Currently in my first year of work and have been investing 25% of my monthly take-home into POSB invest-saver & bonds (80% into STI ETF , 20% into SSB) and 25% into savings. Looking to diversify out of SG market once it hits $10k. Suggestions? - Seedly

Investments

Asked by Anonymous

Asked on 26 Jun 2018

Currently in my first year of work and have been investing 25% of my monthly take-home into POSB invest-saver & bonds (80% into STI ETF , 20% into SSB) and 25% into savings. Looking to diversify out of SG market once it hits $10k. Suggestions?

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Kenneth Lou
Kenneth Lou

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Level 8. Wizard
Answered on 27 Jun 2018

Hi there! I think what you have now makes sense and is actually a pretty disciplined approach to this.

What I would recommend you to do now is to actually read Jacky's answer here in this question. Let me highlight some parts of it:

His first 2 years of investing:

  • US tech stocks for capital gain (super high risk)
  • balance risk of US tech stocks with p2p lending (medium risk)

His hypothetical 2-5th year of investing (not there yet this is my 1st year only)

  • capital gain from tech stock slowly converted to SG Reits for future dividend portfolio (medium to low risk)

His hypothetical 5th - 10 year of investing

  • slowly build up dividend portfolio and waiting for dividend to compound the returns (medium to low risk)
  • CPF should have some money (low risk)

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James Yeo
James Yeo

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Level 4. Prodigy
Answered on 27 Jun 2018

Hi, in my opinion, i think you want to seek some overseas exposure since u already have 80% in sti index.

There are 3 easy ways. 1) DIY dollarcostaveraging - you can still invest overseas using maybank investment plan to nibble bit by bit (min. 100 every stock i think) 2) you can buy the overseas stocks outright through stock brokerages. Most of them cover US. Can opt for ifast for cheaper comm. 3) invest in mutual funds with global exposure (can see from fundsupermart too)

Hope it helps. Cheers

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Cherie Julianne Tan
Cherie Julianne Tan

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Level 6. Master
Answered on 27 Jun 2018

Hey! You could try Robo-advisors to invest out of SG market, they will invest in accordance to your risk appetite.

You are able to invest into robo-advisors every month, similar to what you have been doing with POSB invest-saver.

You can check out the real user reviews here, i think stashaway is quite popular.

If you want to read more about robo-advisors and their background info, you can do so here.

Hope this helps! and all the best!

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Melvin Huang
Melvin Huang

()

Level 1. Freshie
Answered on 27 Feb 2019

U don't need to invest in overseas. even local can have good investment tool. looking at etf and ssb it only earns u max 5%. if u have cash u can put at other platform like seedin. they are offering 10% P.A. this is the highest i see at the current market compare to stocks saving bonds etc.

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Kelvid Pang
Kelvid Pang

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Level 2. Rookie
Answered on 24 Sep 2018

You may consider SPDR S&P 500 ETF which listed in SGX...

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You could try out robo-advisors for US exposure. Alternatively you can also get HK stocks.

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Good Day Every Day
Good Day Every Day
Top Contributor

Top Contributor (Nov)

Level 6. Master
Answered on 21 Sep 2018

Yes, you should diversify into overseas markets such as China and US equities and bonds.

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Gabriel Lee
Gabriel Lee
Top Contributor

Top Contributor (Dec)

Level 6. Master
Answered on 30 Jun 2018

Hi, you can consider using robo-advisors (StashAway/Smartly/AutoWeatlh) to diversify your existing investment portfolio out of the Singapore market. It's simple to use, hassle-free and charges low fees. Please refer to this article from Seedly for a comparison between the 3 robo-advisors - https://blog.seedly.sg/singapore-robo-advisor-investment-comparison/

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Tan Wei Jie Shawn
Tan Wei Jie Shawn

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Level 2. Rookie
Answered on 29 Jun 2018

Hi, in order to save on the transaction costs, you could pile up the allocated amount for your monthly SSB and lump sum invest when you see that there is a favourable interest rate at a particular month that suits your investment horizon. :)

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