Hello friends, anon here, I need some help! Some background:
I’m an NSF who recently came into possession of a significant amount of money (around 100k), and now I need some advice as to how I should use it to not only keep up with inflation but also possibly grow the money.
My parents just told me to put it in a Fixed Deposit account at a big bank and leave it there until I ORD, but with interest rates around 0.5%, I’m not sure if it’s the best idea. I’m currently toying with the idea of using a robo-investor such as Stashaway to invest a small amount of the money (<10k) and see where it goes, but I’m not sure if this is even wise…
I intend to make use of a portion of the money for my University studies in about a year when I ORD. So I hope to grow the money before I have to even start using it, if even possible. I don’t really trust “financial advisors” from the big banks who try to sell endowment schemes so I came to reddit! Thank you!
Here are what netizens think:
- I think one of the number one thing you should take note of, is don’t tell anyone other than your parents about it. People will come to you to ask for any number of things from investing/partnering in their business, buying insurance or investment vehicles that don’t actually benefit you, or encouraging you to start a business. Don’t, just don’t. I’ve seen way too many instances of people rushing into “business” with their windfall.
- Putting it in a fixed deposit, or some roboadvisor just to earn some compounding rate without human error/exploitation factor seems like a good idea. Take the time in uni to learn about investing and practice with other sources of money. Once you finish, you can more actively invest with it, or to build a business with your extra years of experience.
- Your parents are right. Put it in a fixed deposit since you’re going to be using it for your uni soon. In the meantime, read up on more finance matters and don’t rush to any decision that makes your money hard to liquidate.
- Hi Sir, I’m a nigeran prince with an investment for you.
What he did with his money
Thank you everyone for all the advice given, right now I have most of the money in an OCBC FD account with 0.6% interest rate, maxed out my existing StanChart JumpStart account @ 1%, and I’m planning on putting a little (<$5k) into a roboadvisor. Meanwhile, I will try to save at least 60% of my NS allowance (which isn’t alot) and learn more before I do anything stupid with the money.