Asked on 29 Jul 2019
I just got married and will be trying for the upcoming BTO/SBF. Should I save the money and use it entirely for renovation OR use some of my e-savings for investing, like Robo-Advisor?
Totally new to investing and only started exploring a few days ago as I’m worried about retirement.
Would it be a better idea not to use up the monthly CPF contribution for HDB instalments but rather keep a portion for retirement also? Example, buy a 3 room instead of 4 room?
If the money is meant for short term then it would be good to use a time machine and travel to the future before investing.
Otherwise it is best to avoid investing for the short term
30 Jul 2019
I personally find it useful to look at interest rates. If the interest rate of the renovation loan is lower than that of my investment/savings returns, than one might choose to set aside a portion to invest, while taking a renovation loan.
E.g. If i/r of renovation loan is at 2% and investment/savings returns is at 3%, I might choose to set aside a sum for investments/savings instead as the returns would cover the cost of the loan and still allow me to earn a little.
Hope this helps!
30 Jul 2019