This is one out of two series where you can level up your CFP money.

Uncle’s Guide: How to Use Your CPF to Buy T-Bills in Singapore

Ah, investing with CPF money. Not as complicated as you might think, so let Uncle break it down for you. If you’re wondering how to use your CPF to buy Treasury Bills (T-bills), follow these steps, ok? Don’t worry, it’s not rocket science, but you must follow properly or else, headache later.

(yes, uncle know how to use AI for this)

Step 1: Are You Eligible?

First things first, are you Singaporean or Permanent Resident? Good, that’s sorted. Now, check your CPF Ordinary Account (OA) – you need to have at least $20,000 inside after this investment. Don’t go using all your CPF, need to leave some buffer. Ok, still good? Let’s go.

Step 2: Open CPF Investment Account (If You Haven’t)

Next, you need a CPF Investment Account. No account, no talk. Go and open one with any of the CPFIS-approved banks: DBS/POSB, OCBC, or UOB. This is where your T-bills will sit quietly after you buy them.

Step 3: Make Sure You Have Enough Funds

Quick check – do you have enough cash in your CPF OA to make this investment? Go and log in to CPF and see how much you can use for investments (there’s this option called “Amount available from Ordinary Account for professionally managed products”). Got enough? Ok, we move on.

Step 4: Pick Your T-bill

Now it’s time to choose which T-bill you want to buy. There are usually two types: the 6-month T-bill and the 1-year T-bill. You decide which one fits you better, lah. Both are issued by the government, so it’s pretty safe.

Step 5: Submit Your Application

Here’s the fun part, submitting your application. Just like ordering online, but for investments. So, this is how you do it:

• Log in to your bank’s internet banking (either DBS/POSB, OCBC, or UOB).

• Go to the investment section and look for “SGS” or “T-Bills.”

• Choose the issuance code for the T-bill you want.

• Now, you decide if you want to place a competitive or non-competitive bid.

If you’re the kind who likes things simple, just go for the non-competitive bid lah. Put your investment amount (in multiples of S$1,000), confirm everything looks good, and hit submit. Cannot anyhow make mistake here because once you submit, no take-backs.

Step 6: After the Application

Now you just wait for the auction results. The results will be out either one or two days before the auction date. You can check on the MAS website or log into your bank’s platform to see how you did.

• If successful: Congrats! Your CPF OA will automatically be debited, and your T-bills will be credited to your investment account three days after the auction.

• If not: No worries, the money will be refunded to your CPF OA in one or two days.

Step 7: When T-bills Mature

Fast forward six months or one year, and your T-bills will mature. Time to collect your money, but be quick lah. Transfer the proceeds back to your CPF OA as soon as possible – if you leave it hanging, no interest will be paid on that money. You can do this online, so it’s pretty easy.

Also, don’t forget to monitor your investments. Check your statements and the CPFIS dashboard once in a while to see what’s happening with your T-bill holdings.

There you go, simple right? Just follow these steps, and you’ll be able to make use of your CPF money to buy T-bills easily. Good luck, and remember, slow and steady wins the race!

This is the 2/2 part of the series – where you can level up your CFP money. Ready to invest like a pro? Let’s go!

Uncle’s Simple Guide: How to Open a CPF Investment Account in Singapore

Alright, young one, today Uncle’s going to teach you how to open a CPF Investment Account (CPFIA) with the big boys: DBS, OCBC, or UOB. It’s not as hard as you think, just follow Uncle’s steps and you’ll be done in no time. Let’s go!

Opening a CPF Investment Account with DBS

First, let’s talk about DBS. If you already got a DBS/POSB account, you’re halfway there. But before anything else, you need to make sure you’re ready for this.

1. Check Your Eligibility: You must be at least 18 years old and have more than S$20,000 in your CPF Ordinary Account (OA). No $20k? Sorry, cannot play.

2. Complete the Self-Awareness Questionnaire (SAQ): Go to the CPF website and take this quiz to check if you know what you’re doing. Uncle says it’s better to know before you start.

