Ling Kah Nie asked 5 years ago
Hi, I would like to get some advice or opinion in term of choosing what type of fund e.g. bond fund, money market fund, reit fund and equity fund based on short, mid or long term saving and investment goals. And normally how would you define the duration for short less than a year? , mid (3-5 years) or long term saving (more than 10 years? ) Is there any general rule of thumb for allocating the portion of saving into short, mid term or long term saving?
ERIKA Staff answered 5 years ago
duration for short less than a year? , mid (3-5 years) or long term saving (more than 10 years? )
Yes you can define it that way.
any general rule of thumb for allocating the portion of saving into short, mid term or long term saving?
Allocating how much of your saving or allocating into what type of fund very much depends on your short, mid & long term financial goals and how much each of the goals costs at the time it need to be achieved. So there is no 'general rule of thumb'. Everyone's different, the same analogy is - you are unlikely to find someone same age in your biz and similar family situation that generates the exact amount of income and possess same level of networth
Does this make sense?
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Got it. For long term goals will be retirement fund, mid term investment goals like children education fund which we are expecting to use the money in 6-8 years time. Which type of fund will be more suitable to park this money? Or is there any source where we can find useful information on these to guide me through the planning.