Asked on 11 Jan 2020
This is for a specific goal i.e. to migrate overseas. Is it possible to grow enough money with low capital (20k)?
As the nature of the goal is short and specific, we cannot rely fully on investment to achieve your goal. This is because of volatility in the market and the last thing to happen is when your migration happens during a market downturn and your capital is at a loss.
With this in mind, I will suggest for you to understand how much money you will need for your goal, e.g. $100k. Next, go back to your cashflow to understand how you can save more money to achieve your goal. Here is a guide on understanding your cashflow: https://www.blog.pzl.sg/understanding-your-personal-cash-flow/
Next, create a budget that is capable of helping you to plan for the future. The best way to do this is via automation and this is how I do mine: https://www.blog.pzl.sg/how-to-create-a-monthly-budget/
Combine this with the $20k that you have, maximise the yield that you can get from banks, short-term bonds and endowment (usually on promotion basis), and consider using a fraction of the money for investment. For the latter, it will depend on your risk tolerance as mentioned earlier.
Therefore, in-depth calculation is required to understand your actual risk tolerance against your goal.
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For short term time bound goals like these, you have to stick with low risk products like short term high quality bonds, endowment plans, high interest savings accounts, or fixed deposits.
At best you can expect a 2.5-3% annual return on your money.