S$ savings

[What to do?]

I will have some S$ to save on a monthly basis, maybe between 3-6K per month. The interest rates on S$ are pathetic and i plan to live long term here and will likley need S$ in the future.

Property investment is no really my thing and i feel a little risky at this time.

I was thinking of spliting the amount, some into a S$ savings account so that i have cash on hand, the remainder buying some S$ shares each month to build up a share holding in a few( 4 or 5) companies over time. Hoping for long term share value increase and dividend payouts.

Any one care to comment or have other suggestions?

[AUS GOVT bonds]

If you want a really safe investment with good interest rate you can buy Aus Govt bonds at 7% interest.

Buy 1 year bonds and park your cash protected against inflation while waiting for the Property and stockmarket crash.

AUS $ will probably also increase so you get another win.

[chaos theory]

Anyone can buy AUS GOVT bonds direct from the Reserve Bank of Australia without the need for an "Agent" or broker. If you go to their site via google and search " buying bonds" you get all the info you need. They dont publish the going yield rate on the web because it changes daily but if you ring the Sydney or Canberra office they will quote it for you. Whatever they quote it will be 3-4 higher than the same yield against Singapore Govt bonds.

Minimum investment is $1000 so this fits your purchase profile. The admin fee the RBA charges is only $2.50 per $1000 (.25%). So all up you will be only looking at $2.50 per $1000 in charges + the cost for doing an international bank transfer.

Please note everyone this is a direct sale strategy so I have NO vested interest and you should evaluate this investment strategy based on:

Is the property and stock market uncertain?

Do I want to wait and hold but get a good hedge against inflation?

Do I want to be cashed up in 1 years time?

If you answered yes then consider this option

   

[What to do?]

Thanks for the suggestions.I have no experience with Aus bonds, so i will look into it.

Up until now i have mostly unit trusts and cash, all in sterling.

The sterling still gives good offshore interest rates, but with the drop from around 3 to 2.7 to the S$, it is not looking so good at the moment.

[chaos theory]

if you are still healthly you are looking good.

money is no issue for you. We are going into uncertain times. Store your cash as best as possible and if you come across an asset that seems cheep, it probably is so buy it.

[likeBull]

Hi all,

       Saw the correspondence. Been onto the website for the aussie bonds. However it does not state about foreign investors.

       Your advice, please?

[alternative idea]

Don't buy govvies. By bank corps. Spreads are huge at the moment can get over 8% yield on aa rated stuff.

[likeBull]

interesting - could you give more info about bank corps, please?
Personal experience to share if that's ok with you?

[be careful though]

I'm having the same problems about $S myself and I'm looking at Aussie assets.  It gives you good yield for less credit risk. But it also depends on your home currency (actual currency you will eventually use for retirement as an example).

If it is S$, then take note that the nice returns from Aussie assets (Gov't or corps) might be eroded by currency volatility (ranges from 5% to 10% per annum). It does not always go in your favor so this might decrease instead of increase your potential gains.  If you're home currency is A$, then you wouldn't care about FX risk.

[likeBull]

Yea, the retirement will be highly likely in S$... So you reckon the best way is to do assest investment rather than putting away in Aussie bonds/Govt.