Anonymous
Assuming there is a recession coming in months/years to come. Is it wise to set your risk to lowest possible now and change the risk to highest when the recession hits and pump in money so that more ETF/equities can be bought? or we can just set the risk to the highest from now on and pump in money when recession hits? are both the scenarios, if not, could you explain the differences?
8
Discussion (8)
Learn how to style your text
Tai Zhi
07 Jun 2019
Chief Investment Officer at Autowealth
Reply
Save
Gabriel Tham
07 Jun 2019
Tag Team Member at Kenichi Tag Team
Set and forget. Advantage of robo advisor is you can set a plan, set your regular contributions, and forget. Really just go pursue your hobbies, do something else to occupy time.
You can check back in once every few months or even once a year. The less emotional ties you have with your investment the better, so there will not be any panic mode selling or euphoric buying.
Maximizing returns over 10 years will also depend on your risk profile that you have done for the robo sign up. Different risk levels will have different expected or projected returns. If you can take the maximum drawdown risk, you will also expect the maximum returns.
Reply
Save
Hariz Arthur Maloy
07 Jun 2019
Independent Financial Advisor at Promiseland Independent
Don't plan to time the market. Stick to your risk profile and stay invested. Markets will go up and ...
Read 1 other comments with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Write your thoughts
Related Articles
Related Posts
Related Products
4.8
218 Reviews
ETFs, Equities, Bonds
INSTRUMENTS
0.5%
ANNUAL MANAGEMENT FEE
$3,000
MINIMUM INVESTMENT
N/A
EXPECTED ANNUAL RETURN
Web only
PLATFORMS
4.7
656 Reviews
4.6
46 Reviews
Related Posts
Yes, I certainly agree with Gabriel and Hariz. Let me share with you my observation during the 2008 GFC.
During that period I was still in the sovereign wealth fund GIC. Investment professionals were split in opinions on whether a crisis is about to unfold. Even professionals with decades of experience cannot time the market, so I would really suggest individual investors not to fall for the disillusion of timing markets. We are just not as sharp as gurus like George Soros, unfortunately.
Secondly, many investment professionals were way pessimistic or conservative way too early. They held high allocations to cash and tend to miss the run-up.
When the crisis finally develop, they panic thinking it would be the end of world stock markets ("this time is different" phenomenon) and did not buy into the discount, thereby squandering away a precious market opportunity.
Therefore, in conclusion, its more discipline to maintain a consistent risk profile throughout. Astute investors would have always set aside emergency funds. If there are no foreseeable need for the emergency funds, you may utilise part of it to take advantage of market corrections that presents itself from time to time to improve your investment returns. Do replenish the utilised portion when you receive your subsequent months of wages though.