SRS Investment

[Okenba]

If you must have 100% equities, then yes the option with the lowest cost is Lion Infinity Global Stock Index Fund of 0.81%. Endowus + DFA's fund is slightly higher at ~0.83%

The Vanguard fund underlying the Lion Infinity Global Stock Index Fund has an expense ratio of 0.18

Not saying that we shouldn't buy it, but it sure looks like they're making a killing from doing next to nothing...

 

[hwmook]

So you believe a 3-fund portfolio is stupid because it has local equities allocation?

He is asking why you switch from global to Singapore focus portfolio by buying STI ETF? It's totally different area but you buy STI ETF simply because it's cheaper and not because it can give you better returns.

 

[hwmook]

The Vanguard fund underlying the Lion Infinity Global Stock Index Fund has an expense ratio of 0.18

Not saying that we shouldn't buy it, but it sure looks like they're making a killing from doing next to nothing...

That's true but SRS and CPFIS are so restrictive that you have to accept letting these companies earn your money for nothing.

 

[tangent314]

The Vanguard fund underlying the Lion Infinity Global Stock Index Fund has an expense ratio of 0.18

Not saying that we shouldn't buy it, but it sure looks like they're making a killing from doing next to nothing...

Yep, that's why if I really want global equities with SRS, I would prefer to accept more bond exposure using LGAS(G) for the much lower expense ratio. Then rebalance that by using CPF-OA for STI ETF.

For now I'm really only using LGAS(G) to park excess SRS cash leftover from dividends and topup-and purchase of STI ETF. Global equities are for cash investment.

He is asking why you switch from global to Singapore focus portfolio by buying STI ETF? It's totally different area but you buy STI ETF simply because it's cheaper and not because it can give you better returns.

No. As I have already mentioned several times before, I buy STI ETF because it fits into my 3-fund portfolio allocation, and I have been doing so annually. SRS is simply the best place place to purchase the STI ETF, whereas most of my cash investment is in IWDA for global equities, since that cannot be bought cheaply with SRS or CPF. Meanwhile most of my CPF is treated as bond component, with a bit going into STI ETF.

That's true but SRS and CPFIS are so restrictive that you have to accept letting these companies earn your money for nothing.

You don't have to let those companies earn. Just plan your 3-fund portfolio allocation around the restrictions. Cash for global equities, SRS for local equities, CPF for bonds. You still have some flexibility to turn some knobs on those numbers. For example, if you need more local equities and less bonds, you can buy STI ETF with CPF. If you need more bonds and less local equities you can buy MBH with SRS. If you need more local equities and less global equities, buy STI ETF with cash. If you need more global equities and less local equities, then you will have to accept a bit more expense into SRS, or use more cash and less SRS.

 

[ravi2653]

Managenent fee is embeded if i am not wrong be it which platform you use for the same fund. Prices shown are already accounted for.

yes, I mean to say total expenses ratio (that includes management fee) for PIMCO income fund is 1.45% which is higher than total 0.83% cost (0.43%+ 0.40%) for Endowus DM fund.

 

[Froggyman]

Hi, newbie’s question, just started this SRS with $15k and would like to invest it instead of leaving it in the bank.. am thinking of ETF

1) do you buy ETF under RSP or just one lump sum (one time)?
* err.. also not sure if there is a one lump sum purchase for ETF?
Your strategy for investing in ETF is monthly or annually for the SRS portion?

2) will be opening a Poem account ...right choice?

TIA.
Happy CNY

 

[Okenba]

Hi, newbie’s question, just started this SRS with $15k and would like to invest it instead of leaving it in the bank.. am thinking of ETF

1) do you buy ETF under RSP or just one lump sum (one time)?
* err.. also not sure if there is a one lump sum purchase for ETF?
Your strategy for investing in ETF is monthly or annually for the SRS portion?

RSP to spread your risk. Lump sum at start of year if you believe market will go up. Lump sum at end of year if you have stuff you can do with the money before that.

2) will be opening a Poem account ...right choice?

TIA.
Happy CNY

If you RSP, you have limited choices. DBS, OCBC, POEMs, FSMone. Of which I believe FSMone is the current front runner.

Chk the pricing of each and focus more on annual % charges (if any) as these will likely be bulk of costs over the years. RSP usually does not have any (I think), then focus on your monthly transaction costs.

 

[linuskltan]

RSP to spread your risk. Lump sum at start of year if you believe market will go up. Lump sum at end of year if you have stuff you can do with the money before that.



If you RSP, you have limited choices. DBS, OCBC, POEMs, FSMone. Of which I believe FSMone is the current front runner.

