Singapore Saving Bonds (SSB)
Asked on 13 May 2019
I have $10k in CIMB FastSaver acting as my savings/emergency funds, POSB SAYE ($500 monthly) from my NS allowance ($559) and POSB eSavings (~$3k) for daily use. I’m starting to use StashAway at 18% risk index, putting in $100 monthly. Any opinions, or things that I should know/look out for? Should I make small investment in other platform such as STI ETF and SSB using POSB? Any advice is appreciated!
Hey there, fellow NSF here. It's great that you are investing! I too have invested some of my service allowance into the products you have mentioned.
First of all, amazing job in having a solid emergency fund. Always keep yourself covered; the peace of mind in having liquid cash at your disposal if something goes wrong is a feel-good factor as we learn the ropes in our personal finance journey.
With Stashaway 18% risk index, a sizeable portion of your portfolio is already invested in bonds. Given the fact that you are still young (lord, I sound old), I believe parking more funds into SSBs might not be the most optimal if you are looking for (stable) growth.
I would say investing into the STI via POSB Invest saver might be a good idea. Considering your investment portfolio, which has little/no diversification into the domestic market, having some G3B in your portfolio can be ideal. However, fees are pretty high (0.82%) and returns might be less than what is offered by Stashaway.
Try to reduce your spending if possible too! Club/siamdiu less and go easy on the canteen food :P
Top Contributor (Jan)
That's great that you start investing from so young age!
Stay the course, be consistent, keep investing for the long term. Don't panic sell when market drops.
I think you can leave out STI ETF if you are using stashaway which uses global ETFs. For SSBs you can use them as a way to park your savings or emergency funds to earn a higher interest rate.
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1) track your fees (platform/sales charges/admin fees)
2) track the performance of your investment
I think you also think about building the emergency fund
Other than that try to build capital and invest in other sort of investments when you understand how it works