Hi Lyndon, you mentioned that "Prior to reaching Age 55, use your SA to purchase low-risk investment instrument. You may liquidate it after your RA is formed at Age 55", can you advice what low-risk investment I can buy using SA? I will be reaching 55 next year and I would like to maximize my CPF returns. Thank you in advance!
Reply to @joerha : there is no additional fees. Interest rate is lower (temporarily) as it is meant for funds to flow back to SA after liquidating the instrument.
Reply to @stevenlee : I assume you are still working since you mention retirement at 62? The approach is two-prong. By putting in SRS, you save on taxes. By investing the monies in safer instruments such as Singapore bonds or a lower allocation to stocks, you will continue to use money to make money. To note, if one is not working, there isnt much point to "hack" srs cause theres no tax savings.
Hi Lyndon, you mentioned that "Prior to reaching Age 55, use your SA to purchase low-risk investment instrument. You may liquidate it after your RA is formed at Age 55", can you advice what low-risk investment I can buy using SA? I will be reaching 55 next year and I would like to maximize my CPF returns. Thank you in advance!
Reply to @joerha : there is no additional fees. Interest rate is lower (temporarily) as it is meant for funds to flow back to SA after liquidating the instrument.
Good thinking but must always keep ourselves updated about its changes or new rulings and initiations
Reply to @Wyne : Scarly its a trap to lure $in then change rules ?
Any tips on SRS for those above 55? How best to make the best of it since there is only 7 years from 55 to mandatory retirement of 62?
Reply to @stevenlee : I assume you are still working since you mention retirement at 62? The approach is two-prong. By putting in SRS, you save on taxes. By investing the monies in safer instruments such as Singapore bonds or a lower allocation to stocks, you will continue to use money to make money. To note, if one is not working, there isnt much point to "hack" srs cause theres no tax savings.