Well done on building up your savings so quickly!
First, do consider doing your voluntary MA cash top-up and voluntary SA cash top-up as a start, which can act as tax reliefs. If you are in the 10% income tax bracket for example, that is "instant gains" you would make and is worth about 2-years of stock market returns. Not to mention the SA/MA accounts are currenting paying 4% p.a. interest, which can act as your bond allocation in the longer-term and CPF returns are much higher than what newly incepted endowment policy can give you (typically 2% p.a. expected returns).
Second, since you likely have a longer-term investment horizon, do consider building up some stock exposure in a diversified and cost-efficient way. One popular strategy is to have a blend of the iShares Core MSCI World UCITs ETF (ticker: IWDA LN) and iShares Core MSCI EM IMI UCITs ETF (ticker EIMI LN). The former offers exposure to approximately 1,600 developed market stocks, while the latter provides exposure to approximately 2,600 emerging market stocks.
Separately, China stocks are still relatively underrepresented by global stock indices (i.e. China and South Korea stocks comprise about 36% and 14% of the earlier mentioned EIMI ETF, but China’s GDP is close to 8x that of South Korea). If you wish to increase the allocation to China stocks to correct for this underrepresentation, iShares Core MSCI China ETF (ticker 2801 HK) is worth considering as it provides exposure to China companies across both onshore and offshore stock exchanges.
Stock valuations are on the expensive side (compared to history due to the current low interest rate environment), so you might also want to consider phasing in your investments over time via a dollar-cost averaging strategy (as opposed to a lumpsum investment).
Well done on building up your savings so quickly!
First, do consider doing your voluntary MA cash top-up and voluntary SA cash top-up as a start, which can act as tax reliefs. If you are in the 10% income tax bracket for example, that is "instant gains" you would make and is worth about 2-years of stock market returns. Not to mention the SA/MA accounts are currenting paying 4% p.a. interest, which can act as your bond allocation in the longer-term and CPF returns are much higher than what newly incepted endowment policy can give you (typically 2% p.a. expected returns).
Second, since you likely have a longer-term investment horizon, do consider building up some stock exposure in a diversified and cost-efficient way. One popular strategy is to have a blend of the iShares Core MSCI World UCITs ETF (ticker: IWDA LN) and iShares Core MSCI EM IMI UCITs ETF (ticker EIMI LN). The former offers exposure to approximately 1,600 developed market stocks, while the latter provides exposure to approximately 2,600 emerging market stocks.
Separately, China stocks are still relatively underrepresented by global stock indices (i.e. China and South Korea stocks comprise about 36% and 14% of the earlier mentioned EIMI ETF, but China’s GDP is close to 8x that of South Korea). If you wish to increase the allocation to China stocks to correct for this underrepresentation, iShares Core MSCI China ETF (ticker 2801 HK) is worth considering as it provides exposure to China companies across both onshore and offshore stock exchanges.
Stock valuations are on the expensive side (compared to history due to the current low interest rate environment), so you might also want to consider phasing in your investments over time via a dollar-cost averaging strategy (as opposed to a lumpsum investment).