facebookI have $15k savings excluding emergency fund. I’ve been reading different investment articles and I’m still clueless. The only step I took was investing in SSB which is at $8k now. What should I do? - Seedly

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Anonymous

14 Aug 2020

General Investing

I have $15k savings excluding emergency fund. I’ve been reading different investment articles and I’m still clueless. The only step I took was investing in SSB which is at $8k now. What should I do?

Any help?

Discussion (5)

What are your thoughts?

Ernest Yeam Wee Leong

Ernest Yeam Wee Leong

26 Nov 2019

Content Creator at www.youtube.com/c/JustBeingErnest

If you are still clueless about investing, not to worry as many people also started off the same situation as you as well.
The first thing is to settle all the basic essential stuff like insurance, clear debts and emergency funds which you already have.

Then for moving on to the investment, I will use a soccer team as an analogy.

Goalkeeper: Cash

Defenders: Insurance

Midfielders: Low-risk investments (bonds, SSB, fixed deposits)

Strikers: High-risk investments (stocks, ETF)

If you got your goalkeeper, defenders and midfielders already and looking for your strikers, then you will need to learn how to pick the right strikers.

Here at seedly website products, they have a list of "courses" that train you on how to pick your strikers. https://seedly.sg/reviews/investment-courses
See which courses are teaching stuff that is according to your investment style and learn from gurus. Once done you will probably know how to pick your strikers already.

LK

Lee Kong Heng

26 Nov 2019

Biotechnologist at RSTO Pte Ltd

It does take time to have a feel of the ground (markets or products) and understand your own nature when investing. Am still learning myself, from.others too. Keep it up, and ganbatte.

As to your question, putting your money in SSB is a wise or prudent choice. I do park my cash (after emergency funds) and SRS funds in SSBs, letting them earn higher interest while awaiting opportunities.

Assuming you have no pressing debts or immediate financial commitments, consider:
1. Your reaction to perceived loss or volatility in asset price e.g. Shares.
2. Your goals for deploying your funds, and when you be needing it potentially.
3. How well you understand the nature of your investment (e.g. risk, fees, company accounts, etc)

For example, say I can't handle well the drop in share prices that it will drive me nuts and I'm prioritizing my retirement - topping my SA, MA is an option (plus: you get tax relief too).

Or, you have some tolerance to volatility and want to invest in the markets, but don't know how to assess companies - low cost ETFs, Rabo-advisers, RSPs (POEMS, FSMone, DBS, OCBC, Dollardex) via daily cost averaging is an option.

Buying shares or Reits enables you to attend AGMs, ask management questions on their business and plans, or perhaps enjoy the annual buffet spread too.

It can be a potential emotional ride, especially when buying the wrong company. So if you be intending to test the waters, I suggest starting small or within your means (e.g 1 lot or 100 shares) for such privilege, and buying a business that is sustainably profitable over the long term, not something speculative. Please do your own diligence when undertaking this route.

Paridhi Jhunjhunwala

Paridhi Jhunjhunwala

26 Nov 2019

Associate at Kristal.AI

Hi!

To start investing on your own can be a little overwhelming. I would suggest learning a little...

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