SSB 3.4% p.a. and 6 months T-bill ladder.

At the beginning of October, I had this to say:

"Although I am sticking to my strategy of growing the investment grade bond component of my investment portfolio, there might no longer be a hurry to lock in higher yields for the longer term now."

I said that because we could see yields staying higher for longer.

So, I have been nibbling at Singapore Savings Bonds in the past 2 months.

This month's offer by MAS is 3.4% p.a. in 10 year average yield which is a tad higher than 3.32% p.a. we saw last month.

I will be nibbling again.

How much is that exactly?

Only $5K.

That qualifies as a nibble for me.

Q4 and Q1 are going to be leaner for me in terms of passive income I receive from my investments.

So, I will have to be more careful with money.

As for T-bills, I will continue to maintain the ladder from the next auction.

I won't be strengthening the ladder for a while as I set aside some funds for the purchase of SSBs.

Someone actually suggested that I rejoin the workforce so that I wouldn't have to do such juggling act when it comes to money.

OMG!

PTSD!

If AK can juggle money, so can you!

References:

1. SSB 3.32% p.a. Higher for longer.

2. Increasing bond exposure.

My plan for CPF as SSB 3.32% p.a. oversubscribed.

I blogged about my interest in buying some Singapore Savings Bond which offered 3.32% p.a. in 10 year average yield.

It seems that many more people have the same idea.

The results are out.

The SSB was oversubscribed.

Fortunately, for smaller applications like mine, we had 100% of our applications filled.

This SSB partially replaces planned voluntary contributions to my CPF account in 2024, the year I turn 54 years of age.

If this continues, it looks like I won't be making further voluntary contributions to my CPF account.

The plan was, of course, to continue making voluntary contributions till I turn 55.

With interest rates being so low for so long, the plan was to continue making voluntary contributions to my CPF account even after I turn 55.

The idea was to use the CPF as a high interest rate savings account beyond age 55.

However, with interest rates likely to stay higher for longer now, that plan has become less attractive.

Some might even say the plan is now obsolete.

I could get higher interest rates simply by putting money in fixed deposits, for example.

The only drawback of the SSB is that it does not compound interest earned.

Still, at my age, with the resources that I have and the kind of financial obligations that I have, I think that is almost a non-issue.

This is just me talking to myself, of course.

We have to do what makes sense for us.

If AK can do it, so can you!