Next weekend burnt, some thoughts... and a bond ladder.

I was just told by my supervisor that I have to attend a conference over the next weekend so chances are that I can't write post for that week. I thought I will try to write one more this week as well as maybe one by Friday next week and maybe an extra post the week after too. (Trying to make myself write more too).

On dividends:
I'll be buying a book or two from Amazon as I am too researching on how to better screen my dividend stocks. I think I will do an article (or a series) on evaluating Singapore dividend paying stocks.

On growth:
My stance for growth remains the same, I'll buy ETFs over picking individual stocks (Dividend screening actually takes a lot of time already). So will still look at buying S&P500 ETFs and STI ETFs during pullback/corrections (value averaging keeps the trader in me happy somewhat :p). Once my portfolio is sizeable as well as I achieve adequate capitalisation, might look into mid to long term S&R points to buy well, hopefully it enhances the return. (Try on SIM first).

On cash stash:
Currently, OCBC 360 account is the best account for the interest. DBS Multiplier could be good, but it kinda screws up your budgeting.
CIMB StarSaver Savings Account bank is another option, with about 0.8% p.a. incremental (and not affected by withdrawal unlike OCBC Bonus+ Account), but the ATMs and branches are real hard to find, might be better as an account to park your money temporary for access.

New idea:
Another interesting idea I am looking at for stashing cash in excess of Emergency reserves and cash for investing on pullbacks, and excluding gold (but gold takes a long time to pullback), is an idea that a friend's friend suggested.

A bond ladder.

A brief explanation: You rotate the money placed into bonds in a cycle of a set amount of years (3-5 years), with the bonds maturing in 3-5 years (dependent on your cycle length), where the bond you buy on the first year matures on the last year.

Why? Because a 20 year bond, has a higher risk due to market exposure. And it locks your money in. The ladder is there to ensure you have cash for opportunities during the process (remember that if you exit from a premature bond, you lose all interest). It has a generally higher interest than those sad Fixed/Time Deposits and avoids all the charges unlike endowment plans.

Anyway, I'll try to post more on my own trade executions and remember, do read up yourself too. I won't be always right and I usually only look for opportunities when I have the cash to invest (long term KIV is there but still).