When will you do if youre me?

[slapshocked]

Hi.

I have 32 months of salary savings in 2 banks.

Where should i start?

Am i saving too much?

Im looking to beat inflation.

i have 10k in singlife.

should i go with stashaway?

5k shares on dbs, 5k shares on sia.

 

[maumu]

Hi.

I have 32 months of salary savings in 2 banks.

Where should i start?

Am i saving too much?

Im looking to beat inflation.

i have 10k in singlife.

should i go with stashaway?

5k shares on dbs, 5k shares on sia.

similar to you, i've around 30 months of salary savings in.... 10 bank accounts.

saving too much or too little depends on your life goals and your liabilities. for me i'm saving because i'm in the generation where my parents depend on me for money. u know... the classical reasons for having children in the older generation because they are born poor/lack education.

and i'm dead sure medical expenses down the road is going to cost a bomb in this country - Singaporean or not. so, it's like something I have to prepare myself for. it's only a matter of time.

never want to dabble much with shares because of the risks involved with putting your money in one basket, or don't know how the company will turn out in the long run. even big companies can fail... even those that are related to national interest (e.g. Hyflux - water resource).

given such low interest environment now it's really not much to look around for. actually inflation isn't that high or significant (as much as I feel it) so if one can learn to manage own's expenses it is still quite ok I find... no need to worry about inflation.

 

[Okenba]

and i'm dead sure medical expenses down the road is going to cost a bomb in this country - Singaporean or not. so, it's like something I have to prepare myself for. it's only a matter of time.

Hopefully insurance will help?

never want to dabble much with shares because of the risks involved with putting your money in one basket, or don't know how the company will turn out in the long run. even big companies can fail... even those that are related to national interest (e.g. Hyflux - water resource).

If you buy an index (which many people in this forum talk about), you're putting your eggs in many baskets.
Even the STI has 30 baskets. S&P has 500 baskets. Global index has over a thousand baskets.
It is not without risk, and there will be periods when it falls, but dropping to zero... i think can consider statistical impossibility.

You should read up more about index investing and see if it suits your needs.

 

[kokjj87]

Depends on how much you earn, your age, living expenses, next big milestones (new house, child education..) also.

If you are single and young, 32 months of salary as cash savings is quite a bit. Can invest part of it.

 

[maumu]

If you buy an index (which many people in this forum talk about), you're putting your eggs in many baskets.
Even the STI has 30 baskets. S&P has 500 baskets. Global index has over a thousand baskets.
It is not without risk, and there will be periods when it falls, but dropping to zero... i think can consider statistical impossibility.

You should read up more about index investing and see if it suits your needs.

notice that I used the word 'shares'? referring to company-based investing because the OP mentioned DBS and SIA shares.

it's not that i'm completely adverse to investing. in fact i do. but not much, and mainly just into funds and UTs. maybe just 10% of my liquid cash? the rest are pumped mainly into SSB, FDs, and vanilla products like Singlife, Etiqa, etc.

so, yeah, of course there'll be ups and downs in the market. and I do understand index investing. then again, it depends on whether one has the runway, the patience, the right time and the right 'agent'. if it's so easy to get rich, where all the money come from?

if you're young, you probably have a lot of time on your side to take risks. not for older folks like me.

 

[slapshocked]

notice that I used the word 'shares'? referring to company-based investing because the OP mentioned DBS and SIA shares.

it's not that i'm completely adverse to investing. in fact i do. but not much, and mainly just into funds and UTs. maybe just 10% of my liquid cash? the rest are pumped mainly into SSB, FDs, and vanilla products like Singlife, Etiqa, etc.

so, yeah, of course there'll be ups and downs in the market. and I do understand index investing. then again, it depends on whether one has the runway, the patience, the right time and the right 'agent'. if it's so easy to get rich, where all the money come from?

if you're young, you probably have a lot of time on your side to take risks. not for older folks like me.

Thank you everyone for the inputs.

Really2 appreciate it.

And yes, my main concern is inflation also part of it i want it to be as liquid.

I am oldschool, i like to see big figure in banks not knowing the disadvatanges of it.

You mentioned, put in 10 banks? Why? Wouldnt you be losing out the bonus interest like 360, multiplier or uob one?

 

[streetfighter]

Yes, index investing probably need 30 years compounding. Smart stocking picking can achieve that in half time. so if already >55 years old should shift to lower risk?

notice that I used the word 'shares'? referring to company-based investing because the OP mentioned DBS and SIA shares.

it's not that i'm completely adverse to investing. in fact i do. but not much, and mainly just into funds and UTs. maybe just 10% of my liquid cash? the rest are pumped mainly into SSB, FDs, and vanilla products like Singlife, Etiqa, etc.

so, yeah, of course there'll be ups and downs in the market. and I do understand index investing. then again, it depends on whether one has the runway, the patience, the right time and the right 'agent'. if it's so easy to get rich, where all the money come from?

if you're young, you probably have a lot of time on your side to take risks. not for older folks like me.

