Your Views on SRS

[Okenba]

I was contributing even at 7% marginal tax rate. If you don't need the money and will invest them anyway, might as well put in SRS.

This was what I originally thought, and so felt that I should max out my SRS contribution.

However, investing through SRS seems to be rather limited, so it's not quite equal to compare investing with SRS with investing anyway. The choice of low cost brokers for overseas investment seems non existent for SRS investing...

 

[polyglob]

However, investing through SRS seems to be rather limited, so it's not quite equal to compare investing with SRS with investing anyway. The choice of low cost brokers for overseas investment seems non existent for SRS investing...

I buy SSB with my SRS. Better than the 0.0x% SRS interest.

 

[dantom04]

Earn below $160k p.a net assessable income, dont bother with SRS. If above, max srs, use it to buy etf or reits. Then contribute 7k to cpf to hit FRS asap

why below $160k p.a net assessable income not worth huh?

 

[Trazora]

why below $160k p.a net assessable income not worth huh?

Different income tax bracket. Higher income, tax relief have more savings. Up to individuals which income range is considered worth it.

 

[Grafspee]

Hi all,

Please share your views.

1. Do you believe in income-tax reduction scheme?
2. If yes, how much will you top-up your SRS per-year?
3. How will utilize your SRS fund to grow it further?
4. How many years since you had started this top up.
5. Accumulated SRS funds to-date.
6. What other income-tax reduction methods have you been practicing?

Hi,

1. Yes
2. 35,700
3. STASHAWAY
4. About +1 years
5. About 40k
6. None

 

[Starmaster]

Hi all,

Please share your views.

1. Do you believe in income-tax reduction scheme?
2. If yes, how much will you top-up your SRS per-year?
3. How will utilize your SRS fund to grow it further?
4. How many years since you had started this top up.
5. Accumulated SRS funds to-date.
6. What other income-tax reduction methods have you been practicing?

1. Yes
2. 10~15.3k
3. SSB/stocks
4. 10 yrs
5. 100k
6 SA top up 7k

if your taxable is >11.5% , its worth topping up SRS to reduce it to below
SRS should only be topped up when u had ample liquidity and disposable income

 

[SBC]

Unfortunately, my tax rate is not so high.

 

[TaZ_MaN]

Hi all,

Please share your views.

1. Do you believe in income-tax reduction scheme?
2. If yes, how much will you top-up your SRS per-year?
3. How will utilize your SRS fund to grow it further?
4. How many years since you had started this top up.
5. Accumulated SRS funds to-date.
6. What other income-tax reduction methods have you been practicing?

My response:
1. Yes
2. usually maximum.
3. Mainly used it to buy local stocks and SSB.
4. 10+ years
5. About 130+k (valuation at 150k now)
6. Recently top up to own CPF SA and MA

My income tax bracket is also 7%. Perhaps, let me share why I use this method to reduce taxes.

Like many, i began my wealth generation engine by investing into a portfolio of stocks when i started my working life. As time goes by, the value of my stock grew and so has my income. Because i'm not the trading type, i noticed that i seldom sell my stocks. So, many stocks practically sat dormant in my CDP account for many years. My thought is since i won't touch them for many years to come because they are giving good dividends, i might as well "transfer" them to my SRS account to reduce my income taxes. 7% might not be a big amount, but it's better than nothing. The only catch is I can only take it out at 62. At this age, I would like to take thing easy by doing part-time or something less stressful. So, the withdrawal amount will probably help.

 

[SBC]

Any target amount for SRS? Say by 55 & 60

 

[education]

I am not keen at SRS, already a huge portion of my money is in the CPF basket, better diversify the rest elsewhere.
It would be another 30 or so years before I can withdraw it and I'm not so optimistic about SG's outlook in 30 years time.

Imagine 30 years later, it would be at least the 6th gen leadership by then, SG would have to survive some impending crisis. Like aging population, HDB 99 years lease problem, a couple of major global economic crisis and probably a very different world order by then. Will the CPF concept still hold as it is 30 years later? I doubt so. At the very least I would expect the withdrawal age to have increased by then, what other rules change we will not know.

