Why We Redeemed Our SSB and Sold Our DBS Shares

Hi everyone, earlier today, both Mrs Budget and I have made a few transactions and we wanted to share some of them here.

First, we redeemed our Singapore Savings Bond which we purchased 2 years ago. When we bought the bonds, we had the intention of keeping it until maturity 10 years later, with an effective rate of 2.45% per annual.

It seemed like a good deal especially since we had managed to get some of the better yield SSB. Shortly after our initial bond purchase, the yield of subsequent SSB fell month after month, and now it is at a ridiculous 0.9% pa if you hold it for 10 years.

SSB 10 Year Yield – Source: Investment Moats

When we were looking at our portfolio earlier last weekend as part of our annual portfolio cleaning up, we were looking for ways to fund our increased appetite for high growth US stocks.

We realized that we have SSB in our account and its sitting there by itself. We only managed to buy the SSB once. In view of our overall portfolio, this single SSB purchase seems to just be sitting alone there trying to fit itself into our bond portfolio.

However, we have recently repositioned our whole Singapore equities to be viewed as a bond portfolio instead, and now, the SSB seemed a little out of place.

As we took stock of the returns of SSB, the initial projected yield also no longer seem attractive to us. What we now know (which we didnt when we bought the SSB) is that, effectively, the rate of return of SSB should be 2.45% minus the inflation rate (0.5%), equivalent to just under 2%.

The returns simply doesnt move the needle for us now and it would have been better utilized in investing in high growth companies.

Surely after 10 years, any high growth company we invest in now can return us a return of at least 2% pa?

With this realization, we decided to redeem our SSB earlier today. Here’s the process we went through and its quite simple:

First you log into your CDP-linked bank account, which for us is DBS.

After clicking on “redeeming Singapore government securities, you just need to key in your holdings and submit the application. There is a one off application fee of S$2 and the bond will be redeemed and creditted to your account the next following month.

Exiting Our Position In DBS

Other than redeeming our Singapore Savings Bond, we also took the opportunity to close off our position with DBS.

Both Mrs Budget and I have DBS stocks and while we believe that the company will definitely be around in the next 5 to 10 years, we wanted to divert that fund to US fintech companies instead.

To us, the allocation is similar – we are still investing in the finance sector, but changing that investment from a safe dividend stock into a higher growth stock.

One of the reason why we sold off DBS is also that we are wary about the fact that there will be even more digital banking coming into the space 2 to 3 years down the road, and things will definitely not be easier for DBS.

With the new fintech entrants, we can still see DBS maintaining its market cap (ie stock price almost the same), but other fintech companies will have higher growth in their market cap.

Hence we would prefer to shift our investment in DBS into other fintech companies. We currently already have positions in SE (new digital bank) as well as in PayPal, and may soon look at initiating a position in Square.

To us, we will only sell off our positions if there is a change in our investment thesis or if there are better opportunities that presents themselves, and with the case of DBS, the selling is triggered by both these factors.

Inclusive of the dividend received, Mr Budget made a 5% return on his DBS holdings in 2 years, while Mrs Budget made a 7% return on her holdings in less than a year.

As we close off the year, we are still actively doing a clean up on our portfolio. We are actively looking to trim our Singapore holdings even more to fund our increased appetite in US growth stocks.

Our investment thesis is also being molded differently now as we continue to consume more content around US stocks and understanding what drives the future economy. We will share more as and when they come.

Premium Content

We’d also like to inform our readers (that’s you!) that moving forward in 2021, we will be introducing new premium content for readers who are interested in more regular updates from us.

We have not firmed up the details yet, but as a premium subscriber of Mr and Mrs Budget, you will have early access to our trades and investments as soon as we make them. There will be a monthly subscription option and a pay per view option, at roughly the cost of a McDelivery meal.

For our normal readers, you will still get a monthly update (like this article) where we note down our investments and trades of the month. We have been doing this since the start of this publication.

However, there are some feedbacks that these updates can be a bit late as we only make an update the following month, after which the counters and stocks would have moved up by 10-20%.

Hence for premium subscriber, you will be informed earlier on our trades as soon as we make them. Normal readers will enjoy all the content as they have been enjoying them all these while and nothing will change. 🙂

We will be giving out some free lifetime premium membership access to our readers when we launch it next month in 2021. Do drop your interest along with your email in the comment section below or simply drop us an email at mrandmrsbudget19@gmail.com indicating your interest. Eligible readers will be notified via email.

Stay safe and happy investing! 🙂

Like our Facebook Page for more post like this.

19 thoughts on “Why We Redeemed Our SSB and Sold Our DBS Shares

    1. Mr Budget

      Hi Gary!

      Happy new year! 

      Since you expressed interest in our premium content, we wanted to let you be the first to know that we are building up our discord channel as part of the premium offering! 

      In case you are unfamiliar with discord, think of it as whatsapp + mirc (if you know you know!). There are multiple sub channels that we can have more focused discussions. For example, there is a sub channel on our active trades, another sub channel on US stocks, another sub channel on general chat.

