SSB has an unique benefit of 0 principal or accrued interest loss when redeemed early, unlike normal bonds which are subject to valuation pricing. Hence there is not much advantage in bond laddering or DCA. I think you can invest at one go into SSB, and whenever interest rate goes higher, you can redeem all with zero loss and reinvest all capital again on the new SSB issue at higher yield.
I do have a SSB ladder. But based on my experience, there is no way you can all-in into 1 particular month for SSB because the bonds are average out by the number of applicants. You can put in $100k but still end up with only $10k bond at the end if a lot of people applied for it.
Since I just started working and have a longer investment horizon, I'm not really looking into bonds now. I think stocks are looking pretty attractive now since many of the pretty good ones are down since last year. Hopefully it would be yield better returns on the long run over SSBs. History of market following recessions tells me it definitely should, but we will never know.
Thanks for sharing the bond ladder idea. Very relevant and timely indeed. 1 point to share - Sometimes, people think DCA-inga bond fund say from endowus or FSMONe is already the same as buying bonds. I think it is a common misconception that there are the same. (eg loss of control and no interest cashflow pay out)
another content idea for you perhaps. I think the rebates and interest for TRUST Bank is pretty rewarding for the average household of 4. For a case of 75k cash savings as a NTUC Union Member and spending with Fairprice Group of S$350 per month and another S$350 per month outside of Fairprice Group in terms of total rebate calculated monthly and quarterly and totaled annually. The cashback in terms of linkpoint and converted dollar wise might be worth it. Might be worth to find out the actual yield. Also 350 per month out side of fairprice can be met quite easier with a petrol 150, telco (with 4 mobile subscription) and TV - 200. Last idea of optimisation is to find out how best to optimise spend till the max monthly, quarter and annual cap liimit of linkpoints allowed. :)
i think for tbills and ssb, better to buy short term ones in case you need the money immediately when market crash or for other matters so you can buy cheap discounted stocks
If you need money immediately, it is better to buy SSB because you can redeem them at par. Just that you need about a month to get the capital and accrued interest back. For tbills, the risk is that if you sell in the market, the market is not too liquid.
If you want to invest T-Bill using CPF OA, for evey $1000 you invest, you lose foregone CPF interest of about $8.33. So best result is you get allocated 100% of what you apply for at a rate higher than 2.5%. The worst is you don't get allocated at all.
Hi Kelvin, I don't really quite understand u said building Tbill ladder is super ma fan by keep buying monthly, but for SSB ladder not also the same buying monthly?
Thank Mr kelvin for dharing ,lm interested in build up the bond ladder ,ok to share l have fill up one SSB already in last yr Nov 2022 ,so what now? may 2023 this year get interest,they will auto credit interest or have to go redeem yourself ? If redeem how to calculate and ok just to take out the interest every 6 months ,hope hear from you ?thank
Kelvin, since you have been so successful with the wheel dividend strategy plus market has crashed so much, the wheel strategy would beat whatever bond ladder, why don't you continue on your wheel instead of diverting your funds to this ladder?
@@KelvinLearnsInvesting maybe time to restart your wheel. but based on your bond strategy, your turnover time is shortest 1 month if you are going by SSB or 6months if you are going by t bills. I feel that we are close to the bottoming.. CSP..
SSB has an unique benefit of 0 principal or accrued interest loss when redeemed early, unlike normal bonds which are subject to valuation pricing. Hence there is not much advantage in bond laddering or DCA. I think you can invest at one go into SSB, and whenever interest rate goes higher, you can redeem all with zero loss and reinvest all capital again on the new SSB issue at higher yield.
good point, slay
I do have a SSB ladder.
But based on my experience, there is no way you can all-in into 1 particular month for SSB because the bonds are average out by the number of applicants.
You can put in $100k but still end up with only $10k bond at the end if a lot of people applied for it.
Since I just started working and have a longer investment horizon, I'm not really looking into bonds now. I think stocks are looking pretty attractive now since many of the pretty good ones are down since last year. Hopefully it would be yield better returns on the long run over SSBs. History of market following recessions tells me it definitely should, but we will never know.
Thanks for sharing the bond ladder idea. Very relevant and timely indeed. 1 point to share - Sometimes, people think DCA-inga bond fund say from endowus or FSMONe is already the same as buying bonds. I think it is a common misconception that there are the same. (eg loss of control and no interest cashflow pay out)
another content idea for you perhaps. I think the rebates and interest for TRUST Bank is pretty rewarding for the average household of 4. For a case of 75k cash savings as a NTUC Union Member and spending with Fairprice Group of S$350 per month and another S$350 per month outside of Fairprice Group in terms of total rebate calculated monthly and quarterly and totaled annually. The cashback in terms of linkpoint and converted dollar wise might be worth it. Might be worth to find out the actual yield. Also 350 per month out side of fairprice can be met quite easier with a petrol 150, telco (with 4 mobile subscription) and TV - 200. Last idea of optimisation is to find out how best to optimise spend till the max monthly, quarter and annual cap liimit of linkpoints allowed. :)
Bangkok bank FD 4.4% 1yr, 4.5% 2yr, 4.6% 3yr FD min 200k.
