Where to put 20k spare cash with S&P 500 at ATH?

U may want to consider SCHG or endowus

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Cash / OA - Look for Amundi Prime USA Fund

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- Fund Fee only 0.05%

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https://endowus.com/invite?code=CT5NL

If your horizon is long-term(10/15 years), investing in VOO would not be much of an issue even if it's currently ATH. Singapore banks are good for dividend but not growth.

Banks historically do not pay yields this high. It usually signals high risks ahead as there are no catalysts other than even higher inflation, fueling even more speculative bets from retail. For those who invest in banking stocks (especially in Singapore), you need to manage it like a hawk. Recent gains are pure speculation as most investors have forgotten the massive debts that unfolded recently in Asia (smart investors will know which countries I am referring to). It looks like a replay of a historical meltdown in the future.

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We are already in the late stage of a secular bull market and many unsuspecting investors will be easily sucked in and lose their shirts. The US markets on the other hand are well supported by over $600t capital patiently waiting on the sideline and we have already started to see institutions buying into a strengthening momentum. However, this can change once prices peak out and rotation will happen slowly over time, catching most retail investors off guard.

Your thinking about Singapore bank stocks isn't wrong. Let's break down your options:

Strategic Options

1. Singapore Banks

• Pros: Solid 4-5% dividend yields, strong regulation, natural rate hedge
• Cons: Sector concentration, local market exposure

2. Smarter Approach

• Keep VOO as your core holding
• Use the new funds for a dividend-focused satellite portfolio

My Recommendation

Here's what I typically suggest for clients in your position:

1. Stage Your Entry

• Split your 20K into 4-5 portions
• Invest monthly to reduce timing risk

2. Diversify Smart

• 40% Singapore banks (spread across DBS/OCBC/UOB)
• 30% S-REITs for higher yields (5-7%)
• 30% into VOO through dollar-cost averaging

3. Manage Risk

• Set stop-losses
• Watch sector exposure
• Rebalance quarterly

Key Considerations

1. Tax Benefits

• Singapore dividends are tax-free
• Consider using SRS

2. Liquidity

• Keep 6-12 months emergency funds separate
• Plan for near-term cash needs

3. Currency

• SG stocks provide natural SGD hedge
• Review your overall currency exposure

Remember, your investment strategy should align with your life goals. Are you saving for retirement? Planning for property? These factors matter more than market levels.

Want more insights on building wealth in Singapore? Follow me on Instagram (@ngooooied) where I share practical tips and strategies. I also run monthly webinars on CPF optimization and retirement planning that you might find valuable.

Bottom line: Focus on time in the market, not timing the market. Success comes from having a systematic approach you can stick with through all market cycles.