SRS 101 - How to open a SRS account.

Today is an "unlucky" day. I continued the order for 10,000 shares of the "tech" stock at 830am in the morning but no trade was done until 5.05 pm where my order was only partially filled at 3 lots .... what can i say....except very 'suay'....

I might as well buy 10 lots at 40.5 cents instead of waiting the whole day to get 3 lots done. If i continue tomorrow, i waste another round of commission. urghh...I will do a write up on the stock tomorrow... now have to think if i want to buy the remaining 7 lots or it is 'fate' that i should have 3 lots only. hahaha..

Lesson - should have checked at 4.55pm and withdraw my order if it is not done by then or buy up at the higher bid at 5.01pm :-P

Some of the readers asked how to open an SRS account, whether CPF can be utilized and how to use it to buy stocks.

SRS account is basically a 'retirement' scheme. There are enough articles on how the scheme works and you can download the handbook here.

Basically it works like this (assuming you want to open an account this year).

Step 1 - Open a SRS account with one of our local banks, DBS, UOB or OCBC.

Step 2 - Contribute $12,750 in cash to the SRS account.

Step 3 - Inform your brokerage firm of your SRS account and asked them to link it to your trading account. 

Step 4 - When you want to buy or sell shares through the SRS account, select SRS (if you can) on the internet platform, otherwise, call your broker to 'amend' the internet trade to SRS on the same day itself. 

Here comes the important part. Your tax savings for 2012. See example below, sourced from here.

Happy SRSing.