Tai Zhi
Chief Investment Officer at Autowealth
Level 3. Wonderkid
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Chief Investment Officer at Autowealth
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  • Asked by Anonymous

    Tai Zhi
    Tai Zhi, Chief Investment Officer at Autowealth
    Level 3. Wonderkid
    Answered on 05 Mar 2019
    I have shared this during last Saturday's panel. The worst nightmare for investors who just got started is to take excessive risk, suffer a catastrophic loss, lost confidence and then never ever invest again. (1) Start low risk, build confidence before gradually increasing portfolio risk Investors who just got started should go low risk first. Be patient. Go through a market correction to feel the market fluctuations and better understand your emotional resilience towards market volatility (ie fluctuations). When you gain more confidence and experience, gradually increase your portfolio risk to accelerate your wealth accumulation. (2) Invest broadly to diversify away risk Do not be too narrowly focused, diversify broadly so that specific market developments like U.S.-China trade tensions will not cause a catastrophic loss. Therefore, try to start off with a globally-diversified portfolio of stocks ETFs and bonds ETFs with a higher allocation to bonds ETFs. For example, you may consider starting with the AutoWealth Conservative Portfolio (60% global government bonds ETFs 40% global stocks ETFs) before switching to a portfolio with higher risk. Check out our blog posts for other useful investment insights and concepts: https://www.autowealth.sg/blog/
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi, Chief Investment Officer at Autowealth
    Level 3. Wonderkid
    Answered on 05 Mar 2019
    To address your concerns about asset security/safeguards, robo-advisors are required by law to hold clients' assets and monies through a third-party MAS-licensed custodian/trustee. In the unforeseen event the robo-advisor ceases operations, clients assets and monies are still safely held at the third-party custodian/trustee. AutoWealth offers an even higher level of safeguard by opening personal segregated custody accounts for each individual investor in his/her legal name so that the legal ownership is 100% clear and the investor can claim his/her assets from the custodian directly. This is fundamentally different from the "ONE omnibus custody/trustee account holding ALL clients assets" arrangement for other robo-advisors which may expose the investor to a lengthy court process to claim back the assets. You may check out this link for other frequently asked questions: https://www.autowealth.sg/faq.php
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi, Chief Investment Officer at Autowealth
    Level 3. Wonderkid
    Answered on 05 Mar 2019
    I have shared this during last Saturday's panel. The worst nightmare for investors who just got started is to take excessive risk, suffer a catastrophic loss, lost confidence and then never ever invest again. (1) Start low risk, build confidence before gradually increasing portfolio risk Investors who just got started should go low risk first. Be patient. Go through a market correction to feel the market fluctuations and better understand your emotional resilience towards market volatility (ie fluctuations). When you gain more confidence and experience, gradually increase your portfolio risk to accelerate your wealth accumulation. (2) Invest broadly to diversify away risk Do not be too narrowly focused, diversify broadly so that specific market developments like U.S.-China trade tensions will not cause a catastrophic loss. Therefore, try to start off with a globally-diversified portfolio of stocks and bonds with a higher allocation to bonds. For example, you may consider starting with the AutoWealth Conservative Portfolio (60% global government bonds 40% global stocks) before switching to a portfolio with higher risk. Check out our blog posts for other useful investment insights and concepts: https://www.autowealth.sg/blog/
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi, Chief Investment Officer at Autowealth
    Level 3. Wonderkid
    Answered on 05 Mar 2019
    How do I invest in a US ETF like the S&P 500? You may invest an ETF by trading (ie buying/selling) the ETF off the stock exchange using a normal stock trading account. Both local brokerages like DBS Vickers, UOB Kay Hian, etc and international discount brokerages like Saxo Capital Markets, IG Markets etc would offer the trading account required. Would you recommend that? No, unless you are an expert comparable to Warren Buffet, George Soros etc. (1) Invest broadly to diversify away risk Do not be too narrowly focused, diversify broadly so that specific market developments like U.S.-China trade tensions will not cause a catastrophic loss. (2) Include some government bonds holdings Try to start off with a globally-diversified portfolio of stocks and bonds with a higher allocation to bonds. For example, you may consider starting with the AutoWealth Conservative Portfolio (60% global government bonds 40% global stocks) before switching to a portfolio with higher risk. U.S. government bonds made +5% profit compared to a -10% loss in global equity markets during the Dec 2018 market correction. It made +20+% profit compared to a -50+% loss during the 2008 GFC. Having government bonds would protect your portfolio and also make higher returns for you through portfolio rebalancing (ie taking profit on government bonds then buying stocks whilst they are cheap) Check out our blog posts for other useful investment insights and concepts: https://www.autowealth.sg/blog/
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi, Chief Investment Officer at Autowealth
    Level 3. Wonderkid
    Answered on 05 Mar 2019
    Btw, starting at age 35 is imho not too late. So don't be discouraged. (1) Be discipline towards savings and investing Particularly in this case where you have limited financial resources, you should be even more disciplined. Sometimes it requires you to make tough decisions, delaying luxury purchases and purchase only when its an essential need. (2) Start low risk, build confidence before gradually increasing portfolio risk Investors who just got started should go low risk first. Be patient. Go through a market correction to feel the market fluctuations and better understand your emotional resilience towards market volatility (ie fluctuations). When you gain more confidence and experience, gradually increase your portfolio risk to accelerate your wealth accumulation. (3) Invest broadly to diversify away risk Do not be too narrowly focused, diversify broadly so that specific market developments like U.S.-China trade tensions will not cause a catastrophic loss. Therefore, try to start off with a globally-diversified portfolio of stocks and bonds with a higher allocation to bonds. For example, you may consider starting with the AutoWealth Conservative Portfolio (60% global government bonds 40% global stocks) before switching to a portfolio with higher risk. Check out our blog posts for other useful investment insights and concepts: https://www.autowealth.sg/blog/
