Tuesday, May 28, 2024

Applied for Singapore Savings Bonds (SBJUN24 GX24060A) Redeemed SSB (SBSEP18 GX18090T)


The Jun 2024 tranche of Singapore Savings Bonds (SSB) has an average yield of 3.33% over 10 years.

The first 6 years yield a flat 3.26% per annum; 7th year yields 3.33%, 8th year yields 3.46% p.a and 9th, 10th years yield 3.54% p.a.

Even though such yield is lower than other low to risk-free alternatives such as T Bills and money market funds which easily yield more than 3.5% currently, it is higher than many fixed deposit rates on offer by local banks as well as CPF OA rate of 2.5% p.a.

If we also consider the great flexibility, liquidity of SSB for redemption and long-term lock down at above 3% p.a for the next decade, then this tranche of SSB is fairly enticing for us to park our spare cash at zero risk, capital guaranteed for the mid to long-term. 

We could redeem SSB anytime, earning interest at 3% in the short-term while getting back our capital for deployment to other investments or large item purchases unlike T Bills and bank fixed deposits which would incur losses or forfeit of interest with premature withdrawals. Do note that the redemption process of SSB can be up to 1 month of lead time.

As interest rate cuts are on the cards by end 2024, this SSB could be one of the last tranches to have an average yield of above 3%. We should expect the average yields for next few tranches of SSBs to be in the range between 2.9% to 3.5%.

I decided to apply for $10k of this Jun 2024 tranche using my savings.

There it goes.

S$1b is up for grabs.

The first payment will be on 1 Dec 2024 and this bond will mature on 1 Jun 2034.

If you are interested in this tranche of SSB, do note that the application dateline is 28 May 2024, 9pm for online applications.

At the same time, I also redeemed an old tranche of SSB (SBSEP18 GX18090T) with an average yield of 2.44% and currently only yielding 2.6% in its 6th year. It is hence a no brainer decision to recycle the funds.

Thank you for reading.

With love & peace,

Tuesday, May 21, 2024

Passed IPPT to earn back some Taxes

After surpassing 38 years existence on earth this month, I decided to book an Individual Physical Proficiency Test (IPPT) today.

For Singapore guys, IPPT is an annual national service (NS) liability for those who are certified fit and have not completed the 10 operationally ready cycles after completing full time NS.

I am surprised to be able to do 33 standard push ups and 36 sit ups, clocking 39 points out of 50 for static stations under my age group of 37 to 39.

I then need to run under 15 mins for 2.4km to earn 22 points to achieve at least 61 points in total to qualify for a $200 pass incentive.

The evening weather was good with cool breeze today. Track conditions was dry and perfect too.

I managed to run 2.4km in 13:56 mins to pass with 67 points for $200!

Happy to earn back $200 from the $5k taxes which IRAS shall collect from me soon for nation building whereby a large part will be channelled into defence.

Fitness is Wealth.

This shall be one of my last few attempts to take fitness tests in life.

This achievement will encourage me to exercise more this year.

I hope everyone will take care of our own health and fitness despite our busy work schedule and family commitments.

Thanks for reading.

With love & peace,

Saturday, May 18, 2024

Net Worth Update May 2024 | New Record High


My net worth rises to S$1.635m after CPF contributions, savings from salary and collection of dividends in May 2024.

My CPF makes up 37% of my wealth. Full retirement sum (FRS) is achieved in 2022.

Cash and war chest form 15% of my net worth. My cash is stashed away in bank fixed deposits and Fullerton cash funds under custody of Moomoo and Tiger Broker yielding more than 3% p.a.

Bonds consist of low-risk Singapore Savings Bonds ($150k) and Astrea 7A PE bond ($9k) contributing to 10% of my wealth. I intend to subscribe $10k of the June 24 SSB tranche with average yield of 3.33%.

CPF, cash and war chest, and bonds amount to 62% of my net worth as relatively safe heavens. 

SRS account accounts for just 8% of my wealth. I have already completed the $15.3k contribution limit for 2024. 

Currently, 24% of my net worth is in stocks and Reits. This, combined with the local holdings in SRS, brings my exposure to riskier assets up to 32%.

Tracking net worth is not about the numbers. It is about seeing where our past financial decisions lead us to. This update is a reminder that progress on this financial journey, however big or small, is worth celebrating. It fuels the fire and motivation to keep grinding towards the financial freedom goal. 

After watching AK's latest video, I got a stark reminder that Cashflow is the real King. It is important to upkeep our positive cashflows by boosting our income sources while reducing expenses from cash outlays. The journey continues and I am excited to see what the future holds. Stay tuned!

Thank you for reading.

With love & peace,