SRS Portfolio

[yesaka]

When you sell the funds it goes where? Your SRS or your normal bank account?

you should be able to figure

yes, should be Srs acct. thanks very much

so next time, when reach 62/63 or later, to get back the $$ (in batches), how ??

 

[reddevil0728]

yes, should be Srs acct. thanks very much

so next time, when reach 62/63 or later, to get back the $$ (in batches), how ??

Slowly withdraw from SRS account?

 

[TaZ_MaN]

The recent banking turmoil in US made me curious about how safe our assets are with the SRS operators.
I did a search in MOF website and the following answer I found made me quite uncomfortable. I know that it is highly unlikely that any of the 3 local banks goes under, but nothing is impossible.

From the SDIC site, I know the monies in the SRS account is insured by SDIC up to $75k. But what about the stock, etf, insurance, annuity? What will happen if the SRS operator goes under? Will the creditors be able to get their hands on them?

Does anybody know of any regulations in place to safeguard our investments? Any thoughts?

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Reference: https://ask.gov.sg/questions/1215
What happens if the SRS operator or the financial institution where I make my SRS investments goes bankrupt?

What happens if the SRS operator or the financial institution where I make my SRS investments goes bankrupt? Can I still get back my money since it is meant for my retirement?

ANSWER
Savings and investment products, including SRS, placed with financial institutions are not guaranteed against losses in the event of the financial institution's bankruptcy. When placing their monies with any financial institution, investors should assess and monitor for themselves the financial soundness of that institution.

 

[reddevil0728]

The recent banking turmoil in US made me curious about how safe our assets are with the SRS operators.
I did a search in MOF website and the following answer I found made me quite uncomfortable. I know that it is highly unlikely that any of the 3 local banks goes under, but nothing is impossible.

From the SDIC site, I know the monies in the SRS account is insured by SDIC up to $75k. But what about the stock, etf, insurance, annuity? What will happen if the SRS operator goes under? Will the creditors be able to get their hands on them?

Does anybody know of any regulations in place to safeguard our investments? Any thoughts?

---------------------------------------------------------------------------------------------------------------------------------------------------------
Reference: https://ask.gov.sg/questions/1215
What happens if the SRS operator or the financial institution where I make my SRS investments goes bankrupt?

What happens if the SRS operator or the financial institution where I make my SRS investments goes bankrupt? Can I still get back my money since it is meant for my retirement?

ANSWER
Savings and investment products, including SRS, placed with financial institutions are not guaranteed against losses in the event of the financial institution's bankruptcy. When placing their monies with any financial institution, investors should assess and monitor for themselves the financial soundness of that institution.

the more pertinent qns is what’s the alternative rather than just fear for the sake of fear.

 

[TaZ_MaN]

the more pertinent qns is what’s the alternative rather than just fear for the sake of fear.

Not really. It's about knowing and managing your risk. It just caught me that this SRS scheme may not be as safe as I thought it is. The government has been promoting this scheme for many years. I always thought there must have some regulations governing the scheme to make it safe, especially for it's for retirement.

 

[reddevil0728]

Not really. It's about knowing and managing your risk. It just caught me that this SRS scheme may not be as safe as I thought it is. The government has been promoting this scheme for many years. I always thought there must have some regulations governing the scheme to make it safe, especially for it's for retirement.

There is technically what. The fact that you cannot buy anything you want with SRS means already fir some regulations.

 

[celtosaxon]

There are only 3 operators for SRS: OCBC, UOB and DBS. All 3 are too big to fail. If you recall back in 2008 crisis, the Singapore government temporarily changed the deposit insurance scheme to cover 100% of all deposits here, no dollar limit. I think the only reason they keep deposit insurance at $75k during normal times is to keep costs low for the banks… they can always increase it at a moments notice.

 

[WHLN17]

There are only 3 operators for SRS: OCBC, UOB and DBS. All 3 are too big to fail. If you recall back in 2008 crisis, the Singapore government temporarily changed the deposit insurance scheme to cover 100% of all deposits here, no dollar limit. I think the only reason they keep deposit insurance at $75k during normal times is to keep costs low for the banks… they can always increase it at a moments notice.

Good point on the 100% coverage/guarantee of bank deposits by govt during 2008 crisis. This can only be done if we continue to focus on economy growth and keep increasing our monetary & foreign reserves. Nay to those proposing that we already have big enough reserves and it is time to spend.

 

[reddevil0728]

There are only 3 operators for SRS: OCBC, UOB and DBS. All 3 are too big to fail. If you recall back in 2008 crisis, the Singapore government temporarily changed the deposit insurance scheme to cover 100% of all deposits here, no dollar limit. I think the only reason they keep deposit insurance at $75k during normal times is to keep costs low for the banks… they can always increase it at a moments notice.

yea because banks need to pay insurance premium on it.

