The main focus of this post is to illustrate one simple scenario on what you can do with your SRS account.
What are the attributes that CPF has?
- The simplest form of investment
- Steady payout (after retirement)
- Constant Interest Rate
So why do people sign up for SRS?
- Reduce income tax (after maxing up CPF contributions)
- Invest with the money that will be “used to” pay for tax
It’s not easy to be the promissory interest rate that CPF gave with the investment being “simple”
So how do you make your SRS like Your CPF??
The clear reason for this recommendation is basically due to its simplicity/constant payout/credibility (don’t need to understand or research so much ~ compared to an index.)
- Photo Credits – https://www.diyinsurance.com.sg/portal/articles/html?art_id=46
p.s: as you can tell these, are not real fantastic instruments for investment but if you’re looking for something really basic (with huge capital in your SRS) search for independent agents who can provide you better annuities policies.
Hope it spurs a higher need in you to find better instruments 🙂
“+1 knowledge point”
p.s : I’m planning to go back to more personal finance too at the same time 🙂 been really busy with my upcoming exam.
Weekly Chart Analysis – Price action on the stock indicates that it is in an overall bull trend ( started in 2009 ), making higher highs and higher lows. Something I spotted was that market tends (high probability) to retrace to the 0.5 area before moving higher.
Current price action indicates a probable retracement more than a continuation of the trend.
Daily Chart Analysis – Differs a lot from the weekly chart, where it shows that price action has recently respected previous structure low (maintaining the trend characteristic). The market still has a leg room to prove the retest, hence an entry now wouldn’t be a wise one.
The ideal entry would be an exhaustion in retracement like the current one, It will provide a better Risk to Reward Ratio.
Weekly Chart: Price action on the stock seems to be trading in a consolidation range with an up build of a bearish character. If the market breaks 2016’s structure low, it would have completed a bearish trend requirement. Thus, increasing the probability of Singtel’s share price to drop even lower. What the possibility of that??
Daily Chart – It seems that there’s a great probability of such happening, as price action has recently just broken previous structure low ~ forming a bearish trend. If you’re planning to long this stock, It would only be wise to be in when a retracement happens. I’d think Singtel has a high probability to be trading around 2013 price level.
Weekly Analysis – The market pair was initially trading in with a bearish momentum ( lower higher and lower low) till late 2016. As price action did not break previous structure low, it signifies a strong bullish possibility.
Daily Analysis – Knowing that all trades have to be aligned with the bigger time frame, I waited for the market to break key level and retrace ( for better risk/reward ratio) and entered on a smaller time frame. This has brought me a trade with a 1 : 4.64 RR.
Side note: I might exit and not trade my trade once market hit my target.