Currently serving NS and I want to start investing (still in the process of learning). I just started using StashAway. Any thoughts, opinions or things I should take note of? - Seedly
 

Investments

Savings

Singapore Saving Bonds (SSB)

STI ETF

StashAway

Asked by Raymond

Asked on 13 May 2019

Currently serving NS and I want to start investing (still in the process of learning). I just started using StashAway. Any thoughts, opinions or things I should take note of?

I have $10k in CIMB FastSaver acting as my savings/emergency funds, POSB SAYE ($500 monthly) from my NS allowance ($559) and POSB eSavings (~$3k) for daily use. I’m starting to use StashAway at 18% risk index, putting in $100 monthly. Any opinions, or things that I should know/look out for? Should I make small investment in other platform such as STI ETF and SSB using POSB? Any advice is appreciated!

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Yu Ming Jin
Yu Ming Jin
Level 3. Wonderkid
Updated on 14 May 2019

Hey there, fellow NSF here. It's great that you are investing! I too have invested some of my service allowance into the products you have mentioned.

First of all, amazing job in having a solid emergency fund. Always keep yourself covered; the peace of mind in having liquid cash at your disposal if something goes wrong is a feel-good factor as we learn the ropes in our personal finance journey.

With Stashaway 18% risk index, a sizeable portion of your portfolio is already invested in bonds. Given the fact that you are still young (lord, I sound old), I believe parking more funds into SSBs might not be the most optimal if you are looking for (stable) growth.

I would say investing into the STI via POSB Invest saver might be a good idea. Considering your investment portfolio, which has little/no diversification into the domestic market, having some G3B in your portfolio can be ideal. However, fees are pretty high (0.82%) and returns might be less than what is offered by Stashaway.

Try to reduce your spending if possible too! Club/siamdiu less and go easy on the canteen food :P

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That's great that you start investing from so young age!

Stay the course, be consistent, keep investing for the long term. Don't panic sell when market drops.

I think you can leave out STI ETF if you are using stashaway which uses global ETFs. For SSBs you can use them as a way to park your savings or emergency funds to earn a higher interest rate.

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Raymond
Raymond

14 May 2019

With 10k in my CIMB FastSaver & ~3k in POSB eSavings. If you were me, how much would you put into SSB?
Gabriel Tham
Gabriel Tham

14 May 2019

If the 10k is emergency savings, i would put all in SSB. 3k i would leave it as my daily spends and bills. But do analyse your situation first. :)
Jeff Yeo
Jeff Yeo, amateur Social contributor at School of social sharing
Level 7. Grand Master
Updated on 07 Jun 2019

1) track your fees (platform/sales charges/admin fees)

2) track the performance of your investment

I think you also think about building the emergency fund

Other than that try to build capital and invest in other sort of investments when you understand how it works

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Raymond
Raymond

14 May 2019

Thank you for your advices! I will transfer the money in SAYE into CIMB FastSaver after my 2 years in army, so definitely will be building my emergency funds to ~$20k. Is there any investments you can recommend me to look into? Or share your own experience?
Jeff Yeo
Jeff Yeo

16 May 2019

I’m invested in REITs and some high dividend US stocks like Coca Cola. You can consider some ETFs as well. Don’t get unit trust from bankers cos the sales charge is really high. Platforms like FSM is what you should look into
Tan Wei Ming
Tan Wei Ming
Level 5. Genius
Answered on 18 May 2019

Many people advocate having 6 months worth of monthly expenses. So the $10k in CIMB FastSaver acting a savings is a bit too much imo.

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