As I am still young, I definitely choose blue chip stocks and high yield REITs over bonds. Blue chip stocks mainly for growth and high yield REITs for the dividends and potentially some capital gain.


I prefer CPF for now as the compounding in SRS means that eventually I still have to pay tax at a later time because I would amass a sum larger than the tax free withdrawal amount and with my current salary, the tax savings is not significant yet. With CPF, I can withdraw without worries about paying tax and the interest from the special account can be considered as a good dividend rate, though at the expense of liquidity which is similar to SRS. The main limitation with CPF is that the amount I can top up is lesser than SRS which limits my ability to fully maximise it for tax savings.


At my current age, I would prefer to hold off SRS to avoid having to pay large sums of tax when I withdraw it. I think I would only consider it when I’m in my mid-late 40s.