Today is World Password Day

Today is the  first Thursday of May, the World Password Day! It is observed to create awareness of the need for good password security practice.

Nowadays, password is used everywhere,  being a commonly used security mechanism for:

• identity verification
• authentication of access control
• encryption/decryption key to protect our private information

Here are the 4 steps action to secure your online experience, recommended by organizers of World Password Day:

Why the first Thursday of May? Perhaps this day itself is an interesting day, being observed in:

• 5 May 2016
• 4 May 2017
• 3 May 2018
• 2 May 2019
• 1 May 2020

For more information, visit to : https://passwordday.org/

Warning! Touch n Go cards must be used at least once per year, or you will lose money!

Perhaps not many people aware that their Touch n Go card, if stayed unused for 12 months consecutively, will be deactivated and suspended into dormant state.

The dormant card cannot be used anymore, and your money balance in the card will be locked and rendered unusable, until you get Touch n Go to reactivate the card.

There is an admin fee of RM5 plus GST (total: RM5.30) to reactivate the dormant Touch n Go card.

If you continue to keep the card staying inactive, they will still charge you RM5 plus GST (total: RM5.30) of maintenance fee in every 6 months interval. The maintenance fee will be deducted from the balance in the dormant card, until it reached zero. Then, it becomes a junk plastic card.

In addition, every Touch n Go card has a lifespan of 10 years only, and the expiry date is printed behind the card.

Upon expiry, you can buy a new card and transfer your balance from your expired card into your new card. There is an admin fee of RM5 plus GST (total: RM5.30) for Touch n Go balance transfer too.

Today, there are several highways in Klang Valley that no longer receive cash as toll payment and made compulsory to pay with Touch n Go.

If you are staying outside Klang Valley and were forced to buy a Touch n Go card just to pay the toll during your visit to KL once in a blue moon, you are likely to be affected by this.

According to Touch n Go, you can avoid this situation by using the Touch n Go function in your MyKad instead of purchasing the standalone Touch n Go card. Your MyKad will not become dormant even if you don't use it as Touch n Go card for more than 1 year.

About Private Retirement Scheme (PRS) and its funds performance at end of April 2016

Launched in 2012, the Private Retirement Scheme (PRS) is a voluntary (non-compulsory) retirement scheme in Malaysia for employees and also self employed to have another option of forced saving for their retirement.

In order to encourage savings under PRS, Malaysian government granted personal income tax relief of up to RM3,000 for individuals tax payers from their PRS savings amount deposited during the taxation year. 

Employers are also provided with tax deduction on contributions to the PRS on behalf of their employees above the statutory rate of 19%.

Note that this income tax relief for PRS is available for 10 years only, from tax assessment year 2012 until 2021.

Also note that the sales and admin charges deducted from your PRS contribution is not eligible for tax relief, you can only claim the amount from your net PRS contribution done within the year, up to RM3,000 per year.

Your PRS contributions will be deposited into your Private Pension Administrator (PPA) account, after your PRS fund provider deducted the sales and admin charges.

Your money in your PPA account is split into 2 sub-accounts (a bit similar to your EPF account). Once your money is parked in your PPA account, you can forget about it until you finally retire, because:

• 70% of your fund is parked in Sub-account A, which cannot be withdrawn until you retired.
• 30% of your fund is parked in Sub-account B, which you can only withdrawn once a year, and subject to an 8% tax penalty on the withdrawal amount.

Your money in PPA account is then allocated for investment by your fund manager with your selected fund scheme, which could be of category of growth, moderate or conservative.

There is no guarantee that your PRS fund will give you return. In fact, you can also lose money if your fund is not performing!

How is the performance of the available PRS funds so far?

Morningstar is tracking the PRS funds performance (there are 79 of them as at 30 April 2016) on a day-to-day basis.

As of today (30 April 2016), only 19 or 24% out of the total 79 PRS funds have made a positive year to date return. AmPRS - Asia Pacific REITs is the champion with 4.79% return YTD.

Those 19 PRS funds that have positive return year to date, and their YTD return are as below:

(Screen captured from Morningstar's PRS fund performance tracking website, double click on image to enlarge)

The worst PRS fund performer YTD, CIMB Islamic PRS Plus Asia Pacific Ex Japan Equity fund, has caused a 8.92% lost in 4 months time.

Anyhow, YTD return is for monitoring of latest return performance of the funds. If you see your fund continuously not performance well over a couple of months, you should consider switching over to another fund that is performing well over the same period of time.

Now, let's look at their full year return in 2015. There are a total of 75 PRS funds active in year 2015, and 74 of them had brought positive return, only 1 has lost money.

The champion in 2015 is AmPRS - Islamic Equity Fund with a return of 16.3%. The top 10 PRS funds in 2015 are:

And the bottom 10 PRS funds in 2015 are:

So, does it worth to lock down your money in PRS, and put it in the hand of your PRS fund managers to bring return or lost to you? You decide.