Portfolio allocation

[ExEngineer]

34. Not young not old. I'm seeing cpf 4% SA like a type of bonds. What other options are better?

Everybody’s situation is different, but 34 sounds very young to be locking up such a big chunk in SA.

Putting some into SA may not be a terrible idea, but perhaps consider splitting it and putting a portion into something more liquid/accessible (then depending on risk appetite, can choose to put into equities, bonds, balanced funds etc, that’s up to you).

 

[Prof. Utonium]

34. Not young not old. I'm seeing cpf 4% SA like a type of bonds. What other options are better?

34 still young dude!

I am 30 and trying hard to hit 90:10 allocation with my SA+private annuity being my bond portion. Since I am an employee, I flushed my OA to SA to hit BRS (compounding would still allow me to hit BRS when I am 55 even if stopped working now) while building OA for future HDB purchase in the long term.

If you are risk averse/non investment savvy/non active trader; global ETF would be no brainer. Buy and forget. Opportunity cost is too great to dump your cash into SA so early, unless you already have 7fig portfolio then CPF is negligible.

If you still want to top up your SA, then just do enough to hit the yearly max tax rebates.

 

[JetStorm]

Seeking advise from the experienced peers here.

Aim : to have some sort of passive income to supplement future living expenses. Lessen the burden to keep saving up for rainy days.

Background : Currently have a $200k stock portfolio (40% ES3, 30% various reits, 8% Banks, 12% transport+HKtech+JardineCC+misc)

Question : I may have a 200k cash proceeds from sale of house which I am thinking to put into CPF SA account for 4% interest and remaining in robo-advisor related investments.

I have set aside 300k cash to use for property purposes (to have a roof for my family)

Is this considered a bad decision to have 200k throw into SA account?

I'm keen to learn. Thank you.

Seems like you got it all figured out. Hows your insurance coverage? Do make a review to see if anything needs topping up on that front. After that, feel free to use the cash for investments.

Are you a salaried employee? If so you can either topup to your SA and/or SRS account yearly for maximum tax reduction. The SRS or excess cash amount can be used to invest in global equities coz it seems that you are currently overweight in local equities. Lump sum or DCA is up to you if you have buyers remorse.

Other that that I think you are set. If you want you can even put a small % into crypto or any thematic funds/etfs you desire.

 

[Andrew833]

Seeking advise from the experienced peers here.

Aim : to have some sort of passive income to supplement future living expenses. Lessen the burden to keep saving up for rainy days.

Background : Currently have a $200k stock portfolio (40% ES3, 30% various reits, 8% Banks, 12% transport+HKtech+JardineCC+misc)

Question : I may have a 200k cash proceeds from sale of house which I am thinking to put into CPF SA account for 4% interest and remaining in robo-advisor related investments.

I have set aside 300k cash to use for property purposes (to have a roof for my family)

Is this considered a bad decision to have 200k throw into SA account?

I'm keen to learn. Thank you.

Money put into CPF is stuck until 65, it's illiquidity.
Although you can still use CPF money to invest but it's limited and there are many charges occurred. Can use OA to invest if you can beat 2.5% interest but not the point of your question.
You can VC yearly into your SA to build up the compounding interest, will be easier for you to hit FRS later on.

You can use your extra cash to strengthen your portfolio.
Building passive income, look for high dividend and stable stock, sg stock is fine, it's tax free and forex risk free.
You can rebalance your portfolio, maybe 80-90% with dividend at least 4%. Around 10% for growth or short term depend on your strategy.
If 400k, 85% with 4% dividend will be yearly $13,600.

ES3 dividend is low, if for me, I will sell it and buy MINT. 40% for 1 counter is too much, can split into 2 counters to diversify.

 

[lasnoblur]

bro u have strong cash flow.
200k stocks
200k cash profit from property
300k spare cash.

i am your age but lagging far behind u.

 

[Pueh Kee]

Ts u must be high flier in pte sector or a regular..

 

[celtosaxon]

Age 34 is about the age when I started getting really serious about investing. I started reading more about it and sold all my individual stocks and put everything in broadly diversified, low cost index ETFs.

Fast-forward to today… 15 years later, all I can say is… wish I would have done it sooner! So long as you can hold on, even during a major correction - stay the course with unwavering discipline, you will never regret it in the long-term.

Stocks really have the best risk adjusted returns in the investment universe, and with sufficient diversification that an index gives, it will beat all other investment vehicles in the long-run, including property, CPF SA, etc, you just need to stomach the short-term volatility.

 

[pytha6ora$]

Thanks guys. I hear you.

low cost index ETFs
global equities
Global ETFs

China stock crash an opportunity?

 

[Kojo0403]

Thanks guys. I hear you.

low cost index ETFs
global equities
Global ETFs

China stock crash an opportunity?

if u are not exposed to china at all, yes might be a good time to enter.
HST or YYY listed on sgx might be good choice