Income Tax Planning: SRS vs CPF Cash Top-ups

[Sdf4786k]

depends on how you want to live... need to grow the 1mil too...

correct lor...

 

 started in the career with nothing.. well at least for me.

 

On the way up, study part time and take up course to improved yourself

 

First bench mark 4 figure salary and 5 C

 

Made the right choice to marry the right one

 

Have children

 

Ensure they are sufficiently guided to meet the goals and what works and the multiple changes that is required to meet life future

 

 Trial and tribulation of the dotcom

 

This one at least everyone mostly wins due to the dumb / smart alex programming skill from you know which country so spends increase

 

Most middle income have hit the 5K limit per earning income back then.

Gold card was out of fashion. The new me is the black card and invite only credit card group.

 

Then came the era of continuous growth. Compounded interest upon interest of year to year target and all that wonderful stuff called bell curve appraisal and what jack Welch practice.

 

So everyone had to work smart not hard

 

Of course the rest you know.. lehman bro and subprime and PIIGS

 

Speaking of which.. how did Portugal manage to climb out of the bankruptcy  

Edited December 10, 2017 by Sdf4786k

[Lmws214]

Stretching your dollar with SRS

 

good read.

 

http://www.straitstimes.com/singapore/stretching-your-dollar-with-srs

[Albeniz]

Did something stupid today.  

 

On 30 Dec 2017 (Sat) at 9:30pm, I logged into internet banking and  transferred $15,300 into SRS account hoping to go for maximum tax relief.  I thought it was well before the 31 Dec 2017 deadline. 

The bank system accepted and said it would be processed the next working day.  Next working day?  That means 2 Jan 2018?

 

I did a google search and looked for any cutoff date/time for SRS contribution.  That particular bank states that it must be done before 7pm on 30 Dec 2017.

 

I am disappointed in a sense that I probably missed the cutoff date by 2.5 hours and then the money is parked in SRS for a meager  0.5% interest rate, and worse of all - without getting any tax relief from SRS for 2018.

 

Any way to rectify?  Or is there any safe/stable investment through SRS which I can get slightly better returns (than the 0.5% interest rate)?  Not too keen in buying stocks/shares though as I would prefer to keep the capital safe.

 

Thanks.

Edited December 30, 2017 by Albeniz

[BanCoe]

Did something stupid today.

 

On 30 Dec 2017 (Sat) at 9:30pm, I logged into internet banking and transferred $15,300 into SRS account hoping to go for maximum tax relief. I thought it was well before the 31 Dec 2017 deadline.

The bank system accepted and said it would be processed the next working day. Next working day? That means 2 Jan 2018?

 

I did a google search and looked for any cutoff date/time for SRS contribution. That particular bank states that it must be done before 7pm on 30 Dec 2017.

 

I am disappointed in a sense that I probably missed the cutoff date by 2.5 hours and then the money is parked in SRS for a meager 0.5% interest rate, and worse of all - without getting any tax relief from SRS for 2018.

 

Any way to rectify? Or is there any safe/stable investment through SRS which I can get slightly better returns (than the 0.5% interest rate)? Not too keen in buying stocks/shares though as I would prefer to keep the capital safe.

 

Thanks.

Looks like nothing much can be done ; even though your SRS and your Bank account are same it’s like similar to paying Credit Card Bills ... they reflect the payment after 1-2 days only .... gotta be careful with this kind of payments which we don’t do on regular basis ...... it’s like Murphy’s Law .....just when you want it most urgently and want to get done with

[Newbie26]

thought online application and transfer is immediate.

 

Presume the transfer is from a different bank as your SRS account

 

paper application will take 24-48 hours at least

 

No harm calling your bank on 2 jan to find out

 

Did something stupid today.  

 

On 30 Dec 2017 (Sat) at 9:30pm, I logged into internet banking and  transferred $15,300 into SRS account hoping to go for maximum tax relief.  I thought it was well before the 31 Dec 2017 deadline. 

