Is SRS useful ?

[pcmdan]

do we have to withdraw 40k when we are 62? Can I choose to withdraw 1.5k a month instead? Will I still get Tax?

 

[Elmo82]

do we have to withdraw 40k when we are 62? Can I choose to withdraw 1.5k a month instead? Will I still get Tax?

As of this point in time, there are only 2 options:
1. Lump Sum
2. Annual withdrawal over 10 years.

Also, 40k is used assuming your account has 400k to minimise your tax liabilities. There is no rule that prevents you for holding above 400k in the SRS account as long as the yearly contribution is within the SRS contribution ceiling.

 

[pcmdan]

yeah...was hoping to siam tax completely. withdraw 20k a year rather than takin more to get tax.

if annual withdrawal is 10 years. i just need to ensure got roughly 200k then i shd be able to circumvent this?

 

[djchris]

400k. Read my post above.

 

[pcmdan]

read still dont uds. so the min to withdraw each time is 40k after age 62?

 

[lzydata]

read still dont uds. so the min to withdraw each time is 40k after age 62?

It's not as rigid as that. One can start withdrawing from SRS at age 62 or later, any amount a year, so long as the withdrawals are completed within 10 years of their initiation. You can delay the beginning of withdrawals if you are still working at age 62, for example, so you let your investments compound further.

djchris's scenario is the case where you do not want to pay any income tax on the withdrawn amounts, hence $40k each year for 10 years. Personally, if I have more than $400k in SRS by that time, I think that's quite fortunate so I wouldn't mind paying some income tax. Just manage it so that you don't have to pay more than necessary.

 

[pcmdan]

Thank you for your reply.But let say i do not have any income after age 62..If i withdraw 40k? will i get tax anyway? or if there are still any admin charges?

Frm my weak understanding, after 62 there is no charge at all for withdrawing.

So meaning to say lets say i withdraw 40k per year with the remaining 20k being taxable, but since it is below the tax bracket i dont get taxed?

 

[Lewis.T]

Thank you for your reply.But let say i do not have any income after age 62..If i withdraw 40k? will i get tax anyway? or if there are still any admin charges?

Frm my weak understanding, after 62 there is no charge at all for withdrawing.

So meaning to say lets say i withdraw 40k per year with the remaining 20k being taxable, but since it is below the tax bracket i dont get taxed?

Yes you are correct.

-----

My point on SRS is this. If you can get past short term planning (because this is for retirement afterall), you stand to benefit decently from this scheme. For topping up CPF, the maximum relief you can get from cash top ups to your own account is $7k, compared to ~$12k from SRS.

CPF SA is also more illiquid than an SRS account. You may argue that you take a big hit from premature withdrawals from the SRS account, but if you're working and earning an income and still need to withdraw, the error lies with your planning and not the scheme - Unless you tell me you recently know of a sibling with loansharks after his head or something and wish to pay for him in full.

When you do need the funds, you are likely to be unemployed, and whatever you withdraw for necessities are not going to be taxed high, if taxed at all.

On an additional note, for those who are arguing CPF SA gives 4%+, you are supposed to use your funds in the SRS for long term investments; the STI ETF many are fond of for example.

Edit: Final pointer, investing for end stage goals like retirement should be done with disposable income, not money you will need in the short to medium term. Life sometimes throws a curveball at you and that's where your emergency funds come into play. What I'm trying to say is please have some money in the bank before you think about investing or delving into such schemes.

 

[wts2013]

If u invest your srs and do early withdrawals or withdraws amt which could be subject to tax, bo hua, u get tax for capital gains, hahaha

 

[JJJ010101]

Hi, got a very odd question from my colleague. Assuming u have alot of money in SRS, will the monies be taken into consideration if you request financial assistance when your elderly fall ill?

 

[w1rbelw1nd]

Hi, got a very odd question from my colleague. Assuming u have alot of money in SRS, will the monies be taken into consideration if you request financial assistance when your elderly fall ill?

Do the agencies check your bank account when they take note of your eligibility for assistance?

I think they look more at household income per head, value of residence more.... Whether they have access to your SRS account details I have no idea

 

[djchris]

In my view, the government knows how much you have in your SRS account without checking your bank account (at least what you had last year). This is because the amount is automatically filed in your income tax for tax deductions.

 

[swainchua]

You don't lose 5%, you are also going to lose a significant portion of it to tax. Go and read up on SRS if you don't understand. I can't believe so many naive people jump into SRS without knowing how it work exactly.

Every person has different kind of perspective or plans to do with their money.
Some people may be busy earning money, doing business, just finding the most common and effortless way to park money and do some forced savings.

What makes you think they are naive and you are the clever elite group.
Do you even have money to do park?

