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Anonymous
I want to have the flexibility of liquidity but have the highest interest possible. This 5 year horizon is for me to save up for housing reno when the BTO is up. Please advise. Thank you!
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A savings plan sold via an insurance company will guarantee u lose control over your money in exchange for negative real return. Just keep it in cash and upgrade yourself to earn more. Inflation does not affect non wealthy people, you don't have anything to erode if you aren't rich
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It would depends on the risk you are willing to take.
For someone conservative, you can consider investing in money market funds or short term endowment plans for low volatility and liquid instrument or for capital and returns guarantee respectively. Returns would hover around 2%.
If you are willing to take more risk in hopes of capital appreciation, you can consider investing in equities. I would suggest investing only a portion since there is no knowing how the market will be after 5 years and on the off chance there is another downturn, you may need to fork out more capital. You can consider investing through roboadvisors for monthly investments.