05 Mar 2020
Hi, what would be a good investment portfolio for someone in her early 30s with $250K in total savings? Are short term saving plans eg. lock up capital for 3-5 years with 2-3% returns good?
Been trying to start investing but I’m still getting lost with all the terms and methods. Slowly but surely! Considering a private property too.
Wow, kudos to the amount of savings at such young age!
For me, with that amount of money, i will choose to spend into learning and gaining proper knowledge in investing. It will not cost you alot. But investing without a proper knowledge will definitely cost you a tons.
Then, i will choose to park most of the money into dividend paying investment. I like the most is REITS. Of cuz provided you must really understand how to value REITS.
Also i will use a smaller amount example 50k into stock market. I will go for high quality growth stocks. This will help you to compound your money faster.
Lets say you park 200k into dividend assets which give you 5% yield, this will give you 10k per annum. Not too bad. If you do not need the money, reinvest it will help you to compound even faster.
After all, only invest the amount that you can afford to lose. Make sure you set aside emergency fund before allocating into investment.
Last but not least, best thing to do now is to equip yourself with a proper investing skillset.
Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit. Here is a guide to help you: https://www.blog.pzl.sg/understanding-your-pers...
Next, decide how you want to live your life in the long-term. This is beacuse we have about 30 years of life left before we retire. In a blink, a quarter of our life is already gone. Hence, it will be important to start planning for the long-term, e.g. retirement. Additionally, discover any other goals that you may have, e.g. a property in 2 years' time.
With a well-defined goal, understand the tools available to help you. For instance, you may consider a life annuity for your retirement alongside with some investment in bonds, equity, or a balanced portfolio.
For the short-term goals, diversify your money across bonds, endowment, or even fixed deposit.
All in all, take your time to understand what you want. It is only when you have a clear objective, then we can work out ways to help you achieve your goals.
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