Posted on 28 Jul 2020
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.
Alex Chua, Sophomore (Engineering System Design) at SUTD
Posted on 02 Aug 2020
You may need to spend your 200k during your university for opportunities.
I would suggest you n...
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