SRS Investment

[richwang]

What are the good investment oppotunities using your SRS? Let me get it started:

StarHub - dividend yield 6.9%, PE 15, P/B: 91 (maybe they don't need much fixed assets).

Thanks,
Richard

[devilplate]

What are the good investment oppotunities using your SRS? Let me get it started:

StarHub - dividend yield 6.9%, PE 15, P/B: 91 (maybe they don't need much fixed assets).

Thanks,
Richard
from wat i observe, u r VERY conservative.....so y bother investing ur SRS money? jus collect 4% int la....

[testtest]

from wat i observe, u r VERY conservative.....so y bother investing ur SRS money? jus collect 4% int la....

i thot SRS int is very low if kept in the bank...maybe i am wrong

[RSG]

from wat i observe, u r VERY conservative.....so y bother investing ur SRS money? jus collect 4% int la....

Dear friend, where can I get 4% int for SRS money?

[chiaberry]

Hmmm...got confused between SRS and CPF SA (special acct)? The latter can get 4% int.

[devilplate]

Yay....me got confused.....did a search and it is supplementary retirement scheme...lol

Isit gd to use it to reduce tax? Taxable upon withdrawal when retire at 62 somemore.....scarly nxt time up the age to 70 how?

[chiaberry]

If you are worried that later it will be raised to age 70, better start subscribing now. If I remember correctly, if you get into it now, the retirement age is fixed at 62 and it will not affect you even if it's raised later to 70. Yes if you pay a lot of income tax, it can reduce your tax bill.

[acidic.straw]

Yay....me got confused.....did a search and it is supplementary retirement scheme...lol

Isit gd to use it to reduce tax? Taxable upon withdrawal when retire at 62 somemore.....scarly nxt time up the age to 70 how?

When you retire, don't withdraw big lump sum at one shot else kena tax chialat chialat due to higher tax bracket. With some planning, can save quite a fair bit in taxes.

[DC33_2008]

Have been using SRS to lower tax bracket? Is it really worth it? Any views?

[howgozit]

It doesn't lower my tax bracket but the fact that the amount is not taxable is reason enough for me. I have been using it to buy shares that I views on holding for long term like DBS and Kep Corp.


Have been using SRS to lower tax bracket? Is it really worth it? Any views?

[phantom_opera]

Another sucker scheme, capital gain also taxable if u withdraw earlier

[howgozit]

Why would you want to withdraw earlier?

But even if you did not put it into SRS, you would be taxed anyway. I certainly don't see it as a sucker scheme. More importantly is whether you have the spare cash that you don't need (and likely to squander) to put in.

It's only abt $12k a year anyway. I remember it was much more when it first started, I would definitely put more if they increased the limit.


Another sucker scheme, capital gain also taxable if u withdraw earlier

[DC33_2008]

I would put in enough to leverage on the optimum tax reduction.
Why would you want to withdraw earlier?

But even if you did not put it into SRS, you would be taxed anyway. I certainly don't see it as a sucker scheme. More importantly is whether you have the spare cash that you don't need (and likely to squander) to put in.

It's only abt $12k a year anyway. I remember it was much more when it first started, I would definitely put more if they increased the limit.

[phantom_opera]

Carmen can chg rule anytime, see cpf 4% now become 10y bond plus 1?

[howgozit]

Agree, but SRS money is with a bank not with Gahmen unlike CPF.

Also, surely you are not going to let it sit there right? You can buy shares with it and when you do that, the money is no longer with the bank... even better. If investing is not your cup of tea, then just leave the money there and think of it as a forn of enforced savings.

But for me, it's simply using tax free money to buy shares.

You are right that rules can change anytime. But if we so are afraid of rules changing then we'll never do anything. Its good for now as far as I am concerned, if its no longer good then I'll deal with it accordingly.


Carmen can chg rule anytime, see cpf 4% now become 10y bond plus 1?

[radha08]

from wat i observe, u r VERY conservative.....so y bother investing ur SRS money? jus collect 4% int la....

