Am 27 now, starting SRS this year. Any advice on what to invest with SRS?

Been using Stashaway to invest my SRS for the past year. (returns quite decent overall, despite just a year). Planning to shift to Endowus next year as the lower fees are attractive in the long run when I did the math. Prefer to hands off my retirement investments (CPFIS and SRS) while I focus more efforts in building my cash portfolio.

Hi anon,

SRS has many options. If you can withstand risk, then you may consider the following:

• Unit Trust - Depends on what you buy, there are both bond, equity and balanced funds available. These may also allow you to access markets which are not available otherwise

• SG listed Stocks/REITs - The market has thrown up some good opportunities, so you may consider getting some shares

• ETFs - There are some robo advisors which allow SRS

• Managed Accounts - Able to go to foreign markets with this

There are other instruments too of course (such as annuities or SSB), but those are safer and probably not what you are looking for at the moment.

In deciding which asset class is best (or even a combination of two or more of them), we actually need to take into account your overall picture as well as your personal preferences such as the extend to which you can tolerate risk.

SRS is meant for supplementing your retirement and hence it will be important to know what other assets you have for retirement, such as CPF, existing stocks, existing plans. Then, depending on what kind of assets you already have, or intend to have, you can plug any gaps with products available on SRS.

The end goal will be to create multiple layers of income that are predictable, inflation hedged, and have low volatility. So it will be more prudent to see how SRS can come in to supplement your current assets as part of the big picture of retirement. You may want to have a conversation with an advisor so that you can integrate SRS into your overall retirement planning. You'll want to plan ahead where possible so that when you commence withdrawals, you will be able to avoid paying tax; thus it may actually be advisable not to be overly aggressive with your SRS funds.