Supplementary Retirement Scheme (SRS)

Guest · Post by **Guest** » Wed Nov 30, 2005 7:06 pm

Dear Heng,

my take on SRS is this:

1. if you're an employee, other than SRS, there're no other ways you can reduce your tax in Singapore except having more children : )

So SRS is a good way for employees to reduce their tax. Any person paying tax rate of 5% or higher would benefit from contributing to SRS. So the key is your tax bracket, not your age. I have clients who are in their 20s and started contributing to SRS already.

2. if you're self-employed, then unless you have already maxed out your contribution to CPF, you should not consider contributing to SRS. As self-employed, the first thing is to contribute to CPF first since CPF contribution also enjoy tax deduction and with added benefit of being protected from creditors.

If you like to open a SRS account, just email to me at dennis@leverageholdings.com providing your name, contact no. and mailing address. I can then help you open SRS account without need for you to go to any bank at all. No charges for this extra service.

Cheers!

Dennis Ng

dinoshop · Post by **dinoshop** » Mon Dec 19, 2005 11:42 am

If I open an SRS account, what kind of products beside unit trust can I invest? I know that we cannot use the money in SRS account to invest in stocks.

Post by **Dennis Ng** » Mon Dec 19, 2005 2:23 pm

Dear dinoshop,

hmmm....from what I know, you can use money in SRS to invest in stocks.

SRS is more "flexible" in tersm of investment options compared to CPF. These include:

1. you can use everything inside SRS account to invest in stocks, vs cap of 35% for CPF.

2. you can invest in almost any unit trust while CPF only have limited funds approved for investments.

you can also put money into fixed deposits as well and put into Single Premium Endowment or ILP as well.

Guess you need to change your advisor if they are not giving you the right information.

Dennis@leverageholdings.com

dinoshop · Post by **dinoshop** » Tue Dec 20, 2005 9:39 am

Hi Dennis,

I remember that when you buy stocks, you can only choose to use cash or CPF. I don't see SRS.

Post by **Dennis Ng** » Sun Dec 25, 2005 10:36 am

dear dinoshop,

yes, you can use SRS funds to buy stocks. If in doubt, verify with a "competent remiser". Because sadly, even some remisers are unaware of what I said. And some financial planners themselves are still "blur" on how exactly SRS works.