Are AI, Machine Learning replacing the practitioners? Well the answer is clearly no.

Picture from https://online.stanford.edu/course

In my pursuit for excellence in my line of work, I have been asked or attended many courses not only to hone my skills that is built upon years of experience as a practitioner, this course in artificial intelligence and business valuation and finance which I completed recently further reinforced and cemented my core belief that specialized or domain knowledge, experience and skills cannot be replaced by black box machine learning or AI but are means to help supplement the practitioners in their work.

Many clients or prospects also asked me this question before. So finally, I attended such course to confirm that especially skilled and experienced practitioner will not be easily replaced by the black box machine learning and AI.

Hence, in this volatile, confusing and uncertain dynamic environment, it is imperative to consult and work with an experienced practitioner.

You cannot do it alone especially in stock or fund-picking and amid the alternative investment scams or FTX collapse.

It was tough and volatile year in 2022 but as the saying goes "When the going gets tough, the tough gets going."

For a portfolio review or looking for a trusted, skilled and experienced practitioner or lost in this confusing macro environment,

Kindly connect with me @ https://bit.ly/TTPericoh

For details as first posted in my Linkedin, click here

How can SRS help in retirement and save taxes?

In my encounters with many prospects, the questions people posed to me regarding Supplementary Retirement Scheme (SRS) range from the simple to the hard ones. So before one embark using SRS, some basic knowledge below can help shed some light. 

With regards to how to get started, implement and optimize your SRS investment portfolio, kindly contact me for a portfolio review. Connect with me by clicking here. 

You can consider to subscribe, like and connect with me via other social media sites at here too.

Today, I shall address some of the common ones. If you need more details kindly contact me:

1. What is SRS?

SRS is an initiative to help address the the financial needs of a greying population by helping Singaporeans to save more for their old age and be use to supplement their retirement on top of CPF life. It began in 2001 and is operated by the private sector.

    

    2. Who is eligible to open an SRS account?

All Singaporeans, Singapore Permanent Residents (SPRs) and foreigners who

• are at least 18 years old;
•  are not undischarged bankrupts; and
•  are not mentally disordered and are capable of managing themselves and their affairs.

    3.Who is allowed to contribute to SRS?

If you earned any form of income (including directors’ fees) in the current year, you are allowed to contribute to SRS. With effect from 1 Oct 2008, the SRS is no longer restricted to individuals with employment income.

    4.  How do I benefit from contributing to SRS?

By contributing the maximum $15,300 per year for Singaporeans and permanent resident, one can potentially save on the amount of tax payable depending on your income bracket but do note the personal income tax relief is capped at $80,000 per Year of Assessment (YA) from YA 2018.

By contributing this amount and investing in  a mix of balanced, risk assets for the long term, one can also enjoy higher potential return instead of just parking in the SRS agent bank. Investment gains will accumulate tax-free in SRS.

Unlike the CPF scheme, participation in SRS is voluntary. SRS members can contribute a varying amount to SRS (subject to a cap) at their own discretion. The contributions may be used to purchase various investment instruments.

For allocation and fund selection, please kindly consult me or a trusted financial consultant.

    5. When can I make a withdrawal from my SRS account?

Any time. However, for withdrawals made before the statutory retirement age prevailing at the time of your first contribution, 100% of the sum withdrawn will be subject to tax. A 5% penalty for premature withdrawal will also be imposed.

The penalty applies to all withdrawals except those made under exceptional circumstances:

a. death;

b. medical grounds;

c. bankruptcy; and

d. the full withdrawal of the SRS balance by a foreigner provided that the following conditions are met:

i) you are neither a Singapore Citizen nor a SPR on the date of withdrawal and for a continuous period of 10 years preceding the date of withdrawal;

ii) you have maintained your SRS account for a period of not less than 10 years from the date of your first contribution to your SRS account; and

iii) you make a one-time full withdrawal from your SRS account.

    6.Why is there a cap on SRS contribution?

SRS is meant to help individuals to save part of their income for their retirement, on top of their CPF contributions, and should not become a tax shelter for the asset-rich or high-income individuals. There is hence a cap on the SRS contributions. The 15% cap for contributions made by Singapore Citizens and Singapore Permanent Residents was decided after a public consultation in the early part of year 2000. The absolute income base is similar to that for CPF contributions (i.e. capped at $85,000 per annum from 1 January 2011, and raised to $102,000 per annum from 1 January 2016).

Do note the list is not exhaustive as it may pertain to your unique situations. As such, if you require help, kindly contact me for an appointment. Click here to like, subscribe and follow my social media sites.

Cheers.

Eric Oh