SRS Fund

[jgrader]

I have accumulated 50k in srs ....not interested insurance product there lock in period n depleted surrender value. Where can I park my fund to generate 3 to 4 percent IRR. No stock as burnt before.

 

[hyperbole]

I have accumulated 50k in srs ....not interested insurance product there lock in period n depleted surrender value. Where can I park my fund to generate 3 to 4 percent IRR. No stock as burnt before.

Insurance products also buy stocks and they charge you an arm or leg in fees

 

[sgdividends]

I have accumulated 50k in srs ....not interested insurance product there lock in period n depleted surrender value. Where can I park my fund to generate 3 to 4 percent IRR. No stock as burnt before.

I dont think its possible to hit 3 to 4 percent IRR without investing in stocks (unless you mean specific company stocks.) and insurance/endowment products.

I guess your best bet is just to buy stock etfs but you will still be subjected to market cycles though much less company specific risks.

To have zero risk and wanna hit 3 to 4 percent IRR, its IMPOSSIBLE unless CPF SA but u cant do that with srs

 

[limster]

I have accumulated 50k in srs ....not interested insurance product there lock in period n depleted surrender value. Where can I park my fund to generate 3 to 4 percent IRR. No stock as burnt before.

3-4% is reasonable, a good unit trust can achieve that with lower volatility and Sharpe ratio of >1.0, just check their 3 yr/5yr/10yr performance.

 

[anfielder]

I have accumulated 50k in srs ....not interested insurance product there lock in period n depleted surrender value. Where can I park my fund to generate 3 to 4 percent IRR. No stock as burnt before.

If you've been burnt in stocks before, that means you were vested in a few specific stocks that tanked? Buy ETFs instead, then. Far safer than individual stocks, and without the hefty fees charged by insurance plans or unit trusts.

My SRS holdings are purely in STI ETF and A35, and the global equity component of my portfolio is in my cash holdings (outside SRS). I'm assuming if you can accumulate 50k in SRS, you should have investments outside SRS too.

 

[Broadwalk]

If you've been burnt in stocks before, that means you were vested in a few specific stocks that tanked? Buy ETFs instead, then. Far safer than individual stocks, and without the hefty fees charged by insurance plans or unit trusts.

My SRS holdings are purely in STI ETF and A35, and the global equity component of my portfolio is in my cash holdings (outside SRS). I'm assuming if you can accumulate 50k in SRS, you should have investments outside SRS too.

May I know how you trigger to buy the ETF? Who do you buy from?

 

[anfielder]

May I know how you trigger to buy the ETF? Who do you buy from?

I use iOCBC for SRS purchases, but other brokers will work too.

I use SCB for non-SRS purchases.

 

[Wood41]

一朝被蛇咬，十年怕井绳。

STI has risen from 2800 to 34xx now .

 

[jermel]

I have accumulated 50k in srs ....not interested insurance product there lock in period n depleted surrender value. Where can I park my fund to generate 3 to 4 percent IRR. No stock as burnt before.

If you can park your monies long term, like 10 to 15 years, you can go for ETF that track benchmarks indexes like the STI or MSCI. Since most UT managers does not consistently out-perform such index, but they take time to ride out the volatility.

For shorter term such as 5 to 10 years, you can try looking for UT that specialised in paying a dividend. Or perhaps REITs which pay at least 90% of income to shareholders.

Other areas you can consider but might not meet your expectation in IRR might be the Singapore Saving Bond for its safety.

Banks and insurance companies also have similar structured deposits programs that are capital guaranteed.

These are just some options that I can think of atm. I suggest you take some time out to speak around with different people or attend some seminars by an organisation like SIAS to know more details.

 

[BBCWatcher]

Other areas you can consider but might not meet your expectation in IRR might be the Singapore Saving Bond for its safety.

Currently it is not possible to buy SSBs using SRS funds. There's some discussion about lifting that restriction, but I wouldn't bet on it.

However, Singapore government bonds can be purchased using SRS funds. (It's a manual, paper-based process that requires stopping by your SRS custodian's branch, and most bank employees would struggle to dig out the right form, but it's possible. Call ahead so at least you don't have to wait for them to dig out the right form.) There are no more Singapore government bond auctions in 2017, but in 2018 there's a 5 year auction in January and a 10 year auction in April. There might also be a special auction in March for an interesting tenor. The 30 year (February) is not a good fit for SRS accounts. I personally wouldn't go longer than 10.

Bonds are auctioned in $1,000 face value increments. You won't be able to sweep every dollar and penny from a SRS into a bond, but you can get fairly close. There are absolutely no fees or charges to buy Singapore government bonds at initial auction and to hold them to maturity. (SSBs have a $2 purchase charge and a $2 redemption charge. SGSs do not.)

If market interest rates hold steady from now until the auctions then you'll probably get about 2.15% on the 10 year, maybe 2.20% (noncompetitive bid assumed, which is what individual investors should do). The 5 year would be around 1.75% or 1.80%. That's not 3% to 4%, but it's the #1 safest Singapore dollar investment.

 

[dork32]

anyone that play shares long term sure kena burned before.