Every little steps – Nov 18

Taking small steps towards building a retirement and investing can be a daunting process. With every little step taken, much needs to be done to make progress in life.

In recent months, bought into my first US treasury bond for the first time. Chosen to take up a less than 5 years maturity tenure. Reason being, I am still new to bonds investing and this is my first encounters. Starting with a small amount seems the safest option – USD200. There are online trading platforms where you can buy bonds – other than banks, some brokerages do offer bonds for purchase from the market. And we are not talking about the SGD bonds though.

So I just received my pro-rated cupon payment for the 2.35% US Treasury bond due in Apr 2020. Effectively providing for less than 2 years of payment – USD 2.37 (seems like there is no withholding tax applied for US Treasury bonds).

It is definitely just the beginning to bond investing. However, the target maximum holding for bonds is not more than 20%. Till the next time.

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