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Anonymous

18 Apr 2019

General Investing

What is a good assets allocation for a person in late 20s?

My current allocation is 80% Cash and 20% ETF. Am I doing right? Single with no house but planning to be engaged soon..

Discussion (3)

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Loh Tat Tian

26 Dec 2018

Founder at PolicyWoke (We Buy Insurance Policies)

Well for starters. Need to understand yourself first.

1) please exclude all the cash required for wedding, Bto (if you are using it) and any other major expenses you foresee. Also, emergency funds should not be included (6 months emergency fund). Then recalculate the asset you have.

2) from there, you can see your investment allocation. Anything more than 50% cash is an overkill, because its better to invest in the markets.

3) for your age, consider high allocation into equities (but if you are still new, go for index etfs). Bonds (which I term it as CPF SA) gains 4% p.a, which is good enough (10-20% allocation).

4) Still, you need to know what you do not know, to find out more.

Hariz Arthur Maloy

26 Dec 2018

Independent Financial Advisor at Promiseland Independent

After setting aside 6 months of your salary as an emergency fund, plus about 1-2 months for daily and lifestyle expenses, I would have a 75% Equity and 25% Bond allocation for my investment diversified through both geographies and industries.

Nicholes Wong

26 Dec 2018

Diploma in Business Management at Nanyang Polytechnic

The rule of thumb is 110-Age=% of stocks. So it should be 80% stocks and 20% bond if you are close t...

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