05 Mar 2020
Hi, what would be a good investment portfolio for someone in her early 30s with $250K in total savings? Are short term saving plans eg. lock up capital for 3-5 years with 2-3% returns good?
Been trying to start investing but I’m still getting lost with all the terms and methods. Slowly but surely! Considering a private property too.
Wow, kudos to the amount of savings at such young age!
For me, with that amount of money, i will choose to spend into learning and gaining proper knowledge in investing. It will not cost you alot. But investing without a proper knowledge will definitely cost you a tons.
Then, i will choose to park most of the money into dividend paying investment. I like the most is REITS. Of cuz provided you must really understand how to value REITS.
Also i will use a smaller amount example 50k into stock market. I will go for high quality growth stocks. This will help you to compound your money faster.
Lets say you park 200k into dividend assets which give you 5% yield, this will give you 10k per annum. Not too bad. If you do not need the money, reinvest it will help you to compound even faster.
After all, only invest the amount that you can afford to lose. Make sure you set aside emergency fund before allocating into investment.
Last but not least, best thing to do now is to equip yourself with a proper investing skillset.
Building a successful portfolio requires a lot of thinking through and you must analyse each and every one of your investments rigorously before you start investing. As someone new to investing, you might find this process daunting, which is why it is more beneficial to build your investment portfolio slowly over time, rather than rushing into making a ton of investments quickly. Allow yourself the time and space to grow and learn before diversifying or rebalancing anything. Of course, if your advisor tells you to do something specific, you should certainly take that into consideration too!
Here's something more elaborate.
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I'm in a similar situation as you, so what I have done is to:
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