Should I invest in Singapore Saving bonds? I am currently working full time and studying part time university. Would like to have some extra income. Any advice? - Seedly

Singapore Saving Bonds (SSB)

Investments

Asked by Anonymous

Asked on 05 Apr 2019

Should I invest in Singapore Saving bonds? I am currently working full time and studying part time university. Would like to have some extra income. Any advice?

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Joke Jong
Joke Jong
Level 2. Rookie
Answered on 10 Jul 2019

I’D invest some in SGS bonds and some in ETF such as SPDR-STI ES3 index fund as a way to diversify for a start. subsequently when I am more familiar, continue with more stable stocks and REITs.

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Hey Anon, SSBs yields are a little low and coupons are paid out bi-annually. If you're looking for some regular passive income, you may want to consider high yield dividend paying funds.

I suggest looking at some High Yield Corporate Bond funds. Dividends of 6-7% are quite common. They pay monthly, and are less risky than investing in equities as well.

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Question Poster

05 Apr 2019

How do you start investing on high yield corporate bonds? Is it like ssb also low risk kind? Sorry I am very new to these.
Hariz Arthur Maloy
Hariz Arthur Maloy

05 Apr 2019

If you know what to look for, you can get them on fund supermart. If not you can speak to an FA like myself. Its definitely not as low risk like SSB because that's government backed by our AAA rated Govt. But the fund buys bonds from individual companies. It holds hundreds of bonds at the same time and you can get access from as low as 1k.
Gabriel Tham
Gabriel Tham, Kenichi Tag Team Member at Tag Team
Level 8. Wizard
Updated on 07 Jun 2019

Singapore savings bond is safe to invest.

But you need the right expectation. This SSB is not going to give u huge extra income. It will be better than bank deposit rates at least. I am not sure of your definition of extra income, so I will give you the safer recommendation.

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Gabriel Tham
Gabriel Tham

05 Apr 2019

Banks have hurdle accounts that give attractive interest rates based on salary+spend. But if you have small capital and don't spend alot, I guess SSB makes a good choice. You can still construct a SSB ladder, buy 6 consecutive months of SSB and soon you will get SSB money every month. Or you could take some risk and invest into dividend stocks/ETFs but there is risk.
Question Poster

05 Apr 2019

Do you think ssb or high yield corporate bonds is better?? Like safe and low to no risk kind