Introducing..... I-Saraan

Recently I came across this initiative by EPF (KWSP), called I-Saraan. I found out really good about this initiative. Let's explore how good is it~

1. What
- The program called I-Saraan, in Malay : Caruman Sukarela Insentif Persaraan. It is a self-contribution in EPF.

2. Why
- There are getting more self-employed individuals (Grab, Food Panda, Property/Insurance Agent, Artist/ Actor, etc). This program helps the people to prepare for the retirement.

3. Who
- Everyone can save or deposit voluntary into EPF. However, salaried adults with monthly EPF deduction are not entitled for the extra RM250 'bonus' from the government.
- These people are encourage to participate this I-Saraan : Self-employed adults, government servants who opt for pension scheme and house wives.

4. How
- bring your MyKad and walk into any EPF branch
- more info please refer EPF website

5. Key Benefits
- 15% incentive (maximum RM250 per annum). Let's deposit minimum RM1700 to get this RM250 bonus. For 2018-2022. Perhaps the government will prolong this incentive~ :>
- Death benefit of RM2500
- Earn annual dividend as normal EPF account (around 6% in recent years)

Any question or suggestion? please leave your comment and discuss~

Tax Relief 2019 in Malaysia

   Toward the year end, some people are looking ways to maximize the tax relief. Why we shall utilize the tax relief? Because it is win-win situation, whereby you are spending, saving or investing into yourself while getting additional 'saving' from your income tax. In the mean time the government  reduces some 'burden' of taking care of the people.

   For 2019, there will be some changes. I would like to  highlight 2 revised tax relief categories. Let's explore which category you can benefit.

1. EPF/ KWSP
- before 2019, the EPF category is always share with the Life Insurance category which mean you  can simply hit the max tax relief by your normal EPF deduction or your insurance policy (to cover for your whole family perhaps). The maximum tax relief was RM6000 for EPF/ Life Insurance.
- in 2019, this EPF/Life Insurance (maximum tax relief RM6000) category will splits into EPF (max tax relief RM4000) and Life Insurance (max tax relief RM3000) these 2 categories. 
- for private sector, this change may not so significant as EPF and Insurance is a norm for a professional and entrepreneur.
- there are 2 groups of people can benefit this. First, the low insured people. Some people may be get an insurance 10 years ago with premium RM100 until now. It's time to upgrade guys (around 5-10% of your gross salary is advisable).
- the second group will benefit this is government servants (permanent staff who opt for pension scheme). For your information, government servants who opt for pension scheme will not contribute to EPF. I met some government servants who may have life insurance policy more than RM6000 per year, but seldom to see a government servant deposit in EPF as extra saving. From 2019 onward, perhaps it is a good time to open a new EPF account (for those have closed their EPF account) and deposit RM4000 annually.

2019/11/14 Update~
- please walk in to the EPF branch to sign-up for the I-Saraan for those eligible~

2. SSPN
- before 2019, the maximum tax relief is RM6000. From 2019 onward, it increases to RM8000.
-  forthe past few year, the SSPN dividen is around 4%  which is not bad, plus the tax relief, the ROI is more than (4% + 1-28%) perhaps depend your income bracket.
- the condition is, there will be tax relief for SSPN saving IF the SSPN account is for your child. Hurry up for those is still single~

Now is November 2019, I will deposit RM8000 into SSPN and RM4000 into EPF, what about you?