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Bryan C.

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Bryan C.

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SeedlyTV EP04

Investments

Robo-Advisors

Bryan C.
Bryan C.
Level 3. Wonderkid
Answered on 11 Oct 2019
Hi Anonymous! To answer your question, I think that most robo-advisors do the job of assessing your current financial position and recommend a portfolio strategy after reviewing your risk profile. As for the "catch", I would say that robo-advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as robo-advisors have lower management fees. You can check out Kristal.AI as they have no management fees for investment amounts lower than $50 000. Practically speaking, robo-advisors replace that human element that traditional financial consultants would provide with an AI system. Depending on your preference, that may or may not be a disadvantage/con for you. There are also a plethora of robo-advisors and some do not rely solely on AI/technological capabilities and retain the human element (see Kristal.AI). Hope that answers your query!

Investments

Bryan C.
Bryan C.
Level 3. Wonderkid
Answered on 11 Oct 2019
Hi Anonymous! While I have not personally made any big loss while investing in the stock market, I thought that it would be nice if I could share a piece of news that not many might be aware of! The Straits Times Index Exchange Traded Funds (STI ETF) is an index that tracks the performance of Singapore's top 30 companies listed on the Singapore Exchange (SGX). While many people might suggest having a look at STI ETF as their first investment product due to its ability to invest in a wide basket of stocks at low cost, the maximum loss that the STI suffered was about -50% in 1998 and 2008, due in part to the Asian and Global Financial Crisis! Therefore it would be imperative to note that while the STI ETF can provide you with a decent return of about 6% a year, these losses can be normal due to the cyclical nature of the financial world.

Insurance

Investments

Savings

Robo-Advisors

Endowment Policies

Bryan C.
Bryan C.
Level 3. Wonderkid
Answered on 11 Oct 2019
Hi Derrick! To determine between using a robo-advisor and an endowment plan, you would have to consider your personal profile and what are your objectives of investing! In a few words, an endowment policy is a life insurance policy that helps you to save regularly over the specified term of the policy and payout a lumpsum at the end. (Seedly covers really well what an Endowment Plan is and how to calculate your returns here: https://blog.seedly.sg/guide-basics-endowment-plan/) On the other hand, a robo-advisor provides a value-advantage through low management costs while allowing you to have a diversity of choice. Many robo-advisors automate the investment process by tailoring a portfolio according to your investing goals, risk tolerance and investing horizon. As there are a plethora of robo-advisors, you might wish to consider which portfolio will best suit your needs (i.e. Management Fees, Investment Methodology). You can check out Kristal.AI Furthermore, you may wish to consider a Regular Savings Plan (RSP) to allow you to accumulate a monthly savings of $500 but at the same time allow your money to work for you through the RSS Plans! You can select to invest a fixed amount into a blue-chip stock or an ETF with your allocated monthly savings through this program. However, you would have to perform your own due diligence in selecting the asset to invest in!

Investments

General

Kristal.AI

Bryan C.
Bryan C.
Level 3. Wonderkid
Answered on 11 Oct 2019
My experience with Kristal.AI is that it provides both Human & Robo investment support. You are able to get REITS and global ETFS on Kristal.AI. The biggest plus point for Kristal.AI is that there is 0% sales charge for ordinary investors! You can visit their website and head to the FAQ, i think that it is more comprehensive there https://solutions.kristal.ai/seedlypost

Stocks Discussion

Investments

Bank Account

Retirement

REITs

Bryan C.
Bryan C.
Level 3. Wonderkid
Answered on 11 Oct 2019
Hi Anon! What is REIT? REIT that stands for Real Estate Investment Trust, is a unique set of stocks that an investor should consider while planning their long-term retirement portfolio. It not only allows them to pool their money to invest in real estate assets and generate a steady income from it but also gives them an exposure to capital appreciation over a period of time as the value of the property increases. Although similar to an Exchange Traded Fund (ETF) or Mutual Fund, a REIT however, uses an investor’s money to buy and operate a portfolio of properties such that they become the shareholders of these properties. There are other benefits of investing in REITs, such as portfolio diversification and tax advantage. Generally, REITs are required to pay 90% of their income as dividends and in doing so, they are not taxed at the corporate level. Listed below are some key factors to be considered when investing in REITs: 1. Total Returns: REITs are total-return investments, and that’s why investors should consider companies that have done well historically at providing both dividend income and growth. 2. Liquidity: REITs have relatively lower liquidity risk as compared to directly investing in real estate. Investors should look for REITs that are actively traded on an exchange. 3. Industry Type: Not all REITs will have the same outcome. For instance, Singapore REITs have six broad categories: office, retail, residential, healthcare, hospitality, and industrial. Different properties with their specific characteristics affect the REIT’s growth, risk profile, and performance in different ways. 4. Stability: Strong management can make a huge difference. Investors should consider companies with a long-term track record. 5. Quality of the REIT: There are far too many factors to consider when making any investment. Quality is one that cannot be compromised. Investors should look for REITs with great properties and tenants that generate solid cash flow. 6. Diversification through REIT ETFs: Instead of buying individual REIT stocks, investors should consider diversification through REIT ETFs like the Vanguard Real Estate ETF(VNQ). To invest in REITs, you can do so via the Singapore Exchange and you would need to open a CDP (Central Depository) account just like for any investment!

Investments

Retirement

Robo-Advisors

Bryan C.
Bryan C.
Level 3. Wonderkid
Answered on 11 Oct 2019
Hi Anon! I think that any bank will face that risk but often, robo-advisors have their client's investments kept with their custodian banks. For Kristal.AI, they partner with Interactive Brokers and Saxo Capital Markets to facilitate the investment activities related to the different types of Investment Accounts a client may have. You can visit their website at https://solutions.kristal.ai/seedlypost
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