Singapore Saving Bonds (SSB)
Asked by Anonymous
Asked on 30 May 2019
Hi all. I am making some financial planning since i've just graduayed and am beginning to work, invest and save. Any help on an ideal investment portfolio? I'm looking at constructing a portfolio of ETFs; growth stocks; value stocks; SSB etc. Thank you.
Top Contributor (Aug)
Hey there, for starters I hope you got your insurance planning and emergency fund set up before going into investment.
It’s not wise to recommend an investment portfolio to you without knowing your investment profile.
What is your desired outcome from your portfolio? How much do you wish for it to grow yearly? What’s the risk you are willing to take? How long is your investment horizon?
Depending on your desired outcome and risk profile, your asset allocation across the 6 major asset classes will be different.
Once you are clear of your investment objective, risk profile and time horizon, you will have a clearer idea of how your portfolio will be.
It is also always good to ensure your portfolio is diversify across the 6 major asset classes as you grow your portfolio. Constantly review and ensure your portfolio is aligned to your desired outcome.
Currently from what you mentioned above, you are looking to put into 2 asset classes only and that’s fine for a start but aim to grow and diversify it more.
The 6 major asset classes (it varies a little among people) are 1. Cash 2. Bonds 3. Equities 4. Commodities/ precious jewels 5. Properties 6. Insurance.
You're lucky to have graduated without any debt! You may want to take care of your insurance first before doing any sort of investment.
There is no 'ideal' investment portfolio. It really depends on you and your risk appetite. However, as you are young, you are able to take on more risks, and thus you may consider having less bonds and more stocks /REITs! Make sure that you do your due diligence before investing. If possible, go for investment courses that are sometimes offered by our local investment bloggers!