Asked on 12 Jan 2020
I am 33 this year having decent job, income, house and family with min 3 vacations each year.
i already have unit trust, insurance, share market, P2P, bonds and rental income. Forex, option and CFD are too consuming for me. What is the best investment i can do at my current age? I am thinking of ecommerce but i feel it is a bit too saturated without own niche.
Hi Ming Ho,
It sounds like you don't need to rock the boat. If things remain on track, you will have a very comfortable retirement by your standards. Of course, I speak broadly, as there are no data provided, so I can't confirm for sure how your numbers will look like in retirement.
If time is an issue that stops you from Forex, Options and CFD, there's nothing wrong with that. The best investment you can do is always yourself. Focus on your strengths, possibly increasing your earning power and paying off your house as soon as possible. Pick up knowledge and stay invested. Maintain your current strategy (since it seems to work, seeing as how you've gotten this far with it) and make tweaks to optimize it. Spend time with your family and friends. Enjoy your vacations. We are all bound by time in the end.
As I mentioned, some times there's no need to rock the boat. What you can do now is to take stock of your financial situation and identify how your income sources will look like 10, 20, 30 and even 40 years from now (i.e. during retirement). Ultimately, when you retire, active income from work must be replaced by income from guaranteed sources (CPF, SSB, FD, annuities) and variable souces (UT, ETF, equity, property). It's all about ensuring the expected figures from your income sources support your expected expenditure based on your ideal lifestyle in retirement. If you haven't done a deeper analysis of your financial numbers yet, or done a full retirement cashflow planning, you might want to do it at this stage in life to at least give yourself an idea of where you're headed.
Do some spring cleaning of your portfolio as well, to ensure you have a lean and trim portfolio.
Based on your input, this is about what I have to say. I'd like to give more specific answers, although might not be possible at this stage without more information or a very specific query from you.
Hi there, I would think with that you have, you are pretty comfortable already - some other investment options you can consider are investing in country funds like STI ETF, S&P 500, IWDA, and leaving it there to compound over the years. REITs is also an option, but as of now I would not recommend it as it's pretty overvalued..
I would recommend investing in STI ETF- It needs little time to research and has a proven track record of delivering 6-7% per annum over the long run.
With little effort and decent returns, one can be confident in growing his wealth over the long run. IN addition, the STI etf itself has diversified its stock holdings by choosing strong 30 Singapore listed counters which has businesss across various industries and geography
The best investment that you can do is to take a step back to conduct a detailed analysis on yourself and your future. When I mentioned detailed, I mean to spend quality time to perform detailed planning and calculations to understand where you are now and where you will be in the future.
For instance, understand the risk involved in your unit trust and the returns it is generating. Thereafter, repeat the process for your other investments. Finally, perform an aggregation to understand if your entire financial portfolio is overexposed to unnecessary risk.
Once this is completed, discuss with your partner and your family on the goals for the future. For instance, it may be to slow down on your full-time work and to spend more quality time together as a family. In order to do so, active income may decrease and passive income (e.g. from investment) has to cover the cost. Furthermore, it may to create another channel of passive income before age 45 to supplement CPF Life two decades after.
With detailed financial planning and through crafting your goals, we will be able to understand the required shortfall. Once this is completed, work backwards to understand the amount you need today and the growth rate.
Together with your entire financial portfolio, now we can spend quality time to determine the best tool to help you reach your goals. (P.S. They are so many tools available in the market. By understanding yourself, you will know exactly what tool suits your profile best.)
Here is everything about me and what I do best.