[SIC] 2016 SRS promo

[badsector]

Refer to 3rd post for link for ocbc

dun have. only t&c

OCBC does not have extra charges for SRS.

no transaction charges for SRS account?

 

[anfielder]

no transaction charges for SRS account?

no charges.

 

[greythorne]

Hmmm guys maybe SRS is not for me because I have no clue what is SRS lol. Can some kind soul explain?

Thank you.

 

[Darkzi0n]

u guys r in which tax bracket?

 

[Nofear40]

Hi all experts
How does SRS compare to topping up of SA?
The returns on SA is guaranteed at 4%

 

[badsector]

Hmmm guys maybe SRS is not for me because I have no clue what is SRS lol. Can some kind soul explain?

Thank you.

check http://www.mof.gov.sg/MOF-For/Individuals/Supplementary-Retirement-Scheme-SRS

Hi all experts
How does SRS compare to topping up of SA?
The returns on SA is guaranteed at 4%

different product. cant compare apple to apple

 

[frenchbriefs]

What are the restrictions of this srs account and why is the contribution cap for citizens only $15k while foreigners can contribute up to $32k?

 

[badsector]

What are the restrictions of this srs account and why is the contribution cap for citizens only $15k while foreigners can contribute up to $32k?

read http://www.mof.gov.sg/Portals/0/mof for/individuals/srs/SRS_Booklet - 30 Dec 2015.pdf

 

[frenchbriefs]

so according to the pdf i can withdraw my investments any time?and if i wait until reitrement age only 50 percent of taxable will be taxed?

so this is basically a no strings attached deal?

i have one question though,which of our investments in sg is currently being taxed now?i thought we dont have to pay any capital gains tax,and any dividend tax is already taken out on the company or reit side?

ok nvm,theres a 5 percent penalty for early withdrawal except on medical grounds or death,this account is worthless.pls dont be tempted by the $50 cashback.

 

[Darkzi0n]

so according to the pdf i can withdraw my investments any time?and if i wait until reitrement age only 50 percent of taxable will be taxed?

so this is basically a no strings attached deal?

i have one question though,which of our investments in sg is currently being taxed now?i thought we dont have to pay any capital gains tax,and any dividend tax is already taken out on the company or reit side?

ok nvm,theres a 5 percent penalty for early withdrawal except on medical grounds or death,this account is worthless.pls dont be tempted by the $50 cashback.

jus bcos the account is not suitable for you does not make it worthless. There are plenty of high income earners that can benefit from the tax savings (effectively a 11.5% to 20% guaranteed return on first year, less the effect of tax upon withdrawal) and have adequate cashflow so that they dun need to touch their SRS fund while the penalty is in effect.

The $50 is jus some extra fringe benefit.

 

[winstonoyy]

There is a massive difference between SRS and CPF top ups: liquidity.

When you are in need of cash, the penalties for early withdrawal are way cheaper than if you approach the banks for a 28% pa loan, even if you include the taxes. Also, you control your rate of returns from SRS deposits. You control neither rate of return (albeit very attractive 4% compounded, if you have yet to max out your SA/MA limits), nor liquidity. Not free to draw out from CPF when **** hits the fence. You gain some, you lose some. No (free and) perfect lunch in this world.

 

[winstonoyy]

Quite right there. The savings from taxes have to be significant before you even consider SRS. If you ended up saving less than 1k for the 15k you lock into SRS, you are better off paying the taxes and benefit the lower income groups.

The $50 only serves to have the banks lock in the funds early so they can predict how much liquidity they have and facilitate declaration to IRAS. If everyone tops up after Christmas, the banks are not going to enjoy their festive holidays much; the costs to hire extra part time manpower can be higher than simply paying a token $50 per account.

jus bcos the account is not suitable for you does not make it worthless. There are plenty of high income earners that can benefit from the tax savings (effectively a 11.5% to 20% guaranteed return on first year, less the effect of tax upon withdrawal) and have adequate cashflow so that they dun need to touch their SRS fund while the penalty is in effect.

The $50 is jus some extra fringe benefit.

 

[frenchbriefs]

jus bcos the account is not suitable for you does not make it worthless. There are plenty of high income earners that can benefit from the tax savings (effectively a 11.5% to 20% guaranteed return on first year, less the effect of tax upon withdrawal) and have adequate cashflow so that they dun need to touch their SRS fund while the penalty is in effect.

The $50 is jus some extra fringe benefit.

oh ok income tax savings,i was thinking more of the investment side,like what sort of taxes are we paying on our investments?

but still the penalty thing is terrible,there is no way i can contemplate having any of my investments or capital being locked up for 30 years,some investment opportunity might show up later,there is always a more efficient way to invest ur capital.also part of the reason for investing is delayed gratification,i want to enjoy the spoils of my wealth later but it doesnt mean i want to wait until im one foot in the grave.whats the point of feeling rich when ur old?

 

[Jazzbie]

Say if we retire early, we can just withdraw $20,000 at 5% charge assuming no other taxable income for the year. And if we save 11.5% or more on tax savings now, it will cover that 5% charge?

 

[FrontierX]

Today Sunday Times got article on SRS
Check it out

i read abt it today.

at my age and chargeable income group, i do not think i need to put in SRS yet.

30 yo, 60k chargeable income.

after much research, the golden years for putting in SRS if >40-55, so i am 10 years early.

better to gain flexibility with extra money on hand and guai guai pay tax while im in the 7% range.

 

[winstonoyy]

I don't think its a matter of age but income bracket. If you consider the median income group progressing into their 40s/50s, that is about the time when they can afford to put aside some savings and get tax relief without having to worry about cash flow on a regular basis. At 7% bracket, if you consider the marginal tax savings vs the amount you are locking away, may not be that worth it on balance.

i read abt it today.

at my age and chargeable income group, i do not think i need to put in SRS yet.

30 yo, 60k chargeable income.

after much research, the golden years for putting in SRS if >40-55, so i am 10 years early.

better to gain flexibility with extra money on hand and guai guai pay tax while im in the 7% range.

 

[drsubaru]

I want to move out of ocbc. Ocbc keeps sending monthly hardcopy statements which jeopardise my finances to my family members. Can't opt out.

DBS got send hardcopy statements?

Opt for soft copy?

 

[arctician]

every 15k i topup, i save $3K in taxes, so $50 or no, i will topup all the same.

The $50 is an added bonus which i will gladly take. Topup the moment i saw this thread.

For added info, for those who want to safeguard your deposit in SRS, just use it buy OCC5.1% preference shares or some investment grade bonds like capmall 3.08%, you get 3%-4% risk free, unless issuer collapse of course

 

[Zopizz]

every 15k i topup, i save $3K in taxes, so $50 or no, i will topup all the same.

The $50 is an added bonus which i will gladly take. Topup the moment i saw this thread.

For added info, for those who want to safeguard your deposit in SRS, just use it buy OCC5.1% preference shares or some investment grade bonds like capmall 3.08%, you get 3%-4% risk free, unless issuer collapse of course

Is occ5. 1 still available for purchase? Or any others to recommend?

 

[lzydata]

oh ok income tax savings,i was thinking more of the investment side,like what sort of taxes are we paying on our investments?

Similarly no taxes on investments per se just that withdrawals are taxed as income with a 50% discount. For example if you have no other income and you withdraw $40k from your SRS account, under the current tax rates your income tax payable is 0% since the current brackets start at $20k.

On locking up for 30 years: many people are very healthy at 62 and just getting started