Since Uncle8888 is retiring next year in 2016; and with no more wife and children tax relief for Assessment Year 2015, he decided to open his SRS Account with DBS and top up $12,750 to get some tax relief.
He was given $50 SRS Cash Rebate for this SRS Account opening. Together with his small tax saving and $50, he will annualise it over three years as Return since he plans to withdraw the full amount of $12,750 (hopefully more) at 62. At the same time, he will need to look for one yield stock to invest soon as the interest rate in SRS Account is really suck! But ... his real Total Return over 3 years may turn out to be negative so he has to be wise enough not to lose his hard earned money for this SRS Top Up.
He observed that people tend to be more eager and rush to invest their SRS fund same like CPFIS once they see some money left idling in these accounts. Next year, he will top up another $15,300 for Assessment Year 2016 and annualized the tax saving over three years i.e. 2016 to 2019. It will be game over for SRS as unemployed doesn't have to pay any income tax! $15.3K will be withdraw at 63.
I am 60+ yrs old uncle living in HDB heartland who has retired @ 60 on 30 Sep 2016.
I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 and now becoming full-time retail investor. So I am that Panda or Koala in the investment world; but I am still surviving well in the wild.
I have two sons and one daughter; two working adult children and the youngest son is currently in his 1st year SUTD.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2038
Last updated: 16 Oct 2016
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