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Supplementary Retirement Scheme (SRS)

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What should I do with BCIP making a loss of $2.5k bought using SRS?
Hey there, Interesting question. For me, I will suggest you to DCA into a few stocks that you are familiar with. My OCBC BCIP portfolio only consists of DBS, UOB, SGX, SIA these 4 blue chips, reason being, I am using products/services from these 4 companies. I don't think STI ETF (G3B) is a bad choice, as it is very diversified. My take is that it will provide quality income as the top holdings for STI ETF (G3B) are consist of finance sectors. I don't deny that there are a few bad apples in it, but here is the beauty of ETF, It spreads your risk out, which makes this ETF good for dividends. For your remaining 100k, I would suggest that you can put it into either Syfe REITs (without risk management) or StashAway income portfolio. As these two portfolios will provide dividends as compared to other U.S portfolios, as the other portfolios are good for growth which takes time. Syfe REITs (without risk management) purchases REITs directly, so the fees charged are just the management fees by Syfe. As for StashAway income, it is buying into other ETFs such as MBH G3B which is the investment-grade bond and STI ETF. Meaning that the fees involved are the ETF expenses as well as the fees charged by StashAway. Therefore my take will be to allocate 100k into Syfe REITs ( without risk management, alternatively, you can choose to allocate maybe 65k into Syfe RETIs and the remaining 35k into StashAway income. Hope this helps!

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What are the best choices for SRS Investment?
Hi there, If you are looking for something focused, you can opt to do it through a human financial advisor since there are a variety of funds that are available for SRS investments, whether it's in the US or China market. You can decide how you want to tailor your portfolio depending on your investment strategies as well through various fund switches too. Do consult a licensed financial advisor to explore your options. Financial planning is an integral part of life. You can reach me here to find out more.

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What are the types of investment vehicle that I can utilise for SRS besides local SG stocks?
You can only access S&P500 through index fund (No ETF). you have tax relief because your money will aid singapore economy grow by either support the financial insitute or govt. Pls note that SRS rules: 1) you can only withdaw at age 62 or face 5% penalty 2) you will be tax at 50% of withdrawal, to avoid tax you must not withdraw more than $40k p.a. 3) you must withdraw everything out within 10years . Thus If your SRS grow too big (more than $400k), you will definately get tax. So is either tax now or in the future. So no need to be too concern about the fees, if your plan is to contribute regularly to SRS to avoid heavy tax now. Especially if you are young, your $$$ got lot of time to compound to exceed $400k . With that said, below is your menu: - Fixed deposits - Singapore saving Bond - Retirement plan - Endowment plan - Unit trust . - Index fund & ETFs - Lion global infinity global stock index fund - Lion global infinity US 500 stock index fund - STI ETF - Lion-phillips S-Reits - ABF singapore bond index fund - Lion ocbc hang seng tech etf . - Shares & Reits - Any share listed in sgx - plan through banks. Eg. OCBC blue chip saving plan . - Robo adviser

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For those who have reached FRS in their 30s or 40s, what are the things to focus next if we want to take full advantage of CPF policies?
Hi anon, Given that the bulk of CPF contributions will now flow to OA as you have reached FRS, (and presumbly, BHS is already achieved as well), then there shouldn't be a need to invest in OA to build up an amount for SA shielding, unless your OA is being used to service a housing loan, and the OA balance isn't increasing at all. Investing has its risks and if you cannot stomach it, leaving it in CPF to earn a risk free 2.5% to 4% is not a bad idea too. SRS can be considered for tax relief if you wish, assuming you hit the CPF annual limit every year. I'd invest the SRS monies as well, but with a long term view since I can't withdraw it till 62.

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What do you get the best balance for investing when you don't have clarity of an employment contract?
Priority: 1. Emergency savings (6 months' worth of expenses or some other ballpark number) 2. Savings for short-term financial goals 3. Spare monies can then go to investment

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What is the daily trading volume for DFA funds?
Hi Paul, While trading volume is important to look at when investing in stocks, ETFs, or closed-ended funds that are listed on an exchange, trading volume is not relevant when we are investing in DFA’s funds (unit trusts). When there are redemptions by investors of unit trusts, the manager would simply sell some of their assets to meet these redemption requests. In the past 40 years, DFA has never failed to meet redemption requests. Besides, the fact that DFA distributes their funds through certified advisers makes huge redemptions very unlikely as advisers would provide the behavioural guardrails for their clients during a market downturn, reducing the possibility of panic selling.

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Which bank to open SRS account with?
Any bank works cause all the same interest rate, only 0.05%. Maybe u can check if got any account opening gifts, if dont have then just go for the bank which u are already using otherwise many banks also very confusing

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I want to use my SRS funds to purchase a single premium endowment. What exists currently and what would you recommend?
Hi anon, There are many single premium endowments that exist currently and we will also have to plan around your desired age of cashing out your SRS (it could be 62 at earliest, but sometimes people also defer to 65, it all depends) in a way that eliminates having to pay any tax on the withdrawals. Many single premium retirement income plans exist, such as Manulife RetireReady Plus (II), NTUC SAIL, TokioMarine Retirement (SP) etc. There are also single premium endowments such as Manulife ReadyBuilder, AIA Smart Wealth Builder, etc. There are many factors to consider when evaluating such plans, such as the guaranteed returns, projected returns, and any other fringe benefits that may prove useful in your retirement. If an endowment fits your requirements due to your desire to plan and optimize your SRS withdrawal, you might want to speak to an independent financial advisor to understand the options available to you as well as the choices of plans available from the different insurers. I will caution against expecting 4%-5% returns, 3%-4% is more realistic.

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Any update on the SRS promos since they've all expired? Any from UOB?
Typically the campaigns are towards the end of the year to drive awareness of SRS and sign ups.

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