The bank system accepted and said it would be processed the next working day.  Next working day?  That means 2 Jan 2018?

 

I did a google search and looked for any cutoff date/time for SRS contribution.  That particular bank states that it must be done before 7pm on 30 Dec 2017.

 

I am disappointed in a sense that I probably missed the cutoff date by 2.5 hours and then the money is parked in SRS for a meager  0.5% interest rate, and worse of all - without getting any tax relief from SRS for 2018.

 

Any way to rectify?  Or is there any safe/stable investment through SRS which I can get slightly better returns (than the 0.5% interest rate)?  Not too keen in buying stocks/shares though as I would prefer to keep the capital safe.

 

Thanks.

 

[BanCoe]

Did something stupid today.

 

On 30 Dec 2017 (Sat) at 9:30pm, I logged into internet banking and transferred $15,300 into SRS account hoping to go for maximum tax relief. I thought it was well before the 31 Dec 2017 deadline.

The bank system accepted and said it would be processed the next working day. Next working day? That means 2 Jan 2018?

 

I did a google search and looked for any cutoff date/time for SRS contribution. That particular bank states that it must be done before 7pm on 30 Dec 2017.

 

I am disappointed in a sense that I probably missed the cutoff date by 2.5 hours and then the money is parked in SRS for a meager 0.5% interest rate, and worse of all - without getting any tax relief from SRS for 2018.

 

Any way to rectify? Or is there any safe/stable investment through SRS which I can get slightly better returns (than the 0.5% interest rate)? Not too keen in buying stocks/shares though as I would prefer to keep the capital safe.

 

Thanks.

I don’t know if you can go to an ATM machine ( cash deposit type) and put in cash to credit directly into the SRS account number ( provided the ATM is the same Bank ( just to play safe) as your SRS account ..... just got me thinking and if during the transaction if the machine is ‘smart’ enough hopefully if it tells u that payment will be processed the following working day.... cancel the transaction immediately

[Jman888]

deadline 7pm but you transfer at 930pm of course cannot lah, moreover should know that no one/system work on weekend.

[Albeniz]

thought online application and transfer is immediate.

 

Presume the transfer is from a different bank as your SRS account

 

paper application will take 24-48 hours at least

 

No harm calling your bank on 2 jan to find out

That was what I initially thought too, about online transfer being immediate.

 

But apparently, this might not be the case. Do take note and avoid my mistake.

 

I was under this impression because funds transfer between banks using FAST is immediate.

Edited December 31, 2017 by Albeniz

[Lala81]

thought online application and transfer is immediate.

 

Presume the transfer is from a different bank as your SRS account

 

paper application will take 24-48 hours at least

 

No harm calling your bank on 2 jan to find out

 

err SRS is never immediate. I thought this is like very basic stuff that u should check before putting money last minute into SRS.

 

Even though the intra/inter bank transfer is immediate, they probably still have to update CPF.

Did something stupid today.  

 

On 30 Dec 2017 (Sat) at 9:30pm, I logged into internet banking and  transferred $15,300 into SRS account hoping to go for maximum tax relief.  I thought it was well before the 31 Dec 2017 deadline. 

The bank system accepted and said it would be processed the next working day.  Next working day?  That means 2 Jan 2018?

 

I did a google search and looked for any cutoff date/time for SRS contribution.  That particular bank states that it must be done before 7pm on 30 Dec 2017.

 

I am disappointed in a sense that I probably missed the cutoff date by 2.5 hours and then the money is parked in SRS for a meager  0.5% interest rate, and worse of all - without getting any tax relief from SRS for 2018.

 

Any way to rectify?  Or is there any safe/stable investment through SRS which I can get slightly better returns (than the 0.5% interest rate)?  Not too keen in buying stocks/shares though as I would prefer to keep the capital safe.

 

Thanks.

 

There will be transaction costs leh. even if u purchase any financial instrument.

 

If u don't put money into stocks/shares then why u use SRS? What were u interested in buying?

