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Anonymous
I am thinking of passive DCA. What would be the best platforms to invest in US Stocks? Should I be considering Robo-Advisors or brokerages? DCA or Lump Sum?
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One strategy I recommend is investing a single large cash. Invest in a trustworthy firm, accept the risk, and enjoy the growth over time.
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Passive is perfect idea.
open cheap account with TD Ameritrade. Robo Advisor not needed and more expensive than self directed strategy.
look out for suited ETFs here:
https://www.etf.com/etf-education-center
DCA is a good thing for discipline but not essential. 2 lump sums a year work fine.
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Shengshi Chiam, CFA
01 Feb 2020
Personal Finance Lead at Endowus
You shouldn't just look at investing in US stocks, even though they take up around 50+% of the world's market capitalisation, you should look at investing globally.
That will allow you to be exposed to companies such as Nestle, HSBC, Novartis etc.
You should also be very sensitive to all kinds of hidden costs and tax leakages when you are passively investing, such as dividend withholding taxes. Buying Irish domiciled funds over us etfs ensure that you are not taxed twice for non-US exposures. Costs matters over the long run!!
I personally prefer to both lump-sum and dollar cost average, by investing all my monthly spare cash consistently into my investments. That way, I am lump sum investing consistently and I can get my cake and eat it. Endowus allows you to set a regular savings plan over your cash, cpf and srs account and invest in a cost and time efficient way!
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