Asked by Anonymous

I will most probably be buying a house in 4-5 years time. Would you advice to save up the house fund in bank or buy safe stocks and sell it 4-5 years later to fund for housing expense (reno etc.)?

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  • Brandan Chen
    Brandan Chen, Financial Planner at Manulife Singapore
    162 Answers, 236 Upvotes
    Answered on 14 Feb 2019

    Firstly, whats your definition of safe stocks?

    Secondly, Do you currently have the amount that is sufficient for your housing expense? Or still saving up for it?

    Suggestion: There are no such thing as safe stocks. Do note that Investment returns are never guaranteed but your housing expense in the future is. If you are able to take up some risk, perhaps apportion about 50% to 70% of the fund is lower risk products such as SSB, Fixed Deposit, Citibank Maxigain, or Single Premium Endowment Plans offered by Insurers from time to time. With the remaining fund, perhaps you can consider placing it in REITS or Defensive Industries to reduce your loss should a crisis occur

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  • Jeff Yeo
    Jeff Yeo, amateur Social contributor at School of social sharing
    268 Answers, 390 Upvotes
    Answered on 24 Sep 2018

    The “safe stock” option is risky because we do not know the market conditions in 5 years however 5 years is a good time frame.

    i think putting it into the market is a good idea to either gain dividend payouts for 5 years or capital gains if the stock rises

    it it would be good to spread the risks out between capital gain stocks ETF and maybe some REITS

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  • Nicholas Chan
    Nicholas Chan
    176 Answers, 263 Upvotes
    Answered on 15 Sep 2018

    Five years is a decent time frame for investing in equities. Buy an emerging market etf, valuations are low now.

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  • Jason Sin
    Jason Sin
    329 Answers, 420 Upvotes
    Answered on 15 Sep 2018

    Save 50% using Singapore Saving Bond and invest the other 50% in stocks and bonds. Just a suggestion and please do your homework.

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  • Jason Sin
    Jason Sin
    329 Answers, 420 Upvotes
    Answered on 15 Sep 2018

    Save 50% using Singapore Saving Bond and invest the other 50% in stocks and bonds. Just a suggestion and please do your homework.

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  • Nicholes Wong
    Nicholes Wong, Diploma in Business Management at Nanyang Polytechnic
    Top Contributor

    Top Contributor (Mar)

    463 Answers, 613 Upvotes
    Answered on 15 Sep 2018

    Just saying no 100% safe stocks. If recession or market correction hits, when you want to fund your housing, you might have to wait awhile for it to stabilize. Learn more about investments and how to diversify your investments.

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