What's the best way to invest a recent inheritance of 1.5 mil from the sale of my parents' condo?

My advise:
1. Pay back your CPF OA amounts used for property purchase. You can't go wrong with this step. Putting back your OA is being responsible for your future self. It also grows at a risk-free interest rate. It also parks money where suddenly close friends and relatives cannot touch.

2. Then look at your debts. If you have no instrument that can outdo the bank loan interest, then clear the pty loans first, car loans, study loans...

3. Then invest.

Woah I have been seeing quite a few lucky kids inherit money from the sale of parents/grandparents condos lately!

First thing: Thank your parents/grandparents for the windfall. Treat them well and make sure the proceeds from the sale benefit them. After all, they bought the condo.

Now with that set-aside, I guess Hariz and the other respondents have already covered how to invest that money! Personally I would just put it into a high rental yield property and stocks, although I have not been tracking the former as closely as I previously did so am not sure what the current market conditions are.

1) I won't pay off my housing loan as the interest rate on such a secured loan is very low.

If you took a bank loan, you can easily refinance or reprice for 1.89% now.

If it's HDB housing loan, it's 2.6%, still not so bad.

2) diversify your recent windfalls. do dollar cost averaging, and make an effort to find out how you can DIY, because this "part-time job" may pay you more than your current job. Go google for IWDA ETF for the lowest cost-effective way to invest globally with a low tax rate (For the fund) and hence a low fund fee.

If you prefer Singapore stocks, go for STI ETF.

Actually I can't think of other returns better than IWDA and STI ETF unless you are a stock picker. Other than that, I honestly won't put the money (if it's me) elsewhere.

Maybe keep in the bank a small sum for emergency (good or bad)?

I have no idea whether you are happily employed, if you are not, you can take a tiny portion to learn some business skill sets.

Also, if you are married, do discuss with your spouse on IWDA ETF, and any business potential and any needs.

Other than your spouse, I say don't have to tell other friends or relatives of this recent amount.... Have a good interesting journey.

PS: oh yes, pls do donate a small sum to a charity that both your spouse and you would be keen in. A small sum of money that will do wonders for clarity on your life ;)

Hi. There are many options opened up to you to grow your wealth but I suggest you don't dive into it without doing your own research.

First, on your mortgage loan, is it with bank or HDB? Current bank mortgage loan interest is very low. If you are still working and your CPF is able to pay back the loan, I will suggest you stick to it first.

For inherited amount, I will tell my clients to set aside some portion for liquidity and invest the rest of their wealth but yet also create options for liquidity and capital preservation. If you don't need this 1.5mil to settle any emergency matters now, consider portion some for

1) emergency funds (create liquidity)
2) investment (build up ur passive income and capital grow)

There is no standard answer on how you should Investment cos there are tailored made to an individual based on their preference, risk, time horizon and objectives. Speak to someone you are comfortable with to find out the available options.

Hope this help!