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ASSI's Guest bloggers

Win and win again with SRS.

Saturday, February 18, 2017


I blog about the SRS pretty often and how my SRS account is a war chest. I also said before that I don't mind having quite a bit of money idling and waiting for opportunities. 

When opportunities come knocking, I pounce!

I get to save on income tax and invest for higher returns. It is a win win situation with both winners being me! 

Greedy AK! Bad AK!

SRS money cannot be withdrawn until age 62 unless we are OK with incurring a penalty. 

So, it would be good to use the money to buy into businesses which we believe will still be around when we are 62. This might sound amusing but it is the truth.
Of course, the businesses should pay meaningful dividends and offer sustainable yields that at least mimic CPF interest rates.

In a nutshell, invest with our SRS money when the time is right. Don't speculate with it. 

SRS money is meant to be our second retirement nest egg, after the CPF. Don't play play.

Being unemployed, I will not be contributing to my SRS account anymore. So, any growth in my SRS account will be purely organic henceforth.

Why win once when we can win twice with the SRS? I like.

Related posts:
1. SRS, CPF and rights issues.

2. SRS: e-book and analysis.
3. How AK uses his SRS money and why?

6 comments:

pf said...

There are a few retirement income type schemes nowadays that can use SRS. Thinking of buying in.

Eye of the Storm said...

Thanks ASSI,

Wish the SRS limits could be higher...

AK71 said...

Hi pf,

Financial advisers still need to "tan jia". If the returns are guaranteed and mimic the CPF-SA, that is good enough for me. That's what I tell my bankers but none of them could find anything like that. ;p

AK71 said...

Hi EOTS,

I believe the SRS, like the CPF, is not to benefit richer folks. A higher cap in either one would benefit the richer folks more than regular folks. That's my impression, anyway. :)

pf said...

Already maxed out the cpf lo

AK71 said...

Hi pf,

Congratulations!

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