SRS Investment Options

[BlueRobin]

I have $60,000 spare balance available to deploy in my SRS account. I will need to withdraw this money in 10 years' time.

What would you recommend me to do with the money if I prefer low risks option?

 

[boredboiboi]

I have $60,000 spare balance available to deploy in my SRS account. I will need to withdraw this money in 10 years' time.

What would you recommend me to do with the money if I prefer low risks option?

insurance product where the money will be 100% capital guaranteed upon year 10 and plus bonuses.

 

[tangent314]

The lowest possible risk would be go to with Singapore Saving Bonds - 1.56% average over 10 years.

 

[BlueRobin]

Best I can find so far is Great SP Series 3 at 1.55% for 3 years.

https://www.greateasternlife.com/sg...ur-products/wealth-accumulation/great-sp.html

 

[boredboiboi]

Best I can find so far is Great SP Series 3 at 1.55% for 3 years.

https://www.greateasternlife.com/sg...ur-products/wealth-accumulation/great-sp.html

This are tranches where it comes out on adhoc basis. But u will need to find another plan 3 years later.

 

[BlueRobin]

This are tranches where it comes out on adhoc basis. But u will need to find another plan 3 years later.

Very true. On the other hand, it also mean I would get a chance to get a higher yielding product 3 years later (or it could be worst also). Either way, it is just something I found on the web.

 

[boredboiboi]

Very true. On the other hand, it also mean I would get a chance to get a higher yielding product 3 years later (or it could be worst also). Either way, it is just something I found on the web.

Yup it can go either way or might not even have such plan when the 3 years matured

 

[Kojo0403]

 

[celtosaxon]

There aren’t a lot of great options for investing your SRS funds, but if you happen to already be investing in any SGX counters outside of SRS, you should sell those and immediately repurchase using your SRS money instead. Then, you can redeploy the non-SRS money without facing the same restrictions.

Personally, I also have the same 10 year time horizon and am investing all of my SRS money in SGX listed S27 (S&P500 index). While it’s not as cost effective as investing non-SRS money in London listed CSPX, it’s not that bad, better than locally available unit trusts and definitely the cheapest way to get S&P 500 exposure for SRS funds. Since I can’t do without at least some S&P 500 exposure in my global equity portfolio anyway, this, to me, is the “least worst option” for my SRS money.

 

[RedsYWNA]

There aren’t a lot of great options for investing your SRS funds, but if you happen to already be investing in any SGX counters outside of SRS, you should sell those and immediately repurchase using your SRS money instead. Then, you can redeploy the non-SRS money without facing the same restrictions.

Personally, I also have the same 10 year time horizon and am investing all of my SRS money in SGX listed S27 (S&P500 index). While it’s not as cost effective as investing non-SRS money in London listed CSPX, it’s not that bad, better than locally available unit trusts and definitely the cheapest way to get S&P 500 exposure for SRS funds. Since I can’t do without at least some S&P 500 exposure in my global equity portfolio anyway, this, to me, is the “least worst option” for my SRS money.

Do you contribute S$15,300?

If so, what do you invest in for the excess amount, after investing 20 units of S27?

 

[celtosaxon]

I contribute nothing. All contributions are made monthly by my employer, any excess cash is left to build up for the next purchase.

Once there is enough to buy at least 10 shares, then I trade. At first I used to wait until 20 shares for lower commission as a % of the transaction, but now I just don’t care and buy 10 at a time. No point saving on commission while the share price keeps increasing!

If you are contributing on your own, you could deposit enough to buy 20 shares at the start of year and top up the rest at year end so you don’t lose out as much.

 

[RedsYWNA]

I contribute nothing. All contributions are made monthly by my employer, any excess cash is left to build up for the next purchase.

Once there is enough to buy at least 10 shares, then I trade. At first I used to wait until 20 shares for lower commission as a % of the transaction, but now I just don’t care and buy 10 at a time. No point saving on commission while the share price keeps increasing!

If you are contributing on your own, you could deposit enough to buy 20 shares at the start of year and top up the rest at year end so you don’t lose out as much.

What i mean is that we cant use the entire $15,300 to buy S27, because of the min 10 units trade restriction.

I was thinking to use the remaining funds to either buy HST, TID or Lionglobal Infinity 500.

 

[GameTheory]

Use Endowus.

 

[celtosaxon]

What i mean is that we cant use the entire $15,300 to buy S27, because of the min 10 units trade restriction.

I was thinking to use the remaining funds to either buy HST, TID or Lionglobal Infinity 500.

You could do that. For me, I really value simplicity. I still remember one time my broker called up from TD Ameritrade Singapore and after accessing my account, he hesitated… and said, ummm, I see you have two shares .

Even mixing S27 into my portfolio not desirable, but with SRS, no choice.

 

[Kojo0403]

You could do that. For me, I really value simplicity. I still remember one time my broker called up from TD Ameritrade Singapore and after accessing my account, he hesitated… and said, ummm, I see you have two shares .

Even mixing S27 into my portfolio not desirable, but with SRS, no choice.

yea, since it’s for long term. paying 0.09% per year on S27 makes alot of sense