Hi Tan,
Whats your opinion on Temasek bonds and also about it being oversubscribed ?
Are the locals really buying this bond ?
Reply
Many Singaporeans have too much cash. They don't know how to invest. So, the 2.7% is attractive to them.
They can top up their CPF special account, including family members, and get 4% (plus a bonus of 1% on a portion), but they don't trust the CPF. They like the freedom and option to take out their money.
I still think it is better to keep money in CPF and lock it up for a lifetime.
Temasek bonds should be quite safe, but CPF is better.
Another option is to invest in the STI ETF. As the stock market has corrected, it should give an attractive return over the long term.
If you invest in STI ETF, look for the long term. Do not worry if it falls 30% in the near future. It may or may not happen. But over the long term, you should get more than 2.7%.
Whats your opinion on Temasek bonds and also about it being oversubscribed ?
Are the locals really buying this bond ?
Reply
Many Singaporeans have too much cash. They don't know how to invest. So, the 2.7% is attractive to them.
They can top up their CPF special account, including family members, and get 4% (plus a bonus of 1% on a portion), but they don't trust the CPF. They like the freedom and option to take out their money.
I still think it is better to keep money in CPF and lock it up for a lifetime.
Temasek bonds should be quite safe, but CPF is better.
Another option is to invest in the STI ETF. As the stock market has corrected, it should give an attractive return over the long term.
If you invest in STI ETF, look for the long term. Do not worry if it falls 30% in the near future. It may or may not happen. But over the long term, you should get more than 2.7%.
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