Tay WenHao - Seedly
 
Tay WenHao

Currently an NSF looking to generate passive income via investments. Previously worked part-time throughout my polytechnic and earned a significant amount of savings. After reading through various blogs and forums, I realised the importance of investing to counter inflation and to generate higher returns than bank interests.

Tay WenHao

34Upvotes

About

Currently an NSF looking to generate passive income via investments. Previously worked part-time throughout my polytechnic and earned a significant amount of savings. After reading through various blogs and forums, I realised the importance of investing to counter inflation and to generate higher returns than bank interests.

Credentials

Tay WenHao's credentials are not filled up yet.

Tay WenHao

34Upvotes
  • Answers (43)
  • Questions (3)
  • Reviews (1)

CPF

Tay WenHao
Tay WenHao
Level 4. Prodigy
Updated on 06 Jul 2019
Hi as far as I know, its not possible to just top up OA. When you make voluntary contributions to CPF using CASH you can only choose either to contribute to ALL 3 accounts OR MA OR SA ONLY. Link below lets you calculate the ratio if you choose to top up all 3 accounts. Including OA https://www.cpf.gov.sg/eSvc/Web/Miscellaneous/ContributionAllocation/ContributionAllocationCalculatorResult

Career

General

Tay WenHao
Tay WenHao
Level 4. Prodigy
Answered on 06 Jul 2019
A few points to consider before making your decision. I suppose you are a diploma grad going for university Will you be taking full time or part time university? Will going for further education affect your income and your financial stability? Are you taking a loan for your studies? You mentioned that you have been working over 2 years. And the salary doesnt really pay well until you reach a 'senior' position. Does that senior position requires a higher level of education? Assuming if you dont go for further education and recession really hits, how will it affect your current lifestyle? Are you still be able to live a comfortable lifestyle with your current salary?

Investments

Savings

Tay WenHao
Tay WenHao
Level 4. Prodigy
Answered on 06 Jul 2019
Hey, first of all, congrats on your upcoming ORD! Hahas I still have 1 more year to go. Before I start answering the question, I think its important for you to state whats your next milestone after ORD. Further studies in university? Start working to gain experience? Or any other plans you have in mind. Also, will you be using this $12k anytime soon? E.g if you are going to university, will you be using this $12k for school fees/living expenses or will you be taking a education loan? It's important to know how long you will be putting this money aside for before we can recommend the best for you. Assuming you wont be using this $12k any time soon, I would first suggest you to put aside maybe $5000 in a high interest rate bank/SSB for emergency funds. Then for the remaining $7k you can invest in REITS, blue chip stocks or even further top up your StashAway. Like you have mentioned, it's good to diversify your portfolio. So I would say maybe $3000 in REITS (2 - 3 counter), then another $3000 in blue chip stocks (2 - 3 counter) and the last $1000 to topup your stashaway to $2000. I personally feel that REITS and blue chip stocks should be quite stable and low risks. Just make sure you do your own due diligence and invest in a strong and stable company. Note: For this coming month SSB is dropping to about 1.68% which is quite low as compared to other high interest bank accounts (DBS Multiplier, UOB One Account, OCBC 365). But it also depends if you can hit the requirements to get the higher interest so just do your research and see which one gives you more interest. It's important to keep the emergency funds incase anything happens and you really need the money.

Investments

Tay WenHao
Tay WenHao
Level 4. Prodigy
Updated on 22 Jun 2019
Hi how long have you been investing? Because the average for the past 6 months isnt as high as it is now. So if you actually go to the DBS website and view your ETF, you should see an 'Unrealised profit' which means that you are actually making money. As for the amount per month, i would say maybe around $200 to $300? I know it seems like very little and insignificant but it's a monthly basis so the amount would add up after a long time. It doesn't make sense for you to do $1000 per month unless you are earning more than $4000 because its not sustainable. Investing shouldnt take up too much of your monthly salary. You should continue saving and keep spare cash incase for a rainy day. (You dont want the situation whereby the market is bad and you need money thus selling your etfs at a loss) Lastly to end off, NEVER SELL YOUR ETF/STOCKS if it's a loss. Just hold it and wait for it to recover. If you do your DCA diligently (monthly) you should make a profit even when the market is bad (because you will average down your cost and have a comeback when it rises)

Investments

Tay WenHao
Tay WenHao
Level 4. Prodigy
Answered on 22 Jun 2019
Hey as what Hariz said, dont rush into the market. Take your time to save up and read more to understand the market. You can consider POSB INVEST SAVER Programme and start with $100/month on NIKKO AM STI ETF. Do your own research and find out more.

