What should I do with my money? My situation: I have about 20k in my savings account, and I plan to keep about 5k-10k as emergency funds. I'll be beginning my NS journey soon, then university after. ?

So after scouring many different websites, blogs and even SeedlyTV, I still do not have much idea how to split my money. I have about medium to low risk appetite? Maybe slightly high is fine.

I am considering POSB SAYS (for NS pay), Temasek Astrea V, SSB, STI ETF (using RSP) and robo-advisors.

Open to other ways to grow my money as well but generally do not want too high a risk to lose the capital.

Any suggestions on what percentage to go to which area? Or is my captial too low to split?

Discussion (16)

What are your thoughts?

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Fiona Loh

19 Nov 2019

Analyst at Deloitte Consulting

Since you're in NS, i believe you're under 27. Firstly, have an account that generates higher interest.

Open up the Standard Chartered Jumpstart account, & park your money in there. Note that it should be capped at $20k, as the 2% p.a. is only effective for $20k. in there. This will give you appx $33.33 per month, for the $20k.
For your remaining amt,you may look at some other instruments. You probably might not want to consider bonds, given it's low yield during this period time. However, to get started in investing, please be equipped with the knowledge first. You might want to start off with the ETF which tracks the performance of the market. Historically, the S&P500 ETF have been generating 9% annualised returns, & STI ETF have been generating 7% annualised returns. Of course, past performance is not indicative of the future, so please DYODD. You can either use a DCA method for this or buy in when the market is at it's low. Either case, both works :)

Hope this helps :)

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Arpita Mukherjee

13 Nov 2019

Community Evangelist at Kristal.AI

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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