Asked by Anonymous

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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  • Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent
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    Top Contributor (Apr)

    Level 7. Grand Master
    Answered on 05 Apr 2019

    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.

    Comments (2)
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    • Question Poster
      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.
      05 Apr 2019
    • Hariz Arthur Maloy
      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.
      05 Apr 2019
  • Gabriel Tham
    Gabriel Tham, Kenichi Tag Team Member at Tag Team
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    Top Contributor (Apr)

    Level 8. Wizard
    Answered on 05 Apr 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
      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.
      05 Apr 2019
    • Question Poster
      Do you think ssb or high yield corporate bonds is better?? Like safe and low to no risk kind
      05 Apr 2019