Singapore Saving Bonds (SSB)

Singapore Government Backed Bonds

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Investments

Singapore Saving Bonds (SSB)

Regular Shares Savings Plans (RSS)

If we are talking about SSB. A lump sum is definitely the better choice. Since capital is guaranteed and that DCA don’t apply here. In fact you have to pay a fee every time you put into SSB. And rate changes every new launch. Doing a monthly investment will also expose you to re-investment risk. If the new rate is really that much better than your rate, just liquidate and re-invest as Hariz said.

Investments

Property

Singapore Saving Bonds (SSB)

Fixed Deposits

Right now, there are plenty of short term endowment policies giving pretty good rates for 3 year savings at 2.2% and above. SSB is at 1.88%. FD probably lower. If I need the money in that short amount of time, I wouldn't expose it to equity investments.

Investments

Stocks

ETF

Singapore Saving Bonds (SSB)

Value Investing

Hey there, for starters I hope you got your insurance planning and emergency fund set up before going into investment. It’s not wise to recommend an investment portfolio to you without knowing your investment profile. What is your desired outcome from your portfolio? How much do you wish for it to grow yearly? What’s the risk you are willing to take? How long is your investment horizon? Depending on your desired outcome and risk profile, your asset allocation across the 6 major asset classes will be different. Once you are clear of your investment objective, risk profile and time horizon, you will have a clearer idea of how your portfolio will be. It is also always good to ensure your portfolio is diversify across the 6 major asset classes as you grow your portfolio. Constantly review and ensure your portfolio is aligned to your desired outcome. Currently from what you mentioned above, you are looking to put into 2 asset classes only and that’s fine for a start but aim to grow and diversify it more. The 6 major asset classes (it varies a little among people) are 1. Cash 2. Bonds 3. Equities 4. Commodities/ precious jewels 5. Properties 6. Insurance.

Savings

Bank Account

Investments

Singapore Saving Bonds (SSB)

Junus Eu
Junus Eu,
Top Contributor

Top Contributor (May)

Level 8. Wizard
Answered 4w ago
If you only want to put it into a place where your capital does not decrease, you can consider the following: High Yield Savings Accounts While not technically an investment, a high interest rate yielding savings account can give you a 2-3% p.a. interest rate. Additionally, if it's not conditional on minimum spending, it's very easy to manage since there isn’t much to do after opening your account. Fully Secured Bonds Fully Secured Bonds are another excellent low-risk investment option. Certificate of Deposits A Certificate of Deposit is also considered to be a pretty safe investment. When you invest in term CDs, the bank assures a guaranteed interest rate over a specific time period, or variable-rate CDs where the interest rate is tied to some type of index – like a stock market index. Fixed Deposits This is a financial instrument provided by banks or NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It ETFs Slightly higher risk then the previous options mentioned, ETFs look to give you exposure to a basket of underlying assets, to create an index that mimics the market index or a market theme. The benefit is that they provide instant diversification. You could look at the various robo advisors to help automate the investing process for you.

Investments

Singapore Saving Bonds (SSB)

Hi there! Price fluctuation Profiting You can head on to http://www.sgs.gov.sg/savingsbonds/About-SSB/Risks.aspx for more info but here's the answer specific to your question: "However, you will always get your principal back when investing in Savings Bonds. Once a Savings Bond is issued, interest rate changes will have no effect on the bond’s value. " Therefore, bond prices will remain as it is throughout your entire investment period. But do note there's a $2 transaction fee to whenever each transaction is performed. Maturity Period This bond is a 10-year bond with a step-up interest rate at some years into your investment. If you hold the entire 10 years, it'd be on average 2.13% simple interest for the entire 10-years vested. ! Hope it answers your question :)
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Investments

Savings

Stashaway

Singapore Saving Bonds (SSB)

STI ETF

Yu Ming Jin
Yu Ming Jin,
Level 3. Wonderkid
Updated on 14 May 2019
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

Investments

Singapore Saving Bonds (SSB)

Tan Wei Ming
Tan Wei Ming,
Level 5. Genius
Updated on 11 May 2019
How are SSB rates calculated? For the purpose of calculating the Step-up Coupon rates for Savings Bonds, the 1, 2, 5 and 10-year benchmark SGS yields are used as reference. These reference yields will be based on the simple average of the respective daily SGS benchmark yields from the month before the public notice of issuance (the “reference SGS yields”), as provided on the “Daily SGS Prices” page of the SGS website . Reference SGS yields for tenors between the benchmark issuances are interpolated using a hermite spline function. https://secure.sgs.gov.sg/fdanet/SgsBenchmarkIssuePrices.aspx

Investments

Singapore Saving Bonds (SSB)

Bonds

Yong Kah Hwee
Yong Kah Hwee,
Level 6. Master
Answered on 04 May 2019
Low returns = low risk. It depends on your risk appetite. If you can't take risks, then the returns are good enough for you.

Investments

Singapore Saving Bonds (SSB)

Christopher Tan
Christopher Tan,
Top Contributor

Top Contributor (May)

Level 6. Master
Updated 3w ago
Dear Anonymous, first of all, well done. You have really done well in your business. I think the strategy you have proposed is workable. But do note that dollar cost averaging generally do not work well in an up market. Of course, we do not know if the current market is sustainable. No one can guess. So if you feel comfortable doing what you have proposed, I think it's fine. For me, I will set aside enough for emergency fund into an SSB and with the rest of my money, I will invest 60-70% of it at one go and keep the rest as dry powder, just in case the market goes below 20%, I can invest a bit more but still for the long term and not to move in and out. But just make sure you don't get caught up with trying to time the market as very few people can do it right most of the time. I wrote an article on Sunday Times on this so you might want to read it here https://advice.moneyowl.com.sg/breaking-the-addiction-to-active-management/ Also, MoneyOwl is having an investment symposium on the 25th morning. If you are keen, you might want to sign up here https://www.eventbrite.sg/e/moneyowl-investment-symposium-registration-60702740531 All the best!

Investments

Singapore Saving Bonds (SSB)

Depends if the govt is still PAP. Most likely the PAP will continue SSBs. Good for savers, retailers, senior citizens. Opposition might have different ideas.
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