I am planning to reevaluate my monthly cash flow and allocate some of the savings for long-term investments. Previously, I primarily invested in S&P, MSCI, and REITs through regular saving plans. Now, I intend to add a small portion of low-risk investments to my portfolio.

For long-term investments (after 55 years old), what options should I consider for low-risk investments?

Fixed Deposits: 1%~3%

  • ⭕️ Risk-free, high liquidity
  • ❌ Not suitable for regular contributions, low returns, re-investment risk

CPF OA Housing Refund: 2%~2.5%

  • ⭕️ Risk-free
  • ❌ Moderate returns, capped, very low liquidity

Top up CPF SA (Special Account): 4%

  • ⭕️ Risk-free, good returns
  • ❌ Capped, extremely low liquidity

Singapore Savings Bonds (SSB) / Treasury Bills: 2%~4%

  • ⭕️ Risk-free, high liquidity
  • ❌ Not suitable for regular contributions, re-investment risk

Fixed Income Funds, Bonds: 3%~5%

  • ⭕️ Suitable for regular contributions, relatively high long-term returns, very high liquidity
  • ❌ No capital guarantee, slightly higher risk, requires some effort and attention

Insurance Savings Plans / Endowment Plans: 1%~3%

  • ❌ Low liquidity, high fees, low returns

When comparing these options, it’s challenging to find a low-risk investment product that can match CPF in terms of risk level and returns. My plan is to first contribute to CPF SA/MA, then top up CPF OA for housing refunds, ensuring a 2% return and allowing flexibility to transfer funds to Treasury Bills. Whether it’s fixed deposits, savings accounts, or SSB/Treasury Bills, in a low-interest rate environment, the returns are relatively low. I remember that in 2021, all these options were below 2%. At that time, people were rushing to take advantage of Singlife’s short-term savings rates when they just reached 2%. I eagerly deposited a substantial amount into my son’s CDA (Child Development Account) with a 2% interest rate.

With surplus money, I will consider SSB, Treasury Bills, or fixed income funds.