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In case I forget, this is a reminder to myself to get more T-bills.
Although I didn't blog about it, I got some earlier this month.
The cut-off yield was 4.2% per annum then.
Not bad.
Plan is still to keep adding as I continue to slowly grow the investment grade bond component of my portfolio.
This isn't something new as I was doing the same by making voluntary contributions to my CPF account annually to hit the annual contribution limit.
Of course, long time regular readers know I think of the CPF as a risk free and volatility free investment grade sovereign bond.
I know that some people are saying that inflation has peaked and interest rate has peaked or will peak soon.
So, they say we should be deploying funds into riskier assets like tech stocks.
Some might think that I am being overly conservative but I don't think so.
Remember if interest rates are cut later this year or next by the Fed, it probably means that the USA is in a recession and probably a pretty bad one.
It is not a bad idea to err on the side of caution.
Having some meaningful insurance is not a bad idea.
We can never be too sure of anything.
Also, I am really more exposed to equities than I am to bonds.
Compared to the more commonly recommended 60% equities and 40% bonds investment portfolio recommended to people with a profile like mine, my portfolio is way lighter in bonds.
So, in an event that interest rate does get a cut or a few in the second half of the year and next year like some people are expecting, my investment portfolio could benefit too if that is the way Mr. Market swings.
Oh, what profile was I talking about?
I am a retiree and do not have an earned income.
I depend fully on passive income for a living.
If my investments should go belly up, I am pretty much in trouble.
I am now also in my 50s and it would probably be harder for me to get a job, let alone a job that pays reasonably well, if I must rejoin the workforce.
OMG!
PTSD moment there.
Cold sweat.
If I were younger and still enjoyed an earned income but married and had a mortgage and children, I might want to be equally conservative.
Bad AK! Bad AK!
Seriously.
Something for some people to think about, maybe.
Enough horror stories.
Next T-bill auction on 18 Jan 23.
Anyway, I am just talking to myself here about what I think works for the real me (and the imaginary me.)
If you are still eavesdropping, remember you are listening in on the ramblings of a mental patient.
So, you do you.
Maybe you want to listen to my British lady friend on YouTube regarding having $1 million CPF too.
Huat ah!
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