      On discord, you can also:

      – Chat directly with us and ask us any questions!
      – Have access to our trades as soon as we make them.
      – Talk to other investors interested in the US equities / growth investing
      – Talk about issues that matter to a middle class Singaporean couple

      As we have just set up the discord channel, it is now empty so we will need your help to keep the channel alive! If the channel do die off (haha) we may then revert to our blog posts to keep everyone updated – that means monthly trade alerts instead of instant trade alerts amongst others. So hopefully that doesn’t happen!

      So do feel free to join the channel (download the app too so that you can receive alerts on the go), and say hi to us!

      Here’s the link to the discord channel: https://discord.gg/2hsPk9RW

      The invite link expires in 1 day. 😊

      Like

  1. alvin

    Hello Mr and Mrs Budget,

    I’m looking forward to the launch of premium content on your site. I have been an avid reader closely following your financial and investment journey and I found it really insightful and useful. Looking forward to more good read in the new year!

    Like

    1. Mr Budget

      Hi alvin,

      Happy new year! 

      Since you expressed interest in our premium content, we wanted to let you be the first to know that we are building up our discord channel as part of the premium offering! 

      In case you are unfamiliar with discord, think of it as whatsapp + mirc (if you know you know!).
      There are multiple sub channels that we can have more focused discussions. For example, there is a sub channel on our active trades, another sub channel on US stocks, another sub channel on general chat.

      On discord, you can also:

      – Chat directly with us and ask us any questions!
      – Have access to our trades as soon as we make them.
      – Talk to other investors interested in the US equities / growth investing
      – Talk about issues that matter to a middle class Singaporean couple

      As we have just set up the discord channel, it is now empty so we will need your help to keep the channel alive! If the channel do die off (haha) we may then revert to our blog posts to keep everyone updated – that means monthly trade alerts instead of instant trade alerts amongst others. So hopefully that doesn’t happen!

      So do feel free to join the channel (download the app too so that you can receive alerts on the go), and say hi to us!

      Here’s the link to the discord channel: https://discord.gg/2hsPk9RW

      The invite link expires in 1 day. 😊

      Like

    1. Mr Budget

      Hi Jason!

      Happy new year! 
      Since you expressed interest in our premium content, we wanted to let you be the first to know that we are building up our discord channel as part of the premium offering! 

      In case you are unfamiliar with discord, think of it as whatsapp + mirc (if you know you know!). There are multiple sub channels that we can have more focused discussions. For example, there is a sub channel on our active trades, another sub channel on US stocks, another sub channel on general chat.

      On discord, you can also:

      – Chat directly with us and ask us any questions!
      – Have access to our trades as soon as we make them.
      – Talk to other investors interested in the US equities / growth investing
      – Talk about issues that matter to a middle class Singaporean couple

      As we have just set up the discord channel, it is now empty so we will need your help to keep the channel alive! If the channel do die off (haha) we may then revert to our blog posts to keep everyone updated – that means monthly trade alerts instead of instant trade alerts amongst others. So hopefully that doesn’t happen!

      So do feel free to join the channel (download the app too so that you can receive alerts on the go), and say hi to us!

      Here’s the link to the discord channel: https://discord.gg/2hsPk9RW

      The invite link expires in 1 day. 😊

      Like

  2. Count me in for your premium posts please! Glad to see a couple aligned in financial goals and working towards it. Lots to learn from you guys. I probably have to twist my hubby’s ears for him to make his money work smarter!

    Like

    1. Mr Budget

      Hi Cherry,

      Happy new year! 
      Since you expressed interest in our premium content, we wanted to let you be the first to know that we are building up our discord channel as part of the premium offering! 

      In case you are unfamiliar with discord, think of it as whatsapp + mirc (if you know you know!). There are multiple sub channels that we can have more focused discussions. For example, there is a sub channel on our active trades, another sub channel on US stocks, another sub channel on general chat.

      On discord, you can also:

      – Chat directly with us and ask us any questions!
      – Have access to our trades as soon as we make them.
      – Talk to other investors interested in the US equities / growth investing
      – Talk about issues that matter to a middle class Singaporean couple

      As we have just set up the discord channel, it is now empty so we will need your help to keep the channel alive! If the channel do die off (haha) we may then revert to our blog posts to keep everyone updated – that means monthly trade alerts instead of instant trade alerts amongst others. So hopefully that doesn’t happen!

      So do feel free to join the channel (download the app too so that you can receive alerts on the go), and say hi to us!

      Here’s the link to the discord channel: https://discord.gg/2hsPk9RW

      The invite link expires in 1 day. 😊

      Like

  3. Jazzmen G

    Hello Mr and Mrs Budget,

    Been reading your publications for quite some time now and some of them have definitely been insightful in helping me learn more about Investments and Finance. I still have much to learn since I’ve only started on my financial journey only this year. I am Interested in joining your premium content page. Thanks for taking the time out to release all the publications!

