facebookI have invested $20k into stocks (40%), Roboadvisors,(5%),Endowment (35%),ILP (20%), with savings of $5k. My Investment:Savings ratio is 4:1. Am I doing it right and safe? - Seedly

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Anonymous

08 Jun 2020

Saving Hacks

I have invested $20k into stocks (40%), Roboadvisors,(5%),Endowment (35%),ILP (20%), with savings of $5k. My Investment:Savings ratio is 4:1. Am I doing it right and safe?

I currently working $2.5k/month (22yo)

I would like to seek advice.
Here are my parameters:
$250 monthly - RoboAdvisor (Current: $1100)
$150 monthly - ILP (Current: $3750)
NTUC Capital Plus 3yr maturity 2.13% - $7000
Stocks - $7000+ yield @ 4.22%

I have Low expenses monthly ($250-400).

I intend to buy more stocks for 5+yr horizon. Am I exhausting my savings? What could potentially happen if I remain (Invest : Saving 4:1 ratio)?

I would want to achieve Financial Independence in 7+ years (30 year old)

Discussion (4)

What are your thoughts?

Hariz Arthur Maloy

Hariz Arthur Maloy

08 Jun 2020

Independent Financial Advisor at Promiseland Independent

Hi Anon good work so far!

Just make sure you're adequately insured as well and you have an emergency fund.

But just to highlight your path to financial independence, earning more income through employment or side hustles will be multiple folds faster than from investments.

So try doubling or tripling your income earned and hitting financial independence by 30 would be much easier.

Even if you earn 20% return on your 20k right now, that's only 4k. If you just add 1k/mth from side hustles it would be 3 X more than your investment return. So focus on that.

View 2 replies

You are doing too save, too diversify is not good. You can find more about financial independence with keyword “FIRE”, Financial Independent Retire Early. Where u can get a formula to calculate how much u need to reach the goal.

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