Anonymous

15 Dec 2020

∙

General Investing

Understand that all cash value withdrawn from SRS is taxable. If I put in total $100K in SRS and manage to grow it until 500K, doesn't it mean that I will be taxed at $500K income instead?

Understand that all cash value withdrawn from SRS is taxable, albeit only 50% of them when we reach retirement age. And that is also higher than the initial amount that I've put in.

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Endowus

15 Dec 2020

Hi Anon,

You can choose to withdraw your SRS monies across 10 years at retirement age, and only half the amount withdrawn will be taxable.

We can grow our SRS to even 1 million with consistent top-ups and still be better than paying tax upfront and growing our wealth through cash investments.

You can read more here: https://endowus.com/insights/solving-the-srs-to...

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Daniel Kok

14 Dec 2020

If your money grows from 100k-500k that's a happy problem. The tax amount is also by half. You can also drawdown on a 10 year basis. with some tax relief, you probably dont need to pay any tax.

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Chen Zhirong

14 Dec 2020

I always find it amusing when people get lost with huge numbers. Let's calculate your actual tax pay...

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Related Posts

At what salary range should I start putting money into SRS to use for investing instead of using cash savings to maximise tax reduction?

I pay about 100 in income taxes each year. Is it worth it for me to open an SRS account? Can I instead of paying taxes use the tax to pay my SRS account?

1) Should I buy SSBs using SRS funds instead of cash? 2) I'm a young working adult. My tax is abt $400/year. Should I be looking at contributing to SRS now, or use my cash elsewhere?

I have 80k. How should i go about growing it? For STI ETF or even S&P500, DCA is advised instead of lump sum right? Which means i cannot put alot at one go. Any advice what i should do with the rest?

I started work in January this year. When will I need to pay tax? If I would like to use the SRS scheme to reduce my taxable income, when would I need to do this by?