facebookI am 28 a university graduate and have been working for two years. I recently came into 300k and am looking to invest. If I were to put a specific (but idealistic) goal: 1 million before I turn 35? - Seedly

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Anonymous

02 Feb 2020

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I am 28 a university graduate and have been working for two years. I recently came into 300k and am looking to invest. If I were to put a specific (but idealistic) goal: 1 million before I turn 35?

For context: I honestly thought I would have to work really hard before I could even see 100k liquid assets by 32-34 so i immediately dismissed some options but now I am open to more opportunities so I was wondering what they may be. My job is a 9-5 that pays decently. Thanks for all your help.

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Lim Boon Tat

02 Feb 2020

Mathematics at Cambridge University

To make 300k turn into 1M in 7 years (35 - 27) requires a CAGR of 18.77%. Not impossible, but not guaranteed in the next 7 years, and it will involve some level of volatility. Take some time to invest in your own education. This is certainly a good windfall, and certainly you are wayyy ahead of your peers. In this type of cases, i would follow Warren Buffet's two famous rules:

Rule 1: Don't lose money

Rule 2: Dont forget rule 1.

Here's a more risk-averse perspective: Assuming retirement is another 39 years away (retire at 67), your 300k can easily turn into 1M with a 3.14% rate. easy peasy. ā€‹ā€‹ā€‹

Look into getting insurance protection in place first before investing - medical / term / critical illness / total and permanent disability coverage, if you don't have this in place already. You can't buy health once it's gone.

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To address the main part of your question, to achieve another S$700,000 in 7 years is possible using a portfolio of options on stocks. With this method, it's easily a comfortable 30% per annum return on your principal.

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It's not for everyone, as there will be higher risk involved, and you will need to find someone who will teach you how to do this (so that you know what are mistakes to avoid and risk can be managed). I did a sample calculation for you via the calculator.net website based on your principal amount and the rate of return I mentioned, compounded monthly, and pasted here for you to take a look

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https://www.calculator.net/interest-calculator....&cannualaddition=0&cmonthlyaddition=0&cadditionat1=beginning&cinterestrate=30&ccompound=monthly&cyears=7&ctaxtrate=0&cinflationrate=0&printit=0&x=86&y=17#interestresults

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Based on the calculation, you will achieve your target by the end of year 7, more than double over.

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I am using this method with the aim of retiring early.

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Hope this helps and all the best.

Given that u managed to save $300k, after 2 years of working, your income must be really high. Can c...

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