Fixed Income: A Christmas Gift That Keeps on Giving

The year-end holiday season is here! It’s that magical time of the year when we party, spend quality time with our loved ones, and maybe indulge a little with gifts, vacations, and festive treats. 

For many, this is also the time when year-end bonuses arrive—a reward for your hard work throughout the year.

But here’s a thought: instead of spending your entire bonus on fleeting pleasures, why not invest a portion to secure long-term wealth? Fixed-income investments offer a stable and reliable way to grow your wealth while still leaving room for festive fun.

Turn Your Year-End Bonus into a Wealth-Building Habit

Year-end bonuses are a reward for hard work, and it’s tempting to use them entirely on short-term joys like travel, shopping, or festive feasts. However, savvy investors know that this windfall can be your foundation for building long-term wealth.

Consider allocating a percentage of your year-end bonus to investing. Whether it’s 20%, 50%, or even the full amount, this disciplined approach ensures that your money works hard for you well beyond the festive season. 

Doing so also forces you to save and prevents you from overspending—a necessity for those of us who may get carried away by the year-end reverie.

Tap The Power of Compounding 

Let’s illustrate this with some numbers. Imagine if you receive a $10,000 year-end bonus and decide to invest $5,000 every year in an investment with an annualised return of 6%. With the power of compounding, the final amount earned would be $74,858 at the end of 10 years. That’s nearly $20,000 in returns—without any extra effort on your part.

Now, think about what you could do with that additional $20,000. It could help pay the downpayment for your dream flat, giving you a head start in securing your first home. Alternatively, it could partially cover your child’s university tuition fees, easing the financial burden as they pursue their education. You could even use it to fund a well-deserved family vacation or build a cushion for early retirement.

This is the power of compounding: your money doesn’t just sit idle — it works hard for you, growing steadily over time. 

Why Fixed Income Shines During the Holidays

The holidays are a time of celebration, but they’re also an opportunity to take stock of your financial stability. Fixed-income investments stand out during this season because they offer predictable and steady returns, making them a reassuring choice amidst the uncertainty of global markets. 

Unlike volatile assets like shares and unit trusts, fixed income instruments provide a reliable foundation, allowing you to focus on your festive joy without worrying about sudden market swings. Such stability is important for busy investors who do not have the time to monitor a bull or bear market.

Fixed income further helps you to diversify your financial portfolio, especially during times of increased spending like the holiday season. Whether it’s bonds or real estate-backed loans, these investments prioritise the preservation of capital while delivering consistent growth. 

BigFundr: A Better Place to Park Your Holiday Bonus

This Christmas, instead of letting your year-end bonus melt away like snow on a sunny day, why not turn it into a gift that keeps on giving? BigFundr offers a stable and secure platform for fixed-income investments, helping you grow your wealth while enjoying the holiday cheer.

Here’s why BigFundr stands out:

• Regulated and Transparent: BigFundr is licensed by the Monetary Authority of Singapore (MAS), ensuring a safe and transparent investment environment.
• Low Entry Barrier: Start investing with as little as S$1,000, making real estate-backed fixed income accessible to everyone.
• Three Layers of Protection: Each loan is secured by real estate collateral, a personal guarantee from the borrower, and a buy-back provision from fund management companies.
• Predictable Returns: Earn fixed returns often exceeding 6% per annum, with monthly interest payments providing steady cash flow.

BigFundr simplifies the entire process—from secure Singpass sign-ups to easy investment selection—allowing you to start earning with just a few clicks. 

This holiday season, let your bonus do more than cover gifts and festivities; invest it in opportunities that grow steadily into the new year.