3. Log into DBS Internet Banking:

   • Already a DBS customer? Good. Log in to your DBS internet banking account.

   • Go to the “Investment” section and look for “Open CPF Investment Account.”

4. Fill Out the Application: You just need to provide your details, nothing too difficult.

5. Submit Your Application: Once you’ve reviewed everything, hit submit. Wait for SMS or a letter in the mail—usually takes 3-5 working days.

6. Get Your Account Number: After your application is approved, DBS will send you your CPFIA account number. Now you can start investing like a pro.

Opening a CPF Investment Account with OCBC

Next up, OCBC. Same process, but a bit different flavour.

1. Eligibility Check: Make sure you’ve got the age and at least S$20,000 in your CPF OA. You know the drill.

2. Complete the SAQ: Don’t skip this. Go to the CPF website and take the test to make sure you’re ready for investing.

3. Log into OCBC Internet Banking:

   • Got an OCBC account already? Perfect. Log in to your online banking.

   • Find the “Investment” section and click on “Open CPF Investment Account.”

4. Fill Out the Application Form: Fill in all the details OCBC asks for.

5. Submit Your Application: After double-checking your info, submit it.

6. Account Confirmation: OCBC will notify you in a few days. Once approved, they’ll send you your CPFIA account number. You’re now ready to invest.

Opening a CPF Investment Account with UOB

Last one, UOB. Pretty much the same, but let Uncle guide you step-by-step.

1. Eligibility Check: You know the rules—18 years old and at least S$20,000 in your CPF OA.

2. Complete the SAQ: Same process. Go to the CPF website, take the questionnaire, and show that you understand what you’re getting into.

3. Log into UOB Internet Banking or Visit a Branch:

   • Got a UOB account? Log into their online banking.

   • If not, no worries. You can visit any UOB branch to open your CPFIA in person.

4. Fill Out the Application Form: Same as the others, fill in all the necessary details.

5. Submit Your Application: Review everything, submit either online or at the branch.

6. Receive Confirmation: UOB will notify you once your account is ready, and you’ll get your CPFIA account number. Easy peasy!

Important Things to Remember

• You can only have one CPF Investment Account, so don’t go opening one with each bank, ah.

• Double-check your information during the application. If you mess up, you might get rejected—then troublesome!

• Once your CPFIA is open, you can start investing with your CPF OA funds according to CPF guidelines. Remember, don’t anyhow gamble lah, invest wisely!

There you go. Easy steps to open your CPF Investment Account with DBS, OCBC, or UOB. Now you’re all set to grow your CPF savings with smart investments. Happy investing!

Uncle want to share knowledge

This is the first series of the jargon and terminology used in investing. Will link other list at the bottom of the post for future reference.

A

Asset Allocation: Like chicken rice, your portfolio shouldn’t just be rice and chicken! You will need a little bit of vegetable, chili and dark soy sauce. Diversify your investments across asset classes (stocks, bonds, cash) to balance risk and potential returns.

Appreciation: Think of your investments like a vintage jacket – their value increases over time, making them worth more when you sell.

Annual Percentage Rate (APR): The true cost of borrowing, expressed as a yearly percentage. It’s like reading the ingredients on a candy bar, but for loans.

Ask Price: The minimum amount a seller is willing to accept for an asset. Just like haggling with your durian seller, in the investing world, a good negotiator gets the juiciest deals.

Asset Class: Groups of similar investments. Think of it like sorting your clothes: shirts with shirts, pants with pants, and stocks with stocks (unless you’re feeling very rebellious).

Amortization: Spreading the cost of an asset over its useful life. Imagine paying for a new phone in tiny installments instead of one big chunk.

Accumulation Phase: The exciting years when you’re actively growing your wealth, like watering a tiny seed until it blossoms into a money tree.

