AMA The Fifth Person
Asked on 20 Feb 2019
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?
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.
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?
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
2. Dollar cost averaging
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.
Top Contributor (Jan)
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.