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? - Seedly



Asked by Anonymous

Asked on 21 May 2019

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.


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Wallace Chai
Wallace Chai
Level 9. God of Wisdom
Answered on 06 Dec 2019

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.


Arpita Mukherjee
Arpita Mukherjee, Community Evangelist at Kristal.AI
Level 6. Master
Answered on 05 Nov 2019

Hi Anon,

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.

I work at Kristal.AI, and my mojo is to help people make the right financial decisions.

If you think I helped you, do give me "Thumbs up". If you think my response was biased let me know, I will work on it.


Junus Eu
Junus Eu
Top Contributor

Top Contributor (Jan)

Level 9. God of Wisdom
Answered on 22 May 2019

I'm in a similar situation as you, so what I have done is to:

  1. Put aside an emergency fund

  2. Apportion a segment to equities

  3. Bought a freehold property (that was sometime back) for rental yield

  4. Put the rest in interest generating savings accounts

With regards to whether short term savings plans are 'good' or not, it really depends on your risk profile and need for liquidity.



Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit. Here is a guide to help you: https://www.blog.pzl.sg/understanding-your-personal-cash-flow/

Next, decide how you want to live your life in the long-term. This is beacuse we have about 30 years of life left before we retire. In a blink, a quarter of our life is already gone. Hence, it will be important to start planning for the long-term, e.g. retirement. Additionally, discover any other goals that you may have, e.g. a property in 2 years' time.

With a well-defined goal, understand the tools available to help you. For instance, you may consider a life annuity for your retirement alongside with some investment in bonds, equity, or a balanced portfolio.

For the short-term goals, diversify your money across bonds, endowment, or even fixed deposit.

All in all, take your time to understand what you want. It is only when you have a clear objective, then we can work out ways to help you achieve your goals.

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If you're investing for retirement while trying to build financial independence, I'd convert half of that into a dividend paying portfolio and the other half into a capital accumulating portfolio.

One to pay you every month so you can start living for free, and the other for you to exponentially grow and help you truly stop work one day and live a very comfortable retirement lifestyle.

In both cases, there's a rule of thumb for asset allocation.

You have a long investment horizon and should be able to take risk. Divide the number of years to retirement by 3 and 4 and you would have the expected rate of return your portfolio should be expected to generate. Eg. 30 years to retirement, your portfolio should be giving you 7.5-10% return p.a.

To achieve this you can also follow the following rule:

Your age should be the % allocated into bonds and fixed income in your portfolio. Rebalanced quarterly and adjusted every 5 years.

If you're 30, you should have a 70% equity portfolio and a 30% bond portfolio.

When you're 50, it's 50% equity and 50% bond. And with 15 years to retirement, your portfolio should be giving you 3.75-5% return.

Invest globally, stay invested, and ignore the headlines.

You can set up a portfolio using funds with a IFA like myself or through the various digital investment managers/ robo advisors.

If you know you're able to take risk but still can't allow yourself to, speak to a human advisor and let us do some investment and emotional coaching to help you be more assured in your invested monies.


Jacky Yap
Jacky Yap
Level 5. Genius
Updated on 22 May 2019

Woah congrats! Many would aspire to be in your position in early 30s!

There are so many ways to construct an investment portfolio that is it so hard to answer this. But the fundamentals of an investment portfolio comes down to, what is your risk appetite.

Low risk = higher allocation in low risk investments (High yield savings account, SSBs, defensive REITs)

High Risk = higher allocation in high risk investments (REITs, growth stocks, alternative investments)

Im not a financial advisor so I can only share what i wish would be in my portfolio if i have S$250,000 in savings.

Risk appetite: Moderate to high risk

Cash in high yield bank account: S$50,000 . I'd allocate these into DBS multiplier for a 2-3% annual interest rate. This forms my daily expenses, emergency fund, serves as liquid cash.

REITS: S$100,000. I'd aim to get some good quality REITs which gives me 5-6% of annual dividends, of which I'll reinvest to get more REITs.

US Growth Stocks: S$100,000. I'd aim to get 6-8% of annual capital gain from this, of which I'll reinvest into my REITs portfolio to get more recurring dividends.

Of course, if I were to do these, I would have made sure that I have S$50,000 - S$80,000 in my CPFSA as a safety net / buffer for my high risk appetite.

Disclaimer: This is an illustrated portfolio, and I'm not a financial advisor. :)

Private property is great but with S$250,000 - it's pushing it a little, even more so if its a single owner occupancy. A 3BR condo can be between 500k - 1M or more, and the downpayment, renovation, monthly upkeep and mortgage can be stressful.

Are short term saving plans eg. lock up capital for 3-5 years with 2-3% returns good? Hmm i honestly dont think its good. There are many other instruments that gives u 2-3% without the capital lock up (high yield savings account, some defensive REITs).

Hope this helps!



You can start building a portfolio by paying attention to 2 things.

  1. Defend

  2. Attack


Ensuring that liabilities are covered using insurance instruments. Life/Term/ Critical illness and hospital insurance coverage etc


Therer are many areas that you can start off with. You can just start somewhere and build your portfolio slowly. Some areas that you can look into include REITS, ROBO, Stocks, Bonds, Funds, Retirement plans.

Of course, if you do not want to spend too much time reading up, invest in building a long term relationship with a professional financial advisor and let the expert walk you through.