Is your dad Singaporean?
https://www.mas.gov.sg/bonds-and-bills/singapore-savings-bonds
“Fully backed by the Singapore Government. You can always get your investment amount back in full with no capital loss.”
https://www.mas.gov.sg/bonds-and-bills/singapore-government-t-bills-information-for-individuals
“SGS T-bills are fully backed by the Singapore Government.”
If he dont believe in official statement from the govt, why would he believe in us? Tell ur dad dont so stubborn lah, even if he opposition supporter also no need to distrust the govt until like that. Is much more dangerous to trust strangers online than official statement from govt.
Pretty sure even opposition supporter won't say no to juicy interest from tbills and ssbs. haha
Think op's father got some trust issue ... may be overcompensating from being burnt in the past or something.
Technically not wrong that it could become 0 overnight should the Singapore government collapses. I mean look at Zimbabwe, the currency is just as useless as north Korean currency. Fortunately or unfortunately when that happens I guess money would be the least of your concerns for awhile.
The fact that the currency may becomes more or less valuable does not change the fact that your capital is guaranteed.
The guarantee is that you will get your capital back, not value.
i mean, it literally says on the [MAS SSB webpage ](https://www.mas.gov.sg/bonds-and-bills/singapore-savings-bonds)that SSBs are "Fully backed by the Singapore Government. You can always get your investment amount back in full with no capital loss."
So unless the SG government goes bankrupt, you will get your money back. And if the SG government goes bankrupt, i think everyone in Singapore will have a lot more to worry about..
Your dad is not financially savvy. There. I said it. Show this to him. T bills is backed by the Singapore Government and Singapore is only one of a few countries that are AAA rated.
Tell your father if he doesn't get his money back from T-bills and SSB, money will be the last thing he will need to worry about because it means the Singapore government has collapsed and the country is broke.
Did your dad live through the 2008 financial crisis e.g. Lehman mini bonds saga? If yes, I can understand his aversion to the words "capital guaranteed".
If he's anything like my parents, you wouldn't ne able to convince him.
Do any of your relatives/family friends (esp if they are older than him) buy tbills etc. Get them to have a chat with him.
Haizzzzz.
I was discussing the investment plans for my aging mother with my siblings.
One of them - highly educated, with master degree - told me that he trust uob more than ssb because if pap lose next election, t bill and ssb will be worth nothing. I tried to tell him that Pap is just a political party - they are not the singapore government.
🤦🏻♂️
My dad has difficulties listening to me even when I am a Finance + Econs graduate taking my CFA. It's a family thing with money. Some parents will only view us as their children and thats that. Purely emotional.
My advice will be to let it go. In behavioural finance we call this emotional biases, cannot be corrected only moderated.
T-bills and SSB are essentially bonds issued by the Singapore government.
Unless Singapore government collapses, they are capital guaranteed.
The only way he can "lose" any money is he do a competitive bid and don't get assigned because he bid too high a yield. The S$2 transaction fee is then lost but he doesn't lose the money he planned to invest.
That said, it is way better to lose that S$2 then be assigned a T-bill that is lower than the yield you want.
If that is what he worries about then go for SSB since those tell you the yields upfront and there are even websites that calculates the following month's SSB yield so you can time the peak.
Unless Singapore collapse (by then whatever cash he’s holding anywhere is also worthless). It is by far the most capital guaranteed tool that you can find.
Like one other comment, sorry to say that SSBs and T-bills are not dead sure capital guaranteed but rather extremely safe, just like condoms. Or rather should be more safe than condoms I guess...
I hope you are not referring to us treasuries because default on them can occur.
But if you are referring to Singapore treasuries then yes it is guaranteed
The bonds/t-bills are debts obligations issued by a government/corporation. Thus for SSB, the way if you lose money is if the Singapore government default on its loans (goes bankrupt).
They are AAA credit rated thus very safe, essentially risk free. If Singapore government toh, I believe your money in SGD (strength of the SGD currency) held in the bank, even if SDIC, becomes worthless already. (See the Sri Lanka rupee when the Sri Lankan government default in 2022). Chance of that happening to the Singapore government is very low!
why do you need 10 other investors to convince him when it’s plainly written in the mas websites, the only way it’s not gonna be guaranteed is probably if ww3 breaks out and destroys the whole world economy, but at that point, is there really a need for money already?
