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Old 09-11-2014, 11:55 PM   #4
Master Member
Join Date: Dec 2010
Posts: 3,111
Hi w1rbelw1nd,

Thank you for your thoughtful reply.

I truly understand the logic of securing the 45k, come to think of it, quickly accumulating the cash to sit in ocbc 360 acct is a good idea as well.

I have not considered that perspective.
Am seriously considering quickly saving till I hit that amount before I start buying etf..

I am halfway through saving for my wedding 8/15k (intend to use the next two mth salary + bonus) to achieve it by end of 2014. before I let the 15k sit somewhere 'safe'. Hopefully I wont have to spend too much on weddings, want my gf to be happy of course, but also not paying out of the nose for it.

Therafter, I have about 1.6k monthly to work with for savings.

Saving $600 a month in cash, is intended to hit my goal for 30k downpayment for BTO (aiming for a 400k+ house in punggol area).

($600 x 50 months) = 30k [probably if i ballot for a house and built by 2019] [not considering how much CPF deduction there is]

Thereafter the 1k a month is to invest for my future.
In an ideal world, I hope not to draw on it for wedding or BTO (but may have other causes), I want to not hold too much in cash because I feel like I need to build up a comfortable investible nest egg.Therefore I am considering a 60/40 STI/ABF portfolio although I do want so exposure to international stocks

Once I get married, and have to start servicing a house loan and everything, I doubt I can save/invest 1k a month. But i hope to use these few years to build a portfolio where it can continue to go, have dividends to reinvest e.g..
Hmmm so thats how you intend to finance your BTO....

Ideally, you would want to hold on to stocks/bonds as long as possible because of the higher returns. That is why,on average, you would be better of investing what you have now on stocks/bonds. If you have concrete plans already then I would say the most cautious way would be to allocate a certain sum per month into your marriage's 15k. Same goes for your BTO.

In that way, you can do pretty good dollar cost averaging with your investments.

BTW, it may not be a good idea to liquidate your unit trusts IF you want to buy again. You might incur all the sales charges etc and this will hit your returns. If you ever want to sell your investments to fund your wedding (which i do not recommend), you should sell those with least transaction fees (ie your STI/ABF ETFs). Otherwise you can use that opportunity to forever stop owning unit trusts
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