Any reviews/safe to buy/tips on POSB/DBS invest saver? ? - Seedly
 

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Asked by Ryuichi LionHeart

Asked on 20 Feb 2019

Any reviews/safe to buy/tips on POSB/DBS invest saver? ?

Hi! I'm thinking to grow more for my passive income for wedding (4years time). i'm earning a little low for salary. start invest in SSB recently, plan to build a SSB ladder next year end when i have more cash. Then i chanced upon RSS. it seems like POSB/DBS invest saver sounds like a good choice? if decided,i would only invest $100 a month to build a little more passive income as still need to save for SSB ladder. My question if there is any reviews/safe to buy/tips on POSB/DBS invest saver?

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Victor Chng
Victor Chng, Co-Founder at Fifth Person Pte Ltd
Level 6. Master
Updated on 07 Jun 2019

Hi,

As mentioned, you need passive income for your wedding hence capital protection is the main criteria here. Investing in POSB invest saver, will take your money to invest in stocks and bonds which may be volatile in the near future. Therefore, you may want to consider sticking with the SSB option.

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Ryuichi LionHeart
Ryuichi LionHeart

21 Feb 2019

Noted! Thank you so much! ☺️
Ericsson Ting
Ericsson Ting
Level 4. Prodigy
Answered on 26 May 2019

Hi, you can go to my blog at:https://sonicericsg.blogspot.com/2018/10/post-56week-43investment-project-update.html to read my current update on posb invest saver ​​​

What is RSS? 

  • RSS plan offers investors an affordable and convenient way of investment by committing a fixed amount of money on a monthly basis for a preferred share, allowing us to enjoy the benefits of dollar cost averaging

What is dollar-cost averaging?

  • When the share price is higher, we would buy fewer shares with the fixed dollar amount

  • When the share price is lower.we would buy more shares with the same amount

  • This means we automatically buy less at market highs and buy more at market lows

  • Over time, the price we paid for our portfolio of shares would be averaged out

Benefits of RSS 

1.Affordability

  • RSS allows us to buy into selected shares by investing an affordable and regular amount per month, from as little as $100 

2. Dollar cost averaging

  • RSS removes the need to time the market and trying to figure out when is the lowest point to buy

3.Flexibility

  • RSS generally has a lower cost of transaction with no lock-in period

Who provides RSS?

RSS is offered by DBS group, Maybank Kim Eng, OCBC Bank, and phillip securities

This useful chart from seedly show the different regular saving plans in Singapore

POSB invest saver however only allow you to have a choice between STI ETF(G3B) and ABF  Singapore bond fund index, unlike the other regular saving plan that allows you to choose other shares

As for me, I see the regular saving plan as a form of (dollar cost averaging)savings and defensive measure to ensure that my money continues to grow in an "average result" besides doing trading, saving and whatnots.

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If you have need for the money in 4 years time (considered a short time frame), then it is best to continue with your Singapore savings bonds.

The products in the RSS are typically ETFs or unit trusts, which can swing up or down in value. You might make a big gain in 4 years time or you could be in the red in 4 years time.

The safest choice is still SSB for a short time frame.

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Ryuichi LionHeart
Ryuichi LionHeart

21 Feb 2019

Alrighty! Thank you! Shall continue with Ssb 😁