Hi Guys, I have been able to keep aside 100k and want to put it to a safe investment option with monthly returns. I don't mind the return being low if its relatively risk free. Can you guide me with some available options?
Facts.
Do you really need the monthly returns? Wanting monthly returns really limits the possibilities.
Now that you mentioned, it does make sense to not look for returns that early from a low risk investment.
It's not just early returns, but many zero risk investments like T bills, fixed deposits, Singapore Savings Bonds only pay out at the end of the tenure or at 6 month intervals.
Then money market funds which are also very low risk grow in value every day, but you will have to sell some every month to have monthly returns.
But if you feel strongly about monthly returns, you can look at fixed income portfolios on roboinvestor platforms. There is a little bit of risk involved, but less than investing in stocks and funds based on stocks.
But do take note of the fees, and the irritating thing is that it's hard to tell if they over-state their expected or target payouts. Examples:
https://www.syfe.com/income-plus
Or you could pick one of the main underlying funds e.g. PIMCO GIS Income Fund inside these portfolios to buy on your own on Poems, Dollardex, Moomoo etc without a platform fee.
Try every month from now putting it SSB @ 16.6k per month. You might not get full allotment so just keep pumping it in until your full 100k is in them.
Then you'll get a cash coupon every month as a form of dividend.
Google SSB bond ladder.
Current months issue is 3.3% average cash coupon over 10 years. Next month's issue is projected 3.2% average cash coupon over 10 years
Bad advice. Interest rates r dropping. Max out the allotment u can get every mth
It is to fulfil OP's requirement of monthly returns.
But if the goal is to have monthly payouts regardless of rates, won't a bond ladder be better than having say, payouts for 3 months in a row and then waiting 9 months for another round?
interest rates are not dropping yet.... besides there's a maga joker card that may in fact cause the opposite to happen.
Good idea for SSB. However I think you need not to make it a bond ladder since the interest rate is expected to be dropping. Though it may not be so soon, you should not risk yourself. Once the high interest SSB gone then is gone. So just max out whenever it is considered high now. Once you get the coupon layout, then distribute the usage and save the remaining in a high interest account or money market fund (MMF).
Fixed deposit
What's the best FD provider you see around these days?
If you can't even Google that…
Thanks for the input, there would always be one scheme better than other which is why I asked for an input. Google doesn't have all the answers unfortunately
Also FYI, when it comes to investment, there's NO BEST CHOICE or BEST SCHEME. All depends on your risk profile and preference. Say this month you put in FD with 3.23% for 1 year, then next month you see another FD promotion of 3.25% but only 6 months. What you gonna do? Be gutted cos you didn't choose the higher rate?
Thanks for the input, there would always be one scheme better than other which is why I asked for an input. Google doesn't have all the answers unfortunately
And how do you think everyone else gets their answers?
Nobody in this subreddit (except perhaps people with a hyperfixation on fixed deposits) knows every bank's fixed deposit rates by heart, month to month.
Min. amount of deposit, duration, available to existing or new customers, it's the same everywhere. And unless you have 2 million, that 0.02% difference in interest is not gonna make a huge difference
Thanks🙌🏼
Tbills and ssb?
easiest for sale would be SSB
if you need the cash, T+1 month and you'll get it back
capital is secured unlike fluctuations in bond ETFs or other bonds
Singapore credit rating, unless Singapore defaults you should be aight
payments are semi-annually (i.e. every 6 months)
Given the current relatively high interest rate, I would try to subscribe to as much of the current SSB as I could. You can move on with life once done.
Exactly!!!
Education is the best to invest.
Correct. Pay uni fees for 4 students with the 100k
If you don't need that 100k any time soon, how about putting some into SRS?
Mari invest for 3.7%
Otherwise OCBC 360 for 4 65% if you manage to spend $500 a month on your credit card.
voo, vti, ITOT
Minimum risk for 3 or 6 months T Bill or monthly FD for payout. If you want risk free.
Uniswap
Otde
Buy 2 lots of DBS shares and the rest put into FD with rates of at least 3.5%. DBS gives good dividends.
Can I get more details around your current savings size outside of this, your age right now, and general risk appetite?
Savings outside - Around 30k Current Age - 35, Married, one personal loan which isn't that much of a bother anymore Risk Appetite - Want to keep it low as I honestly don't have the window to keep an eye on things all the time.
I understand the desire to not have to keep track of an investment all of the time, but I would suggest that since you are still relatively young, you might be better off putting some of the money into an ETF instead. If you are putting money into a relatively risk-free bond or fixed deposit at this moment, your money essentially won't really grow since it's just negating inflation.
If you don't need the money for a while, I would explore an ETF like VWRA or an S&P 500 tracking one as well. You don't really need to watch it that carefully all of the time, and these grow consistently at 8%+ every single year.
It’s not true that S&P 500 will grow consistently every year - equities is considered high risk and there could be years of no or negative growth. Eg S&P 500 fell by 13% in 2022
8% is on an annualized basis smoothed across many years - of course there are years where you make money and years where you lose, but all in all, it's beaten out bonds over the last few decades.
Not all equities are high risk - investing a portion into ETFs is considered a pretty standard strategy for retirement savings.
If OP spent a bit of time reading the other threads instead of treating this subreddit like their personal human ChatGPT, they would have grasped this concept as well.
People who want "risk free" returns at the expense of not outpacing inflation deserve the bed they made themselves.
100k put in UOB ONE account la