facebookDo you think investing in SSB or temasek bond will be a better bet? - Seedly

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Anonymous

11 Jun 2019

βˆ™

General Investing

Do you think investing in SSB or temasek bond will be a better bet?

Have 1.5k to invest for the tranche in Nov. Am thinking whether to consider temasek bond now. Any advice?

Discussion (12)

What are your thoughts?

Alex Chua

Alex Chua

11 Jun 2019

Level 9Β·Seedly student Ambassador 2020/21 at Seedly

I wouldn't say it is a bet but rather which would you prefer? '' Assuming'' that both SSB and temasek have the same level of risk (or claimed to be due to temasek can be seen on par with the government itself by most Singaporeans), which would you choose?
SSB:
Withdrawal anytime (volatility) with $2 processing fee
At the same time, earn step up interest. Matured after a decade

Temasek
Higher interest rate than SSB within 5 years
But, lock in for 5 years

In reality, temasek is a corporate bond not sg government so hold a higher risk.

If you are unsure, why not both?
As for the portion of distribution, ask yourself which do you prefer.

Gabriel

Gabriel

07 Jun 2019

Level 11Β·Undergraduate at National University of Singapore

Can consider the Temasek bond instead as it gives 2.7% interest which is higher than what the Singapore Savings Bond is offering. Additionally, it's AAA-rated credit so it should be safe!

View 3 replies

Bang Hong

Bang Hong

06 Jun 2019

Level 7Β·Sustainable Spender Specialist at Spender Bang

I will get SSB until I hit the hot-limit which is 200k.

I love certainity, for that extra few percent of return versus the risk? Forget about it (From my perspective).

I either go low - Meaning highly secured an safe bonds or....

I go high - meaning risky bonds that have chances to default, I go for REITs, I go for blue chip stocks that typically move up and down much more.

Depends on your character and experience, if I have to give an answer, it will be SSB (Till you hit 200k)

There's no straight answer for this.
but here's are some things to consider:

  • on the books, Gov backed is always safer than a Company backed bond. but returns will be less.
  • Company backed with good rating doesn't mean wont default. just Google Hyflux.
  • let's not forget government backed but risk free 4% SA-CPF. The trade off is cannot withdraw.

I may not be you, but I share my mode of operation. I will max out my SA 7k contribution before I consider the SSB bonds. Then TB.

Cedric Jamie Soh

Cedric Jamie Soh

03 Jun 2019

Level 12Β·Director at Seniorcare.com.sg

Neither for me.

Unless I am a retiree who has not enough time, I will not invest in such low yield ...

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