Personal Finance
Why I Maximised My SRS Contribution but not CPF SA
By Sethisfy  •  January 7, 2021
Responsible working adults do things like tax planning ahead of time. Naturally, I waited until the absolute last day to do it… the literal last hour, actually, in between drinks at a New Year party last week wondering what to do. Earlier in the day on New Year’s Eve, I pulled the trigger and transferred the maximum amount I could to my Supplementary Retirement Scheme as the deadline was 7PM that day. Later at night, in between shots of whiskey 15 minutes before 2021, I decided that I was not going to contribute to my CPF Special Account after all. Why I contributed to SRS With the current maximum contribution cap of $15,300 a year, SRS can provide tax relief for a bit of money, and still provides flexibility of withdrawals should I need it in future. I think it fits with my plan to FIRE when I’m in my mid-forties – 5% penalty in 10-15 years’ isn’t too bad if you are saving more than 5% of tax right now....
Read the full article
By Sethisfy
As an adult, I’ve been through many ups and downs in my career path and personal finance journey, not unlike many Singaporeans. From my years as a tied insurance agent turned independent financial adviser, I realised that there are very few sources of proper, unbiased financial advice for working adults to access. Worse, self-styled “financial consultants” are selling products like savings plans and ILPs to the detriment of the clients whose interests they were supposed to serve.
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance