I am in my Mid 20’s & have $210k in cash sitting in the bank account, I feel very stressed everyday as I know I’m not making full use of the money to invest and grow my bank account. Any advice? - Seedly
Seedly logo
Seedly logo
 

Investments

FIRE Movement

Savings

Stocks Discussion

Savings Accounts

Insurance

Anonymous

Asked on 07 Jul 2020

I am in my Mid 20’s & have $210k in cash sitting in the bank account, I feel very stressed everyday as I know I’m not making full use of the money to invest and grow my bank account. Any advice?

My job pays me around $8k/month, I feel I should be doing more with my money but am very lost as to what to purchase. Currently have an AIA Prime Life Plan, Manulife ReadyLife Income & Prudential Life plan. Now I’m looking to grow my money at a stable pace of 4-5% yearly no need for 9-10%. Anyone has any recommendations? I’ve been reading alot of financial books and financial Youtube videos too!

I wake up everyday feeling vexed, I feel I need a place to stash my money with minimal effort.

0 comments

6 answers

Answer Now

Answers (6)

Sort By

Wow, congratulations for saving so much money in your mid 20s.

For one, You can consult a financial advisor to see what's your risk appetite and decide which investment products would be suitable for your long term needs.

Alternatively, you can read up on investment books and financial planning related posts to boost your investment knowledge. I would highly recommend you to start with these 2 books to kickstart your journey to managing your own finances:)​​​

0
👍
3
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

Endowments can command 4-5% in the longer term. They might provide the risk-return reward which you seem to fall under.

You can decide on Roboadvisers if you want the liquidity.

No lack of consultants to give advice when you have assets, choose one whom you can get along with.

2
👍
1
Loh Tat Tian
Loh Tat Tian

21 Jul 2020

The Risk Based capital framework is changing, that 4%-5% is slowly moving to non-gauranteed too.. which is sad for the newer endowments. If your runway is long, equities/bonds can typically beat 4% easily if you can ride the risk. (bearing in mind surrendering endowments before 20 years carry the same risk for 20 years of lost). 60/40 can acheive the same effect but hope OP can take it haha!
Aaron Leow, CFA, ChFC®/S
Aaron Leow, CFA, ChFC®/S

21 Jul 2020

I totally agree. Changing economic environments, changing structures.
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

If after, as you quote, still feel vexed after "reading alot of financial books and financial Youtube videos too", reckon DIY investing just aint your cup of tea.

Just go Robo-advisors, long-term DCA

0
👍
1
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
N

Ninja

Level 7. Grand Master

Answered on 08 Jul 2020

Google boglehead investing. Three etf to conquer the world. Currently at 9.5% profit

0
👍
1
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

I'm older and I earn about half of what you earn. Shiaks, now I'm stressed... 🤣Anyway, since you're pretty new to investing and you want to grow your money at a stable pace of 4%, you can consider CPF-SA. Of course, you don't see them until decades later.

How to Get $1 Million at 65 Using Your CPF

https://blog.seedly.sg/1m65-1-million-by-65-cpf/

If you don't wish to place with SA which is kind of risk-free (I say "kind of" b'cos nothing is really risk-free, even still backed by govt. but more like it's lower risk than what's out there), then you must know that to get 4-5% elsewhere, you need to own equitities and these don't come risk-free.

Whether it's ETF bought via stock brokerages (like FSMOne RSP) / robo-advisors or funds, all are in stocks. Only difference is your amount of portfolio exposure to the stocks part.

With minimal effort, robo-advisors are a better consideration, than if you DIY for ETFs via stock brokerages. You can read the difference here: https://seedly.sg/questions/are-roboadvisors-good-for-long-term-investment-horizon

Currently, I'm with Endowus for my CPF-OA investment. So far, stress-free for me, 'cos I can't get the monies until I retire. 😂 Out of sight, out of mind. I gave my input about them in this reply: https://seedly.sg/questions/i-have-20k-savings-i-am-44-years-old-how-should-i-invest-it

You can try with your cash. Do make sure you spread among the robo-advisors to diversify your risk.

All the best, chillax, and enjoy your youth! 😁

0
👍
0
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

Hi there,

If you are in your mid 20s, and stressing out over having excessive liquidity in the bank, it is actually in some sense, a good problem to have! Not many have the luxury to be in your position, and now learning how to maximize your assets should be your priority!

If losing your liquidity is the biggest factor holding you back from growing your funds, in my opinion, allocating these assets to liquid investments would be a good way to put your funds to good use. If minimal effort is your mantra, you should consider looking into Endowus to do regular investing. Keeping liquidity is also good, especially for times like this where things are uncertain for one, and opportunity also present!

Starting to diversify your assets is also a good start as with most high yield accounts pre-COVID, your interest rates were capped at a certain quantum, especially with the current state being worse off now. With the rate-cuts due to COVID, allocating your funds out would be a good way to maximise your growth. Endowment plans can be a good way to do so, albeit with the lost of temporary liquidity.

Inteligent Investor by Benjamin Graham and Irrational Exuberance by Robert Shiller would be a good books to start if you havent chanced on it.

If you would like a fresh opinion on how you might be able to jumpstart your growth, you can reach me at here, to schedule a consult, and we can bounce off ideas.

Have a great week ahead!​​​

1
👍
0
Frankie Rappaport
Frankie Rappaport

19 Jul 2020

Burton Malkiel
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post