I’m 25, with an average of 2k/mth after setting aside 1.5k in STI ETF, insurance, and all other liabilities. I don’t have time to start studying on REITS/equities in the short term. How should I manage the 2k? - Seedly

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Asked by Anonymous

Updated on 18 Apr 2019

I’m 25, with an average of 2k/mth after setting aside 1.5k in STI ETF, insurance, and all other liabilities. I don’t have time to start studying on REITS/equities in the short term. How should I manage the 2k?

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 6. Master
Answered on 19 Sep 2018

Robo advisories will be your best bet, if you don't have time to study other methods of investing. Alternatives to this will be Singapore Savings Bonds or other high yielding savings accounts. Do note that there is a limit for both of these to achieve the maximum efficient interest rate. Limits for high yielding savings accounts vary by bank, so do check each out individually. Common ones often mentioned are CIMB FastSaver (1% for 1st S$50,000, 0.6% thereafter) and Citibank's Maxi Gain (base interest of 80% of 1 month moving SIBOR rate for 1st S$150,000, 0.05% thereafter).

Hope this helps and all the best.

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HC Tang
HC Tang, Financial Enthusiast, Budgeting at The Society
Level 8. Wizard
Answered on 19 Sep 2018

Hi, for the balance 2k, if you don't want/ no time to manage and want to invest on REITS, you can try REITS ETF:

https://dollarsandsense.sg/investing-reit-etfs-singapore-5-things-to-know/

All points still relevant except #5 Taxes where the 17% corporate tax no longer apply. So no 17% corporate tax.

You can buy via the trading platform in SG , read seedly guide on it with the fees charges by each platform:

https://blog.seedly.sg/step-step-guide-opening-stock-trading-brokerage-cdp-account-singapore/

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Gabriel Lee
Gabriel Lee,
Level 6. Master
Answered on 19 Sep 2018

You can consider leaving it in CIMB Fastsaver or any high interest savings account

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Just go for Robo advisors. If you have abit of time, i would have recommend you to invest in global equity etf. Since no time, robo advisors seems to be better for your case.

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Yong Kah Hwee
Yong Kah Hwee,
Level 6. Master
Answered on 19 Sep 2018

You can consider putting them in high interest savings accounts or bonds, or robo advisors!

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Brandan Chen
Brandan Chen, Financial Planner at Manulife Singapore
Level 5. Genius
Answered on 19 Sep 2018

Well, you can consider amassing about 6 to 12 months of your annual income as a rainy day fund.

Not too sure what are your short term financial commitments, but it's good to have some cash lying around to prepare for housing, renovation, wedding etc

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