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Old 18-07-2017, 10:57 PM
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Originally Posted by BusinessSingapore View Post
I am always curious as to why young people (34) like yourself channel the majority of their savings into FD where a higher yield could be easily attained in bonds or even bond funds. Given that you don't seem to need the full 180k of liquidity.

Genuinely wants to understand your perspective, thanks!
Bonds are not without risks especially the non rated ones which tended to be those giving higher yields. It was just last year? that a few bonds (those related to O&G) went belly-up and investors lost their capital.

Given the current relatively high stock market valuations, it is ok to sit tight on cash position. Holding cash is also a strategy in the overall investment scheme of things.

If she is secure in her employment, then yes, I would agree for her to take a little risk and invest for potentially higher returns.

I have gone through this phase before where I have set a savings target to meet. The surest way (not necessary the quickest nor the most efficient) to meet the target was through pure savings and keeping the savings in an FD.

But once my capital has grown bigger, it gets easier to take on more risk. And thats when I started investing in stocks and eventually progressing to property investment. It's about comfort level and margin of safety.

There is no right or wrong.
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