Hi Ching Chin, thank you for your question. It depends on your personal circumstance, your risk appetite, and also more importantly your retirement goals. One other thing that you need to take into consideration is whether you want just enough to live on in retirement or you want to maximise returns later if you have enough to provide for an inheritance for your children or to leave behind for charities, for example. Perhaps one way to look at it is to bucket your retirement money into 3 portions.
1. one for you to withdraw within 5 years, that can be invested in a high allocation to fixed income portfolio
one for you to take some risk and withdraw over your retirement life. that can be invested in a 60% equity & 40% bond portfolio
one can be invested more aggressively for charitable causes/inheritance. that can be invested in a 80% equity & 20% bond portfolio
a short term cash liquidity need that can be managed using Endowus Cash Smart.
I think the rule of thumb is the older it is, the less riskier your portfolio should be. Meaning less allocation on stocks and more on bonds / REITS / CASH
So for the younger peeps, 100% stocks is also considered risky.
So most propbably a mixture of bonds / comodites or prevcious metals / mutual funds / REITS would be good.
The safe haven are usually bonds but those returns are very low.
Dividend stocks (like REITS) are also recommended if you want to generate addiitonal passive income.
View 2 replies
Write your thoughts
Endowus Cash Investments Portfolio
0.25% to 0.60%
ANNUAL MANAGEMENT FEE
EXPECTED ANNUAL RETURN
Web and Mobile App
[PROMO] Get S$20 off access fees. Valid till 31 Dec 2021. T&Cs apply. Learn more below.