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Originally Posted by Unregistered
Thanks for sharing. May I know how did you invest your SRS funds? I have been toying with the idea of SRS but banks are charging outrageous fees for transactions.
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I treat my SRS contribution strictly for retirement. As such I do not invest them in stocks!
I want to have certainty on their availability when I start my SRS withdrawal at 62, so the SRS funds must be safe and available. I use the money to buy single premium insurance products with fixed and guaranteed payout upon maturity. Their returns are low but guaranteed.
When you invest your SRS in shares, you may enjoy higher returns but the risk of loss is also higher. The worst that could happen is when you are about to withdraw your SRS for your retirement, the stock market goes into a big melt down like in 2008/9 and you sell at a great loss.
Use money that you can afford to lose to invest in stock market. Gains can be high, but loss can be big too! You should not be losing sleep over that money if the market value drops! If it cause you stress and anxiety, then you should not be investing that money in the stock market.