Invest Couple Goals
Young Couple Financial Planning to achieve Couple Goals
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Year-End Couple Goal: What is our net worth to achieve?
An Example: 3 years of working as a couple, we should be able to save S$200,000. However, due to transition, we might achieve S$170,000 to S$180,000 at the end of 2017. Will update this in Dec! This is one of our couple goals. The other couple goals are proposal, wedding, housing and starting a family..
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Save or invest? Plan and set a ratio.
20:80. 20% of $200,000 is $40,000. This includes emergency fund + wedding/proposal. As a result, 80% of the total is $160,000, which is the overall capital investment at the end of 2017. We will stick to 20:80 even we have a lower projected net worth at year-end.
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Invest Couple Goal: The expected returns based on overall investment should be 8% and more.
- US Returns on average is about 12%.
- SG Returns on average is about 8%.
- We took the average of both to become 10% since we are vested in both markets. In absolute term, it’d be $16,000 out of $160,000.
- We are looking at a 5-year horizon so as to inject capital on a yearly basis (for 5 years) on certain stocks (to be updated) to have a compounding effect (a post on this).
Less than 5 months to end of Year 2017. The current portfolio is about 82% in stocks and 18% in cash. We took this decision as we are still planning proposal/wedding/housing in a few years’ time.
Let have a walk through of a Portfolio Performance example below.
The three portfolios went live on Jan 16 and are track each month until early this year 2017.
In Feb 2016:
Invest ST Portfolio Performance Feb 2016
In Apr 2016:
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Invest ST Portfolio Performance April 2016
Read more at http://www.straitstimes.com/business/invest/all-3-portfolios-outperform-benchmarks