Singapore Savings Bond - November 2022

Applied for another 10k of Singapore Savings Bond.  The 3.47% yield was just too tempting to ignore.  What other instrument can give this yield over 10 years?  

Most other products like fixed deposit probably cannot compare with the yield and liquidity of the SSB.

Assuming one has 200k in SSB, you can expect around 6-7k in interest income every year based on a yield of 3-3.5%.

That is a reasonable sum for passive income paid out twice yearly.  And it is CAPITAL GUARANTEED. 

Twitter Begins Laying Off Employees

After Elon Musk completed his purchase of Twitter for US$44 billion,  a round of layoffs have begun.

This was after most of the C-suite executives have been let go in earlier weeks. 

A New Delhi-based Twitter employee has said her entire team has been fired. 

Multiple sources have indicated that 180 of its 230 odd employees have been terminated.  The few remaining survivors worked mainly on government engagement and critical maintenance operations. 

Employees who were let go found that their access to work emails had been revoked.  Most employees were expecting some notice period even though they were aware of rumours in the past few weeks. 

In Singapore, Twitter employees have also been let go though it is not known how many employees were laid off. 

A search on LinkedIn shows that Twiiter is still hiring though

It was reported that Elon Musk had earlier indicated that he intends to cut 3,700 jobs (half of Twitter's global workforce) in a bid to drive down costs. 

In the US, a class- action lawsuit has been filed by workers in San Francisco's federal Court who said they were not given enough notice. 

Elon Musk's purchase of Twitter is not without controversy. After he took over the company,  the CEO, finance chief and senior legal executives were all let go.

Musk has taken on the role of interim CEO and has also brought in Tesla employees to help run the company. 

As Twitter has been taken private,  its stock has already stopped trading on New York Stock Exchange on Friday. Shareholders will be paid US$54.20 for their shares. Existing shareholders will not need to do anything as their brokers will handle all the necessary. 

Twitter has been listed since 2013. 

The Wire-Meta Fiasco

What is truth?

Tough to answer that. Where does journalistic creativity end and falsehoods begin?

India was shook when an online news portal reported that Amit Malviya (BJP IT cell head) was granted amazing powers by Meta to take down any social media post without any questions asked. 

"The company has given Malviya two levels of privileges – he can post as he likes, without the rules governing the platform applying to him, and he can impose his will as he pleases to have posts critical of the BJP, the Union government, or right-wing Hindu politics, deleted.”, The Wire’s story had alleged.

Meta executives called out the bluff in response. 

After questions were raised followed by public outcry,  the online leftist news portal purportedly even produced inside letters proving or alluding that there was some truth in their earlier reports.  

Of course, all this was proven false and the news articles were taken down. 

It was reported that: "In its apology on October 27, the Wire acknowledged that the “internal editorial processes which preceded publication of these stories did not meet the standards that the Wire sets for itself and its readers expect from it.” However, it did not issue an apology to Malviya or Meta. Two days later, Malviya filed a case against the Wire for cheating, forgery, criminal defamation and criminal conspiracy. "

And then,  there were news that police has raided the offices of Wire.

Bad day for journalism in India.

 “It is not death that a man should fear, but he should fear never beginning to live.”

Mark Cuban - "Live like a Student"

Mark Cuban and his Broadcast.com founders sold their company to Yahoo for $5.7 billion in 1999.

But he did not upgrade his lifestyle.

He said the wisest advice he got was to "live like a student".

So he kept his house,  car and furniture. 

The only thing he splurged on was a private jet (a Gulfstream V business jet) for $40 million.  And the reason for doing so was because he valued time as the most important asset and this bought him time. 

Mark Cuban is an American entrepreneur who has a networth of $4.5 billion according to Forbes.

He has also been expanding his investments in the blockchain space. In 2021, it was reported that he invested in Indian crypto firm Polygon(MATIC). Sandeep Nailwal is the co-founder of Polygon.

Was reading one of my old post: 

I know that my financial freedom goal is to achieve a passive income of $2800 per month by the year 2022 (FUTURE). NOW, I am achieving slightly above $200 per month in passive income.
Since now is the year 2009, I have set the goal of achieving $400 per month in passive income by the end of this year. How I set out to achieve this goal is to reduce my expenditure and increase my sources of passive income.

 

2022 is here already!! Can't believe it has been 13 years since I wrote that post. 

Have I achieved what I set out to do? Stay tuned to find out more. 

Bank Savings Account Interest Rates and Singapore Savings Bond

The interest rates for the flagship savings account of the 3 local banks have gone up.  As of 1 November 2022, the interest rates are as follows:

UOB One Account- 3.6%

DBS Multiplier Account- 4.1% 

OCBC 360 - 4.65%

Meanwhile, Singapore Savings Bond (SSB) 10 year average interest rate of the December tranche  = 3.47%

Which one is more attractive?

I think the SSBs are a good long term holding.  While the interest rate seems less,  you don't really have to jump through any hoops or fulfill any spend/save/salary kind of criteria to earn the higher interest rates. 

