Hey ,

We are seeing a strong recovery in the Chinese stock markets recently, following several monetary policies introduced by the Chinese government to stimulate economic growth after a major slowdown.

Both the Hang Seng and Shanghai indices have increased by over 20% in value just in the past month.

If you have been staying away from investing or focusing on other markets, you might feel like you’ve missed the boat. Alternatively, if you're considering new investments as interest rates for fixed deposits, high-interest savings accounts, or T-bills are coming down, you may be wondering how much to allocate to riskier investments.

Before making any changes to your allocation strategy, it’s essential to understand what type of investor you are. Utilizing the green, yellow, and red money categories can help you organize your assets effectively.

Many people are unsure whether they are taking on too much risk or not enough to maximize their potential returns and beat inflation over time.

If you're interested in discovering your investor profile, click on the button below to access a simple form designed to help you analyze your investment style based on your answers.

Investor's Profile Test

While it may not be the prettiest form, I believe it will help you understand whether your current investments properly reflect your financial situation and goals.

If you’re not keen on finding out your risk profile, I’d still like to share the green, yellow, and red money concept with you.

Green Money

These assets focus on protecting your principal while offering the potential for conservative returns. Although the growth potential is lower compared to higher-risk options, they provide stability and security. Examples of Green Money include government bonds like Singapore Savings Bonds (SSBs), money market funds, fixed deposits, and CPF accounts.

Yellow Money

These assets are professionally managed to align with your specific investment goals and risk tolerance, whether for growth, income, or principal preservation. The growth potential is higher than Green Money, but Yellow Money carries market risks and the possibility of losing principal. Examples in Singapore may include ETFs and unit trusts.

Red Money

Red Money assets come with varying levels of risk and are typically not managed for a specific purpose. These investments are subject to market fluctuations and carry the potential for loss of principal. Examples of Red Money include individual stocks, real estate investment trusts (REITs), and other speculative alternative investments.

If you are several years away from your desired retirement age and have a balanced risk profile, you would ideally want to allocate 50% of your savings to Green Money, 40% to Yellow Money, and 10% to Red Money.

I hope this gives you some food for thought as you consider your investment strategies.

Ready to discover your investor profile? Click here to take the assessment now!

Feel free to reach out if you have any questions or need further assistance with your investments.

Best Regards,

Zest Chia

Executive Wealth Consultant | Associate Estate Planning Practitioner |

Licensed General Insurance Advisory

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