Hi I am a NSF, gonna work a year then study uni. I have $2k in SSB and $5.5k in SAYE for this 2 years and still contributing every month, also I have Posb Invest saver. What else should I Invest in? I have 5.5k left and I don’t know what to do? - Seedly
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Anonymous

Asked on 07 Jun 2018

Hi I am a NSF, gonna work a year then study uni. I have $2k in SSB and $5.5k in SAYE for this 2 years and still contributing every month, also I have Posb Invest saver. What else should I Invest in? I have 5.5k left and I don’t know what to do?

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Eddie Yeo
Eddie Yeo
Level 3. Wonderkid
Answered on 11 Jun 2018

Invest in yourself, get more knowledge.

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Dominic Chang
Dominic Chang
Level 3. Wonderkid
Updated on 07 Jun 2019

Depends on how hard you want to work. Firstly, you have 7.5k in savings, and 5.5k left. I would just leave them all in either SSB, or a short term endowment (less than 4 years.) This is to have money to pay off your fees on your final year and prepare for grad trip (if you intent to) and savings when you transit between being a student and working. FD also isn't a bad choice if you can find one with good rates, but SSB 1 year rate is kinda really good now.

PS this assumes you are going to pay your fees in cash in full.

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Ching Shy Lim
Ching Shy Lim

20 Sep 2018

Any short term endowment to recommend?
Dominic Chang
Dominic Chang

04 Dec 2018

Not looking at any at the moment. I remembered there was once FWD was offering 3 years @ 2.02%. But this month's SSB should even beat that

Hi,

1) If you have a sum of money, firstly set aside an emergency fund for rainy days.

2) make sure you have protection for your downside, health, critical illnesses, and personal accidents

3) Any FREE cash after point 1 & 2, then take out a portion to invest in the most important thing - your own knowledge.

Buy investing/financial education books: Rich Dad Poor Dad, One up Wall Street, 5 Rules of Successful Stocks Investing.

Watch online investing videos to learn the ways of Warren Buffett.

1 comment

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Heah Min An
Heah Min An

24 Dec 2019

True, I’ll remember to protect before I go offensive.
Ric Wang Poh Peng
Ric Wang Poh Peng
Level 4. Prodigy
Updated on 07 Jun 2019

Your 5.5k should serve as your emergency fund and as your income comes in you can continue to put into your SSB due to its good liquidity.

As university starts, you need manage the cash flows properly as working would take up the time you need for studying. A delicate balance is required, save some money for some overseas exposure as when you get into the working world, sometimes money can’t even buy you that overseas experience + network.

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Serene Toh
Serene Toh

20 Sep 2018

Agree. in addition, you will also need to money when you start looking for a job and when you start a job before your first pay, for travelling, buying work clothes, food, basic grooming (need to look clean for interview)
Kenneth Chia
Kenneth Chia
Level 3. Wonderkid
Answered on 08 Jun 2018

Hi, given your age and info (further studies in uni) you would want to take a moment to assess your risk appetite and horizon.

Risk appetite can be found by asking yourself questions like how much are you prepare to lose, are you a high/medium/low risk taker etc

Horizon would mean how long do you intend to stay invested for in that product etc

By understanding more about yourself, you will have a better idea of your investing direction :)

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Colin Lim
Colin Lim
Level 7. Grand Master
Answered on 14 Apr 2020

During my NSF time, i stay in camp and save alot of money in bank... But i didnt do anything to it. 😂

Its good to see you have start doing something and growing your wealth.

First, dont force yourself to buy because you just want to invest that remaining 5.5k

When i ord, i rest 3 months, found a job after another 3 months. Start your planning first.

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Cher Don
Cher Don
Level 3. Wonderkid
Answered on 14 Apr 2020

I would suggest you put a small amount into StashAway, and invest a small amount every month ($100/$200). Since the market is climbing, StashAway gives away higher than normal interests with little risk and no management.

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Hi there!

If I am in your position and this 5.5k is not a necessity for me to use it in near future, I would invest into either:

  1. ETFs

  2. Broadly Diversified UT investments

  3. A small portion of it investing into a sector after doing considerably read-ups (eg: REITs, Healthcare, Technology, Sovereign, etc.. )

Hope it helps! ​​​

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MT2020
MT2020
Level 7. Grand Master
Answered on 25 Feb 2020

During NS, there is tons of time. For me, when i was in NS, i used to borrow books from the library and read about investing. You still have a very long timeframe. Perhaps you could look at investing in more growth stocks.

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Liu Yuantai
Liu Yuantai, Coach, Speaker at Happy Man Club
Level 4. Prodigy
Answered on 04 Feb 2020

Good question!

I'll recap some of the good replies, which I agree.

Financial planning is like a playing football, there is defense, midfield and attack.

1) the defence: protection, insurance, income replacement and medical coverage.

Getting yourself educated also counts as defence.

2) the midfield: medium to long term instruments e.g. Blue chip stocks, bonds, etf.

3) offence: higher risk but higher returns.

Stocks and equities, or even fx.

It is always good to start young, for you have the most valuable resource, time, on your side.

Wish you all the best in your journey!

You may reach me at [email protected] if you have further queries 😁👍

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Good job on having lots of savings. It presents you with options and dilemma at the same time as you will be thinking where should i be investing my money into.

It is actually okay to keep it as cash too if you are not sure what to do with it. Or put into short term safe investments like fixed deposits while you decide on your next actions.

It can be putting more to your existing investments or into stocks/bonds/ETF.

Hope the above helps

I write cool stuff about personal finance and money-saving hacks here.

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport
Top Contributor

Top Contributor (May)

Level 9. God of Wisdom
Answered on 28 Jan 2020

VOO

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 8. Wizard
Answered on 20 Sep 2018

Find out your risk profile first. Are you the conservative type? Balanced, or aggressive? Each profile has its own range of suitable instruments.

Conservative: SSB, savings accounts, bond ETF, fixed deposits, CPF SA. More "risk-free" in nature

Balanced: Mix of equity and bonds, about 50% each

Aggressive: Heavily leaning towards equities, little portion on bonds. Alternative instruments. Equity ETFs, stocks, derivatives (options, forex, futures trading). Crypto. Commodities

Learn about investing through books like Millionaire Teacher (local SG context) or Intelligent Investor. This will help you gain some perspective on investing and attain some basic knowledge.

If reading books is not really your cup of tea, I'd suggest paying to attend an investment workshop. Will cost a pretty penny, but it's a skillset you can apply for life. For me, I see this as a shortcut towards an early retirement.

End of the day, you need to be able to sleep well at night and not worrry about the performance of your portfolio. Hope this helps.​​​

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Gabriel
Gabriel
Level 8. Wizard
Answered on 20 Sep 2018

Hey, I'm assuming that you're trying to save up to pay off for your university fees. You can consider increasing the amount you pump into your POSB SAYE account to make full use of the 2% interest at the end of 2 years. Alternatively, you can park it in CIMB FastSaver (1%) or CIMB's Fixed Deposit (1.84%) for 1 year (promotion until end of September). You can also choose to invest in US ETFs through robo advisors via Stashaway or Smartly. P2P lending offers attractive returns as well but it's more risky as lenders (SMEs) might default on their loans

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Alan Seow
Alan Seow
Level 3. Wonderkid
Answered on 11 Jun 2018

You might want to consider using a small portion of this amount to learn or buy books and i crease your competency in investing. But investing in a low cost fund if you have no idea what to invest in is a good idea. Once u build the competency you can do stock selection.

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