Probably least financial risk instrument on SGX would be A35 which mostly hold SG govt linked entities bonds

 

Edited December 31, 2017 by Lala81

[Albeniz]

Don't do this very often or on regular basis, so missed the details. Only started doing it once every 365 days, and recently. Some years don't too.

 

And I keep thinking about the 31 Dec 2017 deadline in IRAS, overlooking the holiday.

[Albeniz]

err SRS is never immediate. I thought this is like very basic stuff that u should check before putting money last minute into SRS.

 

Even though the intra/inter bank transfer is immediate, they probably still have to update CPF.

 

 

There will be transaction costs leh. even if u purchase any financial instrument.

 

If u don't put money into stocks/shares then why u use SRS? What were u interested in buying?

Probably least financial risk instrument on SGX would be A35 which mostly hold SG govt linked entities bonds

Previously, the tax relief from 15.3k contribution was good enough, so didn't invest much with srs and tolerated the low 0.5%.

 

But since I made the mistake and am most likely not able to get the tax relief this year round, might as well explore other ways to grow the otherwise stagnant srs money.

 

On the other hand, now getting old and kiasi, so avoiding high risk activities.

 

Looks like bonds are a good choice.

Edited December 31, 2017 by Albeniz

[Lala81]

Previously, the tax relief from 15.3k contribution was good enough, so didn't invest much with srs and tolerated the low 0.5%.

 

But since I made the mistake and am most likely not able to get the tax relief this year round, might as well explore other ways to grow the otherwise stagnant srs money.

 

On the other hand, now getting old and kiasi, so avoiding high risk activities.

 

A35 should be for you then.

[Enye]

Previously, the tax relief from 15.3k contribution was good enough, so didn't invest much with srs and tolerated the low 0.5%.

 

But since I made the mistake and am most likely not able to get the tax relief this year round, might as well explore other ways to grow the otherwise stagnant srs money.

 

On the other hand, now getting old and kiasi, so avoiding high risk activities.

 

Looks like bonds are a good choice.

you mean 0.05% right?

 

 

[Voodooman]

Previously, the tax relief from 15.3k contribution was good enough, so didn't invest much with srs and tolerated the low 0.5%.

 

But since I made the mistake and am most likely not able to get the tax relief this year round, might as well explore other ways to grow the otherwise stagnant srs money.

 

On the other hand, now getting old and kiasi, so avoiding high risk activities.

 

Looks like bonds are a good choice.

You kept your SRS contribution in cash all these while? OMG.... Yes Enye is right, it is at 0.05% p.a. no wonder you waited till 30/12.

 

You are already losing capital at 0.05%p.a. but ok lah, better than buying penny stocks. Wahahahaha....

[Lala81]

You kept your SRS contribution in cash all these while? OMG.... Yes Enye is right, it is at 0.05% p.a. no wonder you waited till 30/12.

 

You are already losing capital at 0.05%p.a. but ok lah, better than buying penny stocks. Wahahahaha....

 

yeah i find that a bit shocking 

[Albeniz]

You kept your SRS contribution in cash all these while? OMG.... Yes Enye is right, it is at 0.05% p.a. no wonder you waited till 30/12.

 

You are already losing capital at 0.05%p.a. but ok lah, better than buying penny stocks. Wahahahaha....

Pardon me.

 

Old people like me are not very good with money.

 

I used to keep money under my pillow.

 

Now I am trying to park money in srs for tax relief, that is already a great improvement.

 

You all please be kind to me ok? :)

 

Happy New Year, folks!

[Lala81]

Pardon me.

 

Old people like me are not very good with money.

 

I used to keep money under my pillow.

 

Now I am trying to park money in srs for tax relief, that is already a great improvement.

 

You all please be kind to me ok? :)

 

Happy New Year, folks!

 

haha u must have maxed out your contribution to SA liao. that's why ...

[Albeniz]

haha u must have maxed out your contribution to SA liao. that's why ...

Yes!

 

I really did that, dutifully following the instruction from my wife.