Asked by Anonymous
Asked on 02 Jul 2019
Hi, i’m thinking of setting aside a small stream of income monthly (~$100-150) to start a regular savings plan to build savings for my newborn’s needs in future (education, savings, rainy day funds for kid use in future, etc)
Considering between buying the STI ETF through POSB and roboadvisors i.e. stashaway.
Which method has lower transaction costs and which is better in the long term (I.e. 15 years)?
Top Contributor (Nov)
Go straight into investing in a global portfolio instead of just one country (Singapore). You'll probably perform better over a 15 year period.
Paying an advisor will cost more but since you're asking a question like this, it may good to pay for that advice to help you with your investment decisions.
Roboadvisors have lower costs, but returns wise can't say which one is better. Stashaway puts money in US market, so you'll be exposed to exchange rate risks. STI ETF is locally and more comfortable if you want an investment in tune with your living environment.
Although for children's education I won't risk my money in investments where the capital isn't guaranteed - just my 3 cents' worth of thoughts.