facebookI’m 26 and have been working for the past 3 years with 270k worth of savings in cash. Am feeling vexed as to what I should do with the money to FIRE? What is the allocation of savings I should place? - Seedly

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Anonymous

03 Apr 2021

Retirement

I’m 26 and have been working for the past 3 years with 270k worth of savings in cash. Am feeling vexed as to what I should do with the money to FIRE? What is the allocation of savings I should place?

I would like to get inputs on how I could allocate my savings appropriately to grow my money at a steady pace. If anyone is also in quite a similar situation as well? I’ve already done Singlife 10k from my peers and reading seedly’s posts :)

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Lim Boon Tat

03 Apr 2021

Mathematics at Cambridge University

Hey OP! That's, friggin', fantastic. I think it will be wonderful for the community if you could share how you did it? The purist version of FIRE is: passive income from investments = expenses. Gut feel is that you're already there (i'm assuming your expenses is relatively low). ​​​

Hi, care to share how you saved 270k in 3 years

Congrats on saving so much at such a young age.

If I were you, I would first set aside at least 6 to 12 months of my living expenses as emergency funds. (depending on how conservative you are). Put it into high-yield savings account (instead of FD because emergency funds are meant to be liquid)

Next, settle my Protection-based insurance (e.g. hospitalisation, CI, disability, death, personal accident) to ensure my income would be protected and/or my dependents' lives will not be too drastically affected financially if something unfortunate were to happen.

After emergency funds + income protection are settled, the spare cash I would then put into investments. Quoting you, 'GROW my money at STEADY pace'...for the growth aspect I would say put into equities (instead of bonds or REITS), for STEADY growth, put into an index ETF - growth won't be massive but also won't be too shabby. Only if you are hardworking enough to do your research and to monitor your holdings then I would recommend putting into individual equities.

Then, you may also consider your Retirement planning. You can read up more on some 'CPF hacks' on Seedly to understand how you can build up your CPF savings / optimise CPF for your retirement needs.

Just a very brief idea, hope this helps.

Congrats. 270k @ 27 is not to be sniffed at.

No one has said this yet, so I will.
Google 'bogleheads.org', go to their wiki page and look up investing in Singapore.

My first time post here:) and congrats on your saving it is big compare to myself that time!

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