Salary.sg Forums - View Single Post - How much savings do you have?
View Single Post
  #1194 (permalink)  
Old 27-07-2017, 05:56 PM
lazyplane lazyplane is offline
Super Member
 
Join Date: Aug 2010
Posts: 335
lazyplane is on a distinguished road
Default

Ha Ha... didnt you say : Afterall emotions triumph facts.
Just to address a few pts
1. i dont think i mention investing above S$50k in FD under 1 individual name . Please show me where i mentioned that if i did. I am well aware of the SDIC restrictions. But are you aware of how many banks there are ? And if you include spouse / parents / parents in law... one can easily spread the risk and still be within 50k per bank under 1 individual account name.
2. Like you mentioned, bonds have to be traded. And because you know now the fallacy of your argument and the risk of bonds vs fd as an investment… I see that you now are saying "dont want to confuse people..."
Please lah, u lose argument, dont say don’t confuse.. I am not the one whom tried to impress others or convince others that i know a lot about risk / returns and efficiency ..
And to quote , I believe you stated “I am always curious as to why young people (34) like yourself channel the majority of their savings into FD where a higher yield could be easily attained in bonds or even bond funds. Given that you don't seem to need the full 180k of liquidity.

Genuinely wants to understand your perspective, thanks!“
Then started a very lengthy post to show how trading bonds can yield better returns…And when told that bonds comes with risk… another lengthy post to try to impress others about your knowledge etc.
And when someone whom really knows their stuff challenges you, you are stretching your example to investing a FEW MILLION investable cash in bonds just to justify your argument for bonds…

180k to few million is a lot of hoops…

3. Finally, I think you are the kind whom write long post hoping to impress people to believe in theory when in fact, you dont know the basic or just starting out. Please dont quote stuff you just read from books and try to show how smart you are.

And to quote : as I expected, you would not understand what I wrote.


Quote:
Originally Posted by BusinessSingapore View Post
I have no desire to change your belief. I wrote long posts trying to explain my position and to simply demonstrate a better alternative on efficiency. As I expected, you would not understand what I wrote.

Our understanding on efficiency (risk & return) is fundamentally different. You define risk free as signing a contract with a "capital guaranteed" on it whilst I take into consideration the chances of a bank default and the underlying guarantor in the event of default as risk free. Your understanding of FD being capital guaranteed is also untrue. SDIC only insures a maximum of $50,000 SGD. This means that all your eligible accounts maintained with different branches of a full bank or finance company are aggregated and insured up to $50,000 with the same bank or finance company in the event of default.

Sure on yield to maturity, returns are measured differently on the secondary market. Did not want to confuse the readers. And again I think you are misleading the readers as not many people hold 30 year bonds to maturity. People buy bonds because of the immense liquidity on the secondary markets and can be traded for a small profit or loss.

Which is why I do not ever recommending buying into bonds directly for retail players or even AIs with a few million investable cash as the leverage indi players have is just too low, just go into a SGD bond fund instead. Find a top 10% peer group bond fund that buys into local bank, SIA, Singpost bonds and you are good to go for a 3-4% year on year returns with all the liquidity equivalent of a FD(takes about a week to sell) but with 2-3X more returns. Not to mention almost negligible standard deviation.

Go google United SGD Bond fund and see for yourself the returns and the "volatility" you claim under Standard Deviation. YTM stands at 2.9% with 2.1 years avg maturity.

Oh and this isn't even in the top 10% peer group. Yawns. Back to sleep.
Reply With Quote