So far, I have experienced two short windows of LIR (pre-paid). So far, I see myself as net-long LIR i.e. thriving on rising LIR. However, this 3rd loan tenor will be “indefinite”… the prem financing loan (https://tanbinvest.dreamhosters.com/wp-admin/post.php?post=110&action=edit). Am 90% confident that I’m still long LIR.

— Observation: rising LIR has always accompanied rising DIR, though DIR may rise less than LIR.

— Fact: net creditor to banks… My cash balance always dwarfs my bank loan. At any time I always have enough to pay off my loans.

— Fact: big saver… Most of my adult life (let’s focus on post-2007) I have enjoyed a good brbr. Consequently, during high-LIR times, I have amassed growing cash piles and rode the DIR wave, or suffered from low yield

— Fact: high-LIR environment helps prop up payout rate of my paid-up insurance plans.

— Observation: high LIR may accompany inflation [ erosion of SGD purchasing power ] but LIR and inflation are not well-correlated. Singapore inflation is more correlated with exchange rate not LIR .. a key feature of the Sgp economy and MAS.