Alpha: The elusive “secret sauce” in investing. It’s the extra return you achieve beyond the market average, like scoring a perfect soufflé while everyone else’s falls flat.

Average Annual Return: The historical average gain (or loss) of an investment over a specific period. It’s like looking at a restaurant’s average rating before deciding to dine there.

Ask Bid Spread: The gap between the highest price someone is willing to pay (ask) and the lowest price a seller will accept (bid). Think of it as the haggling space at a pasar malam, the wider the spread, the more room to negotiate.

B is for Building Your Financial Fortress

Bear Market: When the stock market takes a long nap and values hibernate. Don’t panic, grab a good book, it’ll wake up eventually. Means everything is low, many people will lose money if they sell.

Beta: in short, the difference between the value of your investment against the market movement. This is the chart that you see in those stock markets movie. High beta wiggles like a disco queen, low beta sways like a gentle waltz.

Broker: Starts with the word broke, their job is to help you buy and sell assets. With the the current day and age, they are your online brokerage (think: Moomoo, Tiger Trade and etc).

Bid Price: The maximum someone is willing to pay for an asset. Think of it as offering your highest price for a juicy durian at the market.

Blue-Chip Stocks: The tried-and-true giants of the financial world, like reliable sneakers that never go out of style. (Nike Cortez?)

Bond: An IOU from a government or company, promising to pay you back with interest.

Bull Market: When the stock market throws a wild party and prices are on the rise. Enjoy the champagne, but remember, every party eventually ends.

Budget: Your financial roadmap, charting your income and expenses. Treat it like a GPS, it helps you navigate towards your financial goals.

Balance Sheet: A snapshot of a company’s financial health, revealing what they own and owe.

Benchmark: Your investment performance yardstick. Compare yourself to similar assets or indexes to see how you’re stacking up, but remember, sometimes focusing on your own race is wiser.

C is for Cultivating Your Financial Garden.

Capital: The seeds of your financial harvest. It’s the money you use to invest and build wealth, like fertile soil for your financial plants.

Capital Gain: The sweet sunshine that warms your investment returns. It’s the profit you make when you sell an asset for more than you paid.

Capital Loss: The occasional cloud passing over your financial sky. It’s the money you lose when you sell an asset for less than you paid.

Compound Interest: Your financial magic beanstalk! Reinvested earnings snowball over time, making your money grow exponentially, like watering a tiny sprout that becomes a towering money tree.

Cash Flow: The lifeblood of your financial kingdom. It’s the money coming in and going out, like the gentle ebb and flow of a healthy river.

Collateral: The security deposit for your financial adventure. It’s an asset pledged to secure a loan, like leaving your bike with the pizza guy until you pay for your extra-large pie.

Call Option: The right, but not the obligation, to buy an asset at a set price by a certain date. Think of it as chope-ing a table at a restaurant, with the option to cancel if something better comes up, but you need to pay to buy the option.

Covered Call: Renting out your reserved table at the restaurant that you paid earlier! You sell a call option on an asset you already own, collecting a premium but giving up the potential for higher gains if the price soars.

Correlation: How two asset prices dance together. Some tango in perfect harmony, while others do the awkward shuffle, understanding their relationship helps diversify your portfolio.

Cost Average: Smoothing out the bumpy investment roller coaster. You buy smaller amounts of an asset at regular intervals, averaging out the price over time.

Before you spend your money, you gotta plan how to spend.

🇸🇬💰💰💰

https://instagram.com/p/C1YSLfhSac0/

TLDR: 2024 hard times, but govt will make sure we spend wisely!

Singapore government is working on their budget for 2024! In fact, it’s a pretty big deal at the moment.

Here’s what we know so far:

• Delivery Date: Deputy Prime Minister and Minister for Finance Lawrence Wong (also future Prime Minister, if PAP wins the next election) will deliver the Budget Statement on Friday, February 16, 2024, in Parliament. Can watch it here.

