Once I blogged about final month’s SSB which supplied 3.16% p.a. 10 yr common yield, I mentioned I might most likely be shopping for some.
And I did.
Only a modest sum of cash as I used to be “borrowing” the cash from 2025.
It was cash which I might in any other case have earmarked for voluntary contribution to my CPF account in 2025.
2025 can be the yr I flip 54 years of age.
Now, I see this month’s SSB providing 3.32% p.a.
What am I doing?
I will probably be shopping for once more, I suppose.
Once more, it could be a modest sum of cash.
Though I’m sticking to my technique of rising the funding grade bond element of my funding portfolio, there would possibly not be a rush to lock in larger yields for the long run now.
I not too long ago produced two YouTube movies on the chance of rates of interest staying larger for longer.
That is the present day narrative and it appears to have gained traction.
That is most likely why the final T-bill public sale stunned us with a cut-off yield of 4.07% p.a. too.
A lot larger than many anticipated.
When you’ve got not watched the YouTube movies but, listed below are the hyperlinks:
The yield curve remains to be very inverted with the shorter durations being extra rewarding.
So, strengthening my T-bill ladder can be extra rewarding.
Nonetheless, reinvestment danger exists with the T-bill ladder.
I inform myself to not complicate issues and easily stick with my plan.
1. Keep and strengthen T-bill ladder for an additional supply of recurring revenue.
2. T-bill ladder will be dismantled regularly to purchase shares throughout a recession.
3. Purchase SSBs with cash meant for VCs to the CPF so long as SSBs’ 10 yr common yield is larger than 3% p.a.
There isn’t a manner I’m going to make all the cash on the planet.
If AK can speak to himself, so are you able to!
#SSB #p.a #Increased #longer