Do it this month, you are entitled for 2012 tax relief

I just bought CIMB prs moderate fund yesterday after frustrating visit to 2 public banks. One, officer on leave... ...., next one, says, i need to buy via agents and PB PRS is only launching next year first quarter. The current public bank PRS fund was launch by public mutual and you can't buy it via PB.

Ended up, i went straight to CIMB and bought it within 30 minutes. Less hassle as compared to PB where you need to make appointment with agents lar, etc etc. To me, i hate meeting up with agents as i don't like to waste my time listening to their BS.

Like some folks mention here, the 26% saving is already a bonus to the interest earned. I am not particular bother about which fund as long as it's convenient for me to buy and CIMB was the easiest at that moment.

lets say someone who is old like 60yrs old.

they earn quite alot and buy dis fund. when can they take out their money?

erm... 60 yrs old means post retirement already. why buy this? if want to invest better just stick to ut or shares?

or this 60yr old still earning high and want to take advantage of the tax relief?

I didnt take my license yet..

earning quite ok la.. like 5k+

5k plus means about 60kpa. take away personal relief plus kwsp already taxable income drop to 45k only. i think budget 13 announced a reduction of 1% for those below 50k taxable.

anything above 35k is taxed at 11% if i'm not wrong. assuming rm3k in this prs means a saving of rm330.

but at 60+ wouldn't the epf account be completely withdrawn already? not sure how it would work since they said this is up till retirement age and we are supposed to withdraw at 55 (or 60 if they amend the laws).

Came across this: Great Retirement Plan by Great Eastern

http://www.greateasternlife.com/my/en/insu..._retirement.htm

But can't really understand how the Option A and Option B works. Can someone clarify this?

Thanks

This Annuity Plan by GE... which was designed to "attack" PRS as both offers RM3k Tax Relief + able to get money after retirement age (55 or 60)

Option A - If you start at age 35 and retire at age 55
If you pay RM3000 premium for 10 years only, you get Yearly Guaranteed Income for 15 years (until age 70) of RM4,365.00
If you pay RM3000 premium for 20 years only, you get Yearly Guaranteed Income for 15 years (until age 70) of RM7,747.50
+ 10-year Tax Relief of RM3000 per year.

This post has been edited by ronnie: Dec 12 2012, 09:24 PM

option a is you start receiving Guaranteed Income from GE from 55 onwards for 15 yrs.
option b is you start receiving Guaranteed Income from GE from 60 onwards for 10 yrs.

Thanks both ronnie and minshome.

Taking the case of entry age of 35, may I know how to calculate the yearly interest for both Option A and B based on the guranteed return?

Not that great eh?

---

Added on December 12, 2012, 11:24 pmwhat license?

This post has been edited by Prophunter: Dec 12 2012, 11:24 PM

Did a simple and crude calculation for Option A.... assuming entry age of 35:

Option A : Total Premiums paid RM30000, Total Returns = RM65,475 (over 15 years)

Compared with simple FD rate returns of 3.15%, meaning on 1 Jan you put RM3000 into FD, then next year 1 Jan you put in another RM3000 (on top of the RM3000+interest earned for previous year)

Total Amount Invested : RM30000
Total Amount Withdrawed (assuming withdraw RM4375 per year after 55 for 15 years matching Option A) : RM60,959.97

So this plan looks like just a bit better than FD rate of return, but obviously it has the extra benefit of tax relief and protection component.

However, I believe one can easily get more than 3.15% returns on investment using other methods provided one has the discipline to do so (the plan above means you are locked into it, FORCED to save to put it another way).

Is this considered PRS also? Sure it's claimable up to RM3000 per year for 10 years?

Claimed under Annuity Plan Tax Relief (which is under same as PRS also)

Ok thanks - found the info too. Sincethereturns are not that great, isn't better to go for prs fund that can potentially give better than 3.15% and also immediate lmp sum withdrawal at 55? Although prs doesn't have protection component...

Just calculating for pasting the time.

FD Deposit (Own PRS Management)

# Age 35
# Deposit RM3k for 10 years @ 3.15% pa compounding.
# Payout at age 55 for 15 years.

Total possible payout using own PRS Management is = RM5578.00 yearly for 15 years.


At current optimum interest rate available at 4.60% .

FD Deposit (Own PRS Management)

# Age 35
# Deposit RM3k for 10 years @ 4.60% pa compounding.
# Payout at age 55 for 15 years.

Total possible payout using own PRS Management is = RM7374.00 yearly for 15 years.

mind to share the calculation? i calculated based on 3.15% and was just about 1 year short of matching option a payout. maybe i made a mistake somewhere...

At the end of 10 years deposit, the ending amount will be RM35,721.02.
At the end of 20 years deposit, the ending amount will be RM48,709.77.

From 21 years onwards to 36 years there will still be compounding interest aka deduct yearly payout.

* Pls check my calculation, as I did extensive year by year CAGR using Excel worksheet..

Did u attach the excel?

Made a mistake from 21 year onwards.

At 3.15% payout will be at RM3974 pa for 15 years
At 4.60% payout will be at RM5253 pa for 15 years.. apologies

*edited* another mistake

This post has been edited by magika: Dec 13 2012, 10:49 AM