Hi guys, I am a 24 year old about to graduate from university in a few months. I worked out my finances and estimate that I would be able to set aside $11K per year for investment?

Robo like syfe via dca

Hi anon,

If you intend to buy a 3 room flat (presumbly at 35), then your regular contributions from work should be able to ensure that funds are available for downpayment from CPF OA (if that is your intention). If you wish to pay off your flat by 35, that's another matter entirely.

So, with the housing matters settled, let's look at your 3 buckets for short, medium and long. Anything short term should be set in instruments such as FDs, SSB, short term endowments, high interest saving accounts and money market parking funds. These will growth your monies a bit without too much risk, while providing some level of liquidity (except maybe for short term endowments).

For medium risk to high risk instruments, you can consider ETFs, UTs, stocks and such. You will have to decide which holdings/companies, etc suit you and act accordingly.

I'd suggest a 30-70 to 40-60 split between safer short term assets and mid to long term assets. Adjust it as you progress in your investment journey, to take into account personal preferences and styles.

To live comfortably at age 35, you will have to look at income producing assets. Income is the at the heart of your life as without income, you cannot really live your daily life. Even accumulating wealth to buy a house or invest requires you to earn an income first. Build up your income streams so that by 35, if you can have your living expenses met by your passive income, you will have a peace of mind knowing that you can continue to meet your bills even if you lose your job or decide to take a break from work.

Lastly, I'd suggest that you build up an emergency fund before you start. This should hold at least 6 months of expenses, and preferrably up to 12 months. Also, ensure that you have sorted out your insurance coverage before you start to invest.

Good luck!