Recently, I assisted a couple client to lock in their fixed deposit at circa 3% p.a permanently as a measure to minimize the irregular rate of return in their regular passive income after we did a holistic review on their asset allocation.
During our review, we do note that while investment are the key catalyst to growth our wealth, Bank Fixed Deposit (FD)/Singapore Savings Bond(SSB)/Treasury Bill(TBill) remain as popular avenue being used as risk hedging by most of us and we took this onto our consideration. All these three avenues have similar characteristic, namely low risk, short term certainty and self monitored/administered.
Lets take a look at the past 10 years SSB & TBill rate in the chart below:
based on the above data, even if one diligently snowballing and rolling over these SSB/TBill without delay upon maturity, the average annualized return in the past 10 years is still nowhere near 3% p.a.
However, we did a tweak and implemented a customized solution as their goal isn’t short term certainty, rather a long term certainty.
Feel free to contact us should you like to book a consultation for a review and let us work on a solution for your financial aspiration.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Fendy hails from a family who value entrepreneurship, where he understands that ones’ finance is ones’ responsibility. He follow suit after leaving his decade-long career in construction industry, becoming a Financial Advisor, an Entrepreneur and a Content Creator.
Prior to joining this career, Fendy had lost his Mom and Dad to Cancer and Heart Attack, respectively. Having a first hand experience on how devastating that was financially and emotionally, his main goal is to “Leave no Life Unprotected”
With his creative traits and his warm personality, rest assured that your needs always comes first at the best possible way. No doubts on the level of advices and services delivered as testified by his clienteles.