Stocks Discussion

Investments

Savings

Tay WenHao
Tay WenHao
Level 4. Prodigy
Answered on 22 Jun 2019
Hi I feel that it depends on your goals/objectives for investing. If its for your next big purchase/milestone such as buying a new house or a car, then I would say aim for a 5 to 10% profit after DCA. From the POSB website under investments tab you can see the averaged cost for all your ETFs. However if its for a longer term goal such as retirement, you can consider to keep it longer because the ETFs usually pays out dividends which is like the 'interest' and its definitely higher than your bank interests. Thus no point selling and keep the cash in your banks that earns less unless you have a better opportunity cost.

Investments

Tay WenHao
Tay WenHao
Level 4. Prodigy
Answered on 22 Jun 2019
Hi, perhaps just call the Vickers Hotline during working hours and mention that you would like to sell off the stocks then they will temporary increase the limit

Bank Account

General

Tay WenHao
Tay WenHao
Level 4. Prodigy
Updated on 18 Jun 2019
Hey i guess Clarence have covered most of the points and its damn good points and it works. Just to add on, if you are drawing $700+, I believe you are a SCT or in high risk vocation? If you are an SCT congrats because your allowance will increase significantly after you pass out so make sure you do your best and get your 3SG rank so that you get more money. As for how much you should save, i would suggest about $400/mth. Seems a bit hard but its possible if you follow what Clarence says and dont spend on unnecessary things. $300+ for you to spend per month means a rough $35-40/day for your weekend which is more than enough for food and transportation. Just dont go club. Or perhaps you can. If you intend to go out for a drink once in a while (e.g. once a month) just cut down on your expenses for the other weekends and 'save up' for your club/pub.

Savings

Investments

Stocks Discussion

Lifestyle

Bank Account

Career

Tay WenHao
Tay WenHao
Level 4. Prodigy
Updated on 18 Jun 2019
Hey there. There any really a scale to how much you should have because its dependent on a lot of different factors like how much you spend, if you are paying your own meals/bills or paying for your study loan. Usually the rule of thumb is to save 20% to 30% of your earnings but it may be slightly different for NSF because you dont actually earn a salary but getting an allowance instead. If you are just a few months into NS, I suppose you are still staying in camp, which is actually not a bad thing because food and lodging is provided for. Try your best not to spend extra money in camp during weekdays (like going to canteen or using the vending machine). Though its hard not to spend but its a good way to train your resilience and its good for your health and wallet. I would suggest you to try save as much as possible if you can during your NS as you dont really need to oay for anything else other than your entertainment during the weekends. Try not to go club or drink too much or you may just spend your whole month allowance in just a night which is not worth it. Temptations and peer pressure are quite common in NS thus need to have very good self control. Trust me, if you can manage to save a good 5-10k during NS, it will be a good start.

SeedlyTV EP06

CPF

Lifestyle

Giveaways

Tay WenHao
Tay WenHao
Level 4. Prodigy
Answered on 13 Jun 2019
One of the CPF hack/tip that I have is to make voluntary CPF topup (to all 3 accounts) yearly as it will generates higher returns. As opposed to what many people may think that the CPF money can see cannot touch, I felt that there are certain ways that we can use our CPF monies effectively. For OA account, its quite direct. Many of us only use it for housing. So if we start topping up early we will get more funds (compounded interest) so that we minimise cash payments. On top of that OA can also be used for education (either for university or for our future child) For Medisave, many of us thought it can only be used when we are hospitalized. But we can actually use it to purchase certain approved medical and health insurance! Not forgetting the 4-5% p.a. Fun fact: If you have the full BHS $57,200, the yearly interest will be $2,288 (4%) which is enough to pay for your medishield and enhanced Integrated Shield Plan. Which means that the premiums are free! As for Special account, it will definitely be a great savings accumulator for retirement. Great interest rates and after age 55 you can withdraw lump sum (after FRS)
Load more questions
Level 4. Prodigy
34UpvotesGoal 50
16 UPVOTES TO LEVEL UP
Browse Rewards