facebookI am 27 and have $120,000 cash in different bank accounts - DBS Multiplier, SC Jumpstart etc. I've no investment knowledge and no time to acquire investment knowledge. What should I do to start investing? - Seedly

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Anonymous

14 Aug 2020

Saving Hacks

I am 27 and have $120,000 cash in different bank accounts - DBS Multiplier, SC Jumpstart etc. I've no investment knowledge and no time to acquire investment knowledge. What should I do to start investing?

Discussion (9)

What are your thoughts?

Elijah Lee

Elijah Lee

08 Jun 2020

Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

Hi anon,

If you really have no time to even acquire knowledge, then you have to make time to at least plan what you want to achieve from your investments. The planning process is important prior to starting to invest; without a plan (or at least a skeleton of one), you are planning to fail

Start by setting a goal:

  • What do you want to achieve?

  • Save for Retirement? Payment for Mortgage? Children’s Education?

  • Determine your investment timeframe

  • How much do you need for that goal?

Next, assesss your financial situation

  • What is your net worth and cash flow?

  • List out all resources and expenses that you have

  • Find out your budget

Then, plan to execute

  • Make sure you have emergency savings

  • Make sure you are adequately insured

  • Know how much to set aside

  • Know what rate of return you need

  • Know how much risk you can take

Understand the asset classes you can invest in, their pros and their cons

  • Equities (Stocks/Shares)

  • Exchange Traded Funds (ETFs)

  • Retail Bonds

  • Corporate Bonds

  • Unit Trusts

  • Savings Plan/Annuity

  • Structured Deposits

  • Contract for Differences (CFDs)

  • Properties

  • Commodities

  • Derivatives

Lastly, decide which asset class you would like to obtain that fits you and your profile, and you will be ready to start. At the very least, even if you have no time to really read up, have some basic idea of what I mentioned above. You should at a minimum have some kind of direction and target to aim for. After that, you may want to consider engaging someone to manage your investments, as it sounds like you will likely not have enough time to monitor them on your own.

Still, at least make time to map your big picture out. Don't go in blind.

Michael Wong

Michael Wong

14 Aug 2020

Level 9·Seedly Student Ambassador 2020/21 at Seedly

Rather than investing in the hundreds of stocks and shares that you might find online along with the countless amount of research... It would be better to have exposure to unit trusts. So I believe that you should speak to a banker and enquire about unit trusts from each of the representative companies. Just take note of the different fees offered by the different bankers.

Hey there!

Great job on accumulating that sum at your age.

For starters, dollar cost averaging in...

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