What is the recommended percentage of my salary I should set aside for investments? - Seedly
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Asked by Anonymous

Asked on 02 Mar 2019

What is the recommended percentage of my salary I should set aside for investments?

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Tai Zhi
Tai Zhi, Chief Investment Officer at Autowealth
Level 4. Prodigy
Answered on 04 Mar 2019

Let me try to address this scientifically.

Investment markets, particularly stocks and bonds, are yield-generating and therefore makes positive investment returns over the long-term (barring short-term temporary corrections). If you look up the global indices like the MSCI All-Country World Index, you would noticed that they are upward sloping over the long-term.

Therefore, you should invest as much as you are comfortable with and invest as early as possible.

As a reference, the following is the common trend we see after advising thousands & thousands of clients and managing their investments.

Most would invest their available capital after setting aside some rainy day funds. Most would also commit to a monthly/quarterly regular investment plan. The majority of these investors commit around 10% of their monthly salary. Affluent and accredited clients, whose monthly salary is above S$5,000 and S$25,000 respectively, tend to invest almost 20% of their monthly salary.

You may check out our blog posts for other useful investment insights or concepts: https://www.autowealth.sg/blog/

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As much as you can if you want to reach your goals or retire as early as possible.

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