I poured my SRS Money into these investments

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In this video, I will explain in full detail what is the Supplementary Retirement Scheme (SRS) and how you could optimize it fully! We will look at the WHAT, HOW and WHY should we be concerned about SRS with regards to the statutory retirement age. And at the end of the video you can find some recent promotions that may encourage you to contribute and invest your SRS right now!

What is SRS: Voluntary Retirement Account that is similar to CPF, but more flexible
Tax planning option for you to defer your taxes to be assessed at a future date.
Stashed money in the SRS can be used for investments

Details:
SG/PR $15,300, Foreigner $35,700
if withdraw earlier than statutory retirement age of 62 (as of 2021), 100% Taxed on withdrawal + Penalty of 5%
Penalty-free withdrawals from age 62 (if you funded a SRS account this year 2021)
Once start withdrawal, you have 10 years to complete your withdrawal unless it is a life annuity
Taxed on 50% of SRS withdrawal for the year. E.g. Withdraw $80K this year, only $40K will be taxed ($550 based on current tax rate)

Why contribute to SRS:
Tax savings: Depending on income tax bracket. E.g. 7% bracket, contribute $15,300. Tax savings = 7*$15,300 = $1071 saved

Use for investments:
SRS can be used to invest in Equities such as Singapore Exchange Stocks, REITs or even Global Unit trusts via Roboadvisors

How to invest SRS:
Endowus: One-stop RoboAdvisor for your Cash, CPF and SRS investments
- Can help you set up SRS account with UOB via Singpass
- General Investing (0.4% fee) or Fund Smart (0.3%)
- Buy into Dimensional Fund Advisors SGD Unit trusts (Global Core, Emerging Markets)
- Endowus SRS investment promo ($20 Access Fee Credit + Up to $80 Cash Reward till 20 Nov 2021)

MoneyOwl: Bionic Advisor in collaboration with NTUC
- No fees for first $10,000 managed till 31 Dec 2021
- Buy into Dimensional Fund Advisors SGD Unit trusts (Global Core, Emerging Markets)
- MoneyOwl SRS investment promo ($20 GrabFood Voucher + Up to $200 worth of eCapitaVouchers till 31 Dec 2021)

When to start SRS
- Open and fund account now to lock in the statutory retirement age of 62
- When to fund depends on you when you are ready. E.g. 7% tax bracket or after you exhausted your CPF Tax relief of topping up SA and MA
- My own experience: Opened SRS with $1000 in 2016 to lock in age 62. But no good options to buy since DBS Vickers charges $25. Bought FLCT at 1000 shares of FLCT at $1.06, sold for $1.30 in 2020 to invest in Endowus.

#SRS #Endowus #MoneyOwl

[HoneyMoneySG]

Start funding and invest your SRS to lock the retirement age of 62 now!

Disclosure - While we try to be objective in our sharing, we are paid a fee from our partners if you were to sign up with us. Please take note that the information and analysis shared is based on our own opinions, and should not be seen as investment advice

[VishalS]

Hi, thanks for your informative video. Very basic question... Where I can see the securities which I have bought using SRS funds?

[QianBun]

Thank you for this! Always enjoyed watching your videos, you made all these so easy to understand

[lolaokhrana]

I got Question; Let sat you invest 15.3k as capital and the returns at your statutory age is 30k. The 50% tax will be charge on your capital or your total amount?

[jameslim]

Hi, i would like to invest in vanguard index funds, but can't seems to find in singapore. Can you have a video on this ?

[kleyr]

Hm I still don’t quite understand tho. IRAS states that any withdrawal under 62, be it cash or investment, is subject to 100% amount taxed + 5% penalty fee. So this amount, although “invested”, is subjected to get taxed. Soo essentially I’m still paying tax for this amount of money (although it’s invested), and then pay the Govt additional 5% of the amount cos I withdrew it early. All these is without guarantee that my investment would give me 5% return annually. This is what I understand Please help me understand how is that a good deal? Feels like I’m missing something?

[bezalelthecreative]

If let's say I put $10, 000 in SRS yesterday and use it entirely for MoneyOwl today so my SRS becomes $0
Will the tax savings be calculated based on my current SRS amount today ($0) or based on the amount I've initially put in SRS yesterday ($10, 000)?

[linustang]

If I make contributions to SRS as well as top ups to VCMA/RSTU in 2022, does this mean I can potentially get tax relief of $15.3k + $8k?

[christinelee]

Hi, how do you sell the unit trust invested through SRS accounts with DBS?

[RazeenMujarrab]

Thanks for the great video Chris! I'm in a similar position to where you were a few years ago - my SRS account is with DBS account. How do I transfer it from under DBS management to EndowUS or MoneyOwl? Thanks!

[weiyuquan]

Thanks for the great video. If I put $15, 300 into SRS and then use this money to invest, do I still get tax relief?

[yewalvin]

Check with you, why put your money 15000$ into srs to save 1000$ tax which u can only touch at age 62? 10000$ today and 10000$ 10 years later is lesser. Also what if you pass away early? Thanks!

[yurentan]

Hi Chris, may I ask if at age of 62 I still working. Will that mean that the 40k will added to my income? By then my pay will be higher hence higher tax % is it correct