Should you buy S-Bonds?

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Thoughts of diversifying your money // Bonds is the safest instrument

What you should know before making this decision?

  1. Does it beat inflation rate? (5 Yrs average – 3.12%)

  2. The best/safest bond (3 Options)
    • Singapore Savings Bond
      • Average return per year is 2.32% / Doesn’t beat inflation
    • Index
      • Average return per year is 2.65% (Not including growth rate) / 3.65% is its actual return (Including growth rate) / Beat inflation
    • Open Market (SGX)
      • Higher chance to default / Beat inflation
  3. Your opportunity cost

Average yearly return is at 11.48%  // Alternative is SPDR (another ETF of STI) – 7.28% 

 

ConCRUsion

You should invest into an instrument that beats the inflation rate (3.12%) or else it makes no sense to even invest. …

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