4% retirement rule - valid in HK

[traineeinvestor]

How are we doing GXPers?

Me after reviewing the portfolio's performance so far this year:

[huja]

@huja - by CD ladder you mean fixed deposits that expire in say 30,90,120 days?

Exactly. When the 30 day matures you either use that cash or put it into a 120 day CD. That way you have a maturing CD every 30 days or whatever time period works for you. You can do that same with Treasury Bonds.

[shri]

Exactly. When the 30 day matures you either use that cash or put it into a 120 day CD. That way you have a maturing CD every 30 days or whatever time period works for you. You can do that same with Treasury Bonds.

Been contemplating that given that interest rates are picking up. Have had no incentive so far given the state of HK banks and their FD interest rates.

[pin]

Exactly. When the 30 day matures you either use that cash or put it into a 120 day CD. That way you have a maturing CD every 30 days or whatever time period works for you. You can do that same with Treasury Bonds.

This works in the States, but not really in HK.

[shri]

This works in the States, but not really in HK.

Dare I ask what is different about HK that would prevent this?

[freeier]

Dare I ask what is different about HK that would prevent this?

Don't think any.. just in hk its more commonly executed as a fixed deposit whereas some other countries uses certificate of deposit ?
Asia issuing certs are expensive i guess...

To do a rolling for treasury bond, i think each clip is 200k USD ?

[shri]

To do a rolling for treasury bond, i think each clip is 200k USD ?

You can do it with fixed income etfs..

https://www.ishares.com/us/resources/tools/ibonds

[pin]

Don't think any.. just in hk its more commonly executed as a fixed deposit whereas some other countries uses certificate of deposit ?
Asia issuing certs are expensive i guess...

To do a rolling for treasury bond, i think each clip is 200k USD ?

I guess so. I guess the issue is the interest rates for fixed deposits in HK are terrible.

[freeier]

I guess so. I guess the issue is the interest rates for fixed deposits in HK are terrible.

but would be fairly similar everywhere in the world when Fed sets the interest rate at 0 for so long.. if fed sets it at 0 and any bank still willing to give 4-5% of rates, i would be wary of that bank

[shri]

You can do it with fixed income etfs..

https://www.ishares.com/us/resources/tools/ibonds

Throwing this document in for future reference if someone has questions about iBond specific ladder implementation.

https://www.ishares.com/us/literatur...us.pdf?noembed