4% where invest in "Ah-Long" company ah...:D

[richwang]

Still holding StarHub after the nice dividend.
Added Fraser Comms.
Watching SingPost.

Thanks,
Richard

[richwang]

Sold StarHub, hoping to buy back at S$2.8.
No intention to trade, but the HK fund manager I know seems in a mood to cut positions.

Thanks,
Richard

[richwang]

Just bought HSI Call Options.

Yes, you can use SRS to buy options.

Marc Faber is calling a BUY.

Thanks,
Richard

[phantom_opera]

Sooner or later MAS will ban SRS buying options :p

SRS buy corp bond or bond ETF is the best with 5-10y horizon... buy option/warrants in the long run is suicide especially in Singapore where txn cost for punting is so high

[richwang]

The main thing banned by SRS Investment is

Physical Property.

I support this policy fully because most Singaporeans are over-allocating to physical properties.

Thanks,
Richard

[phantom_opera]

The main thing banned by SRS Investment is

Physical Property.

I support this policy fully because most Singaporeans are over-allocating to physical properties.

Thanks,
Richard

Hmm this is controversial, there is a school of thought that if you are correct, you have to be BIG

Last time when Soros shorted British pound, his man put a small position, after Soros review, the only comment he had is: YOU CALLED THAT A POSITION ??? :D

[richwang]

To be fair to the forumers, I am reporting my HSI Call Option positions are making 80% paper loss now. They will expire by June 28. So I will be heading to 100% loss for those positions.

The loss is about 1/5 of my total SRS holdings.

Lessons learnt:
1) Index options are x20 times leveraged although the broking house only count x5 times of your trading limits;
2) Position based risk management is still the key. Maybe my position should have been controlled within 1/10 of my total SRS holdings.
3) Never, never, never double your position. For a couple of times, I was so tempted to double my positions. But I guess I will be very happy to see 100% loss of 1/5 of my SRS holdings, rather than 100% loss of 2/5 or 4/5 of my SRS holdings.

Thanks,
Richard
PS. MAS, please don't ban SRS for Options. It is still a much much cheaper way to learn than betting with your hard cash outside SRS. SRS itself is a good limit control.

[hyenergix]

To be fair to the forumers, I am reporting my HSI Call Option positions are making 80% paper loss now. They will expire by June 28. So I will be heading to 100% loss for those positions.

The loss is about 1/5 of my total SRS holdings.

Lessons learnt:
1) Index options are x20 times leveraged although the broking house only count x5 times of your trading limits;
2) Position based risk management is still the key. Maybe my position should have been controlled within 1/10 of my total SRS holdings.
3) Never, never, never double your position. For a couple of times, I was so tempted to double my positions. But I guess I will be very happy to see 100% loss of 1/5 of my SRS holdings, rather than 100% loss of 2/5 or 4/5 of my SRS holdings.

Thanks,
Richard
PS. MAS, please don't ban SRS for Options. It is still a much much cheaper way to learn than betting with your hard cash outside SRS. SRS itself is a good limit control.

Sounds bad. Can't sleep over the losses? :scared-5:

http://www.salary.sg/2009/whats-not-good-about-supplementary-retirement-scheme-srs/

[Allthepies]

sembcorp is a good and safe play provided singapore dont lose its competitveness and dont change its policies negatively.

[phantom_opera]

Warrant or option is worse than big small gambling unless u have arbitrage opportunity, when market up by 0.5pc your call option will go down as implied volatility goes lower n u are so near expiry

[wesing]

Warrant or option is worse than big small gambling unless u have arbitrage opportunity, when market up by 0.5pc your call option will go down as implied volatility goes lower n u are so near expiry

Me put all my SRS eggs into the Stamford Land Corporation basket. Despite the market turmoil over the last few weeks, price remain steady between $0.545-$0.555. Just declared 4 cents dividend.

Majority of the shares of SLC owned by the Executive Chairman CK Ow and his family. Just follow the flow of the big boat.