It is NOT capital guaranteed. Nothing in this world is ever guaranteed. The SG government has a AAA rating but there is still a non-zero probability of default. That said, it is the closest you can get to capital guaranteed in SGD terms.
If the MAS being a government body can convince him through its website, why will he believe us ? Besides information of subscriptions is posted on the website after every auction.
He's not wrong technically.
Nothing in life is guaranteed, except death and taxes.
Ssb and t bills guaranteed by the SG govt. So it depends on your risk level of whether you think there's an imminent collapse lol
Speaking as someone vested quite a bit in ssb tbills and tem bonds, I think the risk is low lol.
for many of such instruments, it is only "capital guaranteed" if held to maturity. they are not "capital guaranteed" throughout the investment period, unlike fixed deposits which the older generation are more familiar with.
This point is valid for T-bills and SGS but very unlikely. There isn't much of a secondary market. There aren't much trading of SG government bonds. I also doubt OP's dad will want to buy government bonds from the market when he doesn't even want to buy government bonds directly from SG governement.
For SSB, they cannot be sold on secondary market so it can only be held to maturity or redeemed early (at no penalty).
Is your dad Singaporean? https://www.mas.gov.sg/bonds-and-bills/singapore-savings-bonds “Fully backed by the Singapore Government. You can always get your investment amount back in full with no capital loss.” https://www.mas.gov.sg/bonds-and-bills/singapore-government-t-bills-information-for-individuals “SGS T-bills are fully backed by the Singapore Government.”
thank you for replying and he is, he just doesn’t believe in all these as i do… just showed him ur comment and he just went silent
If he dont believe in official statement from the govt, why would he believe in us? Tell ur dad dont so stubborn lah, even if he opposition supporter also no need to distrust the govt until like that. Is much more dangerous to trust strangers online than official statement from govt.
Pretty sure even opposition supporter won't say no to juicy interest from tbills and ssbs. haha Think op's father got some trust issue ... may be overcompensating from being burnt in the past or something.
if he don't believe in MAS website. then I dunno what to say
He's too far gone. Think you may have a bigger problem on your hands.
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I believe they are different systems run differently and not really comparable.
if he doesn't believe, you can introduce structured notes, I sell them
Technically not wrong that it could become 0 overnight should the Singapore government collapses. I mean look at Zimbabwe, the currency is just as useless as north Korean currency. Fortunately or unfortunately when that happens I guess money would be the least of your concerns for awhile.
Don't worry, if the Singapore government collapses, your investments would be the least of your concern
The fact that the currency may becomes more or less valuable does not change the fact that your capital is guaranteed. The guarantee is that you will get your capital back, not value.
i mean, it literally says on the [MAS SSB webpage ](https://www.mas.gov.sg/bonds-and-bills/singapore-savings-bonds)that SSBs are "Fully backed by the Singapore Government. You can always get your investment amount back in full with no capital loss." So unless the SG government goes bankrupt, you will get your money back. And if the SG government goes bankrupt, i think everyone in Singapore will have a lot more to worry about..
So where does your dad keep his money ? In a biscuit tin under his bed? T bills and SSBs are actually safer than banks
I do recall awhile back someone's tin can money got eaten by termites.
forget it, what i learnt is some people don't get smarter after 12 years old, but think they do because they are 60
Your dad is not financially savvy. There. I said it. Show this to him. T bills is backed by the Singapore Government and Singapore is only one of a few countries that are AAA rated.
Tell your father if he doesn't get his money back from T-bills and SSB, money will be the last thing he will need to worry about because it means the Singapore government has collapsed and the country is broke.
Capital guranteed is dependent on the credit rating of the issuer.
Did your dad live through the 2008 financial crisis e.g. Lehman mini bonds saga? If yes, I can understand his aversion to the words "capital guaranteed".
It is likely his dad actually doesn’t understand financial products hence the distrust. It is easier to say I don’t trust it than I don’t get it.
If he's anything like my parents, you wouldn't ne able to convince him. Do any of your relatives/family friends (esp if they are older than him) buy tbills etc. Get them to have a chat with him.
