SRS Portfolio

[furryballs]

I suggest MBH and/or (ES3 or G3B) in most cases. These ETFs are reasonably low cost and reasonable choices for SRS dollars assuming you’re planning to retire in Singapore. Outside your SRS account I’d focus on a low cost global stock index fund such as IWDA, VWRA, or ISAC.

S27 has some tax issues for most people. It’s subject to 30% dividend withholding tax and is U.S. estate taxable. It’s possibly a good fit for U.S. persons with SRS accounts, but there aren’t many such people.

hi thanks for sharing this.

How do you compare IWDA (via IBKR), against LionGloba Infinity Global Stock Index Fund (via endowus)? Underlying equity compositions aside, the management fees are comparable?

I'm new to this, am trying to allocate long term investments via cash and SRS (you are right, MBH via SRS seems good to balance the whole portfolio). it makes sense for me to defer tax, my tax bracket is mid-high, and I intend to retire early

 

[andyhtc]

There is one BT article today suggesting that the tax free threshold might be increased

If that is increased, the deficit will have to come from somewhere.

Most likely it will come from wealth tax in future e.g. property gain tax for the sale of properties and gain tax from share trading.

 

[BBCWatcher]

How do you compare IWDA (via IBKR), against LionGloba Infinity Global Stock Index Fund (via endowus)? Underlying equity compositions aside, the management fees are comparable?

No, the latter is generally more expensive. But this is the SRS thread so isn’t it a moot point? You cannot invest in IWDA (or other London-listed counters) with SRS dollars. Not directly anyway.

 

[furryballs]

No, the latter is generally more expensive. But this is the SRS thread so isn’t it a moot point? You cannot invest in IWDA (or other London-listed counters) with SRS dollars. Not directly anyway.

So if it’s a cash purchase, it is more efficient to do IWDA/VWRA via IKBR?

 

[BBCWatcher]

So if it’s a cash purchase, it is more efficient to do IWDA/VWRA via IKBR?

In most cases yes. One possible exception: the saving/investment flow is extremely low, and consequently the minimum commissions are more meaningful.

 

[furryballs]

In most cases yes. One possible exception: the saving/investment flow is extremely low, and consequently the minimum commissions are more meaningful.

Thanks! Very helpful

 

[compro_1975]

Hi all, how do I withdraw this year's contribution? I topup in Jan cos I had spare cash and no where to put... not I need the cash cos used too much in cny. How do I reverse this year's contribution out?

 

[highsulphur]

Hi all, how do I withdraw this year's contribution? I topup in Jan cos I had spare cash and no where to put... not I need the cash cos used too much in cny. How do I reverse this year's contribution out?

There's a penalty

 

[BBCWatcher]

Hi all, how do I withdraw this year's contribution? I topup in Jan cos I had spare cash and no where to put... not I need the cash cos used too much in cny. How do I reverse this year's contribution out?

There's a penalty

Yes, there's a penalty.

You just sell some or all of your investment (if applicable) to return cash to the SRS account then contact your SRS account manager (one of the 3 big local banks) to arrange a premature withdrawal.

You'll have to pay income tax on the full amount of the premature withdrawal (at your top marginal tax bracket for 2024) plus a 5% penalty. Selling your investment(s) will likely incur a brokerage and/or other sales charges. Your SRS account is a fairly expensive source of funds given the penalty and sales charges. If you have more reasonable, lower cost options for raising genuinely necessary cash then you probably should tap them first. And if you do withdraw any funds prematurely from your SRS account then you should probably withdraw the bare minimum you need and no more so you minimize the penalty.

 

[compro_1975]

Haix... then nvm, I eat grass the next 4 months

 

[Terencechen]

anyone investing their SRS using Poems S27?
can share what to look out for and your experiences?
will e doing my first SRS investing!

 

[BBCWatcher]

anyone investing their SRS using Poems S27?

Not a great idea IMHO. See near upthread for why.

 

[demoforce1]

Not a great idea IMHO. See near upthread for why.

so what is the better idea? endowus?

 

[sohguanh]

so what is the better idea? endowus?

Once a while those short term endowment insurance with guaranteed rate take SRS monies

 

[RedsYWNA]

so what is the better idea? endowus?

I use Endowus to buy S&P unit trust. I figured it's cheaper than S27 in the long run, but with slightly higher risk

 

[demoforce1]

I use Endowus to buy S&P unit trust. I figured it's cheaper than S27 in the long run, but with slightly higher risk

how is your calc?
Endowus fee is quarterly

 

[Nofear40]

I use Endowus to buy S&P unit trust. I figured it's cheaper than S27 in the long run, but with slightly higher risk

With SRS?

 

[RedsYWNA]

With SRS?

Yes via SRS, I sold off S27 and switched the proceeds to Endowus

 

[RedsYWNA]

how is your calc?
Endowus fee is quarterly

No withholding tax with Endowus iShares US Index Fund (IE) S&P 500. With SGD hedged, i figure its cheaper than S27, even considering the 0.3% endowus fee, but it's close.

 

[demoforce1]

No withholding tax with Endowus iShares US Index Fund (IE) S&P 500. With SGD hedged, i figure its cheaper than S27, even considering the 0.3% endowus fee, but it's close.

am I right that the withholding tax is for dividend only?