OCBC NCPS
This is another product which has recieved attention from interested investors with more than $20,000 to spare.
Look at the yield. 5.1%! Where can you find such good interest rates nowadays?! It's a sure win deal, isn't it?
If you remember, the annual inflation rate for sunny Singapore was reported to be 7.5% in April. That means the effective rate of return is -2.4% for the NCPS! Am I missing anything?
Think this is just an one-off event and that inflation rate should come down soon? I hope so too. But I'm not taking any chances. I am factoring a long term inflation rate of 5% for my retirement.
Meanwhile, oil prices seemed poised to hit the moon. Note that oil prices are expected to "spike", whether they are sustainable at that level is quite a different matter altogether.
Look at the yield. 5.1%! Where can you find such good interest rates nowadays?! It's a sure win deal, isn't it?
If you remember, the annual inflation rate for sunny Singapore was reported to be 7.5% in April. That means the effective rate of return is -2.4% for the NCPS! Am I missing anything?
Think this is just an one-off event and that inflation rate should come down soon? I hope so too. But I'm not taking any chances. I am factoring a long term inflation rate of 5% for my retirement.
Meanwhile, oil prices seemed poised to hit the moon. Note that oil prices are expected to "spike", whether they are sustainable at that level is quite a different matter altogether.
Labels: Investments
posted by thelonetraveller at
2:19 am
2 Comments:
You have to look at everything in perspective - savings rate is just 0.25% and your FD rate is 1-odd%...
So which is a "better" hedge against inflation?
By
Xtrocious, at Tuesday, June 17, 2008 12:20:00 pm
I see where you're coming from. I do agree that 5.1% does look extremely attractive compared to the rates posted.
Have you taken a look at DBSBANK S$1.1B 6% NCPS?
My point is, there are always better alternatives available. And often, these aren't the most advertised.
By
thelonetraveller, at Sunday, June 29, 2008 3:05:00 pm
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