Asked by Anonymous
Asked on 27 Aug 2019
How should I be investing, single premium or DCA?
My current idea is to diversify by splitting into STI ETF (Nikko AM or SPDR STI), bond (not sure which), and REIT ETF (probably lion Philip because it has 30 assets underneath).
Any thoughts are welcome!
Top Contributor (Oct)
5% per year, with LTA's PARF. Hope this helps you in what you are looking for.
Higher returns but safer assets.
https://timelyenterprise.com.sg/better-returns-than-singapore-saving-bonds-similar-risks/ I personally won't invest because I prefer higher returns instruments like stocks. I am holding most of my cash waiting for a stock market correction.....
29 Aug 2019
I won't go into stocks now.... inverted yield. The recession won't come tomorrow but pretty sure within next 2 years?
Maybe buy something short term (6months to 1 year) and wait for the stock market crash?
29 Aug 2019
It depends on your financial goals. Are you looking for dividend income or to have a long term plan ie retirement? Is your 20k 100% of your savings, or do you have more? When you do lumpsum investment ie single premium, you are betting that your point of entry being a favourable price.
When you DCA, you remove that uncertainty at the cost of a lower return.
Does your CPF Balance have 60k? The first 60k will achieve a bonus interest of 1%, which would mean if you put your fund in CPF SA, you earn a guaranteed interest of 5%. If you are yet to achieve it, I would suggest you do so. While CPF monies above 20k in the OA and 40k in the SA can be used for the CPF investment funds, the guaranteed returns from CPF would make for a weak argument for do so, especially SA monies which earn a nice 4% guaranteed interest. Another way is to consider putting it into SRS- you gain tax relief for doing so, then use the amount to buy into Unit Trusts or Stashaway- apparently, MoneyOwl and Endowus who are carrying the excellent Dimensional Fund are in the midst of becoming SRS certified.
Personally, I feel that the markets are overvalued now. Am waiting for the market crash then go all in:)
You can set up your very own Dividend Re-Investment Plan(DRIP) for REITS.
Do your due diligence and select well established market leader eg Mapletree
Plough back your dividends every year and watch your nest egg grow
Step 3(Optional): Set aside some of your annual bonus and add to your sum