At this stage of their lives - when they're 25 to 35 or 35 to their early 40s - young couples have a long time in which to grow their investments.
Thus, financial experts say they can afford not to be too conservative when investing.
The chief executive of Alpha Financial Advisers, Mr Arthur Lim, believed that, for young couples, this sub-prime-mired environment could actually present opportunities for wealth accumulation that have not been seen in more than 50 years.
'Just as the world economy has recovered from the Great Depression, the Asian financial crisis, the Internet bubble and the terrorist attacks in September 2001, the current sub-prime crisis will blow over, although it will take time.
'But the crisis presents a great opportunity for the younger generation to grow their wealth exponentially, given the very low stock prices we are witnessing now,' he said.
Senior financial consultant Yong Kee Leng of Financial Alliance advised young couples to keep a close tab on their income and expenses, and not to take on too many financial liabilities.
He suggested that, at this stage, they should be building up their cash savings and Central Provident Fund (CPF) monies. They should also consider diversifying their investments.
'This is a good time for them to start looking at alternative investments that are not dependent on the stock market, such as fine wine, so they can diversify their investment portfolio risks,' he said.
He noted that a typical investment portfolio for a young couple might be set up this way: 20 per cent in savings and fixed deposits, 20 per cent in alternative investments, 30 per cent in unit trusts and 30 per cent in stocks.
This article was first published in The Straits Times on November 02, 2008.
