What to do with inheritance

[Loofish]

I've received an inheritance of approx 150k.

I'm looking for advice on how I can invest this sum of money. As of now, I've approx 12k in the SSB. Looking at the UOB one account as it can reap a decent interest rate without salary. (I'm a uni student hence no salary) However that can only save up to 50k..

Uni is fully funded with scholarship hence no worries about financing it.

Looking forward to hear your inputs

 

[JuniorLion]

Have you got your medical insurance sorted out?

 

[Loofish]

Have you got your medical insurance sorted out?

Yes I have one of decent coverage Am v young so premium is decent.

 

[Extech]

TS put 50% in crypto now and take part in pumps on exchanges.

 

[JuniorLion]

Yes I have one of decent coverage Am v young so premium is decent.

I think you should go for private hospital if you can afford. Else go for A1 Ward coverage (i know some people will disagree with this).

I believe in term/life insurance + CI coverage at the very least (again some will disagree).

other than that, with 150k and no loans, I think you can start thinking about investing in global ETFS, such as IWDA.

 

[havetheveryfun]

I've received an inheritance of approx 150k.

I'm looking for advice on how I can invest this sum of money. As of now, I've approx 12k in the SSB. Looking at the UOB one account as it can reap a decent interest rate without salary. (I'm a uni student hence no salary) However that can only save up to 50k..

Uni is fully funded with scholarship hence no worries about financing it.

Looking forward to hear your inputs

150k not a lot actually. Take your time first, don't be too hasty and rushing to be investing it.

can put it in places like Stanchart eSaver (~1% p.a.) first while deciding what to do with the monies. Also check out CIMB fixed deposit for 12 months 1.8% in the sticky Latest deposits thread here posted by other forumers.

 

[revhappy]

yes, put it in IWDA and dont look at it for the next 30 years, it should become a decent sum to fund your retirement.

 

[swordsly]

I've received an inheritance of approx 150k.

I'm looking for advice on how I can invest this sum of money. As of now, I've approx 12k in the SSB. Looking at the UOB one account as it can reap a decent interest rate without salary. (I'm a uni student hence no salary) However that can only save up to 50k..

Uni is fully funded with scholarship hence no worries about financing it.

Looking forward to hear your inputs

As per what havetheveryfun has mentioned, don't have to rush.

There are a number of principal guaranteed products out there while you take your time to learn to deal with this sum of money.

• SSB which you are already doing
• Saver accounts (those that ask you to put in every month)
• Citibank Maxigain (rate after 12 months is comparable to SSB, assuming your balance doesn't drop below preceeding month)

 

[henrylbh]

I've received an inheritance of approx 150k.

I'm looking for advice on how I can invest this sum of money. As of now, I've approx 12k in the SSB. Looking at the UOB one account as it can reap a decent interest rate without salary. (I'm a uni student hence no salary) However that can only save up to 50k..

Uni is fully funded with scholarship hence no worries about financing it.

Looking forward to hear your inputs

Take it as there was no inheritance. Dump all into the three local banks and receive close to 5k dividend annually and more with bonus dividend. Don't bother with price fluctuations.

 

[LogicisReal]

Take time to study about investing and accumulating wealth, get a comprehensive whole life plan if there are dependents, as it would be useful whether for now or future.

Seek more opinions, allocate this sum wisely, it can be gone in a blink of an eye to most people. Glad that you are actually asking for opinions

 

[Maeda_Toshiie]

Take it as there was no inheritance. Dump all into the three local banks and receive close to 5k dividend annually and more with bonus dividend. Don't bother with price fluctuations.

Might as well dump into ES3 for better diversification and safety.

 

[Loofish]

Thanks all for the inputs )

With regards to the IWDA how much money should I put in?
I’m already on a POSB Nikko AM ETF DCA thingy

The OCBC FD seems pretty attractive imo

 

[BBCWatcher]

I think you should go for private hospital if you can afford. Else go for A1 Ward coverage (i know some people will disagree with this).

I disagree. The former is not even close to a necessity. The latter at this age costs about $3/year more than a public hospital B1 ward Integrated Shield plan. If one wants to splurge a bit for $3, fine.

I believe in term/life insurance + CI coverage at the very least (again some will disagree).

I disagree. The original poster has no dependents in evidence, and you didn’t even ask!

other than that, with 150k and no loans, I think you can start thinking about investing in global ETFS, such as IWDA.

Yes, a university student, age early 20s, has a ~40 year time horizon to retirement. That’s the correct answer, or some basic variation on it, after setting aside emergency reserve funds (in SSBs probably). So something like $50,000 in SSBs (which will probably take about 3 or 4 months to place) and $100,000 in a low cost, globally diversified portfolio of stocks that’ll ride along for 40+ years makes great sense. IWDA is a good example, and VWRD is fine, too. I also agree with Revhappy on that point.

 

[Loofish]

Take it as there was no inheritance. Dump all into the three local banks and receive close to 5k dividend annually and more with bonus dividend. Don't bother with price fluctuations.

What are the three banks that can me such a return :O cause that’s like 3% p.a

 

[Loofish]

I disagree. The former is not even close to a necessity. The latter at this age costs about $3/year more than a public hospital B1 ward Integrated Shield plan. If one wants to splurge a bit for $3, fine.


