National Service (NS)
S&P 500 Index
Asked on 23 May 2020
I am considering investing the $5,000 into a stock. Some of the stocks I have been looking at are Facebook, Amazon, Mastercard, Sea Limited.
Next, for the monthly DCA, I am thinking of investing through a Robo-advisor. What are your preferred Robo-advisor? I am thinking of Autowealth, despite the $3,000 min investment. Will Robo-advisors be a superior choice over buying the S&P500 stand alone? If yes, why?
Pls feel free to share any idea or criticize. Thank you in advance :D
Hey bro. Good to see you starting your investing journey early. I would be glad to share some of my experience and tips.
Before you start investing, I hope you set aside a sum of emergency fund. Even though it seems irrelevant/insignificant for our age, it's important in the event of a further economic downturn. It will help in giving you the 'holding power' instead of getting forced to sell your shares at a loss. In this period of pandemic, its hard to predict whats next. Do not ever assume its the worst now.
Moving on to the main question, I am curious how would you be saving that extra $1000 per month after enlisting? Since NS allowance is only around $500-$1000, its almost impossible to save up $1000/mth consistently. It is important as it might affect the way you DCA into the market.
Next on stock picking, if you are new, I wont suggest you to go into specific stock picking. I'll suggest you putting that 5k into robo advisors directly.
1 more comments
23 May 2020
24 May 2020
Better leave the concept of single stock investing and concentrate on some of the lower risk/better diversification alternatives (still risky) and concepts given here:
Would recommend you to put 5k into a roboadvisor and 1k dca into it every month.
However, more information like your risk appetite, time horizon, preference for control, reward expectation do play a part in making the decision around the instrument for investing.
I personally do buy the tech stocks and manage my own tech portfolio however I do spend time studying the business and reading developments around the industry. However, dumping 5k into a single stock is generally frown upon.
I would think Stashaway with its ERAA (Economic Regime-based Asset Allocation) is one of the more recognised robo-advisor in the market now.
Check out https://seedly.sg/reviews/robo-advisors for more information!
If your portfolio is small like $5k, start of with a basket of stocks like ETF or a mix of 2-3 counters instead. If you stick to one, you are limiting your gains and exposing your risks as well. So mix up a little, don't have to go all in into one company.
If you are doing monthly DCA, consider your fees in this case. Eg. $1000 into SPY. It cost US$10 each purchase so if each month DCA is $1000, than your fees are 1%. There are cheaper exchange if I'm not wrong but this fees are base on TDameritrade. Just have to take note of fees for transfer of funds, both deposit and withdrawal and exchange rates.
Show More Products