SRS was a subject I used to weblog about fairly typically.
I’ve not been running a blog about it as a lot since I’ve not been making contributions lately.
Cause is as a result of I not pay earnings tax.
If we’re nonetheless paying earnings tax, contributing to our SRS account is sensible to get pleasure from some tax aid.
In fact, we need to put our SRS cash to work or we’d get a really depressing rate of interest.
For a few years, I used the SRS cash to purchase plain vanilla endowment insurance policies.
They have been financial savings plan with some insurance coverage thrown in.
The truth is, I nonetheless have one or two of these with NTUC Earnings utilizing SRS cash.
In current months, I additionally used the cash to purchase T-bills with yields being a lot greater than a few years in the past.
Dividends paid by my investments in shares utilizing SRS cash are used for this goal.
Sure, I additionally use SRS cash to purchase shares of companies which I feel make good investments for earnings.
I’ve blogged about this earlier than and shared what sort of shares I might purchase with SRS cash.
Principally, the companies have to be good earnings mills with robust stability sheets; nothing which is prone to do rights points.
The very sensible motive is as a result of we should have the surplus funds in our SRS account to participate in rights points.
This may be tough to make sure.
I shared my SRS portfolio of shares earlier than however that’s outdated by now.
See:
Win and win once more with SRS.
I had SATS within the portfolio.
In fact, common readers would know that I offered it shortly after it introduced the choice to purchase WFS.
SATS simply did not have enough sources to do what they urged.
They needed to elevate funds from shareholders.
It was one thing surprising.
So, I took the chance to promote when there was a bounce within the inventory value.
Instead of SATS, there are ComfortDelgro and OCBC in my SRS funding portfolio now.
That is what the portfolio seems like now:
Primarily based on the acquisition costs, it’s not tough to guess that DBS and ST Engineering have been within the portfolio for a while now.
So, like what I did?
Paid much less earnings tax and put the cash to work to generate extra tax free passive earnings?
We are able to actually win and win once more with SRS.
If AK can do it, so are you able to!
Reference:
How AK used his SRS cash?
