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SRS - what to invest in?

Soya

By Soya,
in Investment & Financial Matters

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Voodooman

Voodooman

Supersonic

SRS is good for holding boring undervalued stocks that are in businesses you understand (not you think understand) that have a long track record paying decent dividends.

You can't withdraw the dividend without being taxed, so SRS should be used for long term investment. I use it to buy highly cyclical undervalued stocks with little dividend (shipping for example) as the monies is supposed to be stuck in there till the official retirement age to maximize on the tax benefits.

sorry, wanna ask about the SRS.

 

if i made a yearly contribution of 2K, am i correct to say my tax relief on SRS is 2K too?

or is there a % only?

 

I'm rather confused as the website didn't mention any % of relief

http://www.iras.gov.sg/irasHome/page04.aspx?id=1168

 

while some reader actually wrote a yield of 9.6%; nutshell : a contribution of $11,475 to your SRS account brings about a tax saving of $1,096. This is a yield of 9.6%

Read this.

 

http://app.mof.gov.sg/data/cmsresource/srs/SRS_Booklet%20-%2018Feb11.doc

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Thaiyotakamli

Thaiyotakamli

Supersonic
(edited)

when rupiah hit 9550, i changed some and put it into one year fixed deposit in a safe local bank in Indonesia yielding 6% p.a

 

 

Now rupiah around 92xx :D

Edited by Thaiyotakamli
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Kurty

Kurty

Supercharged

thank you, Voodooman.

 

that is sure helpful, i guess i must really start to have a SRS to evade tax..

 

i rather donate to charity etc than to pay them each year.

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Jamesc

Jamesc

Hypersonic

I would invest in all those companies that keep increasing prices.

 

Power, transport, oil, food, telecoms etc

 

Some of the extra profits must be going to the shareholders.

 

I was reading here many people changed their tv plans and now locked into 2 year deals

 

and have to pay more for a lot of things that used to be free.

 

I will buy stocks in that company but must sell within 2 years as you can fool people once but not twice.

 

Then I will buy stocks in the other tv company as they swore they will change tv providers.

 

MCF has the best stock tips.

 

:D

 

 

 

 

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Soya

Soya

Supersonic
  • Author

I would invest in all those companies that keep increasing prices.

 

Power, transport, oil, food, telecoms etc

 

Some of the extra profits must be going to the shareholders.

 

I was reading here many people changed their tv plans and now locked into 2 year deals

 

and have to pay more for a lot of things that used to be free.

 

I will buy stocks in that company but must sell within 2 years as you can fool people once but not twice.

 

Then I will buy stocks in the other tv company as they swore they will change tv providers.

 

MCF has the best stock tips.

 

:D

 

 

 

 

 

 

i wanna invest in the table wiping bizness. heard returns sibei blardy goot. [thumbsup]

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Enye

Enye

Hypersonic

 

 

Max contribution is $12,750/yr. The income tax relief itself is a good reason to put money into SRS. The few k saved in tax is as good as a few k 'earned' (itself considered a pretty good ROI actualli). [;)]

 

u sure SRS can use to buy US stocks? the reason i asked the qn to begin wif is that i find the approved investment channels for SRS a bit restrictive.

 

at the top tier tax rate of 20%, the max tax savings would be ~2.5K

 

only for the very high income like yourself, the tax savings would be a few K

 

:D

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Icu

Icu

6th Gear

Base on SMRT recent share price of around $1... The dividend yield works out to be 7-8%..

 

Didn't you hear about LTA raising of max fine penalty for train disruptions up to 10% of annual fare revenue (not profits)?

 

7-8% is provided if SMRT makes money but with the company reporting its first and recent quarterly financial loss, are we betting on zero disruptions going forward?

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Maroon5

Maroon5

5th Gear

 

Didn't you hear about LTA raising of max fine penalty for train disruptions up to 10% of annual fare revenue (not profits)?

 

7-8% is provided if SMRT makes money but with the company reporting its first and recent quarterly financial loss, are we betting on zero disruptions going forward?

 

then they come crying to PTC say need increase fare, cant sustain and eventually beared by commuters...they wont lose one la...

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Icu

Icu

6th Gear

Dun think so, lest you are super long into SMRT. The last PTC review for fare hikes is not that long ago, and I don't PTC making a fare hike an annual affair.

 

If die die need to be vested in a Transportation counter, ComfortDelgro makes a better choice than the rail operators...

 

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Soya

Soya

Supersonic
  • Author

i dare not buy smrt share. skali kena nationalise if the breakdowns continue how?

 

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D_bergkam

D_bergkam

1st Gear

Base on SMRT recent share price of around $1... The dividend yield works out to be 7-8%..

 

How you get 7-8% dividend?

 

Recent dividend payout for full year is only 2 cents, based on current stock price is only 2+% nia.

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Kangadrool

Kangadrool

Supersonic
(edited)

Mulling over it now... 30 days more...

 

Questions:

 

I reckon dividends and profits from share trading can be withdrawned from SRS, but subject to 5% penalty?

 

5% on sum withdrawn?

 

Withdrawn sum need to include it in income tax? (for dividends = no need since already deducted at source?, for invested amount = need?)

 

Tio boh?

 

 

 

How you get 7-8% dividend?

 

Recent dividend payout for full year is only 2 cents, based on current stock price is only 2+% nia.

 

Edited by Kangadrool
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Ttl1976

Ttl1976

5th Gear

I do hv a question for all the gurus and experts.

 

Where would you invest your fund in yr 2015?

Asia, Europe or US?

 

Feel free to mock at me.

Still learning here.

 

TIA!

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Solar

Solar

Turbocharged

It's that time it the year again... Have you done yours yet? Only around 10 days to the deadline.. Do it earlier in case something screwup

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Yeshe

Yeshe

Turbocharged

It's that time it the year again... Have you done yours yet? Only around 10 days to the deadline.. Do it earlier in case something screwup

Yes, gonna to put in some in srs for tax rebate. Cap still 12,750? I heard can just leave the fund in sea without doing anything until u got a sizeable fund.
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Voodooman

Voodooman

Supersonic

Yes, gonna to put in some in srs for tax rebate. Cap still 12,750? I heard can just leave the fund in sea without doing anything until u got a sizeable fund.

Still 12,750, next year can park 15,300.

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Solar

Solar

Turbocharged

Yes, gonna to put in some in srs for tax rebate. Cap still 12,750? I heard can just leave the fund in sea without doing anything until u got a sizeable fund.

Correct amount till this year. Next year they upped to 15,300.

 

And ya.. Can don't do anything, though the interests given by the back is miserable.

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