So better to put your eggs in other baskets, you already have a huge portion of your eggs in the CPF OA/SA/MA basket, we should really be looking to diversify the risk elsewhere.

 

[TaZ_MaN]

Any target amount for SRS? Say by 55 & 60

Like many have said, the max should be $400k. You will get the max gain from this scheme with this amount IF you don't have other taxable income AND govt policy hasn't changed. But, nobody knows how the govt will change their policy in the future. So, just park whatever you are comfortable with.

 

[TaZ_MaN]

I am not keen at SRS, already a huge portion of my money is in the CPF basket, better diversify the rest elsewhere.
It would be another 30 or so years before I can withdraw it and I'm not so optimistic about SG's outlook in 30 years time.

Imagine 30 years later, it would be at least the 6th gen leadership by then, SG would have to survive some impending crisis. Like aging population, HDB 99 years lease problem, a couple of major global economic crisis and probably a very different world order by then. Will the CPF concept still hold as it is 30 years later? I doubt so. At the very least I would expect the withdrawal age to have increased by then, what other rules change we will not know.

So better to put your eggs in other baskets, you already have a huge portion of your eggs in the CPF OA/SA/MA basket, we should really be looking to diversify the risk elsewhere.

Agreed. Diversity is important. That's the reason I don't believe in property investment. These days, a small condo will easily cost $1m+. That's like all the eggs in one basket for many ppl.

 

[TaZ_MaN]

Btw, does anybody knows how to find out how much money has been placed in the SRS account? I'm using DBS. The account only show me the valuation of the assets. So, I can't really see how much dividends earned over the years because i have re-invested them as soon as possible. I have tried to view the transactions but i think it only shows the current year. TIA.

 

[cal3135]

at least 11.5%

what is the tax bracket that makes SRS attractive?

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[SBC]

Like many have said, the max should be $400k. You will get the max gain from this scheme with this amount IF you don't have other taxable income AND govt policy hasn't changed. But, nobody knows how the govt will change their policy in the future. So, just park whatever you are comfortable with.

400k is too far fetched for me. I will be happy to hit 200k at 55 or 280k by 62.

 

[decibel.]

I'm ok with 200K principal at 62 excluding profit. Hopefully plus profits about 300+K

Sent from HUAWEI VOG-L29 using GAGT

 

[malthead]

1. Do you believe in income-tax reduction scheme?
Yes
2. If yes, how much will you top-up your SRS per-year?
Max
3. How will utilize your SRS fund to grow it further?
Buy ES3 or MBH
4. How many years since you had started this top up.
14 years
5. Accumulated SRS funds to-date.
Around 200k
6. What other income-tax reduction methods have you been practicing?
Contribute to my mum's RA

 

[SBC]

1. Do you believe in income-tax reduction scheme?
Yes
2. If yes, how much will you top-up your SRS per-year?
Max
3. How will utilize your SRS fund to grow it further?
Buy ES3 or MBH
4. How many years since you had started this top up.
14 years
5. Accumulated SRS funds to-date.
Around 200k
6. What other income-tax reduction methods have you been practicing?
Contribute to my mum's RA

Well done for Point 2 & 5.

 

[fluxos]

1. Yes
2. Max out past 2 years since I started.
3. So far I dump everything into Singtel. However, now I’m looking at some of the roboadvisors for 2020 contribution. Will figure it out later in the year.
5. 33.4k
6. Education (courses).

Hi all,

Please share your views.

1. Do you believe in income-tax reduction scheme?
2. If yes, how much will you top-up your SRS per-year?
3. How will utilize your SRS fund to grow it further?
4. How many years since you had started this top up.
5. Accumulated SRS funds to-date.
6. What other income-tax reduction methods have you been practicing?

My response:
1. Yes
2. 8k to 12k depending on cash flow that year.
3. Mainly used it to buy local stocks.
4. About 15 years
5. About 100k
6. Top to parent’s CPF RA

 

[Okenba]

I would love to reduce my income tax. Unfortunately, right now I don't think SRS allows me to invest in the way that I prefer so I would rather focus on investing than be side tracked by reducing income tax.