ISAC - iShares MSCI ACWI UCITS ETF (USD) Accumulating

[Soomp!]

I get to know this ETF through stashaway
ETF explorer which we can use SRS to invest which is fantastic.

 

[highsulphur]

I get to know this ETF through stashaway
ETF explorer which we can use SRS to invest which is fantastic.

Thats great but bear in mind capital gain on srs investment may be taxable

 

[Soomp!]

Thats great but bear in mind capital gain on srs investment may be taxable

Yes if we withdraw right .... ?
The same old rule of Srs applies

 

[highsulphur]

Yes if we withdraw right .... ?
The same old rule of Srs applies

You will have withdraw at some point right? 50% will be subject to tax

 

[kickass22]

You can invest in ISAC using SRS?

 

[Soomp!]

You can invest in ISAC using SRS?

Yes you can with SRS with stashaway

 

[Soomp!]

You will have withdraw at some point right? 50% will be subject to tax

Yes we can do a 40K withdrawal if subject to no tax

But even if we are tax , it will not be a lot

If we look at the tax bracket now

If we withdraw 100K from the srs account
It is 50K taxable

First 40K is 550 and the next 10K is 7 percent of it

Means when we draw 100K from srs,
We are tax at 1,250

That is 1.25 percent of the entire withdrawal.

 

[reddevil0728]

Yes we can do a 40K withdrawal if subject to no tax

But even if we are tax , it will not be a lot

If we look at the tax bracket now

If we withdraw 100K from the srs account
It is 50K taxable

First 40K is 550 and the next 10K is 7 percent of it

Means when we draw 100K from srs,
We are tax at 1,250

That is 1.25 percent of the entire withdrawal.

The point is invest via SRS may indirectly kena capital gains tax while with cash wouldn’t.

 

[Soomp!]

The point is invest via SRS may indirectly kena capital gains tax while with cash wouldn’t.

Keep at 400K in SRS if we really mind to get tax

 

[highsulphur]

Keep at 400K in SRS if we really mind to get tax

You can't control the growth of your portfolio

 

[elvintay07]

The point is invest via SRS may indirectly kena capital gains tax while with cash wouldn’t.

If we don’t need to withdraw at 62 and vitally eventually withdraw at age 75, maybe by then tio tax also treat as national service la.

 

[reddevil0728]

Keep at 400K in SRS if we really mind to get tax

if ISAC go to the moon. how to keep only 400k?

If we don’t need to withdraw at 62 and vitally eventually withdraw at age 75, maybe by then tio tax also treat as national service la.

that's a different decision altogether

 

[elvintay07]

if ISAC go to the moon. how to keep only 400k?

that's a different decision altogether

If our SRS grow from $400k to $2m, no big deal tio more tax la. If Tio sai the $400k crash to $100k, no tax also cry

 

[reddevil0728]

If our SRS grow from $400k to $2m, no big deal tio more tax la. If Tio sai the $400k crash to $100k, no tax also cry

that's a choice you have to make based on the information provided to you.

the information remains valid regardless of your choice.

 

[Mephist0pheLes]

The point is invest via SRS may indirectly kena capital gains tax while with cash wouldn’t.

Not sure why there is an obsession with not paying tax on SRS.

There's $100 on the floor. would u pick it up if there's a chance that u might need to give back a few dollar in the future?

I think most ppl would.

 

[reddevil0728]

Not sure why there is an obsession with not paying tax on SRS.

There's $100 on the floor. would u pick it up if there's a chance that u might need to give back a few dollar in the future?

I think most ppl would.

i don't have an obsession, other than just providing the information.

 

[elvintay07]

Not sure why there is an obsession with not paying tax on SRS.

There's $100 on the floor. would u pick it up if there's a chance that u might need to give back a few dollar in the future?

I think most ppl would.

Precisely lo. All want to eat the full chicken including the bones, skin and even organs. If make money, I think fair to return a bit more ex la. I only worry whether my STS can balloon

 

[highsulphur]

The point I was trying to make (and I think reddevil0728) is that there is a potential tax on capital gain on srs investment which doesn't not exist if you had invest using cash instead. If you going to have both bond and equity component, it may make sense to have the bond component in your SRS while cash for equity to minimise any tax on capital gain

Of course if you are going all in equities, then it doesn't matter

 

[reddevil0728]

Precisely lo. All want to eat the full chicken including the bones, skin and even organs. If make money, I think fair to return a bit more ex la. I only worry whether my STS can balloon

not wrong ah. at least u made an informed decision

The point I was trying to make (and I think reddevil0728) is that there is a potential tax on capital gain on srs investment which doesn't not exist if you had invest using cash instead. If you going to have both bond and equity component, it may make sense to have the bond component in your SRS while cash for equity to minimise any tax on capital gain

Of course if you are going all in equities, then it doesn't matter

my point is about making sure people make an informed decision. that's all.

no opinion whether it makes sense or not.

 

[elvintay07]

The point I was trying to make (and I think reddevil0728) is that there is a potential tax on capital gain on srs investment which doesn't not exist if you had invest using cash instead. If you going to have both bond and equity component, it may make sense to have the bond component in your SRS while cash for equity to minimise any tax on capital gain

Of course if you are going all in equities, then it doesn't matter

This argument doesn’t make sense mah. When one put money into SRS, it is more like deferring one’s tax using SRS. If today you want to pay full tax then no need put SRS right? It is not like anyone point a gun to your head and say need to put money in SRS.

Some of my top earning friends also don’t bother about SRS and outright just pay high tax. For some ppl, they just see SRS as a discipline way of savings with some deferred tax benefits.