16 Apr 2020
I’ve heard of the 50/30/20 rule for monthly salary allocation. Is there a similar rule for net assets? As in, how much of my total net worth should be in investment, insurance, cash and etc?
What's a good breakdown to have?
I'd say to invest at least 20% of your salary. More if you can help it. Also, try diversifying beyond robo advisors. You will need other asset classes in your portfolio as well.
In terms of priority, definitely look at insurance first, get your medical and personal accident covered first, after that look into a whole life policy.
An overall guideline for insurance is that it should only take up 10-20% of your income.
In terms of savings, the saying goes that if you are saving 20% of your income, you are planning for retirement, 30% of your income, then you are looking at getting financial freedom once you have retired, so maybe just something to think about
I would say that insurance should be prioritised first. Without insurance, you'll need to fork up a ...
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