sales charge levied by Hwang Aiiman Growth master fund on Hwang-PRS Aiiman Growth shall be waived"

Also, on the same page, it states clearly all management fee shall be charge at the feeder fee level and there is absolutely no double charging of management fee.

Mnet, now you can sleep soundly. Go forth now, and invest!

Xuzen

I am already investing > RM 3K/p.a.

Xuzen walks the talk and talk the walks. I put my money where my mouth is. I like PRS concept for the obvious reasons coz I belong to top tax bracket and have no cash-flow problem in the foreseeable future.

Caveat: Only put into PRS if you have no cash-flow problem coz you're gonna lock in for a couple of decades the moonies you put in.

Xuzen

All PRS products are non taxable;
All incurs management fee. The lowest is AMinvest at 1.25% p.a. for the growth fund for corporate client.

Xuzen

Hwang-PRS growth and moderate for its zero sales charge. it is also coincidently offering the highest return. To me, this above average return is a bonus to me as I am in for the tax relieve and zero sales charge.

Xuzen

PRS is a scheme that uses the unit trust concept. It is attractive because of the tax-break given by our beloved govt. It is still not sellable (read Star Biz and The Edge or Personal Money). The CEO of PPA Steve Oh says that PRS is slow in picking up.

So you are risk averse..... then FD lor or "gasp...cough...Endowment/saving plan...cough...choke...choke" Attention StevenUng, Sithbuster & Colaboy, quick quick PM him and give him a quote.

Xuzen

At this moment only Manulife and Hwang offer zero sales charge. Don't bother with Manulife... they are after corporate clients only. You = ikan bilis = waste of time.

Xuzen

This post has been edited by xuzen: Aug 30 2013, 11:33 AM

Imagine yourself to be Teh Hiong Piow...

Imagine you contribute to PRS on behalf of your employees to say Public Mutual PRS....

Imagine the tax break you get since the contribution is considered as legitimate business expenses...

Imagine you put a clause to your employees, "You work for me for 5 years baru you dapat this PRS thingy...."

Imagine you get the loyalty of thousands and thousands of salary worker slaving over for you.... mua ha ha ha.....

Imagine the hard-on Teh Hong Piow will get thinking about this PRS thingy...

Xuzen

Just go with Hwang-PRS... everyday is exhibition day for them.

Xuzen