Home Money Making T-bill ladder nonetheless enticing, however when to dismantle the ladder?

T-bill ladder nonetheless enticing, however when to dismantle the ladder?

T-bill ladder nonetheless enticing, however when to dismantle the ladder?


I will likely be producing a YouTube video based mostly on this weblog later as we speak. So, in the event you like listening greater than studying, you would possibly wish to anticipate the video.


So, cash from a T-bill that matured got here in. 

I’m going to recycle the cash into the upcoming 6 months T-bill which could have its public sale on 8 June which is subsequent Thursday. 

Simply conserving my 6 months T-bill ladder intact and never doing something earth shattering. 

A better proportion of fastened revenue will assist me to cut back danger and volatility in my funding portfolio.

Having a T-bill ladder to create one other supply of passive revenue is not a nasty concept too. 

In my case, it’s also actually good for some common further pocket cash.

I do not ever look down on danger free choices to have some common further pocket cash.

May sound boring to many individuals however the T-bill ladder pays moderately effectively whereas giving me peace of thoughts.

No level dropping my sanity chasing after cash.

OK, I admit. 

I’m weak mentally.

Those that are stronger mentally, please do not let the speaking to myself cease you from having enjoyable.

On a critical notice, I’m a retiree and lack an earned revenue.

So, being extra conservative financially is smart to me.

A youthful one who is gainfully employed is usually a bit extra adventurous.

After all, there may be nothing dreadfully unsuitable with youthful folks being extra conservative financially as not everybody has an urge for food for higher danger.

Simply have to ensure our motivations and strategies match effectively.

Anyway, the final 6 months T-bill public sale had a cut-off yield of three.85% p.a. 

I’m hopeful that the upcoming T-bill public sale could have the same cut-off yield.

Sure, I can solely hope since this T-bill public sale is going on within the first half of the month, we may see extra retail participation utilizing CPF OA funds.

There may very well be some fairly irrational low balls.

Anyway, I shan’t rehash. 

That is the hyperlink to the weblog if anybody is inquisitive about studying in regards to the risk:

6 months T-bill 3.85% p.a. cut-off yield isn’t adequate?

As for the Singapore Financial savings Bond provided this month, the ten 12 months common yield is 2.82% p.a.

That is only a little or no bit larger than the two.81% p.a. provided final month.

Happily for me, the place Singapore Financial savings Bond is worried, my mission for the 12 months is full.

So, is that this one thing I’m taking a look at only for enjoyable?

Properly, partly for enjoyable.

I’m additionally inquisitive about monitoring this for a sensible motive.

If the ten 12 months common yield ought to go above 3% p.a. once more, I may convey ahead the plan to inject funds into my CPF account in 2025. 

In spite of everything, the funds I’ve used to buy Singapore Financial savings Bonds this 12 months have been earmarked for CPF voluntary contributions in 2024.

Until rates of interest for CPF OA and SA enhance meaningfully, it nonetheless makes extra sense for me purchase Singapore Financial savings Bonds so long as their 10 12 months common yield is larger than 3% p.a.

Oh, I produced a YouTube video just lately.

Please watch solely in order for you some comedian aid and have a very good humorousness.

You’ve got been warned.

Simply speaking (and laughing) to myself, after all.

T-bills are nonetheless providing extra enticing yields than the CPF abnormal account. 

It’s because the entrance finish of the yield curve continues to be elevated. 

An inverted yield curve has traditionally been a reasonably dependable indicator of a coming financial recession. 

That is another excuse for having a significant publicity to fastened revenue. 

If a recession ought to hit, the fairness market would possible see drawdowns. 

Then, I may dismantle my T-bill ladder to extend my publicity to equities.

If AK can speak to himself, so are you able to!

1. Mounted revenue replace.
2. SSB or CPF? No brainer!



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