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Old 09-11-2014, 05:43 PM   #2
w1rbelw1nd
Master Member
 
Join Date: Dec 2010
Posts: 3,112
Hi! A fellow 25 year old NUS graduate here! Welcome to the working world!

I totally agree with, and can emphathise with your concerns. Like you mentioned, it is a balance between investing and hitting your life goals, as well as keeping a close eye on things that may derail your plans.

1)Personally, I dont recommend people of our age group to invest in equities, especially if they are going to get married within 3-5 years. In that 3 -5 years, stock markets can do very badly. Since you have already done a very good job projecting that you will spend 45k for the wedding, why not first ensure that you have 45k (or the PV of the 45k) is parked in your OCBC 360 account before you start investing? Alternatively, set aside a monthly amount for your wedding/housing fund in your 360 account so that in the case of a downtown, you still have money for wedding. I think it is important that your wedding budget should be insulated from the markets, so that your partner knows that you are prioritising it over a mere 4-5% extra returns through investments.

After taking care of your wedding fund savings, I would go ahead and buy the STI ETF and ABF, and put a certain sum of money in OCBC 360 as you mentioned. However, I would not choose to use OCBC/POSB invest saver because rebalancing through them can be cost-inefficient. Why not just invest using SCB? You can do quarterly dollar cost averaging rather than monthly DCA instead, shouldnt be much of a difference.

You have 100k of cash inflow into your investments, and possibly 45k out. Thats a lot of movement of funds in and out. Make sure that your 45K is secure!

2) Are you intending to get a 3 rm or 4 rm flat? In a mature or non-mature estate. Seeing that price variation from these permutation of choices can range between 150k to 460k (with and without grants), you should find out what you and your partner want, and save towards the projected BTO downpayment price.

3) PM-ed you on other tips!
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