What do you think of my so call portfolio diversification for a newbie?

Hi All, for the few months, I've been reading up retirement+investment, attened free webinars and read up countless articles and opinions from Seedly. Based on those, I design my own retirement/investing path and try to diversify my balance cash. This is after essential household spending (incl insurances) and 1yrs emergency funds. I’ve also saved 100K cash to prepare for resale flat purchase as a single, I have been sitting on it for so long (prices are so high, how? ☹).

600 – NTUC Endowment (10 years policy, paid 2 yr premium)

350 – AXA Wealth Accelerator (15 years policy start few years ago. Now then I realized the fees are insane but I think I should continue with it?)

584 – SA+MA Top up

730 – Monthly pay deduction to buy US employer’s shares (this has been ongoing for 2 years+ hence currently form the biggest % of my investment)

730 – Endows 100% equities (it is a funny amount but to match the above, just started 2 months ago)

700 – Balance (I intend to DYI ETF via Interactive Broker, looking to get CSPX as a start)

Previously I bought a 2 decades policy term retirement plan (10K/yr). Committed 1st year premium. Now I realise this stretches too long for me and robo/diy would have worked better so I am going to painfully forgo it ☹.

What do you think of my so call portfolio diversification for a newbie? TIA

Discussion (8)

What are your thoughts?

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Richard

13 Oct 2021

take care of oneself at the rest will be taken care

I think your plans are ok but please for the insurance to be matured

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13 Oct 2021

I am new to investment too. But personally, I think it would be best to understand your goals/target for having a diversified portfolio.

If I currently have a few ETFs or robo, I would start learning to pick individual stock as it could possibility yield a higher return. As for saving up for housing, it is best to utilise it and have it to be put in somewhere that provide a "steady" and "safe" investment so you can get some returns while waiting to purchase. You may also look into investing your CPF which potentially can be used to pay your monthly mortgage in the future. That's my personal take.

At the end of the day, if the above allocation meet your risk appetite, time horizon and goals/target. I think you should continue what you doing while maybe start taking up new skills in other investment instrument.

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Kenneth Fong

12 Oct 2021

Marketing Manager at Seedly

I'll weigh in on the DYI ETF part.

Is there a reason why you're looking at CSPX only since it only tracks the S&P500? I see that it's an Ireland-domiciled ETF, so you've obviously done your homework with regard to withholding taxes and etc.

The other question I think that's worth thinking about is why just the S&P500? How about a world ETF (accumulating) like VWRA? Just offering a perspective if you haven't thought about it!

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Sharon

12 Oct 2021

Life Alchemist at School of Hard Knocks

Since you've already started on NTUC Endowment and AXA Wealth Accelerator, please just continue until maturity, or till breakeven.

As for the 2 decades policy term retirement plan, $10K/yr is quite hefty ($833/mth). Is it a pay-for-20-years-and-no-payment-for-the-rest type of policy? If it is, then I'd think just hold. Otherwise, it looks rather expensive...

For MA top up, once you hit the BHS for MA which is $63,000, the excess will flow to SA.

If your US employer is fundamentally strong e.g. MSFT (this elephant can go about 2 years without any customers and they will still survive), then it's OK to buy the shares. If it's not, I'd suggest not to put all eggs into one basket.

How we get income:

1) Earnings (e.g. salary, business)

2) Portfolio (e.g. stocks / crypto investment)

3) Cashflows (e.g. property/art piece rental income / options trading)

Now your earnings & portfolio overlap.

I don't have knowledge in the ETF space, so maybe this could help better in your decision-making: https://theinvestquest.com/ultimate-stock-etf-l...

Above something to think about.

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