Why I Wrote This
This article began after an old friend messaged me yesterday. A bank had approached him with a Structured Investment Product (SIP) requiring a minimum investment of 200k. Like me, he retired early. Unlike me, he has substantially more wealth. Yet from the way he described the offer, it was clear he hasn’t done much planning for his retirement investments.
He told me the SIP was “capital guaranteed” and involved a complex structure that would generate monthly returns through the bank’s stock market activities. Both of us were puzzled how the bank could profit from such a product.
My Immediate Thoughts
Common sense tells me: no bank can truly guarantee your capital, not even for a single day.
So there must be a misunderstanding somewhere. And obviously, if it sounds too good to be true, there’s a catch.
My first reaction was:
Why even play this game with the bank?
If you want to invest, invest properly. Avoid jargon, complex structures, derivatives, “monthly stable returns,” and all that nonsense—especially if you don’t even know how to buy a stock yourself.
So I decided to write down what I would do if I were starting fresh as a new investor with a large retirement sum. This is not financial advice, but a personal sharing of what I think is reasonable.
First: What to Avoid
Before anything else, avoid these pitfalls:
Do not invest in business ventures.
Do not gamble.
Do not touch Structured Products.
Buy adequate insurance (hospitalization, annuity, travel) if you did not secure these earlier in your career.
Treat every request to remit or transfer money as a potential scam.
For term insurance or critical illness at this age: be extremely cautious. Premiums are high and can burn a hole in your retirement funds.
My Suggested Starting Steps
1. Secure a Base: SSB
Allocate the first 200k into Singapore Savings Bonds (SSB).
This assumes you have far more in retirement funds. SSB gives flexibility, safety, and liquidity at your fingertips through online banking.
2. Ensure CPF Reaches FRS
If your CPF Retirement Account has not reached the Full Retirement Sum (FRS), do a top-up.
3. Consider Going Up to ERS
Depending on your retirement size and needs, you can top up from FRS to ERS.
This guarantees a solid monthly payout from age 65 with practically no risk.
4. Park Some Money in T-Bills
Rates are low now, so treat T-Bills mainly as a parking lot for future deployment.
Good to go through the process and learn it. Done online via your bank.
5. Use Fixed Deposits or CPF OA
Put a portion into fixed deposits. Again, do it online.
Alternatively, transfer more into CPF OA at 2.5% via VC3AC, which also tops up the other CPF accounts.
6. Max Out CPF MA
If you still have excess cash, maximize your CPF Medisave Account (MA).
7. Gradual Deployment Into Equities
Whatever remains will depend on your portfolio size.
I would then slowly allocate into equities over several years to average out market cycles.
If there is a major crash, your cash becomes king—you can deploy quickly at great valuations.
If the market rises while you invest, you’re averaging up, creating a profit buffer. Personally, I prefer that as it gives me more mental comfort. Averaging down is far more stressful.
For new investors, start with broad ETFs:
STI ETF
S&P 500 ETF
Sector or thematic ETFs should be left to more experienced investors.
Final Thoughts
This is the “quick and dirty” outline of what I would do if I were starting with a large retirement sum today.
What do you think?
Cory Diary
2025-11-26
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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.
Agreed with your suggestion especially if it is for folks who are going to retire
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