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Old 01-07-2019, 10:27 PM   #1
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newbie for managing money

hi all,

I never had the time to sit down and count my savings/asset and just let it accumulate in my bank. sat down today and i realise that it may be stupid of me not to plan ahead. so here goes

liability
= property 520k
= renovation 30k

Asset
CPF OA = 100k
CPF SA = 30k
Cash = 100k

any idea what should I do with the cash such that I can level off my liability?

I can park the cash long term investment wihout using it
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Old 01-07-2019, 10:40 PM   #2
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hi all,

I never had the time to sit down and count my savings/asset and just let it accumulate in my bank. sat down today and i realise that it may be stupid of me not to plan ahead. so here goes

liability
= property 520k
= renovation 30k

Asset
CPF OA = 100k
CPF SA = 30k
Cash = 100k

any idea what should I do with the cash such that I can level off my liability?

I can park the cash long term investment wihout using it
if by renovation you mean renovation loan, i suggest paying off that loan first as reno loan interest is usually quite high
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Old 01-07-2019, 11:12 PM   #3
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Yup, will be paying with cash, but not sure what are the choices available for 70k.
not very much, but enough to start investing
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Old 01-07-2019, 11:25 PM   #4
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Pay off your reno loan. It's horrible.

Are you paying your mortgage by CPF OA?

Transfer bulk of it to SA. Leave some in OA for emergency so that you can still cover your mortgage if you are out of job.

Consider your SA as bond and invest the rest in diversified equities.
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Old 01-07-2019, 11:32 PM   #5
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Before u park your spare cash into a decent long term investment, i hope it is currently under a good saving acct such as dbs multiplier or ocbc 360.

Btw, why r u taking up the renovation loan when u have more than enough cash? Is the cash getting more yield than the loan int?

Last edited by wutawa; 01-07-2019 at 11:38 PM..
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Old 02-07-2019, 08:11 AM   #6
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the liability is actually upcoming cuz I buying a house soon, will be using cash as payment

what options do i have with the spare cash?

do u guys do diversification?
abit shares, abit reit, abit futures.. or speciality in one type
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Old 02-07-2019, 08:13 AM   #7
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Before u park your spare cash into a decent long term investment, i hope it is currently under a good saving acct such as dbs multiplier or ocbc 360.

Btw, why r u taking up the renovation loan when u have more than enough cash? Is the cash getting more yield than the loan int?
unfortunately not
I park it in various bank so I will "forget" the money and not spent it. will be lumping them into one ocbc account, and will only use ocbc cc for spending
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Old 02-07-2019, 08:25 AM   #8
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Hmmm itís not a lot.
I would:
1. Pay off reno - donít take loan.
2. $50k as emergency fund into a high interest rate savings account.
3. $20k for any opportunity in stock market when/ if bear bear comes or down payment for property though not sure if itís enough.

For investment- start with shiny thing thread or go google assi to learn more.

Last edited by starfish.starfish; 02-07-2019 at 08:28 AM..
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Old 02-07-2019, 09:41 AM   #9
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How old are you?
You do have emergency fund right?

If I were you...
Max transfer of OA to SA.
100k cash - > 30k reno and 70k to SA/MA.
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Old 02-07-2019, 10:27 AM   #10
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unfortunately not
I park it in various bank so I will "forget" the money and not spent it. will be lumping them into one ocbc account, and will only use ocbc cc for spending
I understand where u r coming from but "forgetting" your money is poor financial management. Well done in saving up $100k though. U can try posb invest saver. It will make u save up mthly and invest.
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Old 02-07-2019, 11:23 AM   #11
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the liability is actually upcoming cuz I buying a house soon, will be using cash as payment

what options do i have with the spare cash?

do u guys do diversification?
Will you use CPF OA for your home payment as well ?
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Old 02-07-2019, 12:00 PM   #12
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Hmmm itís not a lot.
I would:
1. Pay off reno - donít take loan.
2. $50k as emergency fund into a high interest rate savings account.
3. $20k for any opportunity in stock market when/ if bear bear comes or down payment for property though not sure if itís enough.

For investment- start with shiny thing thread or go google assi to learn more.
shiny thing thread got too many posts le, saw etf recommendation but I need to know if got diversify other type or not
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Old 02-07-2019, 12:01 PM   #13
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How old are you?
You do have emergency fund right?

If I were you...
Max transfer of OA to SA.
100k cash - > 30k reno and 70k to SA/MA.
30yo.
woah.. means max out hdb loan instead of prepayment?
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Old 02-07-2019, 12:02 PM   #14
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I understand where u r coming from but "forgetting" your money is poor financial management. Well done in saving up $100k though. U can try posb invest saver. It will make u save up mthly and invest.
will look into it tks!
I'm also looking for returns >5% not sure if it can generate
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Old 02-07-2019, 12:03 PM   #15
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Will you use CPF OA for your home payment as well ?
yes, will be using cpf oa.
not much cash to go around and I prefer cash for investment
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