If I have a lump sum (e.g. 50k) which I might need to utilise within the next 1 to 2 years, what should I do with this amount in the meantime? 100% capital preservation is not necessary.? - Seedly
 

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Asked by Anonymous

Asked on 19 Feb 2019

If I have a lump sum (e.g. 50k) which I might need to utilise within the next 1 to 2 years, what should I do with this amount in the meantime? 100% capital preservation is not necessary.?

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Arpita Mukherjee
Arpita Mukherjee, Community Evangelist at Kristal.AI
Level 6. Master
Answered on 07 Nov 2019

Hi Anon,

There are plenty of safe ways to invest your money and have it grow. You can go for REITs, other ETFs and bonds, but before you do that, I'd suggest you read up as much to understand what a Robo-advisor really does. Robo-advisory platforms assess your current financial position and recommend a portfolio strategy after reviewing your risk profile. These bionic advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as Robo-advisors have lower management fees. And the best part is that they give you the most unbiased advice.

You can read here for a better understanding.

I work at Kristal.AI, and my mojo is to help people make the right financial decisions. If you think I helped you, do give me "Thumbs up". If you think my response was biased let me know, I will work on it.

I hope this helps you make the right decision.

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 8. Wizard
Answered on 19 Feb 2019

If your risk appetite is more conservative, consider the use of ssb or high yielding savings accounts like what Nicholas has mentioned. Alternative would be a fixed deposit. There are some promotions ongoing now for close to 2%.

If you are more adventurous, consider buying into some s-reits, especially those who have good sponsors or those with consistent pay outs. Yield can be from 5% onwards. Downside is that there may be price fluctuations so you may realise a capital loss at the time you need to exit your position.

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Luke Ho
Luke Ho, Money Maverick at Money Maverick
Level 7. Grand Master
Answered on 21 Feb 2019

The best option by a large margin would probably be p2p lending sites like SeedIn or CoAssets.

I'm actually really surprised no one brought it up, since 100% capital preservation is not necessary.

SeedIn currently has zero defaults over the last 6 years and depending on the bond that you choose on a first come first serve basis, you can yield 5 - 17% net of fees.

The bonds are flexible and can last anywhere between 6 months to two years, again entirely based on your choice and preference.

You can nudge me if you'd like a referral code for 'priority' queue.

https://www.facebook.com/luke.ho.54

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Victor Chng
Victor Chng, Co-Founder at Fifth Person Pte Ltd
Level 6. Master
Answered on 21 Feb 2019

Hi,

When it comes to investing, a long holding period of stocks is required. If you need to utilise the money in the next 1 to 2 years then Singapore Saving Bonds may be a better option.

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Zlao Xie
Zlao Xie
Level 2. Rookie
Answered on 19 Feb 2019

I will buy 2000 shares of DBS.

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Put into SSBs or high interest savings account that would be the best for your situation.

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