What should I do with $20k spare cash?

I have about $20k spare cash lying around after taking into account emergency funds, and would like to make it work harder for me, hopefully generate at least 2% interest annually. FD and SSB doesn't look appealing right now.

I'm risk adverse but am open to explore ETF. Would robo-advisors be a good choice?

I also have advice from friends to tell me to use it for down-payment of a property (more for investment rather than to live in it), but I'm not comfortable with the idea of going into debt

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Matt

21 Jan 2020

Some options:

Robo Advisor: Easy, can customize your risk, but there is risk involved. Better sutied for long time horizon.

Fixed Deposit: There are a few which can get you close to your 2% interest goal for 1 or 2 year lockup. Or HSBC has a promo at the moment for 1.75% with 6month lock up.

Stashaway Simple: Some risk, no guarunteed interest rate but could out perform Fixed Deposit with no fee and no lock up.

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Sharon

21 Jan 2020

Life Alchemist at School of Hard Knocks

Hope you have set aside some cash as emergency fund. 6 months of your monthly income...You can go up to 1 year if you wish. If $20K is what's left, I'll put everything in a portfolio of stocks (10-20 counters). You can use Stocks Cafe to manage it.

I have a strong preference towards REITS, so I'll recommend that. Not all REITS are good (don't just look at dividend yield), so you have to do some research or attend some classes on REITS to suss out which has good management (after all how well the business is doing and its direction depends on who's piloting it), WALE etc. Or the simplest is to go for the big boys.

If you like, you can throw in some blue chip stocks.

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