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Banks & REITs Dividend Machines? T-bills, SSBs & CPF?

Monday, February 6, 2023

If you have been following my blogs, you might remember that I have been buying T-bills and Singapore Savings Bonds

The plan is to continue maintaining a meaningful fixed income component in my investment portfolio.

Of course, if you have been following my blogs for even only a couple of years, you would know that I have been maxing out voluntary contributions to my CPF account. 

This is because I treat the CPF as an investment grade sovereign bond.

However, for most of us, fixed income alone is not enough if we want to achieve financial freedom.

If I had parked my money only in fixed income, I would not have been able to achieve financial freedom.

I definitely would not have been able to retire before I turned 45 almost 7 years ago.

So, what to do?

We should invest for even higher returns. 

We should also be investing in equities for income.

A big investing theme in my blog for many years now has been to invest in DBS and OCBC, with UOB being added during the pandemic bear market.

I have also mostly been successful investing in some REITs like AIMS APAC REIT, for example.

For most of us, investing in equities is one of the least demanding methods to generate passive income as it has a relatively low barrier to entry.

With smallish sums of money, we can invest in bona fide income generating assets and businesses. 

These are businesses which have the ability and will to share the fruits of their labor with investors.

Investing for income is not sexy and doesn't send my heart racing which is not a bad thing if you have a weak heart like mine.

The bulk of my returns from the stock market is in the form of dividends and I blogged about receiving $2 million in passive income over the last 13 years.

However, to be honest, investing for income can be risky too if we do not know what to avoid.

If we want to be successful as an investor for income, just staying near the shore, we might not catch enough fish to make it.

If we venture farther out to sea in search of bigger schools of fish, we might get hit by a gigantic wave in the form of Eagle Hospitality Trust, for example.

(If you want to read more on how I avoided the landmine that was Eagle Hospitality Trust, a quick search will find you those blogs I published.)

So, how like that?

Our chances of success will be better if we are well schooled (pun intended) to navigate open water.

We can do some self study (and I have a book list in my blog's right sidebar titled "Food for thought") if that is the way we choose to go.

For those who prefer structured guidance, however, there are always courses which can do the job of educating us.

I was the first blogger to ever endorse Dividend Machines and I have attended the classes too.

If we are interested in having structured guidance, don't drag our feet as Dividend Machines is only available once a year.

Miss this and we would have to wait another year.

For many years now, Dividend Machines is the only investment course I promote in my blog as I feel it is truly value for money.

Dividend Machines will not cost us an arm and a leg but don't take my word for it.

Find out more for yourself:

Dividend Machines 2023

Hop to financial freedom in the Year of the Rabbit!

If AK can do it, so can you!


AK71 said...

Hi EX,

You think I should?

When I blogged in 2018 that I was taking a long break from public appearances, I thought maybe 2 or 3 years but the COVID-19 pandemic came along and it has been more than 4 years. ;p

Inertia is a scary thing.

Well, maybe, if many more readers ask me, I might have another "Evening with AK and friends."

Lazy. LOL.

AK71 said...

Time really flies:

Financial freedom and a long break.

keng said...

You should really come out from your gaming cave and do another session ;)

KC said...


+1 for resuming Evening with AK & Friends! :)

AK71 said...

Hi keng and KC,

Uh oh.

What has EX started?

If this comments section gets flooded with +1s, I am in trouble. ;p

ironmao said...

+1 for resuming the F2F chats =)

AK71 said...

Hi ironmao,

I want to act blur to the +1 but I am really blur this time.

I know what is F2P as all the online games I play are F2P but what is F2F? O_o

Yv said...


I should be signing up for the DM2023 intake.

Also looking forward to an Evening with AK session, hopefully when I happen to be back in SG

Wei said...

Good for yourself, and to get others to do charity by buying your tickets! I think last time the proceeds went to charity? What's not to like! +1 for AK with friends :D

keng said...

C'mon AK, good to come out of your comfort zone and talk F2F (Face to Face). If the event ever happens, I hope it is not P2L (pay to listen), although I won't mind :P

AK71 said...

Hi EX,

Ah, I see.

No worries.

No loss, really.

"Evening with AK and friends" is just a casual chit chat session with readers.

It is more for entertainment than education. ;p

No stress, no stress.

Now, let's bring forward my appointment with my psychiatrist.

Kidding! ;p

AK71 said...

Hi Yv,

Dividend Machines is definitely a big help to beginners. :)

As for "Evening with AK and friends," if I get a few more pokes, it might happen.

I don't know.

Feeling so lazy. ;p

AK71 said...

Hi Wei,

After setting aside the money to cover expenses, mainly rent for the venue, and also to pay taxes, all remaining money from ticket sales goes to funding bursaries for needy students.

I blogged about this before when NUS actually invited me to attend their "thank you" dinners.

+1 noted. :)

AK71 said...

Hi Keng,

F2F is face to face.

Learning new things everyday.

Kamsiah you plenty plenty. :D

"Evening with AK and friends" is never pay to listen because there is never any presentation.

