Hi all, I'm 22, a uni y2 here, currently have 8k in StashAway. Have an extra 10k savings that I really don't want it to sit in the bank. Should I just split the rest in StashAway and at what risk indexes? - Seedly
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Anonymous

Asked on 07 Jul 2020

Hi all, I'm 22, a uni y2 here, currently have 8k in StashAway. Have an extra 10k savings that I really don't want it to sit in the bank. Should I just split the rest in StashAway and at what risk indexes?

More info: 3k at 12% and 5k in Simple but haven't been DCA-ing for a while.

Looking to DCA a few hundred in a >20% one and the rest in the other two. Plan is to clear my student loan asap after grad with all these but tbh I don't know if that's even optimal (too short term of a goal?).

Also wondering if just SA is sufficient since it's passive and relatively brainless, or should I just not be -lazy- and try out other investment vehicles or even other robos..?

Any input is welcome! Thanks!!

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Summer N

Level 3. Wonderkid

Answered on 08 Jul 2020

Assuming that the full 18k is meant to clear student loan, I wouldn’t put any of them into investments as those are for more long term goals.

Instead, I would do the following:

First 10k into Singlife to earn 2.5%, which is more than what stashaway simple can provide

Next 8k into either Dasheasyearn (2% first year, 1.5% subsequently) or Elastiq (1.8%).

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Tinexxxx

Tinexxxx

Level 6. Master

Answered on 08 Jul 2020

1) put 10k into singlife to get 2.5% p.a!!!

2) the remaining 8k -> Dash for 2% p.a

3) or sign up short term endowment plan & make sure it’s GUARANTEED returns!

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As you have highlighted that your goal is to clear your student loan asap, I think it is unwise to invest in equities as it carries a higher risk than Stashaway Simple and Stashaway 12% risk level.

As what yhlens have mentioned, you should withdraw the 5k in Simple and to sign up for Singlife so as to get 2.5% p.a as of now.

You can top up to $10k in Singlife and to look for other alternatives like Etiqa or Singtel Dash EasyEarn.

My point is if your main goal is to clear your student loan, I wouldn't really want you to risk your monies in equity which carry higher loan. You should look for safer instrument instead.

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In my opinion, the 5k in simple can be taken out and allocated to Singlife 2.5%. As a young adult in the 20s, we will be able to take on more risk and hence equities should make more sense as it outperforms any other asset class in the long run. Strategy wise, you can consider putting the 10k into Syfe Equity100 portfolio and allow this 10k to enjoy capital gains. The current 3k invested is a small portion of your overall portfolio as well. This is just my suggestion but if you have any more questions, comment down below and we can have a chat!

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Question Poster

09 Jul 2020

Thanks again, yep did read your post and do understand that I can afford to go full equities at my age. However, would you then say that the 10k you suggested to go into Equity100 would be to go long-term? But one thing that I don't really understand how "long" is long-term. I'm assuming at least 3 years.
Lin Yun Heng
Lin Yun Heng

09 Jul 2020

When we talk about long term, we need to see what kind of long term goal you're investing for. If it is for retirement, you can plan it on a 10 year basis and dollar cost from there. You don't have to put in the full 10k in a lump sum, but rather split it into different tranches and enter slowly each month. A good way is to put 2k in on a monthly or quartely basis. Most important is to stay invested and have holding power.Hope it helps!
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