• Public Feedback: The government is currently gathering public feedback on the budget until Friday, January 26, 2024. You can share your views online through REACH’s Budget 2024 microsite or attend physical engagement sessions.

• Key Priorities: While the specific details of the budget haven’t been released yet, some experts anticipate that it will prioritize sustaining economic competitiveness, easing the cost of living, and driving innovation. The 30th anniversary of GST and potential international tax reforms are also likely to be influential factors.

You can also follow Ministry of Finance’s Telegram channel here

Get rich slowly but never die trying to get rich.

Recently uncle read this book, “The Bogleheads’ Guide to Investing. It’s like me la, your wise uncle giving you long winded (loh soh) advice, but for investing.

It tells you how to grow your money slowly but surely, without acting like a crazy stock market cowboy. All about smart saving, smart investing, and staying cool. Uncle share this quickly with you.

“Because nobody want to get rich slowly” – Warren Buffett

Part 1: The Bogleheads’ Guide to Investing – Simplifying Your Financial Future

Feeling overwhelmed by the world of investing? Don’t worry, you’re not alone! The Bogleheads’ Guide to Investing offers a straightforward and practical approach to building wealth, perfect for young professionals like you.

Here are the key principles to remember:

• Focus on long-term investing: Don’t get caught up in short-term market fluctuations. Invest for the long term (10+ years) and avoid chasing “hot stocks.”

• Keep costs low: Minimize fees and expenses by choosing low-cost index funds. These passively track the market and offer excellent returns without the high costs of actively managed funds.

• Diversify your portfolio: Don’t put all your eggs in one basket. Spread your investments across different asset classes, like stocks, bonds, and real estate, to minimize risk.

• Rebalance regularly: Over time, the market will cause your portfolio’s allocation to drift. Rebalancing ensures your investments remain in line with your risk tolerance.

• Stay disciplined: Avoid impulsive decisions and stick to your plan. Remember, investing is a marathon, not a sprint.

These principles may seem simple, but they’re the foundation of successful long-term investing. By following the Bogleheads’ guide, you can confidently navigate the financial markets and achieve your financial goals.

Part 2: Building Wealth with Just Three Funds

Investing doesn’t have to be complicated. The Bogleheads’ guide recommends a simple three-fund portfolio for most investors. This portfolio provides diversification, low costs, and the flexibility to adjust for your individual needs.

Here’s the breakdown:

• Total Stock Market Index Fund (70%): This fund tracks the entire US stock market, offering broad exposure to various sectors and companies.

• Total International Stock Market Index Fund (20%): This fund invests in stocks from developed and emerging markets, diversifying your portfolio beyond the US.

• Total Bond Market Index Fund (10%): This fund provides stability and income through investments in government and corporate bonds.

Remember, this is just a starting point. You can adjust the allocation based on your age, risk tolerance, and financial goals.

Part 3: Resources and Next Steps

Ready to start your investing journey? Here are some resources to help you get started:

• The Bogleheads’ Guide to Investing: This book is the cornerstone of the Bogleheads’ philosophy and provides comprehensive information on investing strategies and principles.

• The Bogleheads’ website: This website offers a wealth of free information and resources, including articles, forums, and calculators.

• Online investment platforms: Many online platforms offer low-cost index funds and fractional shares, making it easier than ever to invest.Like this or this or this and this.

Investing is a powerful tool for building wealth and achieving your financial goals. By following the Bogleheads’ principles and starting early, you can set yourself up for a secure and fulfilling financial future.

Remember, the key is to be patient, disciplined, and stay informed. With the right approach, you can unlock the power of investing and achieve your financial dreams.

Unfortunately Uncle Huat may not be as stonks as Steven Lim kor kor

Singapore Post Ltd: Delivering Dividends, But Can It Deliver Shareholder Returns?

Steven Lim’s stonks story

Singapore Post (S08) has been a household name in Singapore for over 160 years, delivering mail and packages across the island and the globe. However, in recent years, the company’s share price performance has been less than stellar. Despite the lackluster stock performance, SingPost has consistently paid out attractive dividends. So, what’s the story behind this seemingly contradictory situation?

