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SeedlyTV S2E02

Bulletproof Your Portfolio. LIVE on Tuesday, 14 April 2020, 8pm

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COVID-19

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Stocks Discussion

Savings

I've seen a lot of paper losses and have already lost more than 70% of my investments. What can I do to bulletproof my portfolio? Is there any way I can recoup my losses?
Paper losses stay as paper losses until you've sold them. Selling them will prove even more disastrous now so make sure you hold it unless you are really desperate. Remember, the stock market isn't fully rational, especially at this point. Remember your investment purpose and strategy and stick to it. Holding power is key now. There will be a general recovery at some point so try and see if there are companies that, you might want to shift away from once the situation picks up.
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Investments

Stocks Discussion

SeedlyTV S2E02

Hello, I am 19 years old and just about to start investing. My plan is to buy stocks with 4-5k that I have saved and hold for a term of about 5 years. Which brokerage account is suitable?
Use Interactive Brokers as their commission is the lowest at USD 1. In addition, when you buy or sell options, there is no commission, and when the options are exercised, no commission as well. They also offer free 1 x withdrawal per month and USD 25 thereafter. The monthly statements provided by Interactive Brokers are also very useful for tracking your transactions, portfolio growth, dividends received etc. You can even lend out your shares to get paid by short sellers borrowing your shares since you intend to hold them for about 5 years. I was using TD Ameritrade for many years until I was introduced to Interactive Brokers and have shifted everything over ever since.
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Investments

Online Brokerages

STI ETF

ETF

SeedlyTV S2E02

How does investing in STI ETF work? What is the difference between SPDR STI ETF (ES3) & NIKKO AM STI ETF (G3B)? Also, for a beginner, would a lump sum investment or monthly investment be more suitable?
Gordon Lim

Gordon Lim

Level 6. Master

Answered on 23 Jul 2020

Hi. Just want to contribute my 2 cents. I'm a beginner too and I went with dollar cost averaging(DCA). Note: If you dollar cost average, you need to set up a Regular Savings Plan(RSP). If you were to just buy conventionally say through DBS Vickers or whatnot the fees per transaction (min $25) will surely eat into your returns. I personally have a RSP set up wtih POSB's Invest Saver to invest in the STI ETF.Going wtih DCA allowed me to start investing with only $100. For a beginner this felt like a lot of money. But as the months went by, I have up-ed my financial literacy and I'm now investing $500 a month. That being said, I went with Nikko AM STI ETF because SDPR STI ETF wasn't an option with POSB Invest Saver. Also, I already have a bank account with DBS so setting up the RSP was smooth. Yet, I wouldn't recommend POSB Invest Saver now that their cashback promotion on sales charge has ended. I'll switch to FSMOne in the future which also has an RSP, trades SDPR STI ETF and lower fees in the long run. As for the differences between Nikko AM and SDPR STI ETF (besides availability on different brokers) is 1) tracking error: how well it tracks the STI index 2) fund size Please refer to this seedly article for a well-detailed breakdown with summary https://blog.seedly.sg/spdr-sti-etf-vs-nikko-am-sti-etf/ (The 2 I mentioned is just those I remembered clearly) Back to Lump Sum vs DCA. Here's the seedly article I read https://blog.seedly.sg/dollar-cost-averaging-vs-lump-sum-investing/ My takeaways are that if you lump sum, short-term volatility might cause you to back out and sell at a wrong time when you should be holding for the long term. Let's say you invest $1000 lump sum vs $100 every month for 10 months. In the first month, if there a 1% drop, you will see a paper loss of $10 with lump sum but only $1 with DCA. So it's also up to you whether you can stomach this paper loss and continue to hold (as a beginner). Starting with DCA acclimitizes you the market volatility (I can vouch for that). Also one of the mistakes in investing is trying to time the market. With lump sum, the stock price has to be higher than when you bought it to make a positive ROI. With DCA, you can see from the diagrams in the link above, that it helps you ride through the 'lows'. And an RSP enforces some self-discipline in holding - it literally becomes habitual and automatic. Lastly, I think most people see returns as a % of your amount invested so just to clarify investing more does not give you more returns for ur single dollar. How much you should invest should depend on where you are in your financial journey. Do you already have an emergency fund of 6 months of income? How much cash flow do you have. I watched this https://www.youtube.com/watch?v=XCcmzsdsB9A which recommends a percentage of your monthly cash flow to invest. I think its worth checking out.
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Investments

