Financial Freedom

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.

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Why Invest in REITs?
Singapore REITs - History and Regulations
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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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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:

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

Model 3 without COE:

$114,655 for rear-wheel drive
$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.