Thursday 15 September 2022

Finance Investment Movement 25

SSB for September is underwhelming at average of 2.75% pa. After getting allocation for the previous two offers, it looks like my plan of six consecutive applications will be derailed. I had wanted to create a continuous stream of monthly income but with such yield rate, I rather put the cash into better use elsewhere. Or perhaps I could replace this with the newly launched Frasers Property Green Bond offering 4.49% pa for 5 years. The issuer risk is of course the biggest differentiator to warrant higher premium.  

So I have begun saving up towards the 2022 goal of the kids' education fund. However, the tricky part is to decide how best to use these idle funds since they are not required till the eldest son turns 21 (assuming he finishes national service at 20). A financial advisor friend suggested a moderately high risk fund that focuses on global premium brands. Browsing through various fund's factsheets, I am rather tempted not least because the returns record had been fantastic but also I do not have such a product in my investment portfolio. Still sitting on the fence as I study the offer in greater detail.

I finally completed payment for an upcoming family cruise trip in November. Total amount came up to about $5200, including some perk add-ons. Standard Chartered happened to be running a cashback promotion for travel expenses and lucky draw for every $200 or above transaction, subject to terms and conditions. So after several installment payments, I enjoyed additional draw prizes and await the final tally at year end when it's disbursed.

Now that all banks are racing to increase savings interest rate to capture deposits, my DBS Multiplier account received extra $40 compared to previous months. My belief is that interest rates will continue on the rise until year end, led by the Fed's determined move to tame inflation. So it's better to have spare cash on the side to capture the peak rate. The first T-bill subscribed will start to mature in Jan 2023 and progressively over consecutive months, hopefully the timing proves to be accurate.

Tip: Uggiano Chianti Riserva 2017, slight acidity, fresh fruits locked in a medium body


  1. Hi Takeshi,

    I would say your best "investment" is on the cruise for the family. Spending time with family away from work and school stress is priceless. Money can be earned but precious times with family once missed can never be recovered.

    Using SSBs to deliver monthly income is what my wife & I did. We have already maxed out our "entitlement" of $200,000 each. The SSBs forms the base layer of the larger "equities" layer in our overall portfolio. This equities layer has delivered a passive income of $73,000 year to date. With 3 more months to go, we are cautiously optimistic it will hit $80,000 for the whole of this year.

    Using the "Kueh Lapis" analogy to describe our portfolio, the other layers in the portfolio comprises :

    Base layer = our CPF savings
    Second & third layers = our home & investment property
    Fourth Layer = SRS savings
    Fifth layer = equities (including bonds)
    Sixth layer = cryptos & US stocks

    "Equities", CPF & Investment property layers are the three key layers that generate passive income for us. This year, they have brought in $176,000 of passive income combined year to date (Jan to Sep).

    I started to track their "performance" only in 2011 and cumulatively, the three layers have collectively brought us a combined total of $1.65M over a 12 year period.

    It has a been a long and slow journey but at least it is working. Having the CPF savings as the base or foundation layer is important for peace of mind and if built up well, it can provide the income floor to sustain your retirement should your other layers falter.

    Good luck!

    1. Hi mysecretinvestment,

      Thank you for the encouraging comment. I read about the income taps concept and adopt a similar saving and investment route into the various buckets/layers. It's indeed a slow but interesting journey thus far. I take inspiration from your achievement and will strive hard to hit my goals.