Stocks Discussion

SeedlyTV S2E02

FSMOne Fundsupermart

Where will my dividends from Singaporean Stocks show up if I'm using an FSMOne Cash Account?
Sudhan

Sudhan

Level 6. Master

Answered on 17 Apr 2020

Hi anon, it will go to your Singapore cash account or the Auto-Sweep account if you have signed up for it. You should also be receiving an email notification on this.
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SeedlyTV S2E02

Investments

Lifestyle

Career

What got you interested in investing and at what age did you start putting in more time and effort into it?
Amanda

Amanda

Level 6. Master

Answered on 31 May 2020

I started being interested investment for one reason: to grow my money. Coming from a not so well to do family, I know that I have to work extra hard to get out of the poverty cycle. Regarding your qn on whether or not you should go full time investing, I would suggest to build your career first. For investments, you will need an sizeable capital to get a significant sum of gain. Unless you are thinking of doing full-time trading, which you will need to understand a lot on technical analysis and etc. :)
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SeedlyTV S2E02

COVID-19

Investments

Stocks Discussion

I've heard so many saying now is the perfect time to invest because of the idea of 'buy low, sell high'. I've never invested before but now seems like the perfect time. Any advice?
Hi Anon, A stock market crash or a recession is like a dream come true for investors. It doesn’t happen very often and understandably investors would be excited at a golden opportunity like this. But before you do any investments now, it is important to ask yourself a few questions before doing so. 1. Do you have enough emergency funds? You should only invest money that you don’t have to touch. This means you need to have your emergency funds covered. Don’t invest if you don’t have enough rainy day funds because that will cause bigger financial troubles. Tougher times lie ahead, you want to have enough cash at hand first and be able to tide through. 2. Have you done your research? Before buying stocks or investing in businesses, always do a good amount of research before making big financial decisions. For example, there’s a lot of buzz that it’s a good time to buy Zoom shares now given the spike in new users since COVID-19 happened. But is this really a good time to buy their shares now? You need to do sufficient research before making the decision. As you haven’t invested before, I suggest to not invest too much at once. If you’ll like to increase your investments or stakes in future, you can gradually ramp it up. No one knows when is the perfect time to invest. Timing the market shouldn’t be the approach to take when investing. We will only know when the perfect time was when it’s over but by then, it would have been too late.
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COVID-19

FIRE Movement

Savings

Investments

Retirement

SeedlyTV S2E02

Planning to RSP into US based ETFs over a long term horizon, should i wait till the US market crashes further?
To determine if the market condition is favourable to invest, the question will be: Is there a right time to invest? Accordingly, I have compiled a list of financial crisis and disasters since the 90s and every other strong reasons not to invest. However, the market has proven otherwise year after year. Therefore, focus with the right investment strategy by knowing your investment objective. Then decide the tenure and decide whether to invest a lump sum or to do it via dollar cost averaging. More Details: Lump Sum vs Dollar Cost Averaging Finally, invest into assets that suits your risk appetite. I share quality content on estate planning and financial planning here.
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Dividends

Value Investing

Investments

Retirement

SeedlyTV S2E02

How would i receive dividends in Singapore?
Usually they will credit to your bank account registered at your CDP account :D you will most certainly receive a mail when they about to issue dividends or special rights, DRIP, etc
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SeedlyTV S2E02

COVID-19

Investments

Property

Is now a good time to invest in property or REITs? What kind of REITs would you recommend to invest currently?
REITS have been badly affected by Covid19. I think it has room to fall further...
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