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Anonymous
I'm a 23 year old fresh graduate and have 10k from a fixed deposit that just matured. How to best invest? After doing some research my current plan is 2k on STI, 6k on S&P500, 2k on SSB. Any and all advice welcome, completely new to investing here.
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Hariz Arthur Maloy
13 Dec 2018
Independent Financial Advisor at Promiseland Independent
Skip the STI and SSB and go straight for a global portfolio provided by an FA or a Robo Advisor.
You'll have better diversification, constant quaterly rebalancing plus exposure to the world including emerging markets. A moderately aggresive portfolio would do quite fine for your age if you're investing for the long run.
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Ashley Wong
13 Dec 2018
Financial Assistant at Multi Management & Future Solutions
You are good to go with your plan as you have already mentioned that you have researched on the same...
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I feel it might be more important to plan how are u going to continue with your investment. Have a plan for long term.
Based on what u have mentioned, it doesnt seems like a plan to invest, but just taking a speculative position. Maybe u can plan a RSP into each of the vehicles rather than a one off, and continue to invest with your future earnings.
Did your research include which tool to use, which ETF? Which broker will u be using? What will be the transaction cost, is it suited for long term investment etc. What will u do if a major correction occurs, if STI or SP500 dropes 20%, will u continue to RSP? Are u able to deal with several years in bear market action? These are among the questions u should ask yourself first.
To be honest, u could just keep your $10k in a high yielding bank account or SSB for the moment. What is important is your future investment actions.