 

[SBC]

Use DBS Nav Planner to get some ideas.

 

[Dividends Warrior]

Hi.

I have 32 months of salary savings in 2 banks.

Where should i start?

Am i saving too much?

Im looking to beat inflation.

i have 10k in singlife.

should i go with stashaway?

5k shares on dbs, 5k shares on sia.

CPF SA 4% interest per year, guaranteed by govt. Beat inflation. Beat fixed deposits. Beat bonds.
Voluntary top-up also gives u tax relief. Worth considering putting a portion in it.

 

[maumu]

Thank you everyone for the inputs.

Really2 appreciate it.

And yes, my main concern is inflation also part of it i want it to be as liquid.

I am oldschool, i like to see big figure in banks not knowing the disadvatanges of it.

You mentioned, put in 10 banks? Why? Wouldnt you be losing out the bonus interest like 360, multiplier or uob one?

I have multiplier (salary, insurance, RSP, CC) and UOB one (GIRO and CC). Dropped 360 in favour of multiplier because their tiered rates really cmi.

And actually out of the 10 accounts, only half are significantly funded (eg. DBS, UOB) and are from same bank. The rest is minímum amount only lol.

 

[Potato_Wedges]

TS...spend some $$$ to polish your command of Language.

I was confused by your title.

Should be 'What' instead of 'When'?

 

[reddevil0728]

TS...spend some $$$ to polish your command of Language.

I was confused by your title.

Should be 'What' instead of 'When'?

education is indeed a good investment

 

[TiedInsurer]

Dollar cost average the funds into a world index like VWRA or IWDA. These tend to go up steadily over time, at a rate of return that is higher than FDs, SSBs etc.

Also, when you put all your money in Singapore, in SGD, you ARE putting all your eggs in a single basket called Singapore. Touch wood say a major event hits Singapore and causes Singapore businesses, banks, currency, or even government to collapse, you will be left with almost nothing. Look at countries like Venezuela. Risk is never zero. If you buy into a world index, you will retain most of your wealth, as long as the entire world doesn't collapse, as it's more diversified than having all your wealth in Singapore cash deposits, FDs, and SSBs.

 

[DevilPlate]

CPF SA 4% interest per year, guaranteed by govt. Beat inflation. Beat fixed deposits. Beat bonds.
Voluntary top-up also gives u tax relief. Worth considering putting a portion in it.

Keep it up!

32 months of savings is quite substantial to begin with.

By asking what to do means you are not ready to invest in the stock market.

Put in $7k to SA every year is a good start.

 

[chrisloh65]

Then you should avoid putting all your money into IWDA since >65% of it consists of US stocks and you ARE putting all your eggs in a single basket called USA. When US economy and USD goes down the drain (You are already seeing the start of this trend), you will be looking at large losses (vs SGD).

Even VWRA has >56% consisting of US stocks!

May be better put 50% of your money into VWRA and 50% into EIMI? More diversified globally.

Dollar cost average the funds into a world index like VWRA or IWDA. These tend to go up steadily over time, at a rate of return that is higher than FDs, SSBs etc.

Also, when you put all your money in Singapore, in SGD, you ARE putting all your eggs in a single basket called Singapore. Touch wood say a major event hits Singapore and causes Singapore businesses, banks, currency, or even government to collapse, you will be left with almost nothing. Look at countries like Venezuela. Risk is never zero. If you buy into a world index, you will retain most of your wealth, as long as the entire world doesn't collapse, as it's more diversified than having all your wealth in Singapore cash deposits, FDs, and SSBs.

 

[reddevil0728]

Then you should avoid putting all your money into IWDA since >65% of it consists of US stocks and you ARE putting all your eggs in a single basket called USA. When US economy and USD goes down the drain (You are already seeing the start of this trend), you will be looking at large losses (vs SGD).

Even VWRA has >56% consisting of US stocks!

May be better put 50% of your money into VWRA and 50% into EIMI? More diversified globally.

You are assuming the holdings within IWDA will remain static????

 

[rottingapple]

i have 34mths of salary in cash. thinking oso very old sch not open to investments.

currently just started investing 8k in stashaway, 1k in syfe, cos really bth the interest rates liao.

 

[chrisloh65]

Won't change much because of biasedness.

You are assuming the holdings within IWDA will remain static????

 

[reddevil0728]

Won't change much because of biasedness.

then this depends on one's opinion liao

 

[slapshocked]

i have 34mths of salary in cash. thinking oso very old sch not open to investments.

currently just started investing 8k in stashaway, 1k in syfe, cos really bth the interest rates liao.

you use stashaway simple?