29 Jan 2020
My comm comes in irregularly, once/mth or every 2 mth
Now i split my 10k into 3 batch
1) how much you should invest every month?
2) should i save up a large sum and invest a large sum or
should i invest whenever i have commission coming in ?
How would you allocate my funds to invest consistently & also have peace of mind that i don't need to use my emergency fund
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1 as much as You can early
2 depending on commission fees, if low or zero (U.S.): no problem to allocate short term, if high: try to sum up at least 2000 SGD for every investment. if You buy stocks in U.S. currency use Transferwise to convert Your SGD into USD to send to Your USD brokerage sub-account, much cheaper than the hidden (!) conversion fees of your brokerage
#3 best idea for beginners (peace of mind): SP500 ETF like Vanguard's VOO (alternative IVV, iShares), maybe 90% VOO and 10% (physical) gold
#4 TD Ameritrade (soon to be merged with Charles Schwab) is perfectly O.K as a cheap U.S. based online broker
Hariz Arthur Maloy
29 Jan 2020
Independent Financial Advisor at Promiseland Independent
Hi variable income earner here as well.
Here's a suggestion.
Invest a regular amount every month without fail. This would be a bare minimum amount to make sure I'm invested regularly. (builds the discipline and helps with money management better)
I only keep 6 months of expenses as cash for emergency and another 1 month of my average monthly income for spending and liquidity purposes. I'll invest the rest anytime I have more money.
So example. Let's say you make an average annual income of 50k. Some months more some months less, yes, but annually about 50k for example. You spend let's say 20k per year.
So I'll keep 10k for emergency (6 months of expenses). Set up at least 500/mth monthly investment (even if no commissions I should be able to invest this amount), and anytime I have more than about 15k (emergency plus 1 month of income), I'll invest immediately.
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