Hi. I'm 25, plan to invest 20k for a start and invest 1 or 2k monthly thereafter. Want to do a long term investment, likely 10 to 15 years to grow my wealth. Any advice how I should invest? - Seedly
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Anonymous

Asked on 20 Aug 2020

Hi. I'm 25, plan to invest 20k for a start and invest 1 or 2k monthly thereafter. Want to do a long term investment, likely 10 to 15 years to grow my wealth. Any advice how I should invest?

Been reading and I'm considering these options:

  • Syfe Equity100 and REIT+ or StashAway 36%

  • FMSOne RSP or TDA, still reading up which ETFs are good to buy and hold, maybe VOO VT etc

  • Tiger Broker or TDA, probably for individual stocks

Are they good to go?

Should I then invest all 20k in one of the above or is better to do few or any better options for considerations? Besides ETFs, any other options I should consider after learning more? Any other advice if there are. Thank you.

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More than recommending what to do, I'd recommend not to do, all mentioned here:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy

... and then if you'd ask about 100% stock investing, probably many people could agree that one out of these ETFs would be fine:

MSCI World ACWI (SPYY, ACWI)

MSCI World (LCUW, IWDA, SPPW )

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Frankie Rappaport
Frankie Rappaport

20 Aug 2020

My written link there could be very misleading. I wrote it particularly for warning against the 'crazy things' like unit trusts or active approaches like market timing or stock picking. Though I wrote that only to show my experiences and ideas, I follow for myself mostly #6, which is dangerous too. But when You ask, #1 to #5 (but not #6), I feel, are all, o.k. maybe a single global accumulating stock ETF is really all You need for decent returns. My impression is that most people cannot keep on with the best stock strategy (which is prudent asset allocation in the first place and then buy & hold for almost ever). It is so difficult to not sell during times of stock market crises, but one really has to keep calm, difficult. I never did sell during crashes. That is the main formula to success (when the asset allocation was wise from the beginning). Approach # 1 is so well diversified, and hassle free. As to buying time: for successful investing there is no 'good time to buy now'. You should invest anytime when money is coming in and so You average out the expensive as also the cheap appearing times by periodically buying new ETF shares. For Your lump sum of 20000 You can divde it into 4 x 5000 parts and get it invested quarterly. Hope this helps. The important truths to investing are simple (but not easy) ... good luck!
Question Poster

21 Aug 2020

This is so helpful 👍 #6 i'm interested too, especially the technology sector, but will need to find out more which in particular to buy.
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
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Max Soo

Max Soo

Level 3. Wonderkid

Answered on 28 Aug 2020

Hi!

Regarding your circumenstances, you can invest your 20k into a Robo-investor. These are usually for the long-term and you can personally set the risk level and future goals regarding your money. I personally use AutoWealth and aside from my first lump sum, I also set aside a monthly recurring amount to put transferred into AutoWealth.

With your other cash, you can maybe put them into mutual funds or ETFs and also hold for the long term.

An interesting ETF would be something like the ARKK, a combination of innovative stocks picked by ARK Invest.

For something safer, you could put your money into something like the S&P500.

A World ETF could also do.

For individual stocks, I'll definitely go for TDA, especially now that there is no commission fee. I've been using it for awhile now, and it's easy to use on the phone or on your computer.

Also, you can look into growth/software-as-a-service (SAAS) stocks so you can hold them long term and let the money compound and grow.

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Lum Jun Xiong

Lum Jun Xiong

Level 2. Rookie

Updated on 24 Aug 2020

If you want to have someone manages your portfolio for you, I would recommend https://endowus.com/ . They leverage on the best fund managers in the world by accessing their time-tested strategies at the lowest cost possible. They also will do a portfolio allocation for you to suit your risk appetite.​​​

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For a long-term investment, you can consider using a core-satellite investing strategy. Your REIT+ portfolio can act as your core, and your satellite investments can be in Syfe's Equity100 portfolio as well as other individual stocks / ETFs you are interested in.

The advantage of this strategy is that you enjoy the thrill of holding a few investments that can outperform from time to time. Meanwhile, your core investments benefit from broad market exposure and steady market returns.

Our friendly wealth advisors can give you a personalised recommendation on how you can allocate your funds for a core-satellite strategy. Do speak to them here!​​​

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J

Jason

Level 6. Master

Answered on 20 Aug 2020

Try not to lump sum all the money that you have set aside for investment and gradually DCA into the market. Keep some cash on the sidelines for any market corrections or if you chance upon any great opportunities

  • Both the robo-advisor choices are great. SYFE Equity + REIT will help you to get exposure to both US ETFs & SG REITs instantly while StashAway will grant you exposure to US ETFs. Pick one which you feel you are more comfortable with.

-FSMOne RSP will help you to average out the cost of the ETF monthly while you will have to manually purchase the ETF on TDA. Take note of the dividend handling fees on FSMOne platform for US domiciled ETF: https://secure.fundsupermart.com/fsm/new-to-fsm/pricing-structure. TDA currently roll out 0 commision fees for US ETF and some stock counters, thus you may want to consider creating an account if you decide to purchase a lump sum or individual stocks

  • Both are great in my opinion but Tiger Brokers is still relatively new at the moment, thus do not put a huge amount of sum in. TDA currently charge no commision fees for most US stocks too.

Hit me up if you need a referral for Stashaway and the brokers as stated above. Remember to always hold some cash on the sidelines as opportunities can surface anytime :)

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Jason

21 Aug 2020

Yes but DCA into ETF should be as passive as possible, so don't need to worry too much about that. It is just an extra measure to increase the returns in the long run. The price will usually go up and down daily and ETFs usually less volatile compared to individual stocks, thus it will not has a huge impact in that sense. (This are usually more easy to accomplish when you are buying the ETF immediately as Robo-advisors will take some time to invest your funds, but still worth a try) - Regarding how many ETFs to buy that will depend on individual investment goals and their own risk level - In my opinion, you can focus on just one or two ETFs like VT/ACWI and S&P500 (VOO/IVV etc.) as these ETFs are well-diversified (this are great for beginners to start with as they accumulate more knowledge to decide on their next investment areas) - If you want to hold a few ETFs, I will feel majority of your holdings should be the ETFs stated above. Thereafter, you can focus the remaining on more specialized/tatical ETFs like technology/healthcare/semiconductor etc. (Frankie has great suggestions as what he had replied to your post, but do your due diligence still before every decision) I have only allocated ~20% into my robo-advisor so far and most probably I will see how it goes as time goes by. Was using it while I spend the time to improve my knowledge by the way. I will not withdraw it for at least 5 years and maybe I can see how it fare out and compare to my own portfolio haha. They are good to start with and they allow fractional shares investment as opposed to some brokers, while providing instant diversification. Oh and here you go: FSMOne: P0395006 TDA: 220361080
Question Poster

21 Aug 2020

This is so helpful 👍 Thank You!
Thank You!
Can you clarify
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This is so helpful 👍
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Buy consistently into the markets!

It is highly recommended to buy mutual funds every month to average out the cost of the stock.

You can consider buying mutual funds that tracks S&P 500 in the US market of singapore market.

For singapore market : ES3

For US market : IVV / VOO etc etc

Why mutual funds is because these big fund managers are actively and professionally managing your porfolio.

This saves the hassle of stock picking etc.

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Frankie Rappaport
Frankie Rappaport

20 Aug 2020

Https://www.thebalance.com/etfs-vs-mutual-funds-the-battle-continues-1214710
Antonius Ricardo

24 Sep 2020

Same thought here. the fee is just more ridiculous than Syfe (in your context)
Thank You!
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