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi, Chief Investment Officer at Autowealth
    Level 3. Wonderkid
    Updated on 04 Mar 2019
    I have shared this during last Saturday's panel. The worst nightmare for investors who just got started is to take excessive risk, suffer a catastrophic loss, lost confidence and then never ever invest again. (1) Start low risk, build confidence before gradually increasing portfolio risk Investors who just got started should go low risk first. Be patient. Go through a market correction to feel the market fluctuations and better understand your emotional resilience towards market volatility (ie fluctuations). When you gain more confidence and experience, gradually increase your portfolio risk to accelerate your wealth accumulation. (2) Invest broadly to diversify away risk Do not be too narrowly focused, diversify broadly so that specific market developments like U.S.-China trade tensions will not cause a catastrophic loss. Therefore, try to start off with a globally-diversified portfolio of stocks and bonds with a higher allocation to bonds. For example, you may consider starting with the AutoWealth Conservative Portfolio (60% global government bonds 40% global stocks) before switching to a portfolio with higher risk. Check out our blog posts for other useful investment insights and concepts: https://www.autowealth.sg/blog/
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi, Chief Investment Officer at Autowealth
    Level 3. Wonderkid
    Answered on 05 Mar 2019
    I'll leave the decision to you but allow me to highlight a few differences between the two robo-advisors: (1) Investment Strategy An overwhelming 80% to 90% of professional investment managers who stock-pick and time markets consistently underperform the general markets in the short, medium and long-term. Read https://www.autowealth.sg/strategy.php and click on the hyperlink to see the Standard & Poors Dow Jones research which concludes this. AutoWealth takes a passive market-returns investment approach. That is fundamentally different from Stashaway, which adopts a Economic-Regime Based Model. We also note that Stashaway does not publish their investment performance on the website unlike AutoWealth. (2) Safeguards Other robo-advisors including Stashaway adopts the "ONE omnibus custody/trustee account holding ALL clients assets" arrangement which may expose the investor to a lengthy court process to claim back the assets if the robo-advisor ceases operations for some unforeseen reasons. AutoWealth, on the other hand, adopts an even higher level of safeguard by opening personal segregated custody accounts for each individual investor in his/her legal name so that the legal ownership is 100% clear. The investor can claim his/her assets from the custodian directly without the need to go through lengthy court process. This is particularly important as there have been a negative precedent in Singapore where a MAS-licensed financial institution called MF Global went bankrupt and investors got back only a portion of their investments and only after a lengthy court process. Read: https://en.wikipedia.org/wiki/MF_Global (3) Human element AutoWealth assigns human wealth manager to every single client, no matter how huge or small the investment amount is. This means clients have a dedicated wealth manager to go to when they need any financial advice or need a professional to consult. Our clients often commend that "when they need advice, our wealth managers are just one whatsapp away". Other robo-advisors like Stashaway are pure digital platform with little or no human touch.
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi, Chief Investment Officer at Autowealth
    Level 3. Wonderkid
    Updated on 07 Jul 2018
    AutoWealth works with our partnering custodian to seek partial reimbursement of the withholding taxes from the U.S. Internal Revenue Service, where applicable. The lastest reimbursement for withholding taxes were credited to our clients on 26 Sep 2018.
  • Asked by Javier

    Tai Zhi
    Tai Zhi, Chief Investment Officer at Autowealth
    Level 3. Wonderkid
    Answered on 04 Mar 2019
    Let me try to address this scientifically. Investment markets, particularly stocks and bonds, are yield-generating and therefore makes positive investment returns over the long-term (barring short-term temporary corrections). If you look up the global indices like the MSCI All-Country World Index, you would noticed that they are upward sloping over the long-term. Therefore, you should invest as much as you are comfortable with and invest as early as possible. You may mitigate risk of losing money by investing in a lower risk portfolio and/or taking a longer investment horizon. Go to this link and try adjusting the portfolio risk and time levers to understand the effect on probability of ending with a profit and projected maximum decline in portfolio value: https://www.autowealth.sg/advisory_module.php Take for example the AutoWealth Balanced Portfolio of 60% global stocks 40% global government bonds. There is a 77.5% probability you will make a profit if you are to invest for 12 months. That probability moves towards near certainty when you choose to invest for 5 years. Selecting a lower portfolio risk would increase the probability of making a profit and shorten the required investment horizon to achieve a near certainty probability (at the expense of lower investment returns). I have also shared in last Saturday's panel that investors who just got started should go low risk to avoid catastrophic losses. Be patient. Go through a market correction to feel the market fluctuations and better understand your emotional resilience towards market volatility (ie fluctuations). When you gain more confidence and experience, gradually increase your portfolio risk to accelerate your wealth accumulation.
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