Given how the SSBs were oversubscribed in the last tranche,  I think I will opt for a 10k sum for this tranche. 

MHA officers to receive 3-10% pay increase

It was reported in ChannelNewsAsia that about 22,000 MHA officers will receive a 3-10% increase in their gross monthly salaries starting 1 January 2023.

MHA said on 31 October 2022 that officers on the Home Affairs Uniformed Services,  Home Affairs Services,  Home Team Specialist Scheme and Commercial Affairs Scheme will receive the salary adjustments. 

Earlier in June, the PSD had also announced a salary increase of 5-14% for about 23,000 civil servants. This took effect from 1 August 2022 and applied to the Civil Service generic schemes.

PSD also announced in September another pay raise of 5-12% for administrative officers, judicial officers and statutory appointment holders. Around 300 administrative officers and 30 judicial officers amd statutory appointment holders benefited from the pay increase. 

The salary adjustments were to keep pace with the market amd ensure that pay remains competitive. 

6 month Treasury Bills Hit 4.19%

6 month Treasury Bills yield have reached 4.19%. This is up from 3.77% reported for 6 month bills last week.

This is compared to Singapore Savings Bond last tranche average of 3.21% over 10 years

CPF and Singapore Savings Bond - Risk Free Component of Portfolio

Have been making regular voluntary contributions or top-ups to my CPF ever since I started working.  This is on top of the "mandatory" contributions and it has been tough at times to force myself to top-up especially when cashflow might be tight and there are so many other investment opportunities out there that are screaming a "Buy!".

However, the CPF really forms a solid foundation for anyone's retirement plan.  Having been inspired by other blogs in my younger days, I stuck to the habit of making regular contributions to my CPF Special Account and Medisave Account since this was earning an interest rate of 4%.  This was much higher than any fixed deposit rates out there in the past 10 years (ignoring this year of course where fixed deposit rates have climbed up).

At times, I will also refund my CPF housing loan component which I had utilised to buy my home.  This has not been the priority recently since there are other instruments such as the Singapore Savings Bonds which now provides an interest rate or return of more than 2.6%.  Thus, it makes sense to buy into these instruments using my spare cash instead of returning money to my CPF OA which only earns 2.5%.

The CPF now forms a significant amount of my portfolio as it is equivalent to the risk free or "bond-like" component of my portfolio.  I am essentially investing in a risk free asset and this should form the base of my retirement portfolio.

The Complete Guide to Buying a Home in Singapore

Introduction: Why Buy a Condo?

The idea of owning a condo is appealing to many people. And the reasons for this are many. For starters, condos are relatively affordable, and they offer a lot of great facilities like pools, gyms, and playgrounds.

A condo is an ideal choice for people who want to live in a place where they can have a sense of community with other residents. Condos are also great for those who want to enjoy all the facilities that come with living in a condo.

Condominiums are typically more expensive than apartments because they offer more amenities and facilities. This is why condos are usually the first choice for people who want to live in Singapore, especially if they have children or pets.

Things You Must Know About Your Housing Options In Singapore

There are various housing options in Singapore. For people looking to own our buy a property,  you can select from a variety of choices. 

This includes:

1. HDB flats (in various shapes and sizes)

2. Apartments 

3. Condominiums

4 . Landed property

Renting a place is also possible though most landlords will typically rent out their places for a minimum of 12 months. The typical lease period will be 24 months or 2 years. 

Where Can I Find the Best Deals on Buying Property In Singapore?

PROPERTYGURU is the leading real estate portal in Singapore. They offer a wide range of listings for properties, from condominiums to bungalows and everything in between.

PROPERTYGURU is the leading real estate portal in Singapore. They offer a wide range of listings for properties, from condominiums to bungalows and everything in between. They are open 24/7 so you can find your dream home anytime, day or night.

The website also includes detailed information about each property such as location, size, price and amenities so you can make an informed decision before making an offer on your dream home.

***

ENJOY THIS OTHER POSTS BELOW

Real Estate Investment Trusts (REITs)
What are REITs?
Buy Property or Invest in REITs?
Why Invest in REITs?
Singapore REITs - History and Regulations
Income Investing - REITs
REITs trading below Net Asset Value


Commodities/Gold/Silver
Buy Silver in Singapore
Is Gold and Silver Still a Buy?


Insurance
Cheapest Insurance in Singapore?
Can You Trust Your Financial Planner?


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A Brutally Honest Post

How Much Does a Tesla Cost in Singapore

Tesla, a company that manufactures electric cars and energy storage systems, is an American multinational corporation. Tesla’s products are electric and use lithium ion battery technology.

Tesla was founded in 2003 by Elon Musk with the goal of creating a sustainable transportation system. The company's first vehicle was the Tesla Roadster, which was the first production EV car to use lithium-ion battery cells and to be able to travel 200 miles on a single charge.

Tesla has been in business for more than 15 years now. They have had their fair share of ups and downs, but they are still one of the most innovative car companies in the world today.

Have been seeing lots of Teslas around Singapore lately.  So how much does a Tesla cost in Singpaore?

Tesla's Model Y is available in Singapore.  

