Asked by Anonymous
Asked on 04 Feb 2019
I have already set aside my 6 months emergency savings to be held in my UOB one account (2%+- Interest) + Singapore Saving Bonds (2% +- Interest).
Now I am saving up for my Renovation + Wedding + Potential Kids (still considering)
Unsure of actual sum.
Now that I have extra money on hand, what should I do with the money to hit my target 100k?
Top Contributor (Sep)
If you die die need the money in 4 years, then I wouldn't suggest investing it in equities, the money has to be guaranteed. There are some 3 year endowment plans available that could give you some return, but don't expect any amazing return. Anything giving you more than 1.5% is already good enough.
07 Feb 2019
4 years means dont put in stocks better. You can get more SSBs, put more into UOB one or you have 70k you can put into Citi maxigain. Depends on how much you save every month as well. If you have no money other than the emergency fund right now and you only save $1000 per month, its not possible to hit 100k. Assuming you have no other money than emergency fund right now which you should not use for investments. You need to save $24,000 every year which is $2,000 every month and get 2% returns for 4 years, you will hit your $100,000 goal.
07 Feb 2019
Agree with both previous answers. 4 years means equities is out of the question.
See if you can find an endowment plan that will give you around 3% guaranteed annual return. If not, then SSB and high interest savings accounts will have to do.
In the meantime, just keep saving monthly as you've been doing. Maybe you want to consider reviewing your budget and cashflow to see if there is anything more you can optimize to increase your savings rate. Or perhaps you can consider taking up a side gig. If your savings rate increase, you can consider doing DCA for long-term investment alongside your near-term goal.
Oh and one more thing, I hope you have settled your insurance needs? Given that you plan to get married and have kids, please do include that in your coverage considerations.