The Good:

• Solid dividend track record: SingPost boasts a consistent history of paying dividends, with a current yield of 1.29%. This makes it an attractive option for income-seeking investors.

• Strong financial position: SingPost has a healthy balance sheet with low debt and ample cash reserves.

• Investment in e-commerce: The company has invested heavily in e-commerce fulfillment and logistics, positioning itself for a growing market.

• Strategic partnerships: SingPost has formed partnerships with major e-commerce players like Lazada and Shopee, expanding its reach and capabilities.

The Not-So-Good:

• Declining mail volume: Traditional mail volume continues to decline, impacting SingPost’s core revenue stream.

• Intense competition: The delivery market is facing fierce competition from established players and new entrants, putting pressure on margins.

• Rising operating costs: Labor costs and other operational expenses are increasing, further squeezing profitability.

• Uncertainty in the future of the delivery industry: The rapid evolution of technology and changing consumer preferences create uncertainty for the long-term outlook of traditional delivery services.

The Verdict:

While Singapore Post is facing headwinds, it is actively adapting to the changing landscape. The company’s strong financial position, investments in e-commerce, and strategic partnerships provide a foundation for future growth. However, the declining mail volume and intense competition remain significant challenges.

For young professionals looking for a stable income stream with potential for growth, SingPost can be a compelling option. However, it’s crucial to be aware of the risks and uncertainties surrounding the company and the industry as a whole.

Further Resources:

• Income Buddies: Is SingPost a Good Dividend Stock to Buy Now?

• Business Times Singapore: SingPost sees 1H profit rise 39% on strong e-commerce demand

Note: Uncle Huat does not own Singpost shares, please exercise your own risk analysis before investing. This is not an investment advice.

Uncle write something smart a bit.

Keppel DC REIT: Powering Up Your Portfolio?

Data centers are the backbone of the digital world, humming away 24/7 to store and process our ever-growing online footprint. And Keppel DC REIT, owns data centers across Asia-Pacific and Europe. They own colocation, full-fitted, and shell and core facilities. ️ Most of their colocation centers are in 🇸🇬 🇮🇪 contributing to 2/3 of their rental income.

(In case if you didn’t realise, this is not an actual image of Keppel’s Data Center. Please hor, but this picture quite nice.)

But is Keppel DC REIT a buy? Let’s dive into the analysis:

The Good:

• Strong fundamentals: Keppel DC REIT boasts a diversified portfolio of high-quality data centers across Asia Pacific and Europe, with a long weighted average lease expiry (WALE) of 7.5 years.

• Resilient performance: Despite the pandemic, Keppel DC REIT has maintained positive income growth, with its distribution per unit (DPU) increasing by 2.4% in FY2023.

• High dividend yield: Currently offering a 5.8% dividend yield, Keppel DC REIT is a compelling option for income-seeking investors.

• Positive industry outlook: The global data center market is expected to grow at a CAGR of 11% over the next five years, driven by factors such as cloud computing, artificial intelligence, and the Internet of Things (IoT).

The Not-So-Good:

• Rising interest rates: A potential increase in interest rates could put pressure on Keppel DC REIT’s margins, as a significant portion of its debt is at floating rates.

• Competition: The data center market is becoming increasingly competitive, with new entrants and established players vying for market share.

• Potential global economic slowdown: A recession could lead to decreased demand for data center services, impacting Keppel DC REIT’s performance.

The Verdict:

Keppel DC REIT is a solid investment option for investors seeking stable income and exposure to the growing data center industry. However, it’s important to be aware of the risks associated with rising interest rates and potential economic downturns.

For young professionals, Keppel DC REIT presents an opportunity to invest in a future-proof industry with a strong track record. However, it’s essential to do your own research and consider your individual risk tolerance before making any investment decisions.

