Asked 3w ago
Since I got these monies, private bankers have been reaching out to me to advertise for insurance plans!
Please don't put $200K (or any amount of money, for that matter) into anything with a lock in if you think you might need it in the next 2-3 years.
The only exception may be a 2 year or 3 year short duration endowment, but even that has risks, for example, what if you need the money a little earlier?
You can split your money into a few tranches, say 4 parts. Beyond keeping one part liquid in a high interest saving accounts without any criteria, you can divide the rest amongst money market funds, FDs, and the previously mentioned short duration endowment. These should ensure a balance between liquidity and maximizing growth of the funds without taking on undue risk.
I won't recommend investing these funds in equities, ETFs etc, as you might have to liquidate at a low if the markets crash right before you need the money.
Don't buy insurance plan or savings plan, especially ILP.
If you need the cash in 2-3 years, then park them in low risk high liquidity instrument such as bonds, high yield savings account, FD, or cash management solution such as StashAway Simple.
You may need to spend your 200k during your university for opportunities.
I would suggest you not to put in lock in plans like the insurance plans.
U can put at fixed deposit or singlife 2.5%
If you have high risk appetite, I would suggest invest a portion of it to roboadvisors
You may put into high yield savings account that do not list salary as part of requirement.
Or else go for fixed deposits, bonds.
I would recommend FP 3.65% which attracts 3.65% and is redeemable in 2022.
If you are willing to get more risk, go for robo investing, ETF plans.
You can leave them in fixed deposit, or those short term investment plans. These are all better than the bank, or even under the bed.
Do let me know if there’s anything I can help you with.
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