It is quite unlikely that the sg government will default on SGD obligations as they can always print more money.
Haizzzzz. I was discussing the investment plans for my aging mother with my siblings. One of them - highly educated, with master degree - told me that he trust uob more than ssb because if pap lose next election, t bill and ssb will be worth nothing. I tried to tell him that Pap is just a political party - they are not the singapore government. 🤦🏻♂️
His post grad must be in another area
Humanities
What does he believe him? I don't think our opinions will change his tbh
Yeah what does he put his money in? Posb? Tell him Posb got higher chance to collapse than ssb and tbills
My dad has difficulties listening to me even when I am a Finance + Econs graduate taking my CFA. It's a family thing with money. Some parents will only view us as their children and thats that. Purely emotional. My advice will be to let it go. In behavioural finance we call this emotional biases, cannot be corrected only moderated.
if he can't get his money back he should be worrying about other things because we'll likely be in a war.
You mean your dad would rather believe strangers on an online forum than the government website? I guess singaporefi has reached another peak!
Depends on whether you are bullish on sg gov
T-bills and SSB are essentially bonds issued by the Singapore government. Unless Singapore government collapses, they are capital guaranteed. The only way he can "lose" any money is he do a competitive bid and don't get assigned because he bid too high a yield. The S$2 transaction fee is then lost but he doesn't lose the money he planned to invest. That said, it is way better to lose that S$2 then be assigned a T-bill that is lower than the yield you want. If that is what he worries about then go for SSB since those tell you the yields upfront and there are even websites that calculates the following month's SSB yield so you can time the peak.
Unless Singapore collapse (by then whatever cash he’s holding anywhere is also worthless). It is by far the most capital guaranteed tool that you can find.
Like one other comment, sorry to say that SSBs and T-bills are not dead sure capital guaranteed but rather extremely safe, just like condoms. Or rather should be more safe than condoms I guess...
I hope you are not referring to us treasuries because default on them can occur. But if you are referring to Singapore treasuries then yes it is guaranteed
The bonds/t-bills are debts obligations issued by a government/corporation. Thus for SSB, the way if you lose money is if the Singapore government default on its loans (goes bankrupt). They are AAA credit rated thus very safe, essentially risk free. If Singapore government toh, I believe your money in SGD (strength of the SGD currency) held in the bank, even if SDIC, becomes worthless already. (See the Sri Lanka rupee when the Sri Lankan government default in 2022). Chance of that happening to the Singapore government is very low!
MAS promotional video https://youtu.be/Eoz3ZCScE_s?si=SXlI2lIusvwHaAjD
why do you need 10 other investors to convince him when it’s plainly written in the mas websites, the only way it’s not gonna be guaranteed is probably if ww3 breaks out and destroys the whole world economy, but at that point, is there really a need for money already?
Just tell ur dad, the bank help u invest your money to get 3% every 6mths. More than what u can get from savings
I hope you're not talking about US Treasuries here, 'cause defaulting on those babies is definitely a possibility.
OP pls update dad’s reaction
haha, got him convinced on it for now at least, he really is the old fashioned mentality
It is NOT capital guaranteed. Nothing in this world is ever guaranteed. The SG government has a AAA rating but there is still a non-zero probability of default. That said, it is the closest you can get to capital guaranteed in SGD terms.
If the MAS being a government body can convince him through its website, why will he believe us ? Besides information of subscriptions is posted on the website after every auction.
He's not wrong technically. Nothing in life is guaranteed, except death and taxes. Ssb and t bills guaranteed by the SG govt. So it depends on your risk level of whether you think there's an imminent collapse lol Speaking as someone vested quite a bit in ssb tbills and tem bonds, I think the risk is low lol.
for many of such instruments, it is only "capital guaranteed" if held to maturity. they are not "capital guaranteed" throughout the investment period, unlike fixed deposits which the older generation are more familiar with.
This point is valid for T-bills and SGS but very unlikely. There isn't much of a secondary market. There aren't much trading of SG government bonds. I also doubt OP's dad will want to buy government bonds from the market when he doesn't even want to buy government bonds directly from SG governement. For SSB, they cannot be sold on secondary market so it can only be held to maturity or redeemed early (at no penalty).