SRS Portfolio

[SBC]

any recommended idea for 3 to 5% return range?

 

[BBCWatcher]

any recommended idea for 3 to 5% return range?

For what purpose(s), and over what time horizon?

 

[SBC]

For what purpose(s), and over what time horizon?

Open to equity, rather no time horizon.

Have 10k plus on my SRS to spend. Can top up some too.

 

[yoongf]

My SRS is substantially into this.

https://simplywall.st/stocks/sg/rea...nd-retail-china-trust-sgxau8u-a-healthy-reit/

 

[compro_1975]

so in short what is everyone doing with their SRS funds? i am unlocking also looking to invest it out for extreme long term mayb 10years?

 

[tangent314]

About 90% in ES3, 10% in Lion Global All Seasons (Growth)

 

[compro_1975]

About 90% in ES3, 10% in Lion Global All Seasons (Growth)

Currently may you share your returns and period of investment? Sorry abit noob in this.. just started on srs side of things so wish to gain knowledge for pros here

 

[Peasantboy]

My wife has her SRS in Schroder Asian Growth Fund. Seems to be pretty good though you should compare with other funds and get advice from the veterans here.

Stashaway seems like another decent contender for a simple DCA/lump sum diversified option.

From what I can see, the veterans prefer STI ETF and Lion Global for the lower fees (which may be the largest determinant of your returns)

Currently may you share your returns and period of investment? Sorry abit noob in this.. just started on srs side of things so wish to gain knowledge for pros here

 

[tangent314]

Currently may you share your returns and period of investment? Sorry abit noob in this.. just started on srs side of things so wish to gain knowledge for pros here

The period is too short to be of any meaning. and the returns is not important. What is important is how the investments fit into my overall portfolio strategy, and I subscribe to the popular "3 fund portfolio" strategy with local bonds, local equities and global equities.

For Singaporeans, because of the rules of what can be purchased using CPF and SRS and the rates that we are getting with CPF OA/SA, I think the optimal strategy is to treat CPF holding as your bond portfolio, use SRS to purchase ES3 for local equities, and use cash to purchase IWDA for global equities.

 

[Peasantboy]

Tangent makes a good point - since SRS is limited to local options, it dovetails neatly to buy STI.

Btw is there a max cap on how much funds we can place in SRS (not the annual cap)?

When should we take the tax hit and invest using cash as opposed to placing into SRS to invest?

The period is too short to be of any meaning. and the returns is not important. What is important is how the investments fit into my overall portfolio strategy, and I subscribe to the popular "3 fund portfolio" strategy with local bonds, local equities and global equities.

For Singaporeans, because of the rules of what can be purchased using CPF and SRS and the rates that we are getting with CPF OA/SA, I think the optimal strategy is to treat CPF holding as your bond portfolio, use SRS to purchase ES3 for local equities, and use cash to purchase IWDA for global equities.

 

[BBCWatcher]

My wife has her SRS in Schroder Asian Growth Fund. Seems to be pretty good though you should compare with other funds and get advice from the veterans here....

From what I can see, the veterans prefer STI ETF and Lion Global for the lower fees (which may be the largest determinant of your returns)

For Singaporeans, because of the rules of what can be purchased using CPF and SRS and the rates that we are getting with CPF OA/SA, I think the optimal strategy is to treat CPF holding as your bond portfolio, use SRS to purchase ES3 for local equities, and use cash to purchase IWDA for global equities.

Yes, agreed. Bingo.

*IF* you insist on overweighting "Far Eastern" stocks (ex-Japan), you still can! Just don't do it with your SRS dollars with Schroder's unit trust, because that's horribly expensive.(*) You can do much better by picking a much lower cost fund.

(*) There's also a school of thought that you don't necessarily want your SRS to represent the potentially highest yielding portion of your total portfolio anyway because of the way the SRS tax break works. SRS is a little weird because the full amount, including capital gains and accumulated interest and dividends, is counted toward the income tax calculation upon withdrawal. If your total SRS account value ends up at or below S$400,000, and if you don't have any other taxable income, then no problem. Everything can be withdrawn in S$40,000/year chunks with zero Singapore income tax. But if your SRS grows to be even bigger, even despite the headwind of Schroder's high expenses, then you probably haven't optimized for tax (and costs) as well as you could have.

 

[BBCWatcher]

Btw is there a max cap on how much funds we can place in SRS (not the annual cap)?

Nope. Whatever it grows to, it grows to. The size of the SRS is only gated by the annual contribution limit.

I suppose I could mention Mitt Romney's U.S. Individual Retirement Account (IRA) here as an extreme (and probably rule breaking) example of that phenomenon at work, but you can read about that fun story on your own.

 

[highsulphur]

Started out with OCBC and DBS preference shares. When my OCBC PS were redeemed about 4-5 years back, I converted the amount to ES3. Since then, i have been just buying ES3 with annual contribution and dividends from DBS PS and my ES3 holdings.

 

[Passivity]

Seems most here used their SRS for funds, shares, equities. Any thoughts/comments on using SRS for annuity plans?

 

[tangent314]

Annuity plans are a pretty good idea if the forced SRS withdrawal by age 72 causes you to be taxed.

 

[hwmook]

Annuity plans are a pretty good idea if the forced SRS withdrawal by age 72 causes you to be taxed.

Age 72 need to fully withdraw? You can start later and last longer.

 

[BBCWatcher]

Age 72 need to fully withdraw? You can start later and last longer.

You can start later than age 62, but once you start you have 10 calendar years to make all your withdrawals. If you don't withdraw everything within the 10th calendar year, your entire remaining SRS account balance is deemed withdrawn, in full, for Singapore income tax purposes. And you owe/pay income tax accordingly....

....With one exception. If you buy a fully SRS qualified single premium life annuity from Manulife, the only annuity provider currently offering such a product, then the payouts from that qualified life annuity can run beyond the 10 calendar year limit. The premium reduces your SRS balance and is not treated as a withdrawal, and the payouts are factored into the tax calculation in each of their calendar years -- 11th, 12th, 15th, 18th, whatever, as long as you live. If the annuity payout is $40,000 or less per calendar year, and if you have no other taxable income, then your Singapore income tax should be zero.

 

[Panerex]

Just switch in from Fullerton cash into Lion Infinity US500.

Hope it is a good move

 

[henrylbh]

so in short what is everyone doing with their SRS funds? i am unlocking also looking to invest it out for extreme long term mayb 10years?

What is everyone doing?

Cash holding - 33%
Unit trusts - 9%
Insurance - 24%
Sgd FD - 1%
Shares, reits, etfs - 26%
Others - 7%

Cash holdings consistently above 30% over the last 8 years despite total fund increasing from 2.49b to 8.15b and number of account holders increasing from 63,987 to 140,695.

 

[Passivity]

What happens for a regular annuity plan purchased using SRS? Like in my case, the regular payouts go for 15 years from age 65 onwards.