I don't think you need to redeem 100% of the balance in the UT at the same time.
If when retire the UT register a huge loss, then :
i) don't redeem any. Wait for the UT to rebound, then only redeem. Or,
ii) redeem bit by bit while waiting for the UT to rebound. Hopefully the unredeemed balance will recover in value.
However, if you're investment savvy then you could redeem all and invest into assets with higher and faster potential to recover.

i) if no rebound, wait until die?
ii) What is your feel, if you have contribute 20-30 years every month into a so called "retirement fund", then ended the money worth less than what you have put in?

Amazing. Despite the 1.8% management fee, it can still beat all the other PRS funds.

i) given enough time, then it is likely to rebound. Unless it's Bernie Maddoff fund.
ii) Not looking to contribute 20-30 years. I'm only going to contribute for 10 years. After that, not contribute anymore because no more tax relief. Investing in UT require a very long time Horizon. 15 years or more.
And between UT and ETF, I'd rather invest in ETF. It's just that Government only give tax relief for investing in PRS, and the PRS buy only UT.

i) Another 20 years? Many may not have this. Time doesn't guarantee a fund will rebound. Some funds may remain poor throughout.

ii) That's why I said, if buying UT can consider as "retirement fund", then many already have it. So now I own some equities, this is also my "retirement fund"?

PRS invest in UT.
UT invest in equities.

So invest in equities = retirement fund?

i) A fund does not need to rebound back to your original entry price for you to make a profit. When the fund falls 50%, then you buy more ... to lower your average purchase price. But do this only if you believe the underlying fundamental of the fund will recover.
ii) Very few people can consistently earn 20+ percent return. However, when a person invests in PRS, he gets a tax relief. And for people in the high tax bracket, this kind of "return" is considered high return. And the investor can get this high return for not only 1 year, but 10 years.
Your analogy of whether buying equities directly is considered "retirement fund" or not, I think it depends on the reason you buy the fund in the first place.
If you buy equities because you enjoy the thrill of speculation, then I consider it a "gambling or entertainment fund".
If you buy equities because you want to get the dividend to replace employment income, then I consider it a "retirement fund".

i) if the fund doesn't recover, it just means "double down" the loss.
Not every fund must be making profit over the long term.
Typically example, those local funds that offers China related UT.
Many average down, and double average down, and now what happen?

Buy more when the fund fall 50%, isn't it like "play fire" with retirement money?

ii) the tax relief is not unlimited. In fact only Rm3000, even at highest tax bracket 26%, it is Rm780 only. 10 years Rm7800.

Like that (if invest in equities aims to get passive income), then many do have retirement fund already, that's why I do not see much attractiveness in PRS.

In fact, for me, EPF is better choice.
Guaranteed principal + return (may not as high as UT but it guaranteed the capital and return)

Oh well, I guess we have different views. No right or wrong. Just different approaches. Cheers.

If all forms filled up correctly, it is fast. Can buy the funds within 1-2 days.

Just cross put for fsm only for ic if I am not mistaken

thanks

later download then ask wifey fill up

so much of stuff to do

need review n upgrade all our insurance policies too...

Oops. sorry... yeah you are right, can only withdraw from a/c B which is 30% of your total sum invested.

Xuzen

argh... thought can abuse loophole like certain EPF "loopholes".

Looks like Affin is acquiring Hwang

http://www.thestar.com.my/Business/Busines...nd-assetma.aspx

Would Hwang PRS funds do better under Affin?

Gilabola,

When the news of this acquisition broke out three months ago, I too asked the same question? I got hold of their relationship manager and asked him that.

The answer I got was this: "fund management is very much the fund manager and it's team. As long as the team is there intact, no matter who is the owner of the company, it should not change". My take is that Affin would be wise to let status quo reign since the current fund management team is doing well.

Xuzen

I would like to ask for an opinion here, why not go for insurance companies retirement plans?

For example, GE's Great Retirement Plan? It is a guaranteed return fund and would also get the tax relief of rm3k?

GE not part of PRS provider.

Not mistaken only AIA & MANUFLIFE from Insurance.

This post has been edited by felixmask: Nov 18 2013, 09:35 AM

All PRS providers:

http://www.ppa.my/providers/providers-schemes/

thanks include the link...

My reasons:

I) Suckish IRR compare to PRS
II) Too many complicated charges here and there i.e., not straight-forward.
III) It is an annuity plan, macam pension... every month take the same amount until mati. No fun, no syiok. Boring aje. Inflation potong stim somemore.
IV) I want to see money, lots of it... many zeros. I want to go Batam, Golok & Haadyai every month after I retire.

The above are my reasons. Others may have different views.

Yeah, that's right. Just thought that the 3k income tax relief would make GE's plan worthwhile too. But it's a 10-15 years guaranteed returned plan though?

Oh thanks for the your opinion! Much appreciate it. How bout going for those savings plan - for those who dont have a tendency to save money nor investing in stock market, UT, etc but just for the sake of allocating money every month. PRS would have more pros?