Queries from readers

Just sharing some email queries from readers that I have answered over the years. These queries were sent via email. Have removed names.

==

Hi

I chanced upon your site and would like to ask if the stock dividends is going to be paid out in Dec for example, when should we buy in?

Thanks
XXX
===

Hi XXX,


You have to buy the stock before it is ex-dividend to be entitled to the dividends.  Stocks which are ex-dividend will have XD beside the stock name in SGX website.


If you are talking about dividend capture strategy, then it is more difficult.  I personally find it hard to determine a correct entry point to buy-in to get the dividend/sell at a profit larger than what the dividend would have been.  If you are buying a stock for the dividends, I guess it does not really matter when you buy in.  Of course, some basic Technical Analysis might help in the long run.


Regards,

FF

===

Hi FF

Thanks for your email.

So if I spot that there is a ex-dividend stock, and if I buy in, will I be entitled to the dividends? Or would it already be too late?

Thanks
XXX

==
Hi XXX,


It will be too late by the time it is shown as XD

Budget 2017 - Housing Grants for HDB

A good snapshot of the housing grant changes announced in Budget 2017 by Finance Minister Heng Swee Keat.

(Source: HDB)

Just Contributed More Money To SRS Account

I just contributed another lump sum of monies to my SRS account. There are good reasons for me to do so since I get to enjoy tax reliefs and will end up paying less taxes for the next year.

I figure that I have contributed about $10000 and upwards so far this year to my SRS account. There is a cap to how much relief I can claim so I will probably max that out by end this year ( which really does not give me much time!).

I have also maxed out my CPF minimum sum top up by contributing $7000.

Good tax reliefs so why not?

Interest Income for November 2016

Really need to get into habit of recording down my dividends and interest income. As some of you might be aware, I have been relying on banks promotional interest rates or bonus interest to get higher rates for my savings account.

For November 2016, I managed to get $179 from my OCBC360 account. Not bad if you ask me.

How Much CPF is Deducted from Salary

Ask around and you will be surprised that not many people actually know how much money is deducted from their salary for contribution to their CPF account.

The CPF salary ceiling in 2016 is $6000. This means that only the first $6000 you earn in a month attracts CPF contributions. For an employee below age 55, it will mean a total of 20% of $6000 is deducted from his gross salary for CPF. The amount deducted is therefore $1200.

Employers contribute 17% and that translates to $1020.

So the CPF deducted from one's gross salary is $1200 while the employer contributes $1020 (assuming one earns $6000 or more a month).

How Much is Registered Mail in Singapore

Registered mail in Singapore is offered by Singpost  if it's basically a sign-for on delivery service that requires the recipient to sign an acknowledgement slip before getting the mail.

The mail will be delivered to the address and if nobody is home, a slip of paper informs that the postman had been there and the mail is waiting for collection at some post office.

In Singapore, registered mail will cost an additional $2.24 over the normal mail delivery price. The weight limit is also capped at 2kg.

Time to Top Up CPF and SRS

Cannot believe that the year is almost coming to a close. Anyway, it is the time of the year to stay putting my finances in order again. And one of those tasks is taking what available spare cash I have to top up my CPF Special Account under the retirement sum top up scheme. Just maxed it out to $7000 since that is the max I can claim tax relief for.

The next step will be to top up my own SRS account as well as my wife's CPF account. All these helps to reduce the taxes that I need to pay. If you all me, I think it is almost a no-brainer that this should be one of the basic steps in retirement planning in Singapore.