For the most fuss-free approach, you can consider StashAway or Endowus, both robo-advisory platform which allows you to invest with both cash and SRS funds. (Read on for bonus feature about Endowus)
To maximise the full benefit of SRS, ideally it would be best to have 400k before you start your 10Y withdrawal. This is because 50% of the withdrawal amount will be taxed and based on current personal income tax rates, it means you can withdraw up to 40k per year since 50% of 40k is 20k which is not taxable. (40k x 10 years = 400k)
Of course, this assumes you have no income tax reliefs and your chargeable income and assessable income is the same so I'm really overestimating here.
Next, we determine how much contribution you have to make to SRS on a monthly basis and an expected return rate in order to arrive at $400k. You can do this with any investment calculator. With a starting amount of $80k and say if you contribute $1k monthly, your investments would need to generate a return rate of 9.8% to achieve just slightly over $400k($401,546.71). Given that you only have a time horizon of 10 years, to have the slightest chance of averaging 9.8% returns p.a might be a tad too risky for you. Therefore, a monthly contribution above $1k is needed. Let us see what the robo-advisory platforms suggests.
For Stashaway, you can go to Goal Based Investing Plan for retirement. Select "I know how much I need" and key in 320k(400k-80k) as total amount you want to save and 10 years as the duration. (Due to limitations of the app, it does not allow you to enter starting amount of 80k but never mind, we can determine the return rate later and work backwards)
The app will recommend you a suitable risk profile(upon further digging, it recommends a Stashaway Risk Index of 16%(that means there's a 1% chance of your portfolio value losing more than 16% in any given year) and suggest that you invest "$1,828-$2038 each month" This works out to an annual return rate of 7.45%. Now we input the target of $400k, starting amount of $80k and a return rate of 7.45% in the investment calculator, you get a monthly contribution of $1,347.35.
In summary, if you use Stashaway, you are strongly advised by Stashaway to use a Stashaway Risk Index of 16% and given a lump sum investment of 80k and based on the 7.45% return rate calculated earlier, you would have to make a monthly contribution of about $1.35k.
For Endowus, their homepage shows an illustration of 7.5% return over 30 years with the Endowus 60, 40 cash portfolio. With a limited time horizon of 10 years, it would be even harder to average 7.5% return and you are likely to average a lower return with a shorter duration. I would imagine the calculations to be similar to the Stashaway example above. The one thing that Endowus provides is the ability to invest not only cash and SRS(also allowed by Stashaway) but also your CPF. Should you have difficulty forking out $1.35k monthly as suggested above with cash, you may wish to contribute a partial amount to SRS instead(can be either Stashaway or Endowus) and make an effort to channel some CPF funds to Endowus to ensure you secure your retirement even without maximising the SRS by achieving 400k.
In choosing between Stashaway and Endowus, look at the type of underlying instruments and geographic exposure and pick whichever you are more comfortable with. And of course, take note that Endowus offers you the flexibility of investing your CPF too although it does not necessarily give you the ability to withdraw like your SRS.
Hope the above helps.
Links: https://www.calculator.net/investment-calculato...
For the most fuss-free approach, you can consider StashAway or Endowus, both robo-advisory platform which allows you to invest with both cash and SRS funds. (Read on for bonus feature about Endowus)
To maximise the full benefit of SRS, ideally it would be best to have 400k before you start your 10Y withdrawal. This is because 50% of the withdrawal amount will be taxed and based on current personal income tax rates, it means you can withdraw up to 40k per year since 50% of 40k is 20k which is not taxable. (40k x 10 years = 400k)
Of course, this assumes you have no income tax reliefs and your chargeable income and assessable income is the same so I'm really overestimating here.
Next, we determine how much contribution you have to make to SRS on a monthly basis and an expected return rate in order to arrive at $400k. You can do this with any investment calculator. With a starting amount of $80k and say if you contribute $1k monthly, your investments would need to generate a return rate of 9.8% to achieve just slightly over $400k($401,546.71). Given that you only have a time horizon of 10 years, to have the slightest chance of averaging 9.8% returns p.a might be a tad too risky for you. Therefore, a monthly contribution above $1k is needed. Let us see what the robo-advisory platforms suggests.
For Stashaway, you can go to Goal Based Investing Plan for retirement. Select "I know how much I need" and key in 320k(400k-80k) as total amount you want to save and 10 years as the duration. (Due to limitations of the app, it does not allow you to enter starting amount of 80k but never mind, we can determine the return rate later and work backwards)
The app will recommend you a suitable risk profile(upon further digging, it recommends a Stashaway Risk Index of 16%(that means there's a 1% chance of your portfolio value losing more than 16% in any given year) and suggest that you invest "$1,828-$2038 each month" This works out to an annual return rate of 7.45%. Now we input the target of $400k, starting amount of $80k and a return rate of 7.45% in the investment calculator, you get a monthly contribution of $1,347.35.
In summary, if you use Stashaway, you are strongly advised by Stashaway to use a Stashaway Risk Index of 16% and given a lump sum investment of 80k and based on the 7.45% return rate calculated earlier, you would have to make a monthly contribution of about $1.35k.
For Endowus, their homepage shows an illustration of 7.5% return over 30 years with the Endowus 60, 40 cash portfolio. With a limited time horizon of 10 years, it would be even harder to average 7.5% return and you are likely to average a lower return with a shorter duration. I would imagine the calculations to be similar to the Stashaway example above. The one thing that Endowus provides is the ability to invest not only cash and SRS(also allowed by Stashaway) but also your CPF. Should you have difficulty forking out $1.35k monthly as suggested above with cash, you may wish to contribute a partial amount to SRS instead(can be either Stashaway or Endowus) and make an effort to channel some CPF funds to Endowus to ensure you secure your retirement even without maximising the SRS by achieving 400k.
In choosing between Stashaway and Endowus, look at the type of underlying instruments and geographic exposure and pick whichever you are more comfortable with. And of course, take note that Endowus offers you the flexibility of investing your CPF too although it does not necessarily give you the ability to withdraw like your SRS.
Hope the above helps.
Links: https://www.calculator.net/investment-calculato...