SRS Investment

[xorionn]

Have about SRS 30k not invested yet, any recommend place to invest?

 

[tangent314]

In order of preference:

1. STI ETF
2. LionGlobal All Seasons (Growth) Fund
.
.
.
3. MBH, SSB or some robo advisor

 

[BBCWatcher]

Manulife’s fully SRS qualified life annuity might be useful for a portion if you have an enormous SRS balance and are trying to extend and smooth age 62+ withdrawals for tax reasons.

If you’re late career and just using the SRS to “tax launder” late career income, then SSBs and other Singapore Government Securities seem perfectly reasonable to me.

If you’re a U.S. person then a couple individual SGX-listed bank stocks is probably the best you can do to avoid running afoul of PFIC rules, but I question whether U.S. persons should be dabbling in the SRS at all. For late career “tax laundering” using individual government bonds, maybe.

 

[celtosaxon]

The “tax laundering” you refer to below is using the eventual taxability of SRS withdrawals as foreign tax credits on a US return?

Manulife’s fully SRS qualified life annuity might be useful for a portion if you have an enormous SRS balance and are trying to extend and smooth age 62+ withdrawals for tax reasons.

If you’re late career and just using the SRS to “tax launder” late career income, then SSBs and other Singapore Government Securities seem perfectly reasonable to me.

If you’re a U.S. person then a couple individual SGX-listed bank stocks is probably the best you can do to avoid running afoul of PFIC rules, but I question whether U.S. persons should be dabbling in the SRS at all. For late career “tax laundering” using individual government bonds, maybe.

 

[BBCWatcher]

The “tax laundering” you refer to below is using the eventual taxability of SRS withdrawals as foreign tax credits on a US return?

No. It merely refers to time shifting Singapore taxable income a relatively small distance into the future in order to reduce Singapore income tax. In the couple or few years before retirement, even at 1.X% interest, that could be a reasonable thing to do, with or without U.S. personhood.

 

[decibel.]

In order of preference:

1. STI ETF
2. LionGlobal All Seasons (Growth) Fund
.
.
.
3. MBH, SSB or some robo advisor

Why LionGlobal instead of Dimensional from EndowUs?

Sent from HUAWEI VOG-L29 using GAGT

 

[boredboiboi]

Have about SRS 30k not invested yet, any recommend place to invest?

Not in order, just a listing

1) unit trust
2) etf
3) insurance plan depends on age
4) 3 years tranche
5) ssb

 

[athletic91]

My srs portfolio 30k in 4 portions

1)hospital reit
2)industrial reit
3)shopping Center reit
4)single premium insurance 3%

 

[xorionn]

Thanks so much for the useful guidance, I have an idea now. Is it better to do this via going down to a bank?

 

[tutonic]

Better to do it through Endowus, imo. The whole point of robos being popular is to counter the high bank fees.

 

[assiak71]

Better to do it through Endowus, imo. The whole point of robos being popular is to counter the high bank fees.

Why not stashaway. Stashaway fee is calculated on cash + srs combined balance right?

 

[xorionn]

Why not stashaway. Stashaway fee is calculated on cash + srs combined balance right?

That’s good platform I heard too, how abt moneyowl anyone tried?

 

[boredboiboi]

Thanks so much for the useful guidance, I have an idea now. Is it better to do this via going down to a bank?

Depends on what you buying

 

[tangent314]

Why LionGlobal instead of Dimensional from EndowUs?

That falls under the "robo-advisor" category, and you will have to buy Dimensional through EndowUs which charges a significant platform fee on top of Dimensional's fees. LionGlobal funds can be purchased without incurring platform fees.

Better to do it through Endowus, imo. The whole point of robos being popular is to counter the high bank fees.

...by paying the fees to the robos instead. Does not make sense to me when there are no-fee platforms available.

 

[McFadden]

Not in order, just a listing

1) unit trust
2) etf
3) insurance plan depends on age
4) 3 years tranche
5) ssb

what is difference between ETF and unit trust?thought ETF and unit trust are funds?

 

[assiak71]

Here we go again
There are existing threads

https://forums.hardwarezone.com.sg/money-mind-210/srs-portfolio-5998560.html

 

[boredboiboi]

what is difference between ETF and unit trust?thought ETF and unit trust are funds?

Similar but i dont know how to put it in words the difference. Maybe some experts can explain the difference

 

[tutonic]

Why not stashaway. Stashaway fee is calculated on cash + srs combined balance right?

Yeah, that's true. I mistakenly thought OP was talking about cpf investment (to which endowus is the only robo that does it, iirc). If it's SRS, can consider stashaway. I got referral code for anyone keen. Just pm.

The only benefit robos have over direct purchasing is that there's no transaction fee, only annual platform fees. It works out for me because I deposit monthly into stashaway. The transaction fee from 12 trades will cost more than the higher platform fees.

 

[Okenba]

Yeah, that's true. I mistakenly thought OP was talking about cpf investment (to which endowus is the only robo that does it, iirc). If it's SRS, can consider stashaway. I got referral code for anyone keen. Just pm.

The only benefit robos have over direct purchasing is that there's no transaction fee, only annual platform fees. It works out for me because I deposit monthly into stashaway. The transaction fee from 12 trades will cost more than the higher platform fees.

No. They are not platform fees, but AUM fees. Assets under management. Platform fees are flat, and you would be right to say transaction fees might well be higher.

Buy AUM fees are a percentage of your entire assets under management. Even if transaction fees are more expensive in the first few years, as your assets grow, management fees will easily overtake your transaction fees.

 

[tutonic]

No. They are not platform fees, but AUM fees. Assets under management. Platform fees are flat, and you would be right to say transaction fees might well be higher.

Buy AUM fees are a percentage of your entire assets under management. Even if transaction fees are more expensive in the first few years, as your assets grow, management fees will easily overtake your transaction fees.

Yeah, since I'm still relatively young (close to 30) and don't really have such a high amount, relatively speaking, I'll switch to direct purchasing once my AUM gets high enough such that the net costs of directly purchasing becomes cheaper.