Is SRS worth it?

[Shanhz]

anybody here contributes to SRS? i was just wondering if it's worth it to lock away $12,500 every year. assuming your chargeable income is being taxed at an effective tax rate of 10%, you save $1,250 every year on tax, get to invest it in a suitable instrument of your choice (say blue chips at 5% dividend rate), but lose the liquidity until age 62.

worth it or not?

i am contemplating. still got 1.5 months to decide.

[mummy]

I contributed twice before I had kids and tax breaks and invested in shares but now trying to find out if they gave me my share dividends...don't seem to have received them...

Anyway, stopped contributing cause I wanted to invest in property....

The tax savings are attractive and it is a good forced savings for retirement since CPF life may not be sufficient...

[minority]

anybody here contributes to SRS? i was just wondering if it's worth it to lock away $12,500 every year. assuming your chargeable income is being taxed at an effective tax rate of 10%, you save $1,250 every year on tax, get to invest it in a suitable instrument of your choice (say blue chips at 5% dividend rate), but lose the liquidity until age 62.

worth it or not?

i am contemplating. still got 1.5 months to decide.

yes its good if u want to invest in equity anyway for retirement. put the $ in there n buy a blue chip and do that for 10-15 yrs. I feel its worth it.

[Shanhz]

yes its good if u want to invest in equity anyway for retirement. put the $ in there n buy a blue chip and do that for 10-15 yrs. I feel its worth it.

i am already putting that same amount into equity. the only diff is whether to channel to SRS and then invest in the same equity. am hesitant about the liquidity part, becoz once it goes into SRS, cannot withdraw "forever" (else pay 5% penalty). i am in my 30s, so 62 is a long way.

[mummy]

[QUOTE=Shanhz;446199]i am already putting that same amount into equity. the only diff is whether to channel to SRS and then invest in the same equity. am hesitant about the liquidity part, becoz once it goes into SRS, cannot withdraw "forever" (else pay 5% penalty). i am in my 30s, so 62 is a long way.[/QUOTE

Also depends if you intend to migrate one day or very sure you will retire in Singapore.....no point putting in SRS if there is a possibility of migration....

[minority]

i am already putting that same amount into equity. the only diff is whether to channel to SRS and then invest in the same equity. am hesitant about the liquidity part, becoz once it goes into SRS, cannot withdraw "forever" (else pay 5% penalty). i am in my 30s, so 62 is a long way.

well for 1 u get 10% profit upfront. i.e. 12K put in u save ard $1700 in tax value.

If the idea is to invest for retirement then this allow u to save tax dollars and invest.

yes there are penalty. won't be cannot withdraw forever lah.

as long understand the withdraw citeria and objective. understand SRS are for retirement scheme. with ability to draw out it penalty then it would suit u. if not u can stay with ur current mode.

so u make ur maths.. $1700 a year.. say 32 yrs for example u are 30. Thats 54K raw saving in tax dollars u could have invested into equity with compound upside.

so up to how u view it.. some say $54K is nothing. then u can stay with ur free n easy method lor.

[minority]

[QUOTE=mummy;446224]

i am already putting that same amount into equity. the only diff is whether to channel to SRS and then invest in the same equity. am hesitant about the liquidity part, becoz once it goes into SRS, cannot withdraw "forever" (else pay 5% penalty). i am in my 30s, so 62 is a long way.[/QUOTE

Also depends if you intend to migrate one day or very sure you will retire in Singapore.....no point putting in SRS if there is a possibility of migration....

if u give up ur cizenship u will also get ur $ back.consider as taxable income I think.

[Shanhz]

so u make ur maths.. $1700 a year.. say 32 yrs for example u are 30. Thats 54K raw saving in tax dollars u could have invested into equity with compound upside.

so up to how u view it.. some say $54K is nothing. then u can stay with ur free n easy method lor.

dun tink i will give up my citizenship. our passport is very valuable. at most get PR somewhere else.

54k into ppty investment, can earn more?

[minority]

dun tink i will give up my citizenship. our passport is very valuable. at most get PR somewhere else.

54k into ppty investment, can earn more?

54K can put into what? property? REITS?

[leesg123]

Early withdrawal the penalty is 5% and the tax bracket for the year you withdraw. So if you are unemployedfor that year and close srs to withdraw, u only kena penalty of 5%. Still gain compared to previous years of 10% tax savings.

well for 1 u get 10% profit upfront. i.e. 12K put in u save ard $1700 in tax value.

If the idea is to invest for retirement then this allow u to save tax dollars and invest.

yes there are penalty. won't be cannot withdraw forever lah.

as long understand the withdraw citeria and objective. understand SRS are for retirement scheme. with ability to draw out it penalty then it would suit u. if not u can stay with ur current mode.

so u make ur maths.. $1700 a year.. say 32 yrs for example u are 30. Thats 54K raw saving in tax dollars u could have invested into equity with compound upside.

so up to how u view it.. some say $54K is nothing. then u can stay with ur free n easy method lor.