57 Percent Invested versus 43 Percent Cash

57 Percent Invested versus 43 Percent Cash

How much are you invested versus your cash on hand?

A fellow blogger at Fatty Finance recently posted some money management tips via twitter. They are tip number 1. Don’t be a slave to money – money works for you, not the other way round, tip number 2. Create value first – money will come eventually, tip number 3. Count your money – you cannot manage what you don’t know.

Tip number 2 reminded me of my recent disappointment on not getting my job promotion. While I have created value to my bosses and company, I failed to obtain the recognition that I deserved. Perhaps the time (money) has yet to come. I will continue to work hard on it.

Tip number 3 reminded me that I have not kept track of my money since last year! The last time I checked how much money I have on hand versus the total money that I have invested was in March 2019.

Below is the breakdown in terms of percentage on the cash I have on hand versus the total money I have thrown into the stock market in March 2019.

57 Percent Invested versus 43 Percent Cash

Below is the breakdown as of current month July 2020.

Cash versus Investments July 2020

From the breakdown, it seems that I have kept my cash on hand levels pretty stable based on my monthly routine. I am not overweight in my investments.

If you remember, I considered monies in my DBS Multiplier Savings Account, Singapore Savings Bonds (SSB), cash benefits payouts from NTUC Revosave and newly added Singlife account as “Cash”. These are monies that I can easily redeem in event of an investment opportunity or in terms of emergency such as a job retrenchment etc. “Investments” are stocks and REITs that I have bought.

Is My Money Growing?

Definitely Yes! I still get paid my salary from my work. I stashed a certain portion into savings and the rest goes into household bills. Both my cash on hand and investments continue to grow steadily over the past one year. For confidentiality reasons, I can only share the percentage breakdown and not the total value.

Wondering How Much Should You Invest?

There is actually no right or wrong answer on how much money should you keep on hand and how much money should you put into the stock market. I have previously believed a 30 percent cash and 70 invested percentage is a good ratio. Throughout the years, I felt more comfortable with 40 percent cash on hand and 60 percent invested.

Best Endowment Plans In July 2020

Financial Planning

Looking for the best Endowment Plans in July 2020 to earn a higher interest rate than fixed deposits? Endowment plans are life insurance saving plans that are offered by insurance companies. The aim is to help policyholders save towards specific financial goals. Policy holders can contribute a regular amount for a designated period of time or pay a lump sum upfront at the start of the policy.

Upon maturity of the policy, you will be give a lump sum payout with the guaranteed return. It is best to study the plan carefully as certain endowment plans offers non-guaranteed returns.

The Federal Reserve interest rate was cut by half a percentage point in March 2020. This has caused the Singapore Interbank Offered Rate (SIBOR) to start dipping. As such, the fixed deposit interest rates had fallen to non-attractive levels. Thus, we should consider alternative financial instruments that can offer us better returns over a short fixed time duration.

Below are the best single premium, non-participating life insurance savings plan that I have found to provide you with a guaranteed return over the time period in July 2020.

NTUC Income Gro Capital Ease

Interest Rate (p.a.): 1.85%, Minimum Investment: S$5,000, Maturity Period: 2 years, Payment Mode: cash and SRS (Supplementary Retirement Scheme)

NTUC Income Gro Capital Ease is a single premium savings plan that gives you a lump sum payout with guaranteed return of 1.85% per annum over 2 years. You will receive the lump sum payout at the end of the policy term.

Similar to NTUC Capital Plus offered in the previous tranche, the minimum amount for Gro Capital Ease is only S$5,000 per policy which you can pay using cash or using your Supplementary Retirement Scheme (SRS) fund. The maximum amount allowed per policy is S$200,000.

Gro Capital Ease is on a limited tranche and first come, first served basis.

Tiq 3-Year Endowment Plan

Interest Rate (p.a.): 2.10%, Minimum Investment: S$10,000, Maturity Period: 3 years, Payment Mode: cash only

Etiqa is owned by Maybank Ageas Holdings Berhad, a joint venture company that combines local market knowledge with international insurance expertise. The company is 69% owned by Maybank and 31% by Ageas, an international insurance group.

Etiqa offers the Tiq 3-Year endowment plan. Based on S$10,000 placed in Tiq 3-Year Endowment Plan at an interest rate of 2.10% p.a., you will receive a guaranteed payout of S$623 upon maturity of the policy.

Tiq 3 Year Endowment Return and Benefit

China Taiping i-Save Plan (Fully Subscribed)

Interest Rate (p.a.): 2.05%, Minimum Investment: S$30,000, Maturity Period: 3 years, Payment Mode: cash only

At the point of writing, China Taiping i-Save has been fully subscribed as it is a limited tranche.

China Taiping Insurance (Singapore) Pte Ltd is wholly-owned by China Taiping Insurance Holdings Company Limited. Since 2000, the company has been listed on the Hong Kong Stock Exchange, making it the first Chinese funded insurer listed overseas.

China Taiping Insurance (Singapore) Pte Ltd offers the China Taiping i-Save Plan. Based on S$100,000 placed in China Taiping i-Save Endowment Plan at an interest rate of 2.05% p.a., you will receive a guaranteed payout of S$6,280 upon maturity of the policy.

China Taiping i-Save July 2020

Summary

Here is a summary at a glance of the best endowment plans that I have found in July 2020.

NTUC Income Gro Capital EaseChina Taiping i-SaveTiq 3-Year Endowment
Maturity period2 years3 years3 years
Minimum investmentS$5,000S$30,000S$10,000
Interest rate per annum1.85%2.05%2.10%
Payment modeCash and SRSCash onlyCash only

The Best Fixed Deposits of July 2020

The Best Fixed Deposits of May 2020

Looking for the best fixed deposits in July 2020 in Singapore? There are varying fixed deposit promotions in terms of interest rates, tenure period offered by the banks in July 2020.

The 1 year interest rate for August 2020 Singapore Savings Bonds has fallen as low as 0.27%, thus any of the fixed deposits promotion below will beat the Singapore Savings Bonds.

I have shared many other financial instruments that is similar to what fixed deposits can offer.  One good alternative is buying an endowment plan. The latest one is NTUC Income Gro Capital Ease which offers you a guaranteed return of 1.85% per annum over 2 years. Read More