After I got to know about SSBs, I have got some new perspectives and thoughts… And regrets.
My greatest regret: Not getting the Jan 2019 issue where the average 10 year yield was close to 2.5%.
Learning: Create a separate savings goal for SSBs. If I see a 10 year average yield above 2.2%, I am rather tempted to take some of it. Even just as a small hedge against my property loan interest.
Overall goals and management strategy in future:
- Still saving / allocating 1000 per mth for SSBs as I overinvested from my emergency funds last year
- Using SSBs as a way to stash emergency $$ elsewhere so I would not be tempted to touch it
- Void / space left from transferring to SSBs leave room for warchest accumulation in 360 acct at better rates than FD
- Initial thoughts to purchase SSBs in Jan / Jul purchase, reason being that this pair was estimated with the least passive income paid into my bank accounts. This would help to smooth the overall income-expense difference. Long term wise I would still prefer for such passive interest to smooth out vs the net cashflows
- With my new perspective, I think it makes sense to split SSB purchase slightly to just use the SSBs average yield as a hedge to property loan interest expense. Maybe not 100% to point 4 but maybe a 70/30 split?
Care to share why u buy SSBs?