i saw the recent kelvin learns investing
https://www.youtube.com/watch?v=kqLqa_SYNyw
wow
FINALLY
after years and years, people realizing about IB01 and ERNA, lol
his story is very long
so let me cut short
IB01 is the default answer for 95% of people
ERNA if you okay with corp bond risk for more yield
he talks about using IBKR as a broker
i agree, IBKR is the best broker
but
big butt here
banks also want you "do business" with them
premier / priority banking always has AUM requirements
and that is where this knowledge can be useful
in most cases, securities can be counted as AUM
i say most cases, because i know OCBC doesnt count securities as AUM lol stupid fucks
this means, rather than roll a fixed deposit and have an obligatory talk with your RM about why you humji dont want to invest in any other things and want to roll your FD
you can just buy this, it auto rolls and accumulates, and you never need to talk to them again
amazing product
anyway
myself, i use IB01 as a superior form of FD with the banks
for emergency cash
cash that i know i dont need immediately, but i want it to be cash because of portfolio construction
if i need it back as cash, i sell it against a healthy volume order book, and get cash within a few days
just like how credit cards are the superior form of payment in singapore
IF YOU PAY IT OFF EVERY MONTH
compared to debit cards
due to the points / cashback
similarly
MMFs and these type of ultrashort bond / mmf ETFs are superior to fixed deposits or direct bond purchases
they are better in every meaningful way: automatic, liquid without penalty
while worse in ways that no one cares: credit risk between govt and banks
i will say it again
if you prefer fixed deposits or tbills
you are either uneducated or irrationaly humji
