Help on growing wealth.

ft7001 · Nov 7, 2021

Hi all. Details about me...

41 this year.
No financial knowledge at all.
Gross salary: $5200
Cpf OA: 102K
Cpf investments: 140k
Bto flat will be ready mid-2022
(Even though I can cash out the flat using cpf but friends advised me NOT to. So will probably loan 100K)
Cash-poor: ran into debts before hence my cash on-hand is very little.

Any suggestions on what should I do or how should I grow my wealth?

I know nothing about stocks/shares/ investing.

Welcome all advises.

reddevil0728 · Nov 7, 2021

What CPF investments do you have if you know nothing about stocks/shares/investing

ft7001 · Nov 7, 2021

Some fund tat was purchased back when I just ORD.
After 20 years, this is the growth.

limster · Nov 7, 2021

visit endowus.com and read the following about financial literacy and investing: https://endowus.com/financial-literacy-and-investing

visit syfe.com to download and read their retirement/planning e-books: https://www.syfe.com/magazine/syfe-e-books/

if want to be spoonfed, then I guess you can contact an insurance agent. =:p

Before Covid, I often see agents at coffeeshop/ starbucks (must be rich client) / MacDonalds trying to sell products to clients.

andyhtc · Nov 7, 2021

There is not much you can do if your cash on hand is tight. Risk of losing your capital can be very painful and drastic.

Good to save up more cash for kids who are coming. Liquidity is very important for emergency and hospitalisation insurance.

The only major investment left is OA to SA transfer if your job is secure.

slapshocked · Nov 7, 2021

May i know or where to read on the benefits and disadvatanges of transfering OA to SA?

reddevil0728 · Nov 7, 2021

https://bfy.tw/RyMM

Thoreldan · Nov 8, 2021

Not sure if Shingy Things is still selling his ebook on investment. Great read,simple and concise. Easy to follow for beginners.

Look around, there's a thread dedicated to him.

wutawa · Nov 8, 2021

How come u have $140k cpf investment with no financial knowledge?

yoongf · Nov 8, 2021

Please chk if your CPF investment is growing at more than 2.5% per annum past 5years. If not, is worth considering liquidating them.

Frens say take loan better. That may make sense only if its bank loan with interest rate lower than 2.5%. Taking a HDB loan that incurs more than 2.5% .. this itself is a whole seperate investment topic.

U mention abt past debts. Need to chk if those debts have an impact on your bank loan eligibility.

yoongf · Nov 8, 2021

End of the year is coming. Can also consider topping up CPF SA or MA for yourself or spouse to get some tax relief.
Growing wealth is not just abt growing assets, but also about minimising expenses.

reddevil0728 · Nov 8, 2021

He addressed that above

Okenba · Nov 8, 2021

Are you married? With/without kids? BTO can be on singles scheme.
Amount in SA? SA is important to plan for retirement.

Insurance situation? Any dependents? (Kids, elderly parents) Insurance planning should generally come before investment planning.
If you have an insurance agent, it is quite likely that much of your money is already being spent on insurance.
You can plan your insurance to pay less for similar coverage, perhaps surrender certain policies to get more cash on hand, etc.

Current housing situation? Living with parents? What is intention for BTO then? If money not enough, would you consider moving everyone into one flat and renting out the other? This is a viable way to grow wealth.

Assess your CPF investments. Are you better off leaving them in OA for 2.5%pa? Or even SA for 4%pa?
(If you don't know what you bought, you are probably better selling it off even if it made good money. Past performance is no indication of future profit.)
How would this affect your BTO plans?
How stable is your job? Would you be able to continue paying your loan if you lose your job? (In which case you may need to leave some in OA just in case and may not want to transfer too much to SA.)

For newbie, I think Endowus does the job well. Clean and simple interface and good and simple products as well. Also able to invest cash as well as CPF and SRS. But run through the questions first and read up on some of the links previous posters provided. Always good to learn more before sinking your money in.

Hot_Dog · Nov 8, 2021

Then you need to read up more, increase your financial knowedge. Be for warn thou, it's a mine field out there. :grin:

*Especially for newbies :grin:

0218crawford · Nov 8, 2021

Only 1 thing to do: SAVE
Together with wife, should be able to save a decent amount in the next few years.
Pop the same question again in 5 year's time.

ft7001 · Nov 8, 2021

Thanks for all the helpful replies.

anyway, I’m turning 41 this wed.

single dude, no gf and not intending to even settle down/get married. So will not have any ‘kids’ expenses.

just purely a 1-man show kinda life that I’ll be leading for the rest of my life.

anthonygreenisreal · Nov 9, 2021

Put money into S&P 500 ETF.

JetStorm · Nov 9, 2021

Cash tight? Save at least 6 to 9 months of emergency funds first.

Once that is done settle any insurance shortfalls you have.

Invest the rest.

Every step of the above there are alot to learn to maximise efficiency vs lowering costs. Have fun exploring and learning!

celtosaxon · Nov 9, 2021

MGTOW?

dude123 · Nov 10, 2021

Sorry to hijack, emergency funds equate to monthly gross salary ? So if save 6 to 9 months means bank must have at least 6-9mths of the salary amount ?

Help on growing wealth.

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