I disagree. The original poster has no dependents in evidence, and you didn’t even ask!


Yes, a university student, age early 20s, has a ~40 year time horizon to retirement. That’s the correct answer, or some basic variation on it, after setting aside emergency reserve funds (in SSBs probably). So something like $50,000 in SSBs (which will probably take about 3 or 4 months to place) and $100,000 in a low cost, globally diversified portfolio of stocks that’ll ride along for 40+ years makes great sense. IWDA is a good example, and VWRD is fine, too. I also agree with Revhappy on that point.

Hehe yes, no dependents as of now.. I intend to get married say in 10yrs time? Still single

I’m rather interested in investing in the global ETFs but I’m quite lost on how to go about doing it... should I use an interactive broker or SCB? Also should I use a DCA approach like how it was done w STI ETFs?

 

[BBCWatcher]

I’m already on a POSB Nikko AM ETF DCA thingy

Ah, that’s new information. We implicitly assumed you are debt free, have low overhead, and have no other appreciable assets.

How much do you have accumulated in that ETF? Which Nikko fund (there are a couple possibilities)? Any other appreciable assets?

POSB Invest Saver really isn’t appropriate any longer for your level of wealth since the costs are higher than necessary, even if you want that particular fund. Yes, you’re at least slightly wealthy now.

The OCBC FD seems pretty attractive imo

It’s not attractive. As I write this, OCBC is offering 1.5% on a 2 year fixed deposit. That’s terrible, and it’s not even close to the best fixed deposit offers in Singapore. SSBs beat that, too, even considering the time required to place funds into SSBs.

 

[Loofish]

Ah, that’s new information. We implicitly assumed you are debt free, have low overhead, and have no other appreciable assets.

How much do you have accumulated in that ETF? Which Nikko fund (there are a couple possibilities)? Any other appreciable assets?

POSB Invest Saver really isn’t appropriate any longer for your level of wealth since the costs are higher than necessary, even if you want that particular fund. Yes, you’re at least slightly wealthy now.


It’s not attractive. As I write this, OCBC is offering 1.5% on a 2 year fixed deposit. That’s terrible, and it’s not even close to the best fixed deposit offers in Singapore. SSBs beat that, too, even considering the time required to place funds into SSBs.

Haha oh just some extra context, I only started to “invest” at the start of this year hence I don’t have much in the NIKKO AM STI ETF. I put in $400/mth hence at that amount POSB was the more reasonable option.

I have no other assets... other than some singtel shares that was received as part of the inheritance (quite little).

What other mediums to invest in ETFs do you propose ?

 

[tangent314]

$150k is the right amount of money to open an IBKR account, buy IWDA+EIMI and just leave it there without incurring monthly fees.

Another possibility, if you intend to invest part of it for retirement, would be to get a head start on your CPF by arranging to make voluntary contributions + SA top up so that you hit $20k OA + $40k SA which is the limit for the additional 1% interest.

But really it all depends on what you intend to be investing for. Retirement? Funding further education or the down payment of your future house? Provide a small steady income stream?

 

[BBCWatcher]

I’m rather interested in investing in the global ETFs but I’m quite lost on how to go about doing it... should I use an interactive broker or SCB?

Interactive Brokers, I’d say.

While you’re age 25 or younger, and if your total account value is below US$100,000, IB will charge a monthly minimum commission of a mere US$3/month (US$36/year). Your trade commissions will first count against that minimum. Once you hit your 26th birthday the minimum commission rises to US$10. But once you hit your 25th birthday you may be at US$100,000 or higher. Great deal.

Also should I use a DCA approach like how it was done w STI ETFs?

Ah, OK, POSB Invest Saver into the Nikko AM STI ETF, got it.

Once you figure out how much ought to go into IWDA (perhaps mixed with a bit of EIMI) — still figuring that out based on the information you’re adding — then I’d divide the amount into about 6 monthly installments to place it. You could just buy it all in one whack if you wish, or stretch the buys out to 12 monthly installments, but 6 feels about right. This is 40+ year money. You’re just going to let it ride for 4 decades or more, if you’re sensible and don’t have an undefended calamity.

For your STI ETF you’re probably better off shifting that to Standard Chartered. I personally would not let it creep above about 20% of your total stock holdings, especially at your age. I don’t think it makes sense to overweight 30 stocks that happen to be listed in Singapore just because you live here — not now, not with 40+ years to go to retirement.

SSBs are terrific for emergency reserve funds (from emergency month 3 onward), housing down payments (although CPF OA could be used for that), and wedding parties, as examples. Another interesting potential play when you start working, since you’ve got some decent wealth now, is to transfer OA to SA partially or fully every month. You’ve already got plenty for a HDB down payment when the time comes, so you could safe chase at least some of that earlier and higher SA yield if you wish. (There are some other young and getting wealthy or wealthier people who follow that strategy. And older people, too. I like it for those who can pull it off, but that’ll come in the future when you start working and earning an income.)

 

[SBC]

Can consider 20k to 50k into CPF SA. Interest rate at 4%. Additional 1% if it is your first 60k.

Very logical sense.

Many may not agreed with me though.