Hi all, I am 24 yrs old and currently an undergraduate. I have $15k but I do not know how to grow it or rather how to invest it. Really hope to seek some advise from all of you! What is the best combo for a medium risk appetite? - Seedly
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Anonymous

Asked 3w ago

Hi all, I am 24 yrs old and currently an undergraduate. I have $15k but I do not know how to grow it or rather how to invest it. Really hope to seek some advise from all of you! What is the best combo for a medium risk appetite?

If you guys have $15k now, what would you do with it? How would you invest it?

After spending a long time reading all the seedy Q&A, I might be considering:

$10k in SINGLIFE, $3k in STASHAWAY, $2k in SYFE EQUITY100

Is this the best combo? If not, what is the best combo if my risk appetite is medium?

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    Hey anon! I think apart from your risk appetite, think about your investment horizon as well. Do you need the money in the short-term, say in 1 - 2 years? Or are you prepared to leave this $15K invested for the mid-to-long term, say 5 - 7 years?

    If you're planning to tap into your funds within the next year or so, your money should be parked somewhere safe like Singlife. However, the application is now on a waiting list basis. Dash EasyEarn and GIGANTIQ are the next best options at 1.8% p.a. You can check out my comparison here.

    If you're investing for the long-term, I'll personally put most of my money in a stocks/bond portfolio, perhaps the 16% Stashaway Index option.

    I'm not sure if you'll be comfortable with the risk level of Syfe's Equity100. That is a 100% equity portfolio. You'll be completely exposed to market movements. If the market drops by 20%, your portfolio is going to drop by a similar amount. Is this something you feel comfortable with?

    You might want to consider Syfe's REIT+ portfolio instead. You'll be invested in Singapore REITs, which is more of a medium risk compared to equities.

    Hope this helps :)

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    Thank You!
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    For a start, please ensure that you understand all your financial needs now.

    Some questions to consider(not exhaustive):

    Do you have your emergency fund/insurance coverage thought out?

    Can you afford to lose the $15k?

    What are the financial goals you want to achieve and in what time frame?

    What is the maximum percentage of loss you can stomach before being uncomfortable or terrified?

    If you say your risk appetite is medium, I disagree based on your planned allocation above.

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    Question Poster

    3w ago

    Thank You!
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    I will just focus on equity100, don't need to put into so many robo. One robo already very diversified, instead of spreading out your capital which is not huge (no offence), focus on equity100 and let it compound better over long run

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    Before choose where to put your money, know what is your goal.

    Before get on a bus, know where you want to go.

    Question:

    1) what is your timeframe? 5years, 10 years, 20 years

    2) How much money (approx) you want to put in yearly? $500, $1000, $2000?

    3) Do some math:

    http://www.moneychimp.com/calculator/compound_interest_calculator.htm

    4) Then base on your target return. Choose your vehicle.

    Addition Tip

    Best combo regardless your appetite.

    ​​​

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    Given that you are rather young, I would say that your best investment is yourself. Not only do you have not much liability and commitments, but you also have time working in your favor.

    What you should be doing is to maximize your active income and that will be through honing both your hard and soft skills. If you are looking to become a programmer, you should see how you can improve your programming skills to wow the potential interviewer to a better-paying job. Classes are just one of the many ways to increase your earning potential.

    Secondly, intangible skills like persuasion and negotiation are particularly useful in the marketplace. The only way to hone such soft skills is through networking and social events. Some people have great personalities and it is no wonder why they get promoted faster than the others.

    You can think about how faster you can take to accumulate $15k with various salary level assuming you keep your living expenses the same. Someone who is making $6k a month will definitely accumulate more savings than someone who is making $4k.

    Robo-advisory is just one small aspect of the huge world of investment. While it's a good way to get started on investing, you might want to increase your investment repertoire by getting your own hands dirty.​​​

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    Hmm.. assuming you already have the basics covered yah?

    If I had $15k with the basics covered, then I'm probably just gonna put $10k into Singlife and remaining $5k into one roboadvisor (the $5K I will split into $2.5k each, first buy-in $2.5k then DCA remaining $2.5k via $500/month for 5 months). Prefer to just keep track of 1 robo.

    And if I have no plans to buy house/get married in 3-5 years, probably will draw down the $10k from Singlife and DCA more in same portfolio, or look into another portfolio with the same robo or another robo. Will form 1 core 1 satellite.

    But then again, as an undergrad I believe your expenses are still low + no job yet, so I think better to get a stream of income first before thinking of investment unless you already crunch the future numbers (aka expenses, bills, insurance, savings and all that jazz). If this is the case then $10k in Singlife for sure but the other $5k you might want to think thru again.

    We can only provide our own personal experiences, ultimately you will have to make your own decision. If you're talking about returns, maybe there is a "best" combo, but if you're talking about your own finances, only you will know which is the most suitable for yourself. Or just approach a financial planner you trust!​​​

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    Question Poster

    3w ago

    Hi Casey, which roboadvisor are you using? Which roboadvisor do you recommend?
    Casey

    Casey

    3w ago

    Hey OP, I was previously only using Digiportfolio, but closed it about 3-4 months ago. wrote about it, if you're interested can head to my bio. can't really provide a fair review because I currently don't use any robos myself nor have any experience with others, sorry. but if I were to use it again or turn back time to when I just graduated and had the resources, would probably do ^
    Thank You!
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    Hi there.

    For your case, do consider investing only after you have set aside your emergency funds and your insurance (protection) plans are in place.

    Once that is done, you may want to explore using a robo advisory platform to invest the spare cash you have.

    You may want to read up about investing in the meantime as well. Seedly does have a number of articles on investing that can help. Read up on books about investing like Millionnaire Teacher and Rich by Retirement; these are books that cater to our local context. Hope this helps.

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    Question Poster

    3w ago

    Thank You!
    Thank You!
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