2017 Tax Planning - SSPN (PTPTN) Tax Relief

Have you open an account (PTPTN) for your child 'education fund'?

SSPN stands for Skim Simpanan Pendidikan National. 

5 commons way to fund your child(ren) education.


Beside Tax Saving, for which some people don't care because of low tax bracket, there is ONE more reason you might want to consider to 'save' with SSPN - effective 2012, you can't borrow from PTPTN unless you have saving in PTPTN (under SSPN)

However, the new scheme has a surprise element - the 'takaful' element THAT you are 'forced' to buy insurance (in Bahasa, Sumbangan Takaful) which is relatively 'expensive' but it is still a good plan for those can't afford a conventional medical plan, or life insurance, yet want to provide a saving for their child(ren) education.

IF you don't wish to have the "takaful" element., stick to the SSPN-i (without the Plus)

SSPN-i Plus Plans

PAKEJ	INTAN	DELIMA	TOPAS	ZAMRUD	NILAM	BERLIAN*
Simpanan SSPN-i	RM20	RM40	RM90	RM180	RM270	RM200
Sumbangan Takaful	RM10	RM10	RM10	RM20	RM30	RM300
Jumlah	RM30	RM50	RM100	RM200	RM300	RM500
MANFAAT TAKAFUL
Kematian/Keilatan Kekal & Menyeluruh (Kemalangan)	RM40,000	RM40,000	RM40,000	RM80,000	RM120,000	RM1,000,000
Kematian/Keilatan Kekal & Menyeluruh (Biasa)	RM20,000	RM20,000	RM20,000	RM40,000	RM60,000	RM500,000
Keilatan Kekal & Sebahagian (Biasa dan Kemalangan)	Tiada	Tiada	Tiada	Tiada	Tiada	RM100,000
36 Penyakit Kritikal (Bayaran manfaat dipercepatkan)	RM10,000	RM10,000	RM10,000	RM20,000	RM30,000	RM100,000
Elaun Kemasukan Hospital/hari**	RM20	RM20	RM20	RM40	RM60	RM200
Khairat Kematian Pendeposit, Pasangan (yang pertama & sah sahaja) dan  anak	RM2,500 (Pendeposit dan pasangan) RM2,500 RM1,000 (setiap anak – maksimum 3 orang anak sahaja)					RM18,000 (pendeposit) RM9,000 (pasangan) RM2,000  (setiap anak – maksimum 3 orang anak)

Dividend

Based on my personal experience, the effective rate of return for past 10 years is merely ~3.75% p.a.

Why save with PTPTN?

• Tax relief, which may be 28% for those having chargeable income of RM1,000,000 and above OR 21% for hose having chargeable income of RM70,000 and above, which is still substantial for first year of contribution.

Disadvantage of PTPTN saving (i.e. SSPN)??

• Low return (2007 to 2016, effectively only 3.75% p.a.)
• SSPN-i required contribution for insurance element, which you may not need (or aware...). The benefits is not provided to you FREE, you pay for it. 

Tried to open an account for 2nd child but server down. You may try it here to open SSPN-i account online, save for Tax Relief before 31.12.2017.

To check SSPN account balance, click here.

Source:-
PTPTN Website

Buy INSURANCE online !!!

Era of product-selling is ending soon.

More and more (financial) products are available online now at lower cost or price.
(Askchong: lower not necessary cheap)

Consumer can go direct, get lower price or with discount, for products like Motor (car) insurance, Travel insurance, Term Life etc.

Example:

Hong Leong Assurance's products available to public via online, without agents, supposedly cheaper as no commission to be paid to agent/agency.
https://www.hlatouch.my
(Askchong: this link is hidden under www.hla.com.my and no marketing to really show to the public)

U For Life provide simple Term life.
(www.uforlife.com.my)

Investment like unit trust can also be bought online, at lower sales charge e.g. fundsupermart.com and 'middle-man' like unit trust consultants will face the same challenge as insurance agents.

All these are part of the Bank Negara's big plan of market liberalization.

What can Adviser/Planner (licensed by Bank Negara and Securities Commissions of Malaysia) do in the coming new era?

Adviser/Planner will 'sell' their service to provide financial advisory, identify client's financial needs and match it with the right solutions.

No more product-selling.

#BNM

Hotlink got a SISTER now - oOkYo

A very new player in the town effective October 2017.

What is so special about it?

Unlimited Internet (from RM30 per month only) 

Link to Google Play. 10% rebate in Google Play credit

Prepaid Credit can be use to pay in Google Play (same as Hotlink) 

100% Digital (don't know what does that mean)

You have to Download Ookyo from Google Play store to enjoy the UNLIMITED INTERNET.

No customer service. You 'talk' to 24-7 chatbot whom can't answer questions other than pre-program questions!!!

You can EARN by inviting new member but function not ready yet (too new) 

New Bankruptcy Act effective Oct 2017

Effective 06.10.2017

The New (Amendments) Bankruptcy Act

Now become "Insolvency Act 1967"

#Threshold from RM30k increased to RM50k.

#Guarantor, social guarantor will NO longer become "bankrupt".

#Discharge become automatic, if conditions are met.

https://themalaysianlawyer.com/2016/11/22/the-new-bankruptcy-bill-malaysia/

Make no sense - MaxisONE (Postpaid) vs Hotlink (Prepaid)

Hotlink no longer offer RM50 plan with 100 minutes and 5GB.

Effective October 2017, new package for Hotlink is RM60 for 8GB (plus others promo up to 43GB) and with unlimited calls to all networks.

However, at the same time MaxisONE lowest price plan is RM98 for 10GB (plus another 10GB weekend).

Should you change from Postpaid to Prepaid NOW?

You will SAVE RM38 per month with almost the same amount of data, yet you save on GST. (Hotlink give you rebate for GST, till end of this year??)