Your Year-End Financial Checklist
Key Takeaways
Some things you could consider before the end of this year:
Maximise your Supplementary Retirement Scheme (SRS) Contributions for 2023 - and get Tax Benefits from it!
Consider the Pro-social and Tax Benefits from Charitable Giving.
Check Your Nominations for Your Donees and Beneficiaries.
Review Your Investment Plan.
Invest in The Next Generation — Start a savings plan for the younger ones while there’s an opportunity.
If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.
As you close out 2023 and prepare for the year ahead, here are some ways to maximise your savings, minimise your tax bill, and stay on track with your financial goals.
Maximise your Supplementary Retirement Scheme (SRS) Contributions for 2023
The Supplementary Retirement Scheme (SRS) is a voluntary scheme to encourage individuals to save for retirement, over and above their CPF savings. The best part is that contributions to SRS are eligible for tax relief. Investment returns are tax-free before withdrawal and only 50% of the withdrawals from SRS are taxable at retirement.
You have until 31 Dec 2023 to contribute to the SRS scheme with a maximum limit of $15,300 for Singaporeans and PRs, and $35,700 for foreigners. For more information, please refer to the IRAS website.
Take Advantage of Charitable Giving Tax Benefits
Charitable giving offers a way to financially support philanthropic causes all while enjoying tax benefits for your generosity.
Donations to the Community Chest or any approved Institution of a Public Character (IPC) enjoy tax deductions of 2.5 times the qualifying donation amount. These donations must be made before the year ends for the tax deduction to be included and processed in the following year’s tax reporting. And if you are looking for new an innovative ways to give back, you can tap onto GYC’s new social impact and philanthropy initiative.
While cash donations are the most common, there are also other methods to give such as shares donation. More information can be found here.
Check your Financial Health
The end of the year is also a good time to check and ensure that you are up to date on the following;
If you have a setup a trust, will, or LPA, it is a good time to check that the person that you have appointed as your donee is still capable of making decisions on your behalf should you no longer be able to.
If you intend to bequeath your wealth and assets to others, it would be useful to also review your letter of wishes to ensure that your list of beneficiaries are up to date. In addition, you should review other nominations you have made, such as those for your CPF monies or insurance policies.
Review Your Investment Plan
If you had sat through a wealth management process with us, then it is likely that you have received an investment plan which details your goals and the path to get there. It is a good time to reflect on whether any of those goals or the timeframe for those goals have changed. If they have, then the solution needed could differ. If not, then it is a simple check to see if you are on track. Either way, sitting through a review session with your advisor will help you determine the right options for you.
Invest in The Next Generation — Start a Million Dollar Builder Plan
Take advantage of the current depressed market prices to start an education or savings plan for the younger generation. Creating a systematic way to save and invest, we have developed a simple way to reach a million dollars within 25 to 35 years. This type of plan is great for those who wish to put something aside for their young children or grandchildren. It also works well for young adults who may be just starting out in the workforce.
The best part is that it doesn’t take much to kickstart this plan — the lowest option starts at an upfront contribution of $5,000, coupled with $600 in monthly savings.
Visit the Mustard Seed Million Dollar Builder page for more details.
