Hi Folks,
By and large, i know that the VB community is not really into getting whole life insurance.
This is not really a "sell" job.
I came across this endowment plan offering 2.02% p.a. interest for a 3 year lock in period.
www.fwd.com.sg/savings-an...ents/endowment-insurance/
If you are interested, check it out.
Cheers
Sorry, yes, my apologies for posting the broken link
(08-04-2024, 08:26 AM)Bibi Wrote: [ -> ]I am not so sure if digital banks will start to erode away some of their profits. Increasingly, i hv put more $ into digital banks for their higher deposit rates. Maribank at 2.88%, FSMOne cash acct at 2%. As im retired and do not hv a regular salary to enjoy those UOBOne cash acct or OCBC 360, their normal savings accts are still giving a pathetic 0.5% p.a. Even with their higher interest acct, its capped at $100k.
u can consider FSM autosweep account. 3.22% now. The daily returns are reflected into your autosweep account.
Even during pandemic years, all positive returns. it invests in money market funds, etc..
Auto-Sweep Account | FSMOne (fundsupermart.com)
Hi Curiousparty,
Do take note that some of these products that you mentioned are not covered by SDIC deposit insurance, which is now at S$100,000.
Digital banks are covered under SDIC.
(10-04-2024, 09:58 PM)Curiousparty Wrote: [ -> ] (08-04-2024, 08:26 AM)Bibi Wrote: [ -> ]I am not so sure if digital banks will start to erode away some of their profits. Increasingly, i hv put more $ into digital banks for their higher deposit rates. Maribank at 2.88%, FSMOne cash acct at 2%. As im retired and do not hv a regular salary to enjoy those UOBOne cash acct or OCBC 360, their normal savings accts are still giving a pathetic 0.5% p.a. Even with their higher interest acct, its capped at $100k.
u can consider FSM autosweep account. 3.22% now. The daily returns are reflected into your autosweep account.
Even during pandemic years, all positive returns. it invests in money market funds, etc..
Auto-Sweep Account | FSMOne (fundsupermart.com)
No matter how safe it is, it is still not 100% guaranteed. I wonder what happens to the money market funds if there are a few bank runs. Was it still positive during asia financial crisis?
The problem with autosweep acct is, once opted in, all yr idle cash gets invested inside. There is no option for investor to choose how much to remain in cash acct, how much in autosweep. Same as for moomoo acct.
(12-04-2024, 02:52 PM)Bibi Wrote: [ -> ]No matter how safe it is, it is still not 100% guaranteed. I wonder what happens to the money market funds if there are a few bank runs. Was it still positive during asia financial crisis?
The problem with autosweep acct is, once opted in, all yr idle cash gets invested inside. There is no option for investor to choose how much to remain in cash acct, how much in autosweep. Same as for moomoo acct.
Hi Bibi,
Your worries reminds me of the fundamental reason why insurers make money. ie. people tend to overestimate small (and not easily quantified) odds of catastrophic outcomes, and so insurers assume the other side of the trade.
That said, nothing right or wrong with that.
A few notes on MMF that I could share (and probably more experienced VBs could chip in too):
(A) My general understanding is that MMF largely invests in short term commercial paper. These are loans taken out by companies for their liquidity needs to ensure their day to day operations (paying suppliers etc). Since they are short term in nature (1 week to 6 months sort), there are some characteristics - (1) any default is quickly known. (2) pretense can happen as long as the company stays liquid to roll on the loans. (3) Market is huge/short term and so known risks are quickly updated.
(B) In my memory, commercial paper seized up twice in the last 15years - GFC2008 and early covid period (when governments announced shutdowns around the world). At both times, Central Banks came in to provide/guarantee liquidity in them. Basically speaking, commercial paper is one essential clog of the financial markets and "too big to fail".
© Besides the risk of commercial paper market failing, another risk would be clearing party when we put our monies into MMF. The clearing party is the one who holds the assets for us, ie. the various brokerages in this case. IMHO, the former has demonstrated that it is "too big to fail" and will be bailed out by the money printer - so there is a good chance the blow out risk is lower than we think it is. As for the latter, they are incorporations and the risk is not very evident and so the blow out risk is higher than we think it is.
For sake of disclosure: I do have small portion of portfolio liquidity in MMF funds (like 5% of portfolio)