facebookI am a final year undergraduate and have $30000 of spare savings. What should I do with this sum of money to receive the best return in say, 5-10years? - Seedly
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Anonymous

Posted on 27 Dec 2018

I am a final year undergraduate and have $30000 of spare savings. What should I do with this sum of money to receive the best return in say, 5-10years?

Am really a newbie to finance, any advice please? Thanks in advance!

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6 answers

Discussion (6)

Hi Anon,

There are plenty of safe ways to invest your money and have it grow. You can go for REITs, other ETFs and bonds, but before you do that, I'd suggest you read up as much to understand what a Robo-advisor really does. Robo-advisory platforms assess your current financial position and recommend a portfolio strategy after reviewing your risk profile. These bionic advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as Robo-advisors have lower management fees. And the best part is that they give you the most unbiased advice.

You can read here for a better understanding.

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.

I hope this helps you make the right decision.

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Yang Teng

Yang Teng

Level 15. Grandmaster

Posted on 27 Dec 2018

Starting pay for uni grad is about 3.4k, roughly 6 month's equivalent for emergency funds would be 21k (can be lesser if you have a bond/secured a job for x number of years). The approx. 20k can be put in high interest savings account (CIMB) or savings+current account (OCBC 360, DBS Multiplier).

Now you're left with about 10k. You can allocate (100 - age formula) 75% in equities, with the remaining 25% in bonds.

For stocks, you can choose to go with either ETFs, roboadvisors or buy the stocks individually. The former two are less time consuming and much more friendlier choice for first-time investors. However, do note that market sentiment has been weakening so returns will be rather limited with whatever options you go with.

As for bonds, you can go for Singapore Savings Bond (SSB) though I feel it's oversubscribed. You can take your time to explore different various options available. A reminder not to lump investments and insurance together.

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If you have student loans, pay them off first.

If not, put around 6-12 months worth of salary as e...

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