SRS Account

[needreader]

Hi everybody,

To enjoy the tax saving, I intend to place $8,000 into my SRS account this year. The reason is because I can still cash out the money in the event I am out of job.

Is there any recommendation on the type of investment instrument for my SRS account. I am looking for a fixed income investment (i.e bonds; fixed deposit), not really into insurance or high risk investment.

Can I still buy retail bonds or shares with the SRS account? What might be the potential charges?

 

[chiokcc]

You can read up this blog for ideas...

http://srsfund.blogspot.sg/

note: blog doesn't belong to me ....

 

[Starmaster]

to cash out . u will need to pay 5% penalty on top of tax on the withdrawal . SRS is for long retirement savings . it is not liquid . hope u will take this into considerations

 

[winstonoyy]

I differ from your view. Its more liquid than CPF. At 5% penalty (and potentially tax bracket upgrade as the withdrawals contribute to your taxable income), it is still cheaper than if you take a credit line type of loan from the bank ie 26% to 28% per annum type of short term loans.

In terms of assets, should liquidate in the following priority:

Liquid cash
SSB
FD accounts
SRS

Equity and bonds should be liquidated depending on whether you have a positive balance upon liquidation, and how much do you stand to lose compared to the other options.

to cash out . u will need to pay 5% penalty on top of tax on the withdrawal . SRS is for long retirement savings . it is not liquid . hope u will take this into considerations

 

[3amcoffee]

to cash out . u will need to pay 5% penalty on top of tax on the withdrawal . SRS is for long retirement savings . it is not liquid . hope u will take this into considerations

iirc, u can take out within the contributed amt same year w/o any penalties

 

[chiokcc]

POSB got links on SRS

http://www.posb.com.sg/personal/retirement/supplementary-retirement-scheme.page

http://www.posb.com.sg/personal/investments/srs-and-cpf/supplementary-retirement-scheme


For sharing purpose, not advertising or saying their products are the best

 

[needreader]

to cash out . u will need to pay 5% penalty on top of tax on the withdrawal . SRS is for long retirement savings . it is not liquid . hope u will take this into considerations

Hi, thanks for your advice. I have factored that into consideration. This is my "emergency fund" in case I am "jobless". Paying 5% withdrawal fee is better than paying for >7.5% tax.