Where to invest SRS now

Same into s&p and etf

SSB

Many individuals encounter a similar challenge with their SRS funds – while making the prudent decision to contribute, they often find themselves overwhelmed by investment choices, uncertain which options will best align with their long-term objectives. Your strategy of T-bills and US index funds through Endowus shows you're thinking strategically, but there's potential to adopt a more structured approach to your SRS allocation.

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Before exploring specific suggestions, let's clarify some prevalent misconceptions about SRS investing:

Myth 1: "All SRS funds should be invested in a single type of asset"
Reality: Your SRS portfolio should be thoughtfully constructed with various components serving distinct purposes according to your withdrawal timeline.

Myth 2: "Liquidity should always be the top priority for SRS funds"
Reality: Since SRS has a defined withdrawal schedule (typically after age 55), you can allocate portions to less liquid investments that may yield higher returns.

Myth 3: "US index funds are invariably the best choice for growth"
Reality: While US indices have historically performed well, a globally diversified approach often yields superior risk-adjusted returns, especially for Singapore-based investors planning to retire locally.

Here are practical recommendations for enhancing your SRS portfolio:

1. Core-Satellite Strategy for SRS

Consider reorganizing your SRS investments using a "Core-Satellite" framework:

Core (60-70%):

• Globally diversified index funds rather than solely focusing on the US market
• Options like Dimensional Fund Advisors' global equity funds, accessible through specific platforms in Singapore
• Singapore REITs for local currency exposure and tax advantages within SRS

Satellites (30-40%):

• Thematic funds aligned with long-term growth trends
• Select active funds with strong performance in less efficient markets (emerging markets, small-cap)
• Private market opportunities for qualified investors

2. Temporal Layering Approach

I recommend adopting a "temporal layering" strategy for your SRS funds:

• Near-term layer (0-5 years until withdrawal): Treasury bills, short-duration bond funds, money market accounts
• Mid-term layer (5-10 years): Balanced funds, dividend-focused equity strategies, REITs
• Long-term layer (10+ years): Global equity funds, thematic growth investments

This method helps you mentally categorize your SRS funds based on anticipated withdrawal timeline, providing both psychological reassurance and strategic benefits.

3. Consider Insurance-Linked Products

For some clients, I suggest dedicating a portion of SRS funds to insurance products tailored for SRS accounts:

• Single-premium insurance policies offering guaranteed returns with potential growth
• These can serve as the foundational layer of your SRS portfolio, ensuring certainty for a segment of your investments

4. Platform Diversification

While Endowus provides excellent options, consider diversifying platforms for your SRS:

• POEMS enables direct bond purchases using SRS funds
• FSMOne offers a broad selection of unit trusts
• DBS Vickers facilitates direct equity investments

The optimal structure for your SRS investments should align with your comprehensive financial strategy, risk tolerance, and retirement timeline. The decisions you make today will significantly impact the tax-advantaged wealth available to you in retirement.

For those interested in exploring advanced SRS investment strategies or discussing individual circumstances, connect with me on Instagram (@ngooooied), where I share insights on optimizing retirement planning for Singapore professionals. I also conduct private advisory sessions for those seeking to transform their approach to wealth accumulation and preservation.

Can invest in Singapore Banks for good dividends