Chk the pricing of each and focus more on annual % charges (if any) as these will likely be bulk of costs over the years. RSP usually does not have any (I think), then focus on your monthly transaction costs.

I think the only ETF RSP that supports SRS funds is OCBC BCIP. And OCBC charges additional $0.37 per counter per month, in addition to the 0.3% fee (min $5 per counter).

 

[tangent314]

Yes, RSP options for ETFs are not very good for SRS. Hopefully FSMOne will pick up on that and allow SRS soon.

Personally I procrastinate my SRS contributions to the last few days of the year and then lump sum right after that. If I ever wish to RSP, I would do so into Lion Global All Seasons (Growth) instead, and then once or twice per year switch a portion over to STI ETF

 

[JuniorLion]

Yes, RSP options for ETFs are not very good for SRS. Hopefully FSMOne will pick up on that and allow SRS soon.

Personally I procrastinate my SRS contributions to the last few days of the year and then lump sum right after that. If I ever wish to RSP, I would do so into Lion Global All Seasons (Growth) instead, and then once or twice per year switch a portion over to STI ETF

Moderator, advertising in MM is allowed?

 

[Froggyman]

Hi,
Thanks okenba, linuskltan and tangent314 for the input and advice.

 

[Froggyman]

I think the only ETF RSP that supports SRS funds is OCBC BCIP. And OCBC charges additional $0.37 per counter per month, in addition to the 0.3% fee (min $5 per counter).

Arh.. lidat means I may have to shift from DBS to ocbc if going for BCIP.
Thanks.

 

[xorionn]

Thanks - have put into Stash w my SRS

 

[JetStorm]

Hi all, just to check... What happens to the srs investments after one passes away. According to iras, balance in srs is considered automatic withdrawn upon death. How abt those which we invested? Iras didn't specifically say.

Our next of kin need to instruct the bank to sell off all investment in the srs account?

Sent from Xiaomi REDMI NOTE 8 PRO using GAGT

 

[badsector]

Hi all, just to check... What happens to the srs investments after one passes away. According to iras, balance in srs is considered automatic withdrawn upon death. How abt those which we invested? Iras didn't specifically say.

Our next of kin need to instruct the bank to sell off all investment in the srs account?

Sent from Xiaomi REDMI NOTE 8 PRO using GAGT

pls read

 

[JetStorm]

Thank you.

Sent from Xiaomi REDMI NOTE 8 PRO using GAGT

 

[minamikaze]

I have a SRS account with OCBC funded with $1 at the moment. Planning to top it up to save on tax.
Also planning to invest in some data centre REITS with it - on a high level what are the general steps to do so, with minimal fees? I've a lot of experience investing in US market but nearly zero in local market

Thanks!

 

[ice_angel]

It is time of the year already! Anyone can share if recently there is any Saving insurance plan with Guarantee interest (although interest might not be high) that can be invested using SRS? Or similar product that can use the SRS...

Also, any SRS top up promotion at the moment?

 

[htc_user]

CIMB has this promotion, any recommendation among the 5 products recommended. Thanks.

TERMS AND CONDITIONS GOVERNING THE SUPPLEMENTARY RETRIEMENT SCHEME
(“SRS”) PROMOTION 2020 (“Promotion”)
1. To qualify for the Promotion, a minimum of S$15,000 investment and/or top up using SRS monies
must be made between 1 October 2020 and 31 December 2020, both dates inclusive, for the
respective Single Premium Insurance plans and/or Unit Trust (the “Products”) as follows:
a. Single Premium Insurance plans eligible for SRS monies investment, include but are not limited
to the following:
 AIA Retirement Saver (III) SP
 Aviva MyLifeIncome II(SRS)
 NTUC Income Gro Gen Saver
 NTUC Income Gro Retire Wise
 TM Wealth Enhancement (Cashback)

b. Any Unit Trust fund eligible for SRS monies investment
2. Each application for any Product, together with the requisite premium/investment payment, must
be submitted and received by CIMB Bank (as hereinafter defined) at any CIMB Bank branch by 31
December 2020. Each Product may be subject to applicable terms and conditions.
3. In the event of non-approval and/or non-acceptance of the Products, customers will not be eligible
to receive the cash rebate (“Rebate”).
4. Successful customers who have met all the terms and conditions of the Promotion will be entitled
to receive S$40 Rebate for every investment of S$15,000.

 

[falseflush]

What's the best way to do a lump sum investment of SRS funds into STI ETF?

My SRS account is with OCBC, but BCIP does not allow lump sum investment, only RSP.