*Investment in a weak economy
Get a regular income job first, with at least six month’s of your savings in cash before you consider the following;
1) Investment in Property (HDB or Private)
An Asset or a liability, you chose. For HDB flats, the minimum occupation is 5 years, for EC is even longer, 10 years, before you can sell your property in the Open market. As such, it becomes a liability and my advice is to hedge against the risk of unemployment during this period by buying insurance. For investment purposes, it is prudent to consider both the rental income per annum and capital appreciation of the location of the flat you intend to purchase. Affordability is an issue and properties that the mass market can easily afford will help you find a buyer faster and more liquid in times of need. For private property consider if it is freehold or leasehold with at least more than 50 years of lease left or you will not be able to use your CPF to finance it. Next, find out from the MC if the project’s sinking funds are positive or negative, where positive with a huge balance means the MC can afford to carry out maintainance/improvement works without the owners paying for it, thereafter enhancing the value of the project. For HDB, it is up to the Town Council. Plan your budget carefully and if you cannot afford it, it is better to rent.
2) Hedge against the risk of inflation for your retirement funds
Have a regular savings plan other than your CPF to invest in risker products to hedge against the risk of inflation which may eat into your retirement funds.
3) Have multiple incomes by investing in many incomes to spread your basket of risk
4) Buy games of chance eg lottery where a small bet might help you win a large amount of money
*Disclaimer : Enter at your own risk. What is suitable for me might not be suitable for you.
Contributed by Oogle.