Dividends Collected Up to Date

Hi Everyone,

As a dividend collector, I have collected some tiny amount of dividends for February and March. But first, I would like to update my current portfolio.

As you can see, I have sold DBS which I have previously mentioned in my previous post and purchase OCBC also mentioned in my previous post. Do check it out if you want to find out more about it. 

Dividends Collected:

February: $23.26

March: $14.15

Total Dividends Collected for 2015: $37.41

Dividends Per month: $3.1175

Well, although this is quite a small amount but the major hits will be coming in April (which is this month), May and June. Since I place a small emphasis on REITs which is why the current dividends collected is quite a small amount. 

But nonetheless, the progress is still there and I hope I will do better on next year February and March :D

Adjusted Projected Passive Income

Hi Everyone,

Due to the huge adjustment from OCBC 360, my projected passive income (in Dividends Section), will be largely affected because most of my cash are in OCBC 360. So after doing some calculation based on the interest rate of 2.05%, I have calculated at an average monthly interest of around $61.50. Personally, I believe is still quite alright since the risk is super duper low and I will be looking forward to the two new criteria for earning additional interest. 

From my point of view, I believe that it will goes the same way as what DBS does with it's multiplier programme, in other words, I will have to open an trading account with OCBC or if they allow blue chips investment plan, I will gladly follow it. (But lets just see how it goes)

At the same time, I am looking forward to the new Singapore Saving Bonds (SSB). If it comes out in the this coming quarter or next quarter, I will put 80% of my cash into Singapore Saving Bonds if the interest rate is more than 3%. 

So either way, I am still trying to find out the best way to maximize my passive income by looking at various low risk options. 

OCBC 360 Interest Rate Down to 2.05%?!?!

Hi Everyone,

Today I have received a news about the upcoming revised interest rate for OCBC 360, which will be down from 3.05% to 2.05%.

Here is the changes that I have gotten from OCBC website: http://www.ocbc.com/personal-banking/notices.html

Although they have change the current interest rate of paying bills and credit card expenditure from 1% each to 0.5% each, I am still looking forward to the two new interest categories that they might be coming up with. So for now, we can only see what are the new interest categories, if the new arrangement is not to my advantage, I am ready to focus on putting it to Singapore Saving Bonds if the interest rate is more than 2.05% :D

Singapore Saving Bond

Hi Everyone,

I believe most Singaporean or people here had heard about Singapore Saving Bonds.

A short description:

Singapore, 30 March 2015…The Monetary Authority of Singapore (MAS) today provided more information on the features of Singapore Savings Bonds. This followed Senior Minister of State Mrs Josephine Teo’s announcement that the Government and MAS would introduce the Savings Bonds programme to provide individual investors with a long-term savings option that offers safe returns . This will expand the range of simple, low-cost investment options available to individual investors to help them meet their long-term financial goals and retirement needs.

The basics

.    Principal guaranteed: Investors will always get their investment amount back in full. In other words, they will not suffer any capital losses.

ii.    Term of ten years: This allows individuals to save for the long term and receive higher long-term interest rates (which comprise what investors call “term-premium”).

iii.    Step-up interest: Investors will earn interest that is linked to long-term Singapore Government Securities (SGS) rates. Unlike SGS that pay the same coupon each year, Savings Bonds will pay coupons that “step-up” or increase over time. As a result, the average interest rate is higher the longer the Savings Bonds are held.

iv.    Monthly issuance: This makes Savings Bonds accessible on a regular basis.

v.    Flexible redemption: Bond-holders can choose to get their money back in any given month, with no penalty. This means that individual investors do not have to decide upfront how long they wish to invest.

vi.    Small minimum investment amount: A minimum of $500, and in subsequent multiples of $500 up to a limit to be announced later. A limit will help to maximise participation and to ensure a broad reach.

vii.    Only individuals can apply for and hold Savings Bonds.

Personal View

For me, I would think that it will be a good way to diverse my portfolio as my current portfolio only consist of OCBC 360 account and equity. I did not touch on any bonds yet so this might be a good bond for me to go into. 

The risk is minimal as the principal is guarantee, which is suitable for people like me who seeks for low risk. So if you are seeking for low risk investment, I believe this would be a good bond to invest. However, we would still need to wait for the final information about this bond to come out before making any rash decision.