It is a casual chit chat session with readers.

Readers must participate. :)

Oh, the most important activity during the event is taking selfies with AK. ;p

Yes, you are right about me being in a comfort zone.

A little too comfortable, maybe? ;p

keng said...

Hi AK,

If the proceeds of the event goes to charity, I'm all in!

Give us a chance to make charitable contributions and get some wefies with you :D

AK71 said...

Hi keng,

Kenji from The Fifth Person says my readers miss me.

He has kindly offered to help me organize another session after reading all the comments here.

So, it looks like AK is going to have to leave his gaming cave for a bit.

Once I have the details, I will publish a blog.

Coming soon: "Evening with AK and friends 2023."

Totally unexpected. LOL. ;p

keng said...

An unexpected party happening soon!!

AK71 said...

Hi keng,

Sounds like something from "The Hobbit." ;p

A most unexpected party of unlikely adventurers! :D

SN said...

Hi AK,

Will you recommend applying for OCBC's promotional CPF FD of 3.88% p.a. (8 month tenure) instead of the upcoming 1 year T-bill in April?

OCBC's promotional CPF FD rate now is quite attractive compared to T-bills. FD rate is guaranteed unlike T-bills, although a 8 month tenure will give less interest overall compared to the 1 year T-bill.

In short, will you look more at the total interest received for the period or the interest rate?

In this case, both OCBC and 1 year T-bills offer similar interest rates but the total interest from T-bills is higher as we get to lock in the rates for a year instead of 8 months. T-bills also give the interest in advance unlike FD.

AK71 said...

Hi SN,

I won't recommend anything. ;)

However, I did go for the 4.08% p.a. 8 months fixed deposit promotion offered by OCBC.

Why should I bother with T-bills if I could get 4.08% p.a. and if I had $20K to spare?

If we open a OCBC 360 account, we can get 4.08% p.a. instead of 3.88% p.a.

Isn't too difficult. :)

The good thing about the OCBC promo is that we lock in higher interest rate now.

Yield could drop in the next two months if the Fed remains less hawkish which means T-bill could see yield dropping and go lower than 3.88% p.a.

Double whammy to lose two months interest income and get a lower yield at the same time.

Having said this, it is always hard to say what will happen in the future.

I will blog about my plan and strategy with regards to T-bill, SSB and CPF soon. :)

AK71 said...

Hi SN,

Alamak. I so blur.

I just read your comment again.

FD using CPF money.

I thought it was 3.4% p.a. and, so, I checked OCBC's website.

Didn't know they now offer 3.88% p.a. for 8 months using CPF money.

Thanks for letting me know. :D

I guess it doesn't change what I have to say other than 4.08% p.a. doesn't apply.

I rather prefer to lock in the higher interest rate now. ;p

AK71 said...

Hi EX,

Your comment reminds me of a reader who likened AK's event to Jay Chou's concert. ;p

AK is like Jay Chou.

That was in 2017.

I think the tickets in 2017 sold out within 24 hours.

So, in 2018, we booked two halls and doubled the number of seats and that event sold out within 29 hours. -.-"

Evening with AK and friends 2018: Sales update.

Will try to get two halls again this year.

I am crossing fingers that, because I have been out of the limelight for so many years, the tickets will take a longer time to sell this time.

Hope everyone who wants to attend is able to get a ticket. :)

AK71 said...

Hi EX,

Just checking for new comments to reply to and I realized your comment on K-pop concert which I replied to has vanished.

I hope my constant fear of having early dementia did not come true and that I didn't delete the said comment by mistake. (TmT)

If you deleted it yourself, then, my brain is still good (for now.)

keng said...

Probably need a stadium this time :D

AK71 said...

Hi keng,

Kallang Theatre? LOL.

These super big venues are good for speeches and presentations where the audience just listen to speakers.

Not so good for interaction between speakers and audience.

I would much prefer to keep the group size smaller but there was such a strong demand and so many complaints about not being able to get a ticket, year after year.

The venue for "Evening with AK and friends" in 2018 sits 300 pax and I had to do overtime to interact with every person in the audience who wanted interaction. -.-"

Will see if we can get the same or it might be a smaller venue which is really not a bad thing. ;p

yf said...

Hi AK,

+1 here. I attended an event that you did together with fifth person many years ago. It was so long ago that I don't remember the title, year or even venue. I only remembered it was a cozy session (probably 50-100 pax).

Looks like your events are gaining traction and it'll be tough to get a ticket this year but I'll definitely stay tuned and bring my young friends along.

AK71 said...

Hi yf,

Good to know there is still interest in "Evening with AK and friends."

Frankly, I would surprised if the event has not lost traction as I have been very low key for many years and, as you have rightly pointed out, the last event happened many years ago.

If you are bringing friends, please manage their expectations because the event is just a mega chit chat session with AK, if you remember. ;)

Kenji from The Fifth Person is working on booking a possibly bigger venue and also the ticketing details.

I will publish a blog when I have all the information.

Akan datang! :D

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