 

[TaZ_MaN]

There are only 3 operators for SRS: OCBC, UOB and DBS. All 3 are too big to fail. If you recall back in 2008 crisis, the Singapore government temporarily changed the deposit insurance scheme to cover 100% of all deposits here, no dollar limit. I think the only reason they keep deposit insurance at $75k during normal times is to keep costs low for the banks… they can always increase it at a moments notice.

Yes, i think this will probably be the way how it will go if any of these operators goes under. MAS will cover 100% of the deposit. But, I'm not sure about other assets like stocks etc. If you check the SDIC website, it explicitly exclude many investment products.

Personally, I feel that MAS or MOF can do much more if they had not.
For example, they can make SRS operator segregate accounts that holds assets belonging to SRS account holders, and set laws to protect creditors from accessing these accounts if they go under. Pretty much the same as what they are doing to brokerages who are acting as custodians now.

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Reference: https://www.sdic.org.sg/faq/di_faq
6. What is not covered by the Deposit Insurance Scheme?
A:
The DI Scheme does not cover foreign currency deposits, structured deposits and investment products such as unit trusts, shares and other securities.

 

[reddevil0728]

Yes, i think this will probably be the way how it will go if any of these operators goes under. MAS will cover 100% of the deposit. But, I'm not sure about other assets like stocks etc. If you check the SDIC website, it explicitly exclude many investment products.

Personally, I feel that MAS or MOF can do much more if they had not.
For example, they can make SRS operator segregate accounts that holds assets belonging to SRS account holders, and set laws to protect creditors from accessing these accounts if they go under. Pretty much the same as what they are doing to brokerages who are acting as custodians now.

-----------------------------------------------------------------------------------------
Reference: https://www.sdic.org.sg/faq/di_faq
6. What is not covered by the Deposit Insurance Scheme?
A:
The DI Scheme does not cover foreign currency deposits, structured deposits and investment products such as unit trusts, shares and other securities.

Is there anywhere you see that SRS operators not required to segregate?

also i think hope is of no use. i think what you need to do is to feedback to MAS / bring it up to MPs so that they can raise it in parliament if there is a need.

cannot assume they look at forums.

 

[celtosaxon]

Yes, i think this will probably be the way how it will go if any of these operators goes under. MAS will cover 100% of the deposit. But, I'm not sure about other assets like stocks etc. If you check the SDIC website, it explicitly exclude many investment products.

Personally, I feel that MAS or MOF can do much more if they had not.
For example, they can make SRS operator segregate accounts that holds assets belonging to SRS account holders, and set laws to protect creditors from accessing these accounts if they go under. Pretty much the same as what they are doing to brokerages who are acting as custodians now.

-----------------------------------------------------------------------------------------
Reference: https://www.sdic.org.sg/faq/di_faq
6. What is not covered by the Deposit Insurance Scheme?
A:
The DI Scheme does not cover foreign currency deposits, structured deposits and investment products such as unit trusts, shares and other securities.

If you invest your SRS money into an ETF or UT, it’s not like a cash deposit where the bank can lend out the deposited funds - an ETF or UT typically must hold actual shares of the underlying investments which they reconstitute into units that you buy. Therefore, it’s not the same risk equation — unless you’re talking about a Bernie Madoff type of situation… I don’t believe you’d be allowed to invest your SRS into such a scheme.

 

[Phelan77]

I play it safe with my SRS account. Currently 35% in SSB and 65% with DBS SavvyEndowment 11

 

[aeng]

I play it safe with my SRS account. Currently 35% in SSB and 65% with DBS SavvyEndowment 11

IMO, since SRS funds are locked in until you're 62/63, you can take a longer-term view and invest in stuff with better returns.

 

[chinta]

IMO, since SRS funds are locked in until you're 62/63, you can take a longer-term view and invest in stuff with better returns.

What are the options to have better returns? Any suggestions?

 

[sohguanh]

What are the options to have better returns? Any suggestions?

Just like there is some control on what kind of investment can be used for cpf oa,sa and now srs, all i can think of is pure equity mutual fund. Basically is like ETF a basket of stocks underlying. But EFT supporters would cite the high expense ratio the fund is charging. My take is if the fund can perform good enough then it is worth to pay the high expense ratio. Don't ask me which mutual fund to buy just spend some time do research if cannot find any one at all then forget about this suggestion entirely.

 

[dngth]

IMO, since SRS funds are locked in until you're 62/63, you can take a longer-term view and invest in stuff with better return.

I play it safe with my SRS account. Currently 35% in SSB and 65% with DBS SavvyEndowment 11

For SRS, u shld take a longer term view since u cant withdraw it till 62 or 63. You can consider a more aggressive portfolio e.g. SG equities..

 

[Mephist0pheLes]

What are the options to have better returns? Any suggestions?

Take more risk and allocate some/all into equities

 

[gobin74]

Hi for small amounts that gets accumulated for srs say sgd up to 5k how do you folks utilize that - to get better returns

 

[wenguang]

Hi for small amounts that gets accumulated for srs say sgd up to 5k how do you folks utilize that - to get better returns

tbill