I disagreed with the first post.
If someone is bad in investing, please do invest in SRS.
You save on tax which is like 10% upfront. And since that person is bad on investing, it better to lock it away then lose the money.
Yes, generally a higher income earner will save on a "higher" marginal tax. That part of SRS is true.
After some further thought, i suspect the issue is also maybe because the SRS faq used 10 years in investing and compared it to 10 years of withdrawal.
It is a different story if you invested 30 years where you get 1.03 ^30 x0.9 and forced to withdraw it within 10 year time frame. At 3% capital gain, i think the other benefits like 50% taxable and first 20k non taxable still offset so you end up saving more. But if you have a high capital gain of 12% , then the size of the SRS may grow to such a high amount it may not be so beneficial.
Anyone else care to shout out ?
Is there a limit to the size of SRS portfolio may grow to ?
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Originally Posted by Unregistered
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