    Like

  4. Looking forward to the new content for 2021. Been an active follower as I find your blogposts easy to read and very relatable. In a similar life phase and looking forward to see how I can improve on my financial state.

    Keep it going guys!

    Like

    1. Mr Budget

      Hi Jazzmen and Kenny,

      Happy new year! 
      Since you expressed interest in our premium content, we wanted to let you be the first to know that we are building up our discord channel as part of the premium offering! 

      In case you are unfamiliar with discord, think of it as whatsapp + mirc (if you know you know!). There are multiple sub channels that we can have more focused discussions. For example, there is a sub channel on our active trades, another sub channel on US stocks, another sub channel on general chat.

      On discord, you can also:

      – Chat directly with us and ask us any questions!
      – Have access to our trades as soon as we make them.
      – Talk to other investors interested in the US equities / growth investing
      – Talk about issues that matter to a middle class Singaporean couple

      As we have just set up the discord channel, it is now empty so we will need your help to keep the channel alive! If the channel do die off (haha) we may then revert to our blog posts to keep everyone updated – that means monthly trade alerts instead of instant trade alerts amongst others. So hopefully that doesn’t happen!

      So do feel free to join the channel (download the app too so that you can receive alerts on the go), and say hi to us!

      Here’s the link to the discord channel: https://discord.gg/2hsPk9RW

      The invite link expires in 1 day. 😊

      Like

    1. Mr Budget

      Hi SL,

      Happy new year! 
      Since you expressed interest in our premium content, we wanted to let you be the first to know that we are building up our discord channel as part of the premium offering! 

      In case you are unfamiliar with discord, think of it as whatsapp + mirc (if you know you know!). There are multiple sub channels that we can have more focused discussions. For example, there is a sub channel on our active trades, another sub channel on US stocks, another sub channel on general chat.

      On discord, you can also:

      – Chat directly with us and ask us any questions!
      – Have access to our trades as soon as we make them.
      – Talk to other investors interested in the US equities / growth investing
      – Talk about issues that matter to a middle class Singaporean couple

      As we have just set up the discord channel, it is now empty so we will need your help to keep the channel alive! If the channel do die off (haha) we may then revert to our blog posts to keep everyone updated – that means monthly trade alerts instead of instant trade alerts amongst others. So hopefully that doesn’t happen!

      So do feel free to join the channel (download the app too so that you can receive alerts on the go), and say hi to us!

      Here’s the link to the discord channel: https://discord.gg/2hsPk9RW

      The invite link expires in 1 day. 😊

      Like

    1. Mr Budget

      Hi Sab,

      Happy new year! 
      Since you expressed interest in our premium content, we wanted to let you be the first to know that we are building up our discord channel as part of the premium offering! 

      In case you are unfamiliar with discord, think of it as whatsapp + mirc (if you know you know!). There are multiple sub channels that we can have more focused discussions. For example, there is a sub channel on our active trades, another sub channel on US stocks, another sub channel on general chat.

      On discord, you can also:

      – Chat directly with us and ask us any questions!
      – Have access to our trades as soon as we make them.
      – Talk to other investors interested in the US equities / growth investing
      – Talk about issues that matter to a middle class Singaporean couple

      As we have just set up the discord channel, it is now empty so we will need your help to keep the channel alive! If the channel do die off (haha) we may then revert to our blog posts to keep everyone updated – that means monthly trade alerts instead of instant trade alerts amongst others. So hopefully that doesn’t happen!

      So do feel free to join the channel (download the app too so that you can receive alerts on the go), and say hi to us!

      Here’s the link to the discord channel: https://discord.gg/2hsPk9RW

      The invite link expires in 1 day. 😊

      Like

    1. Mr Budget

      Hi Jaycob,

      Happy new year! 
      Since you expressed interest in our premium content, we wanted to let you be the first to know that we are building up our discord channel as part of the premium offering! 

      In case you are unfamiliar with discord, think of it as whatsapp + mirc (if you know you know!). There are multiple sub channels that we can have more focused discussions. For example, there is a sub channel on our active trades, another sub channel on US stocks, another sub channel on general chat.

      On discord, you can also:

      – Chat directly with us and ask us any questions!
      – Have access to our trades as soon as we make them.
      – Talk to other investors interested in the US equities / growth investing
      – Talk about issues that matter to a middle class Singaporean couple

      As we have just set up the discord channel, it is now empty so we will need your help to keep the channel alive! If the channel do die off (haha) we may then revert to our blog posts to keep everyone updated – that means monthly trade alerts instead of instant trade alerts amongst others. So hopefully that doesn’t happen!

      So do feel free to join the channel (download the app too so that you can receive alerts on the go), and say hi to us!

      Here’s the link to the discord channel: https://discord.gg/2hsPk9RW

      The invite link expires in 1 day. 😊

      Like

Leave a Reply to Jaycob Cancel reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s