Guidance needed for extra savings!
 

Hello all.

I have just graduated from NUS (age 25) working with a monthly income of ~4k/mth and also ~2k/mth from giving private tuitions. As I intend to spend only from my tuition earnings, I am looking at a savings upwards of 50k per annum (with bonuses).

What should I do with these savings? Should I save them for future uses like wedding and BTO or should I use them for investment? In addition, since I am quite packed everyday with tuitions and work, I do not have the time to do my research and invest.

Would love to get from guidance from any experts here or maybe share their experience. I am open to suggestions and advice here or privately. I am also hoping to achievement my first million by 35!

of course invest. in such a way that when you need it for BTO or wedding, the securities can be easily liquidated within a timeframe.

consider low risk investments: fixed deposits, bonds, property
medium risk: high dividend stocks, unit trusts
higher risk: invest in startups, or business related activities

Thanks for the advice. However, as I stated previously, I do not really have time for research in investing. In this case should I engage a fund manager instead?

anyone else willing to share? tks in advance!

Invested >$200k in REITs and defensive stocks, yielding >6%pa in distributions/dividends

go for medium risk. If no time to do research, at least go check which stocks provide high dividends. Shares like reits, starhub, singtel, sph, or those glc firms shd be your choice. Accumulate savings and invest in these stocks by lots. Some stocks would offer quarterly dividends, while some provide half-annual or annual dividends.. Do comparison on the total dividends, the share price, initial IPO and recent performance to determine. But nv put all eggs on 1 basket.

Or else, you can try for forex if you wan much higher risk or bonds ( govt bonds) if you go for lower risk. Property can wait till you earn few hundreds of k.

Do you even have time to date? if no then think about what BTO?

ppl already say no time liao, u all still can ask him blindly throw money inside some stocks.

jus go for index funds or etf. that is the simplest strategy with decent returns over the long run (many studies have shown that actively managed funds do not outpeform index funds or etf).

n i dunno how u guys can jus throw out REITs like that. there r so many downsides with limited upside at the moment. n u guys is advising ppl who do not have the time to do proper research to park his money there?

All investments come with risk, even the safest ones. This means you may LOSE money.

Since you will need the money quite soon, I suggest you put it in a time deposit or with the CIMB savings account which pays 0.8%. If you have a few hours a month, you can explore OCBC 360 which pays 3.05% on $50k. This way, you will not lose money.

Tax Refund
 

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earn more, spend less, save more, invest lor... so simple...

well, hat me and my wife did was to save hard, invest in property when the market is cool, and sell when the market heats up. that's how we grew our net worth from $300K at age 28 to $2.8M over the last 10 years. also, increase your savings as your salary increases and do your sums before starting a family.

Debt Crisis
 

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How many students do you have while working full time? I am moonlighting as a private tutor after work, and I already find it tiring having to beat the clock & traffic on days I am giving tuition. I'm also surprised that tuition did not interfere with your career when OTs are expected. How did you even managed to pull it off and earn 2k from giving tuition?

that guy may just be coming out with ********e stories.

havent u heard of internet trolling before?

No loss on capital but its value depreciates due to inflation. Should aim to be on par with inflation rate at least.

To accumulate from a low base of 50K (not sure how much you really have), you will probably need to grow YoY >30% for 10 consecutive years.

It's a pretty aggressive target to beat if you are going to rely on investment alone.
You will realize you need to concurrently try growing your income to >100K a year while at the same time manage your expense down.

That will give you more disposable income to invest and less aggressive growth target to work with. It's going to be a 3 pronged strategy that requires some discipline and a tad bit of 'luck'.

To increase your chance, it's best to invest time also to understand various investment strategies. That will equip you with knowledge to make wiser choices that bring you closer to your target.

Is this post also a ********? Damn smells full of ****...