Jun 2, 2020

Cory Diary : SSB - Singapore Saving Bond

SSB - Singapore Saving Bond

With the market crash due to Covid-19, many people is tempted to maximize the rebound by investing in the stock market at lows. And is at this very moment, cash is running low. Cash is basically King in March and still today in June.

One of the way to raise cash is to sell bonds or unwind your fixed deposit positions. So there will be great temptation to release SSB back to the government. I was exploring this idea too which I have max out my SSB between 2 to 2.5% quite long time ago to a trader mind.

I put this into deeper thoughts and decided Not !

1. SSB is a place where I secure my fund to support my home loan repayment and as a emergency fund too. I have yet reach a stage where i can sleep soundly putting this money to work in stock market. Logically I should but I feel my life will be shorten by 5 years from worries if I did even I could gain some monetary rewards.

2.  At 2 to 2.5% this is way better than current new issues or fixed deposits in the market.

3. $200k is quite a lot of money to stuck in there. But I would caution and ask people in similar situation as me to think further in another way.

If one has $500k asset, $200k is 40% of net worth. That's a big chunk but necessary because it is a defensive line. If one is to grow his wealth to $1,000K, that's only 20%. So as one wealth grows, the amount in SSB by ratio get smaller. That's the essence. Fill the bottom safety nets. Whatever overflowed, we can put wherever we want. Over time, we will spring !

But it may takes a long time for many. Yeah, this mean you aren't ready yet.

" Maybe I can explore my fixed deposits. Oh no. Better leave it for 2nd Waves just in case.... ... "




  1. The other way to buy more with no cash is to use share financing, very useful if one does not become too greedy

    1. This sounds like a form of margins. The recent meltdown catches many of them in this type of scheme naked. They were force sold and becomes permanent loss. So I would be careful.