As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Sunday, 29 November 2015

SRS - Annualized Return Over 3 Years!

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.


  1. Good move, I started topping up SRS since last year and channelling my tithes to an IPC arm of the Church to reduce what owed to Caesar quite a bit

  2. Once we annualized the tax saving over the number of lock up years and think rationally and mathematically SRS's real return on tax saving may be just so so since we can alternatively invest with our cash account without being lock up.

  3. Think we still can invest in equities via SRS albeit that there is extra fees of $25.

    1. Ya.

      From my conversation with those SRS holders, I observed that these SRS holders tend to rush into investing their SRS fund once they have top up. Probably, due to super low interest rate in SRS account that discourage patience and waiting. Interesting to know how long one holds after topping up SRS?

  4. I am been holding for 2 years. The length of my holding without rushing to invest depends on equity market and building a sizable SRS war chest. Money is rotting in SRS for the last 2 years :-(

  5. Hi bro8888,

    I'm very happy to hear that you're retiring in sept 2016! I'll arrange a celebration party for you when it comes nearer :) This kind of event is worth celebrating!


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