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Asked by Anonymous
Asked on 22 Oct 2018
What is a standard SSB strategy like?
Regarding the SSB, if I plan to "invest" $500 every month from today, am I buying a new bond every month (in this case I will be holding 120 bonds in 10 years, and the last bond I buy maturing 20 years from today)? Or am I "pumping" money into the same bond?
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Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent
Level 8. Wizard
Updated on 07 Jun 2019
It's a different share of one bond each application. Thus, you'll be having a part of 120 bonds over 10 years if you apply and get it every month.
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Question Poster
22 Oct 2018
I see. That means ONE bond is issued every month (as opposed to what I thought before of 1 bond = 1 transaction of X amount by 1 pax. Sorry, greenhorn here).
Could you please elaborate on "you'll be having a part of 120 bonds over 10 years if you apply and get it every month" please?
For example, If I make a $1000 purchase on a bond on Feb2019 AND Feb2028 each, will I get back my $2000+int on Jan2029 (tenor period from Feb2019)? Or the bond purchased on Feb2028 will mature on Jan2038 and I'll only get that $1000+int then?
Hariz Arthur Maloy
22 Oct 2018
Each purchase would have a 10 year maturity. Feb 2019 will get in 2029. And Feb 2028 in 2038. Different bonds. Also different rate of return.