What can I use SRS for? Not just leave it in the bank until I retire?

Now that I have save $1,756 on my tax for YA2018 with SRS (Supplementary Retirement Scheme), next year I got additional money to spend/ save/ invest. (Click here for the previous article on Tax Savings details).

Then how about the $15,300 I left it in the SRS account?

Well, with SRS you can do alot of things as it's as good as cash (in terms of investment wise).

1) Option 1

Well I have already saved & earned 11.5% with the tax savings, I'll just let it grow 0.5% yearly until I retire.
=> Leave it in the bank and don't need to do anything.

2) Option 2

I am a long term investor (or speculator, I wonder?) and would like to try my hands on current market high as there's still 30% of chances going up.

=> Link your SRS with your Stocks account, and you can start speculating.. I mean investing.

3) Option 3

I am a bit risk averse but I believe in stocks as it has always been and historically shown to beat the inflation. But which stocks to buy?

=> Invest in equities or balanced funds instead. E.g. of balanced fund "First State Bridge"

4) Option 4

I don't trust stocks and shares. I only believe in Corporate Bonds issued by reputable companies and Statutory Bonds issued by Singapore government. But I don't have $250,000 to buy them.

=> Invest in money market or bond funds instead. E.g. "United SGD Fund CL A ACC SGD"

Getting confused and not sure which option to choose? Perhaps it is good to know your own-self first before making any decision that you might regret. Check out this month article too on "Understand Yourself before making that Investment Decision"

5) Option 5

What? Still got Option 5?? I start seeing seeing stars already. I just want a stable retirement and it's best if I can use my SRS to pay myself when I'm retired or no longer working. Got such thing?

=> Fortunately yes! There are insurers who allows you to use your SRS to pay for their retirement plans. In fact nowadays almost all retail life insurers have at least 1 retirement plan in the market.

Check out below the available plans that you can use your SRS:

6) Option **

Now I really see stars and totally lost. I think I will go for Option 1, easiest. Let it grow for 20years from $30k to $33k and earn $3,000, guaranteed. Not bad as I don't even need to lift my fingers.

=> How about earning a guaranteed $7,200 and another ~$16,000 for your play cheque? In addition, you have extra protection for death & terminal illness for the "just in case". But this you need to lift your finger and just give us a call and we will advise you based on your risk appetite. Oh.. not only lifting of fingers but need to use your mouth to talk a bit also ya :)