Further Resources:

• Keppel DC REIT website

• Fifth Person: Data Center Dilemma: Is Keppel DC REIT a buy or sell?

• Dollars and Sense: Investing in Data Centre REITs: What You Need to Know

• Business Times Singapore: Keppel DC REIT reports a slight dip in Dividend Per Unit (“DPU”)

Remember, investing involves risks, and past performance is not indicative of future results. Always consult with a financial professional before making any investment decisions.

Disclaimer: Uncle Huat owns Keppel DC REIT as part of his long term investment portfolio.

Unlike choosing gf/bf – you can have both!

🇸🇬 #SgFinance: T-Bills vs Savings Bonds – Interest Rate Showdown!

Sick of your savings just chilling? Tired of earning peanuts on your hard-earned cash?

It’s time to level up your short-term savings game with Singapore’s T-Bills and Savings Bonds!

Here’s the latest on interest rates (as of 6 December 2023):

T-Bills:

• 6-month: 4.00%

• 1-year: 3.98%

Savings Bonds:

• Year 1: 0.85%

• Year 2: 1.20%

• Year 3: 1.45%

• Year 4: 1.70%

• Year 5: 1.95%

• Year 6: 2.20%

• Year 7: 2.45%

• Year 8: 2.70%

• Year 9: 2.95%

• Year 10: 3.20%

So, which one wins the interest rate battle?

It’s a close call!

T-Bills offer a higher initial return, especially for the short term. But if you’re looking for long-term growth and the flexibility to access your money anytime, Savings Bonds might be a better bet.

Ultimately, the best option depends on your individual financial goals and risk tolerance.

Here’s a quick cheat sheet:

T-Bills:

• Pros: Super short-term, discount savings, flexible.

• Cons: Low returns.

Savings Bonds:

• Pros: Longer-term, guaranteed returns, flexible withdrawals.

• Cons: Modest returns.

#SgSavings #InterestRates #TBillTips #ShortTermSavings #FinanceForMillennials #SGFinTech #MoneyMatters

Disclaimer: Uncle Huat have both! 😎

Not breaking bad. SSB is good, so it is more like breaking good #UncleJoke

Part 1: Understanding Singapore Savings Bonds (SSB)

For the Investor

1. What They Are: Singapore Savings Bonds (SSBs) are monthly-issued, low-risk investment options by the Singapore government, first introduced in 2015. These bonds have a 10-year term with escalating interest rates to reward long-term investors.

2. Investment Flexibility: You can start with as little as $500 and go up to $200,000. Plus, you can cash out anytime in multiples of $500 without major penalties – just a $2 fee.

3. Interest Payments: SSBs pay interest every six months, tax-free, with rates stepping up annually. Currently, they offer around 3.32% average over 10 years, reflecting the current interest rate environment.

Part 2: Why Choose SSBs? And What’s the Catch?

Balancing Pros and Cons

1. Virtually Risk-Free: Backed by Singapore’s government, these bonds are super safe, meaning you won’t lose your initial investment.

2. Liquidity Plus: You can access your money whenever you need it, with minimal fees, making SSBs great for emergency funds or short-term savings.

3. Diversify with Ease: SSBs are a smart addition if your portfolio is heavy on stocks or corporate bonds.

4. Cons to Consider: While safer, SSBs offer lower returns compared to some other investments. Higher returns come later in the 10-year term, and monthly issues mean interest rates can vary.

Part 3: Getting Started with SSBs

Investing & Redeeming Made Simple

1. Prep Work: Have a local bank account and a Central Depository (CDP) account linked to it.

2. Application Process: Apply through ATMs or online banking between specific dates each month. Remember, there’s a $2 application fee.

3. Allocation & Interest: Check allocation on the 3rd last business day of the month. Enjoy semi-annual interest payments directly to your bank account.

4. Redeeming Bonds: Redeem anytime in $500 multiples via internet banking. You’ll get your investment and accrued interest by the 2nd business day of the following month.