facebookGiven the current global economic outlook, what are the options if I have 20k cash to invest with, and looking at roughly 5% p.a. over 5 to 10 years? - Seedly

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Anonymous

13 Jan 2020

Property

Given the current global economic outlook, what are the options if I have 20k cash to invest with, and looking at roughly 5% p.a. over 5 to 10 years?

How should I be investing, single premium or DCA?

My current idea is to diversify by splitting into STI ETF (Nikko AM or SPDR STI), bond (not sure which), and REIT ETF (probably lion Philip because it has 30 assets underneath).

Any thoughts are welcome!

Discussion (18)

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Billy Ko

Billy Ko

13 Jan 2020

Development & Acquisitions Manager at REPE Firm

Looking back at the answers here where many are holding their money to wait for a market crash, comparing it with how indexes and stock prices since then, seems like many has missed out on money-making opportunities. Hence the saying 'Time in the market rather than timing the market'. No one can predict what would happen or when the next recession would come.

That aside, as what others have mentioned, REITs do offer the yield you are looking for. Alternatively, given how DBS has promised to give $1.20 dividend, you could keep a lookout when it falls till $24 and snap some of it up.

Your current idea to "diversify by splitting into STI ETF (Nikko AM or SPDR STI), bond (not sure which), and REIT ETF (probably lion Philip because it has 30 assets underneath)" is something i would recommend.

This is because it does diversification beautifully and thus minimises your risk to an extent

Pang Zhe Liang

Pang Zhe Liang

24 Dec 2019

Senior Financial Services Consultant at AIA Singapore Private Limited

Dollar cost averaging is not a foolproof investment strategy. Here is why: https://www.blog.pzl.sg/dollar-cost-averaging-s...

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 if a lump sum or smaller amount works. Finally, invest into assets that suits your risk appetite.

Here is everything about me and what I do best.

It’s been 4 months since this question.

Assumption before the bottom is valid: You’ve insurance protection for your dependents, your parents and yourself.

Invest in what I know & understand; applies to all tools that you’ve on hand.

I invest in REITs that I know; commercial REITs - know my properties, understand the factors that can increase its rental revenue, decrease its operating expenses, maximise its leverage game of interest spreads.

In another words, do my homework.

Diversification has its strengths. Even that, if you choose to invest in ETF, do our homework too for the value of an ETF also relies on certain underlying assets.

Bjorn Ng

Bjorn Ng

21 Dec 2019

Business Analyst at 10x Capital

For 5% pa, STI ETF would not meet your criteria as it gives only about 3% pa. For REIT ETFs, similar...

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