Should we have RMF installed in our portfolio?

Retirement Mutual Funds ( RMFs) are established as an alternative way to save for retirement, and are supported by the government through tax benefits for investors as an incentive.

“So..should we already have RMF installed on the port?”

1. Our age compared to the length of time we have held the fund.

Young working adults: Since RMF funds can only be redeemed upon reaching the age of 55, those who are still young might consider purchasing SSF funds first. However, if your tax bracket is high, investing in RMF funds for additional tax deductions is a good option to start planning for retirement from a young age.

Ages 46 and above: This age group has a shorter holding period for RMF funds to qualify for tax deductions compared to SSF funds. Therefore, many people opt to utilize their full tax deduction entitlement through RMF funds instead.

Approaching Retirement: If you plan to withdraw your RMF funds after retirement, it's advisable to purchase RMFs that invest in low-risk assets to prioritize principal preservation.

2. Taxes that we will save from investing in RMF

Those with higher tax brackets should consider investing in RMF funds to their full potential: because for the same investment amount, they will receive a higher tax deduction (tax refund).

3. The level of risk we can accept Fund risk level

Adjust the proportion of investment in each type of asset according to the risk that we can accept.

4. Predict the growth factors of the assets in which the RMF fund invests.

Evaluated from the growth factor of the RMF fund during the period that we need to hold it according to the tax deduction criteria. or the period of time that we will not have to use this money

Source: Kasikorn Securities