Your Questions Answered Here › Tax Reliefs
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tay yew guo jared asked 6 years ago

Hi CF,

I am planning to maximise my tax reliefs, could you please help me with the following:

1. Which Private Retirement Scheme do you recommend me to invest in?

2. I am planning to take up insurance policy with forced savings, which do you recommend? Would be great if the guaranteed return is as good as FD. Since the tax relief will boost higher returns.

3. For those that are self employed, will their contributions of RM4000 to EPF be entitled for tax relief or is it only for employees?

Thank you.

2 Answers
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CHING FOO LIEU Staff answered 6 years ago

Hello Jared

  1. Do you know where to look for the PRS fund comparison tables?
  2. Depends on your budget; generally, with investment or insurance, the thing you can do with RM 100/month or RM 1,000 per month is quite different. Not able to recommend any without this context - which you may want to tell us what's your situation (income level, age, current commitments etc)
  3. Yes
tay yew guo jared replied 6 years ago

Hi CF, thank you for you reply
1. Yes, I do. Which particular fund do you invest in?
2. My income is about RM4k, I’m 26 n currently no commitments. My sole reason for getting it is for the tax relief, main concern would be the amount I will be getting on maturity, although coverage will be a plus point.

Thanks CF

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CHING FOO LIEU Staff answered 6 years ago

Jared, most welcome.

  1. We do and recommend to our clients to invest into funds which are invested with diversification outside of Malaysia. Such as AmPRS - Asia Pacific REITs or Principal PRS Plus Asia Pacific Ex Japan Equity.  Am using iFast platform (used only by independent advisers like ourself to manage client's investment) so it gives flexibility to invest into different PRS funds by different providers in one consolidated place, instead of going to multiple banks/fund house to do that.
  2. You may want to maximize the medical card 3k tax relief. Can be achieved easily. Re: your concern - in insurance you need to understand there's no free lunch. If you pay high premium, you'll expect to et back higher amount upon maturity, and vice-versa. But insurance should not be used as an investment tool where you worry about how much is the value upon maturity. Investment and insurance should be done separately. Just use insurance as protection tool. Using insurance as investment tool is just like using a screwdriver to hammer a nail - you can do it, but it's not efficient and borderline 'face-palm'.

That clarifies?