Anyone familiar with buying Singapore Government Bonds?

[Showster]

Huge sums required to get the higher % savings.

 

SGS feels more like the 10K, 20K amount that can be for emergency use for retail investors.

 

 

http://www.uob.com.sg/privilegebanking/assets_hya_promo.html?s_pid=MP206AQ8122A_eg_221x90_homepr01

 

UOB giving 1.68% for high yield saving account but subject to max $5,000,000 cap.

 

[Spring]

Huge sums required to get the higher % savings.

 

SGS feels more like the 10K, 20K amount that can be for emergency use for retail investors.

 

 

The BOC 6mth deposit of 1.65% is for $20k to $50k, 1.7% is for $50k to $100k.

Now and then have theses kind of rates when the respective banks have a promotion, so watch out for it.

[Spring]

 

http://www.uob.com.sg/privilegebanking/assets_hya_promo.html?s_pid=MP206AQ8122A_eg_221x90_homepr01

 

UOB giving 1.68% for high yield saving account but subject to max $5,000,000 cap.

 

Thks for the info!

 

Think u just need $200k and can qualify for privilege banking at UOB and unlike DBS, once u open a privilege account there, u still considered privilege customer with the benefits that comes with it even if you decide to withdraw the funds later on. DBS closes the account if u fall below a threshold.

It also includes Infinite Card which is by invitation only. Not bad.

[Porker]

 

Correct me if I am wrong but isn't there also a 35% tax on US investment gains?

I believe its subjected to federal tax only,

[Enye]

we can safely say MCF does not represent the majority in Singapore from recent experience (forbidden to say which event)

 

so this first issue will see over subscription is it?

 

 

 

[Porker]

we can safely say MCF does not represent the majority in Singapore from recent experience (forbidden to say which event)

 

so this first issue will see over subscription is it?

 

 

 

1% pa of 700,000 is only 7,000. It's less than your weekly salary do please don't bother 😂

[Enye]

1% pa of 700,000 is only 7,000. It's less than your weekly salary do please don't bother 😂

 

you very free?

 

you know who to look for right?

 

no need me to tell you right?

 

[Kusje]

I believe its subjected to federal tax only,

Oh. How many % is that?

[Throttle2]

 

To each his own.

I think don't overestimate your risk appetite until you've seen your portfolio be in the red 60-70% like in 2008 and you know how u will react.

Lol

Good advice

 

Correct me if I am wrong but isn't there also a 35% tax on US investment gains?

We are not green card holders so only subjected to 30% withholding taxes on dividends from US equity

As for international bonds denominated in USD, there is no withholding on the interest for us.

 

I not tAx expert, but i heard this when i was wiping tables at lau pa sat

Edited September 25, 2015 by Throttle2

[Kusje]

Good advice

We are not green card holders so only subjected to 30% withholding taxes on dividends from US equity

As for international bonds denominated in USD, there is no withholding on the interest for us.

 

I not tAx expert, but i heard this when i was wiping tables at lau pa sat

 

Tks.

[Sdf4786k]

looks like the bond was so good that it was under subscrible..

[Cwong2910]

 

The US 10Y treasury yields more than that at slightly over 2%. No point buying the s h i t t y stuff we have here.

 

 

How is 2.63% over 10y from SGS Bond compared to US 10y bond at 2.1% s h i t t y?

 

http://www.sgs.gov.sg/savingsbonds/Your-SSB/This-months-bond.aspx

http://news.morningstar.com/treasuryyield/bonds.aspx

 

And US Treasury Bond is now AA+ . SGS Bond is AAA

Not that I am expecting US to go bankrupt in 10years. Just saying.

[KoreanLover]

I think this is not bad. it bodes well for people like me who are aiming for a more balanced investment portfolio.

 

Edited September 30, 2015 by KoreanLover

[Mohjoe]

 

 

How is 2.63% over 10y from SGS Bond compared to US 10y bond at 2.1% s h i t t y?

 

http://www.sgs.gov.sg/savingsbonds/Your-SSB/This-months-bond.aspx

http://news.morningstar.com/treasuryyield/bonds.aspx

 

And US Treasury Bond is now AA+ . SGS Bond is AAA

Not that I am expecting US to go bankrupt in 10years. Just saying.

 

I'm a newbie, please correct me if I'm not making sense...

 

If interest rate rises (any contrarians here?), won't bond prices fall? So if I'm holding US 10 year notes, I should be worried if I need the cash before maturity? Cos I would have to sell my notes in the open market at a lower price ie no capital preservation like SSB?

 

My guess is sg gahmen will not go insolvent before banks so SSB is less risky than fixed deposits? SDIC (www.sdic.org.sg) only protects the first $50k, wealthy MCF members can't be opening an account in every one of the 36 SDIC member banks just to get protection for a measly $1.8m right? But SSB limit only $100k, so I suppose too troublesome for them to bother with such a small amount...

 

 

 

 

P.S. I need a quick lesson on Fed rates' influence on the yield curve, if anyone kind enuff can explain to me, TIA.

[Lala81]

If interest rate rises (any contrarians here?), won't bond prices fall? So if I'm holding US 10 year notes, I should be worried if I need the cash before maturity? Cos I would have to sell my notes in the open market at a lower price ie no capital preservation like SSB?

 

 

Bond prices usually fall when interest rate rises. Most of us don't hold individual bonds anyway.

 

However in a bond fund, usually there are bonds of varying maturity dates. So essentially when the bond fund has one bond maturing, it is able to buy a newly issued bond at a cheaper value.

 

Bonds are also useful to diversify the risk in a portfolio as they have shown in market crashes. So in this soon to be rising rates environment, u are using the bonds to stabilise your portfolio. So if the market tanks 30%, ur bonds will tank much lesser (hopefully as based on previous real life scenarios). U can then rebalance your portfolio to the original ratio of stocks:bonds. This strategy has been shown to work.

[Mohjoe]

 

Bond prices usually fall when interest rate rises. Most of us don't hold individual bonds anyway.

 

However in a bond fund, usually there are bonds of varying maturity dates. So essentially when the bond fund has one bond maturing, it is able to buy a newly issued bond at a cheaper value.

 

Bonds are also useful to diversify the risk in a portfolio as they have shown in market crashes. So in this soon to be rising rates environment, u are using the bonds to stabilise your portfolio. So if the market tanks 30%, ur bonds will tank much lesser (hopefully as based on previous real life scenarios). U can then rebalance your portfolio to the original ratio of stocks:bonds. This strategy has been shown to work.

 

Thanks for your advice, appreciate it!

 

I do not invest in bond funds nor mutual funds, maybe just a little ETFs.

[Lala81]

 

Thanks for your advice, appreciate it!

 

I do not invest in bond funds nor mutual funds, maybe just a little ETFs.

 

U can google the "shiny things hwz" thread. A lot about ETFs and why u should have some bond funds (in local context, A35) in your portfolio.

cheers.

Edited September 30, 2015 by Lala81

[Enye]

 

Bond prices usually fall when interest rate rises. Most of us don't hold individual bonds anyway.

 

However in a bond fund, usually there are bonds of varying maturity dates. So essentially when the bond fund has one bond maturing, it is able to buy a newly issued bond at a cheaper value.

 

Bonds are also useful to diversify the risk in a portfolio as they have shown in market crashes. So in this soon to be rising rates environment, u are using the bonds to stabilise your portfolio. So if the market tanks 30%, ur bonds will tank much lesser (hopefully as based on previous real life scenarios). U can then rebalance your portfolio to the original ratio of stocks:bonds. This strategy has been shown to work.

 

maybe try something different this time?

 

like getting off the roller coaster first to take a rest?