Unless you spend more time finding ways to earn money then posting your perfect thoughts here.
17186 comments and still counting, you must have committed at least 30% of your time here posting and reading forum.
You must be either damn rich or too clever about finance management thus you are so free now, not doing much except online sharing your fantasies?

Am i right the great hwmook.
Like i said, you really think you are clever and knowledgable?
To me, you are one just trying hard to be smart online. And these people normally achieve nothing much in real life.

What a degenerate you are.

 

[djchris]

Every person has different kind of perspective or plans to do with their money.
Some people may be busy earning money, doing business, just finding the most common and effortless way to park money and do some forced savings.

What makes you think they are naive and you are the clever elite group.
Do you even have money to do park?

Unless you spend more time finding ways to earn money then posting your perfect thoughts here.
17186 comments and still counting, you must have committed at least 30% of your time here posting and reading forum.
You must be either damn rich or too clever about finance management thus you are so free now, not doing much except online sharing your fantasies?

Am i right the great hwmook.
Like i said, you really think you are clever and knowledgable?
To me, you are one just trying hard to be smart online. And these people normally achieve nothing much in real life.

What a degenerate you are.

Seriously, if you are posting in threads just to be a troll and post nasty comments about someone, then you really need to get a hobby.

How does a 5000 piece jigsaw puzzle sound?

 

[swainchua]

Seriously, if you are posting in threads just to be a troll and post nasty comments about someone, then you really need to get a hobby.

How does a 5000 piece jigsaw puzzle sound?

Do you think im that free? someone who posted 206+ comments to one post 17186+?

And do you think im really trolling?
Why not anyone else except him?

 

[djchris]

Do you think im that free? someone who posted 206+ comments to one post 17186+?

And do you think im really trolling?
Why not anyone else except him?

If only the number of posts one makes can truly show the characteristics of a person. Unfortunately common sense says that's not true.

Even if you are not happy with what people say about what you are trying to sell in the forum, there's no need to go into different threads to post damaging remarks and make personal attacks at that individual.

I'll still recommend that 5000-piece puzzle.

 

[swainchua]

If only the number of posts one makes can truly show the characteristics of a person. Unfortunately common sense says that's not true.

Even if you are not happy with what people say about what you are trying to sell in the forum, there's no need to go into different threads to post damaging remarks and make personal attacks at that individual.

I'll still recommend that 5000-piece puzzle.

There are quite a some negative comments, not only from him.
But most of them are discussed well and reasonable.
Except his.
Without any logical facts, he mentioned, "your posts is a scam, your page is a scam, you are a scam".

This is simply retarded.
He needs to be taught with some manners.. totally no manners and uncivilised pest.

Anyway, you may continue to defend your pals.
I don't think continuing this benefit me even 1 bit nor i earn anything winning this.
I came here to share some alternatives and my objectives fulfiled. I have no time to debate your 5000 puzzle or 10,000 puzzle..
Save if for your kids, ok ? son.

 

[Perisher]

There are quite a some negative comments, not only from him.
But most of them are discussed well and reasonable.
Except his.
Without any logical facts, he mentioned, "your posts is a scam, your page is a scam, you are a scam".

This is simply retarded.
He needs to be taught with some manners.. totally no manners and uncivilised pest.

Anyway, you may continue to defend your pals.
I don't think continuing this benefit me even 1 bit nor i earn anything winning this.
I came here to share some alternatives and my objectives fulfiled. I have no time to debate your 5000 puzzle or 10,000 puzzle..
Save if for your kids, ok ? son.

The logical fact is, there isn't any easily make $$ thing for the masses so far. The logical overwhelming fact is, Forex scams and MLM scams are everywhere. The logical fact is, there are many people posting in these forums with such scams. The logical fact is, it's posted everywhere. I don't think you bother to check.

I'm not defending anyone, just against your points.

 

[hwmook]

Every person has different kind of perspective or plans to do with their money.
Some people may be busy earning money, doing business, just finding the most common and effortless way to park money and do some forced savings.

What makes you think they are naive and you are the clever elite group.
Do you even have money to do park?

Unless you spend more time finding ways to earn money then posting your perfect thoughts here.
17186 comments and still counting, you must have committed at least 30% of your time here posting and reading forum.
You must be either damn rich or too clever about finance management thus you are so free now, not doing much except online sharing your fantasies?

Am i right the great hwmook.
Like i said, you really think you are clever and knowledgable?
To me, you are one just trying hard to be smart online. And these people normally achieve nothing much in real life.

What a degenerate you are.

Whatever. Come and attack me. I have no need to prove anything, I am not asking anybody to invest anything with me, you are. You have got to prove that you are professional and trustworthy but everybody can see how unprofessional your posts are. Losing is winning, winning is losing blah blah...really unprofessional so what kind of response do you think you deserve?