Based on article in Jul 2022 - Model Y without COE:

1. $142,471 for rear-wheel drive version
2. $190,195 for all-wheel-drive Performance version

Model 3 without COE:

1. $114,655 for rear-wheel drive
2. $164,398 for all-wheel-drive

Top of News - 21 Oct

1. Singaporeans, remember VR man? Standard Chartered has hired James Lye (ex-actor) as global head of international banking.

2. Durian season is back. MSW durian at $25/kg. Expensive?

3. China's Xi sends warning signal to the wealthy.  “We will protect lawful income, adjust excessive income and prohibit illicit income.” This is a sign of more concrete policies to come under the "Common Prosperity" policy. 

4. After Singapore announced new cooling measures that were implemented end September, HDB has waived the wait-out period of 15 months for 220 private owners who had obtained an option to purchase prior to introduction of the measures. In a bid to cool down property prices,  the government had introduced new cooling measures that will require private property owners to wait for 15 months after the sale of their properties before they are allowed to purchase a HDB flat. Many retirees who wish to cash out of their private properties and right-size to a HDB flat will be affected. There have been 650 appeals lodged thus far.

5. An officer with the Ministry of Manpower has been sentenced to 8 months jail after he used a credit card he picked up on a road to top-up his EZlink card and to buy a gold ring. Seah Guo Rong, 36, took urgent half day leave to commit the offences. Civil servants salary not enough? With the formation of the Credit Bureau in Singapore,  perhaps it is time that the government conduct spot checks on civil and public servants to ensure that their self-declaration on indebtedness is verified by an independent third party. Financial Indebtedness and Declaration for Civil Servant

6. Liz Truss has resigned as 🇬🇧 Prime Minister. Bring back Boris?

Applied for T-bills

Applied for $5000 worth of T-bills (6 months cut-off yield at 3.77%).

Topped up my SRS account with spare cash and applied for the T-bills.

Given the interest rates,  it is probably better than fixed deposit rates.  Besides that, I get tax reliefs for topup to SRS account too.

Top of News

Yahoo journalists in Singapore retrenched. 🇸🇬 This does not affect Singapore news coverage.

With rising property prices in Singapore, it was reported that HDB BTO flats are affordable for a couple with monthly household income of S$3,000. Not sure how the math works but it makes me wonder 🤔.  How many flats are available at that price range (SUPPLY) and how many couples with household income of S$3,000 there are who are property hunting (DEMAND)? Because while the math might be true, if there are only 10 of such affordable flats available but 1000 couples looking to buy....

Returns of Different Instruments

CPF-OA = 2.5%

CPF-SA =4.0%

CPF-MA =4.0%

HDB loan rate =2.6%

Singapore Savings Bond= 3.21% (10 year average return)

6month T-bills = 3.07%

12 month T-bills = 3.77%

Different instruments give different returns.  Just like plants 🪴 growing at different rates. 

How to Buy T-bills - OCBC Mobile App

 T-bills yield are going up. Here is a simple guide on how to subscribe using OCBC Mobile App.

Books to Read - My 2022 Reading List

 It is the new year and Covid has definitely given us lots of opportunities to stay home and indulge ourselves in hobbies such as reading.

Here is my list of books that I intend to read in 2022.

1. Atomic Habits 

This is a New York Times #1 Bestseller by James Clear.  Packed with different self-improvement strategies, the book is meant to bring about changes in your life through tiny changes that you can make.  Lessons from the book can be found.

Amazon is having an offer right now and you can get the book through this link: Atomic Habits: The life-changing million copy bestseller

2. Genghis Khan: And the Making of the Modern World

Highly recommended by various people, this book is an epic tale of how Genghis Khan rises from a small tribe to become ruler of a vast empire, conquering more lands than the Romans did in a much shorter time.  This revisionist history depicts Genghis Khan as a progressive, tolerant leader who abolished torture, and provided almost universal religious freedom.  In fact, many of the Mongols were either Christian, Muslims or Buddhists.

Get your copy from Amazon here:

Genghis Khan: And the Making of the Modern World 

3.  Klara and the Sun

Kazuo Ishiguro is probably one of my favorite authors and have read almost every single book of his.  Unfortunately, have yet to read this book of his.

Klara and the Sun: Longlisted for the Booker Prize 2021

4. Has China Won?

The title of this book is intriguing enough.  And it is written by Kishore Mahbubani who wrote Can Asians Think?  Having read his earlier books, I think this will make for an interesting read given his previous experience in Singapore's Ministry of Foreign Affairs.  He actually rose to the rank of Permanent Secretary in the Ministry of Foreign Affairs which is actually the highest ranking civil servant just below the minister.  So his knowledge of the issues at hand are definitely worth a read.

Has China Won?: The Chinese Challenge to American Primacy

5.  The Audacity of Hope

Well, it has been quite a few years since Barack Obama has stepped down as President of the United States of America.  And this book which became the best seller in 2006 has been on my reading list.  But this year, I intend to complete it. I am currently at Chapter 2 of the book.

The Audacity of Hope: Thoughts on Reclaiming the American Dream

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