Cory Diary : Asset Allocation

An ongoing process that involves managing investments across various asset classes to optimize returns while controlling risk. With an impending loan renewal, it becomes crucial to make timely decisions regarding my financial strategy. The primary goal is to maintain these assets for sustainable income generation and to avoid liquidating long-term investments during times of need.

By incorporating savings accounts, Singapore government bonds, treasury bills, multipliers, investment cash accounts, and fixed deposits, nearly 30% of total assets are in liquid form. This allocation is significant, as it provides flexibility and security. I called this my Emergency Fund.

Emergency Fund serves as a vital financial buffer, providing access to funds for various needs without the necessity of selling equity or property. Here are some key areas where I plan emergency fund can be tapped:

Loan Reserve: Funds set aside specifically to cover entire loan payments.

Daily Expenses: Money allocated for regular living costs to ensure financial stability.

War Chest: A reserve for unexpected opportunities

Child Education: Future educational expenses

Medical Reserve: Medical emergencies.

Approximately half of this Emergency funds reserved for loan clearnace if necessary. However, the current strategy aims to avoid this scenario. As we approach loan renewal date, may consider releasing funds in stages to support investments while gradually paying down the loan. This method could lead to a reduction of the emergency fund by about 5%, most of liquid assets stay invested in fixed returns in Year 2025. The next stage is to release most part of the loan reserve depending on the contract in Year 2026.

Cory Diary

2025-0109

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Disclaimer: The articles presented in this blog reflect personal opinions and are intended for informational and sharing purposes only. Not responsible of errors. Readers are advised to seek professional guidance when making financial decisions and should take full responsibility for their choices.