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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Asked by Anonymous

Updated 3w ago

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 3w ago

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
Ric Wang Poh Peng
Ric Wang Poh Peng,
Level 2. Rookie
Updated 3w ago

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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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 6. Master
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 Lee
Gabriel Lee,
Level 6. Master
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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