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I am 31, planning to retire at 55. Im not risk adverse as most of my investments so far ($10k) is in roboadvisors equities that exposed me to global companies. Plan is to invest $4200 every year but unsure what to do with this 61k in sidelines. Emergency fund already settled.
I dont want to invest in single stocks (busy profession) but at the same time dont mind dabbling into equities. Should i wait in case its a 'W' market, wait for next bear market or invest now? I got my 61k windfall late :(
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Colin Lim
01 May 2020
Financial Services Consultant at Colin Lim
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Pang Zhe Liang
01 May 2020
Lead of Research & Solutions at Havend Pte Ltd
When to invest?
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
What to invest in?
Instead of investing onto a single asset, you should consider a well-diversified portfolio, e.g. ETFs, unit trust.
At the same time, evaluate whether you possess the knowledge, skill, experience and time to manage your own investment portfolio. Otherwise, it may be worth to pay a fee for professional guidance and advice, e.g. from global investment firms like Mercer, BlackRock.
What is your goal?
Now, we need to establish some basic fact-find on why you want to invest and how long you intend to invest. For the most part, if you don't need the full $61k now, then you may even consider to add it the $4,200 that you intend to invest every year.
Alternatively, you may even use it to create a dynamic portfolio that is capable of handling any short-term needs while growing your wealth for the future.
All in all, create a well-defined objective first. Thereafter, we can brainstorm on the best way to optimise your wealth.
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Hi, i will probably wait if i were u... The stock market is catching the reality... You can look at ETFs,or mutual funds and keep a watch list so that when market suddenly dive... U can come in...
First, your 61k has a long term horizon right ? Age 31 to 55... So you have holding power..
Secondly research on which ETFs, mutual funds or even stocks u can stomach according to your risk.
How to select a portfolio..
Geographical, sectors, companies( research)
You can reach out to meas i do comprehensive financial planning.
#planwithcolin