Passive Investment Goal

When I started my first job in 2016, my saving goal was to save $100K by 30. With a salary of $2K to $3K, I’ve my spending budget set to $10 per day and set aside 20% of my salary for parent. After working for a few years, I reached my goal few days before 27. However, that got me thinking, what’s next? What can I do better?

Prior to that, I’ve already understand the importance of keeping aside 6 month of emergency savings. I’ve an estimated of $30K invested with POEMS’s Share Builders Plans (SBP) and POSB Invest Savers.

For my POEMS’s Share Builders Plans, I’m general uncomfortable with stock picking blue chips and have always preferred diversification by getting ETFs. As my dividends get larger, I got more uncomfortable with POEM’s fees and decide to move out. The experience of liquidating assets from POEMS wasn’t great either as the platform isn’t user-friendly enough. I’ve made mistakes while selling my shares and was charged penalty fees due to it.

Regular Saving Plan (RSP) in POEMS - SG Wealth Seminar
POEM’s Share Builders Plan interface

Then I decide to put my funds into robo-advisors for more fuss-free experience. I did not need high level of controls for trading, passive investing solution would allow me to be more focus on things that I’m interested with and robo-advisors are just the right product that will help with my portfolio allocation and optimization.

I’ve read articles on how net-worth could go crazy after first $100K (https://fourpillarfreedom.com/the-math-behind-why-net-worth-goes-crazy-after-the-first-100k/), and my situation was vastly different as majority of my $100K are kept in bank as emergency savings with a maximum of 2%+ interest and in reality, only $30K are invested with higher returns.

Hence, my next goal would be to have $100K invested with emergency savings set aside.

Currently, I’m about $50K invested with POSB Invest Savers and 3 robo-advisors, namely StashAway, AutoWealth and EndowUs (excluding SRS). I would take another year or two to reach my first $100K, but I’m glad to be half way there.

Pricing | StashAway
StashAway Roboadvisor

Thinking further into my next 5 to 10 years, I’ve decided to set goal of $100K for two of my StashAway portfolio. It would be unthinkable, considering about the future that I will have more commitments. But that’s definitely something fun to look forward to.