Asked on 03 Apr 2019
Congratulations on starting you full time job. It looks like you have covered your insurance needs already. The next priority is to have an emergency fund which covers 4-6 months of expenses.
I would suggest looking at invstments and have retirement and savings planning as financial goals while creating your investment strategy. If you are new to investing, you can start by reading about it so that you can take an informed call. Also, you can try using a robo-advisor, which can help you in getting an asset aloocation based on your risk profile for a lower fee than a financial planner.
I work at Kristal.AI, and it's my passion to evaluate various upcoming investment opportunities.
12 Nov 2019
Start by setting aside 6 months of your expenses for emergencies.
After that, invest 20-50% of your income.
Break down your short term, mid term, and long term goals and quantify them. A marriage, a first home, children, children education, a second home, retirement, etc.
How much would these cost you and when do you have to start paying for them.
Start understanding our CPF and how each accounts work as well.
When you have a clearer roadmap, you can make better decisions to get there.
12 Nov 2019
12 Nov 2019
1 emergency funds
2 passive indexing ETFs (U.S., global, a bit of China, Switzerland and Scandinavia
3 a bit of physical gold
everything periodically for price averaging
Congrats on getting your full time job. I think in regards to insurance coverage, you have done the right things by getting your hospitalisation covered and also you life covered.
In regards to what to do next, I believe Hariz did mentioned that you should look at building up your emergency funds. Which is a good to have in our current time and age.
Also what to consider now? I think retirement plans are something you can look at maybe later in life when most of your financial commitments have been settled, or when you feel that you are ready to look into this, as all Singaporeans already have a Retirement plan that the government has enforced, which is CPF life. Having another retirement plan is to further enhance this, so it's good to look at maybe in your late 30s or early 40s.
Savings plan or investment? I think it depends on what you are looking for, technically if you do get a savings plan, it does act like an investment as well, as most savings plans are participating policies in nature, meaning your premiums are used by the insurer to make investments, and the returns from the investments are declared as bonuses to you on an annual basis. And the investments done by the insurers are generally safer in nature, so you can be more assured of your returns. Do note that one good part about a savings plan is that, it's not as volatile as pure investments, because insurers will smooth out the bonuses for the saving policy, meaning regardless if the economy is doing good or not, your annual bonus for the policy stays in the same range throughout.
But of course if you do want better returns, then do consider investing. I would suggest to do both investments and having a saving plan to balance out your portfolio
First of all, congrats on getting your first job. As you are only 25 and have a long way to go, you should start investing in stocks to further grow your wealth. But do note that you do not commit all your money in the stock market as you might need them if you are buying a house or getting married.