RHB 4.1% 2yr.
CIMB 4.15% 1.5yr
SIF 4.18% 1yr
This is the same exact strategy that I've thought about for quite the while and am starting to implement now.
Make 'how much I made in youtube in 2022' video !!!!
Nice, helpful thanks. Especially its very useful perspective for the majority of us who just starting to earn, save, low income earners or beginners.
i think for tbills and ssb, better to buy short term ones in case you need the money immediately when market crash or for other matters so you can buy cheap discounted stocks
If you need money immediately, it is better to buy SSB because you can redeem them at par. Just that you need about a month to get the capital and accrued interest back. For tbills, the risk is that if you sell in the market, the market is not too liquid.
How do I buy SSB and when can I do so? Once buy, how do I apply for the ladder? Sorry as I'm a newbie
Anyone great insightful video! Thanks Kelvin!
Good stuff....Great minds think alike!! Have been doing it to diversify my funds
If you want to invest T-Bill using CPF OA, for evey $1000 you invest, you lose foregone CPF interest of about $8.33. So best result is you get allocated 100% of what you apply for at a rate higher than 2.5%. The worst is you don't get allocated at all.
Hi Kelvin, I don't really quite understand u said building Tbill ladder is super ma fan by keep buying monthly, but for SSB ladder not also the same buying monthly?
Can I ask what will happen after 10 years. SSB will expire and I get my money automatically?
Thank you Kavin, so every year we can withdraw the intrest rate from this SSB ladder bonds after 1 year?
No need to wait 1 year, you can redeem ssb anytime u want, and get back the money within 1 month
@@KelvinLearnsInvesting ok what about I need only intrest and keep the original amount ?
Interest already pay out to u every 6 months, there’s no interest in it. U can only withdraw the amount u put in, in blocks of $500
@@KelvinLearnsInvesting ok thank you so much kavin 😊👌🏻👍🏻
Hi Kelvin, thanks for these tips! So how do I go about redeeming my SSB?
How To Redeem Singapore Savings Bond | Step By Step Guide
th-cam.com/video/RpJIe8KilxQ/w-d-xo.html
@@KelvinLearnsInvesting wow awesome, been looking for content like this! Thanks once again!
uSMART (free stock) can teach me step by step ? I want to sign up for the reward...
Can also do a video for broker comparison for 2023 ?
10yr US T-bill return just had a dip. Debt instrument should be adopted start of 2022. Covered call ETF perform better
Thank Mr kelvin for dharing ,lm interested in build up the bond ladder ,ok to share l have fill up one SSB already in last yr Nov 2022 ,so what now? may 2023 this year get interest,they will auto credit interest or have to go redeem yourself ? If redeem how to calculate and ok just to take out the interest every 6 months ,hope hear from you ?thank
The interest will auto credit to your bank account, you don't have to do anything.,
Kelvin, since you have been so successful with the wheel dividend strategy plus market has crashed so much, the wheel strategy would beat whatever bond ladder, why don't you continue on your wheel instead of diverting your funds to this ladder?
I have stopped the wheel a while back. But to answer your question, i am preserving cash to buy the dip.
@@KelvinLearnsInvesting maybe time to restart your wheel. but based on your bond strategy, your turnover time is shortest 1 month if you are going by SSB or 6months if you are going by t bills. I feel that we are close to the bottoming.. CSP..
Bro the tbill is coming down soon
Hi Kelvin, how many times can i stack in the bond ladder for SSB? issit up to 200k in total? and only need to do 6 times to complete 1 cycle right?
Only up to 200k. 6 months correct. But no need to be too fixated on the ladder. U can aim for months that have the highest interest
How do I build a passive income with 1180 tesla shares that’s down 35%😅?
Sell calls. Not financial advice
Can you partially redeem ssb? Meaning you put 1000 but want to redeem only 500?
Yup! Can. I have a short tutorial on how to redeem if u need
th-cam.com/video/RpJIe8KilxQ/w-d-xo.htmlsi=0bXmwi3vDX7hIKeo
I like your red polo tee
For SSB, is the interest prorated if I redeem less than 6 months?
yes
yes
Yup :)
Do you invest in T bill?
No i didn’t, i put in broker will earn similar rates
@@KelvinLearnsInvesting I knew coz from previous T Bill and SSB, sounds like not a good choice afterall.
I feel t bill is good for cpf oa now
@@KelvinLearnsInvesting?
@@ron2040 Invest CPF OA into T Bills to earn higher interest
How do you buy bonds and ssb
Here you go th-cam.com/video/WD49sj41GT8/w-d-xo.html
Me too, great mind think alike 😂😂😂
fyi: $2 is no longer chicken rice money after inflation😃
That is why the rich becomes richer
Why no more cute pet anymore?
Haha, you still want?
Yes of course 👍
@@KelvinLearnsInvesting Ya why no more cute pet? I thot that is one of the highlight!