SRS investment options

[Wd40]

Just received my iras bill. Salary of 144k and income tax of 10.5k. I decided not to do SRS.10.5k pay it off and be done with it. It is like 7.2% thats so cheap compared to my home country.

[malcontent]

My employer decided to give us a bonus last year (zero bonus the year before) so that pushed me into a higher tax bracket. The higher tax savings plus the tax efficiency and low expenses with S27 is what convinced me to top up last year - my first time doing so.

UOB issues me a 1099-DIV so the 30% tax withholding on dividends for S27 gets refunded on my US tax return; ongoing expenses for S27 are a mere 9 basis points. Even the exchange rate UOB gives me is only around 0.3% from spot, it’s competitive. What’s left is the buy/sell spread on S27 which can be bad but isn’t horrible if you are patient. Overall, I can’t complain.

[PNGMK]

I did my taxes for YA2022 yesterday
SRS and CPF VC helped reduce my taxes to $424.

(Half my YA2022 income was sourced and derived by activity outside Singapore tho)

[malcontent]

I did my taxes for YA2022 yesterday
SRS and CPF VC helped reduce my taxes to $424.

(Half my YA2022 income was sourced and derived by activity outside Singapore tho)

Wow, that is some serious tax savings. Well done! I’m looking at a hefty 5 figure tax bill.

[PNGMK]

Yes I now see why people live here but do their income generation outside Singapore.

[PNGMK]

I should add that these days for SRS investments I just buy a 1 year IPL. Great Eastern have some that return 4% capital guaranteed. It provides a return and insurance during the term.

[PNGMK]

I did my taxes for YA2022 yesterday
SRS and CPF VC helped reduce my taxes to $424.

(Half my YA2022 income was sourced and derived by activity outside Singapore tho)

As a self employed contractor I can claim 100% of my CPF VC. That and SRS and QC and income deductibles pushed my total tax deductibles to 60k.

Wow, that is some serious tax savings. Well done! I’m looking at a hefty 5 figure tax bill.

[malcontent]

I recently purchased another series I bond which has a current yield of 6.89% (deadline to lock in this rate is Apr 27). I expect that this semi-annual rate will drop by about half on May 1, so that means a blended rate just north of 5% over the 12 month min. holding period.

I’ve been hearing a lot about Singapore T-bills lately, anyone investing in those?

[singaporeflyer]

I recently purchased another series I bond which has a current yield of 6.89% (deadline to lock in this rate is Apr 27). I expect that this semi-annual rate will drop by about half on May 1, so that means a blended rate just north of 5% over the 12 month min. holding period.

I’ve been hearing a lot about Singapore T-bills lately, anyone investing in those?

I did when the returns were around 4 %. Now the same is around 3.5 to 3.7 %

[nelyanne]

I should add that these days for SRS investments I just buy a 1 year IPL. Great Eastern have some that return 4% capital guaranteed. It provides a return and insurance during the term.

I'm considering putting some SRS money into an endowment plan this year.
I understand that ILPs have some risk component related to market performance.
How to choose between ILP and endowment plan? Is there anything special I should be aware of?
Last year, I used my SRS contribution to buy Singapore Saving Bonds.

[PNGMK]

I should add that these days for SRS investments I just buy a 1 year IPL. Great Eastern have some that return 4% capital guaranteed. It provides a return and insurance during the term.

I'm considering putting some SRS money into an endowment plan this year.
I understand that ILPs have some risk component related to market performance.
How to choose between ILP and endowment plan? Is there anything special I should be aware of?
Last year, I used my SRS contribution to buy Singapore Saving Bonds.

I'd probably go for capital guaranteed stuff with SRS. I have done short terms endowment plans with SRS myself though. SSB is falling.

[PNGMK]

Unlike endowment insurance policies, ILPs usually do not come with guaranteed values. The savings component of an ILP will be replaced with an investment component whereby a percentage of the premiums go into purchasing units in investment funds.

[malcontent]

Unlike endowment insurance policies, ILPs usually do not come with guaranteed values. The savings component of an ILP will be replaced with an investment component whereby a percentage of the premiums go into purchasing units in investment funds.

Just be careful getting locked into ILP if you might become US taxable, as it would most likely be a PFIC from a US tax perspective, which is not impossible to deal with during tax filing, but it’s not fun.

[PNGMK]

I most likely will cease contributing to SRS this year as most of my income is derived out of Singapore and hence not taxed in Singapore. I should add it up but I estimate that SRS has saved me around $45,000 in taxes over 17 years.

[bradybjr]

Hi @malcontent, curious if you are aware of any new brokers in Singapore willing to accept US Persons for SRS investing into S27.

I've approached both UOB KH in addition to Lim Tan based on others' recommendations, however both have claimed to have stopped accepting US Persons as clients.

I made an SRS contribution back in 2023 that has been sitting stagnant ever since. Still trying to find an option to get these funds invested into equities, but have been out of luck so far.