Anonymous
Hi, I've recently had the time to review the financial status of my family and I realised that most of my money is stuck in saving accounts. I made some efforts to maximise the yields of these accounts such as OCBC UOB and CIMB but that's about it. The interest generated is at most 2 percent. I've been buying ETFs regularly for the past 4 years and that amounts to only about ten percent of my total assets. I'm not sure how to take this further, but SSB and REITs are on my mind.
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Bjorn Ng
13 Jan 2020
Business Analyst at 10x Capital
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Billy
13 Jan 2020
Development & Acquisitions Manager at Real Estate Private Equity
Absolutely. Even though many say you can never have too much of money, but I'd like to re-word that to you can never have too much of ASSETS.
Although cash is the most liquidable asset, it is not the highet return-generating asset.
In times where inflation peaks over your bank's savings account interest rate, your assets is in fact being eroded if you aren't able to generate a higher return as compared to inflation.
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It is possible in your scenario. In fact many Singaporeans are in such dilemma. That said SSB and REITS which you have recommended are good avenues to start.
However should you progress and understand your own risk profile, pherhaps the STI ETF is one good method to park money, earn dividends over the long run while holding it
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Totally possible, and I believe I'm the same situation as you (apart from cash held up in property) given that I have sold most of my stock positions.
Now that the rates are creeping down (esp my previous fav Citi Maxigain), its time to start re-investing.
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Maximising yield of bank savings interest is akin to picking the low quality, low hanging fruits.
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Well, of course. What you have been investing in, technically are low risks investments, hence the amount you are getting back isn't that much. If you would like to expand that, definitely SSB & REITs are good options, but TBH but are not attractive anymore..
I think it's definitely okay to hold on to more cash, and not deploy them just because you want to put it elsewhere. That clashes with investing as investing is about buying a business at fair value, not just because when you have the spare $ (might lead to overvalued/value trap at that point)