Seventy Five Percent Invested, Twenty Five Percent Cash

Recently, I have added more of Mapletree Commercial Trust and CapitaMall Trust to my stock portfolio. As such, cash on hand has decreased. I have also been performing Supplementary Retirement Scheme (SRS) top up over the past few months to reduce the income tax amount I have to pay next year. My current cash on hand versus my total investment in stocks is 25 percent versus 75 percent respectively.

I am expecting my cash to increase next month as just like Kevin from Turtle Investor, I am expecting to receive my annual wage supplement in the month of December. Read More

November 2017 Singapore Savings Bonds is 2.07%

There was a significant drop in November’s effective interest rate as compared to October’s effective interest rate for Singapore Savings Bonds. If you held the bond for ten years, October’s effective interest rate was 2.13% while November’s effective interest rate is 2.07%.

Recently, I have bought more of Singapore Savings Bonds. As such, Singapore Savings Bonds currently makes up 14% of my stock portfolio. Different people will have different reasons for buying Singapore Savings Bonds. As the current stock market is expensive and most REITs are yielding 6% or less, I find it non attractive to buy into the stock market right now. As such, I have treated the Singapore Savings Bonds as a savings account and also sort of an emergency fund if in event I do get retrenched.

Here is my previous post of Singapore Savings Bonds where I compare it with our savings account or fixed deposits.

Singapore Savings Bond versus Savings Account versus Fixed Deposits

My Sweet Retirement Starts Planning for Tax Relief

Last year, I opened my Supplementary Retirement Scheme (SRS) account with OCBC for the purpose of tax relief. At that point in time, I am not aware that we are able to withdraw our money above the full retirement sum from our Central Provident Fund (CPF) when we are 55 years old. I only get to know about it after I recently attended InvestX Congress by the Fifth Person. In the upcoming months, I shall be doing voluntary contributions to my CPF special account instead of my SRS account to enjoy tax reliefs and also higher interest rates.

At the recent InvestXCongress, the masked speaker AK shared about how to maximize your monies in your Central Provident Fund account. Here are the tips he shared:

  1. Transfer your savings in the Ordinary account to Special account to earn higher interests.
  2. Max out your savings in the Medisave account. The current maximum allowed in the Medisave account is S$52,000. The interest earned will pay for your insurance. You are getting free insurance coverage in this case.
  3. We can withdraw monies above the full retirement sum from our Central Provident Fund account when we reach the age of 55.

Special Account – The Power of Compounding

A picture speaks a thousand words. S$10,000 with 4% interest becomes S$21,911 in 20 years time.