Supplementary Retirement Scheme (SRS)
Asked 2w ago
-27 now, so won't touch the money in SRS. What do you invest with this time horizon?
-Do you invest all at once?
-Is there any difference in choosing which bank to open SRS or invest?
-Do you go to other platform for invest? Read that there are options of robo, other brokerage etc
I am 31 this year, but I have contributed to SRS back when I was 27.
I think investing more in equities makes the most sense due to the long investment horizon.
No difference in agent banks,
I used to invest through a brokerage in STI, but now I swich to using Endowus because of the low fees (0.4%, lowest among the robos), low investment denominations (you can do $100 a month), and global diversification. Easy choice!
You can read more about SRS investing with Endowus here: https://endowus.com/srs-supplementary-retirement-scheme
I am contemplating whether to devote a portion of my srs funds to endowus or stashaway, but for now, I am only utilizing ocbc bcip to purchase about 1500 of ocbc + comfort delgro monthly.
My srs portfolio consists mostly of Singapore stocks and has been showing a worse return compared to my cash or cpf portfolios which are heavier in reits. Part of the reason is I choose to keep the better reits / stocks on my cash / cpf side (I don't see a reason to make same composition across all three)
Back to your question
1) what to invest in? I think I am going to try a two prong approach, split 50% to invest via a robo advisor and 50% I will continue with the dividend stocks via bcip. If by 2022, my own choices still underperformed vs the robo advisor, then I will allocate more towards the robo advisor.
2) do I invest all at once? No I believe in dca and I think it works, but the STI isn't exactly a favored exchange. I believe there is value to be found in sti, but I haven't been able to beat S&p so that's why I am considering robo advisor I read financial horse article, so apparently stashaway / smartly / auto wealth don't beat S&p either (because we account for real fees, taxes and costs, whereas the S&p doesn't).
3) any difference in bank operator? Just look at the fees, and convienence of using the same portal. I think the fees difference is not large enough to swing the decision.
4) yes you can open the srs account with dbs / ocbc etc and still use the robo advisor, or some other eligible program.
In terms of timing / cash flow, I don't put all the money into srs at one time. So I use half my bonus, and save 1k monthly. In the months I planned, I will transfer 3k to the srs account so that there is money for deductions for the monthly bcip. I just find it easier to control the outgoing cash flow so my monthly average balance doesn't fluctuate too much, and the money can earn better interest in the 360.
Tried buying individual stocks, but because the operator takes like two days to confirm the contribution, and there are fees which I may not estimate correctly, I have faced a couple of buy transactions I had to take into cash because I wasn't able to ensure enough money in srs that's why I prefer monthly deductions - it's just easier for me to ensure there is enough for the next deduction
1 more comments
Vested in STI ETF and strong blue chips! will just let it earn dividend until old..
I used ocbc for SRS.
I have SRS investments in UT and Endowus.
Usually will invest immediately after transfer to SRS.
You can link your SRS account to any platform that supports SRS investments.
If you want to have a consolidated view of your accounts, you can open the SRS account with the bank where you have your main savings account?
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