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One safe investing option is to do automated top-ups to your CPF Special Account (SA), which guarantees a return of 4 to 5 per cent per annum. Putting in S$7,000 a year – spread across monthly top-ups of about S$600 – would allow you to enjoy the full tax relief currently. (From Jan 1, 2022, the tax relief will go up to S$8,000 per calendar year for cash top-ups to Special, Retirement and MediSave accounts.)

Another option is Singapore Savings Bonds (SSBs), which are issued and guaranteed by the Singapore Government. They are risk-free, and investors can exit anytime with the full principal intact, Ong said.

But the interest rate on SSBs is generally low; they currently yield less than 2 per cent.

SSBs are a good way to diversify, she said, “but I would not advise you to invest all your money into it”.

Before you invest, it is important to make sure you’re covered in the event of an emergency, and sufficiently protected with insurance, said Tan.

So first, make sure you have about three to six months’ worth of expenses in your emergency fund, which you can easily draw on in events like a loss of income. Then, when it comes to insurance, Tan said it is important to remember its purpose: Protection, not investment.

So, he said, get sufficient coverage for as low a cost as possible. A term policy would suffice – it focuses only on providing protection and is generally more affordable – and any money saved can then be invested.