facebookI’m 26 and have been working for the past 3 years with 270k worth of savings in cash. Am feeling vexed as to what I should do with the money to FIRE? What is the allocation of savings I should place? - Seedly
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Anonymous

Posted on 27 Oct 2020

I’m 26 and have been working for the past 3 years with 270k worth of savings in cash. Am feeling vexed as to what I should do with the money to FIRE? What is the allocation of savings I should place?

I would like to get inputs on how I could allocate my savings appropriately to grow my money at a steady pace. If anyone is also in quite a similar situation as well? I’ve already done Singlife 10k from my peers and reading seedly’s posts :)

Yansia Chua

2 comments

14 answers

Discussion (14)

Congrats for saving so much till date.

I think you're still single and available.

If i were you, i'll set aside a portion for my married life. House, reno and wedding cost a bit.

Set aside 6 months worth of emergency funds.

Calculate your expenses x 6 months.

Put that in the high savings account like DBS Multiplier.

Go and sort out my insurance.

But for a start since, you don't have liability.

Settle hospitalisation plan first. Up to you if you want to choose A ward or PTE Ward.

Next i'll settle early critical illness of about 100k( i got multipay as i think more worth it). Just in case you do not want to work when you got an ECI, you don't need to drain your savings.

The rest of the money, i'll invest heavily into ETF.

Won't go into stocks. Though i set aside 20% for high growth stocks.

For the money i'll do a lump sum of 50% into the ETF that i want.

The remaining 50% i'll split equally over 6 or 9 months.

When i first started i split over 9 months as i kiasi.

But now i split over 5 months as i more confident in the market and have went through rough period like march crash.

Along the way, DCA in all the time.

Lower your expenses all the time.

Increase your income all the time.

Which eventually increases your investment all the time too.

And you'll be able to FIRE earlier than you think....

2

Question Poster

09 Nov 2020

Thanks for the advice! I’ve settled my hospitalisation plan, Whole Life Insurance Plan & also have one Manulife readylifeIncome plan too! Thus am looking to how I can grow the remaining 270k and do something good with the money to make it grow, so I have a small chance of doing well in life. Cheers!

Caleb Seah Hua Xiang

Caleb Seah Hua Xiang

19 Nov 2020

Great to hear that. Go ahead and invest in etf that compounds your money for you. I've been doing it since the start of the year and never regretted. All the best

Post

C

CookieMonsters

Level 3. Freshie

Posted on 03 Nov 2020

Hey Caleb

Congrats for saving so much till date! Did you save all $270K within those 3 years of working? More than giving you an advise, I would like to ask if you could share with us on how you've managed to save up $270K within 3 years. We could all learn something & efficiently save up more too :)

1

Caleb Seah Hua Xiang

Caleb Seah Hua Xiang

17 Apr 2021

Lol not me, it's the question poster that have saved up 270 by 27 yrs old:)

Post

Terence Lee

Terence Lee

Level 4. Wonderkid

Updated on 31 Oct 2020

First of all u should only take what u read here as SUGGESTIONS- nothing more. if u are willing to p...

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