Hi, i’m currently serving national service with about $500-1000 of spare cash. I’m looking for short term investments. any suggestions? I’m also currently investing in etherum. any thoughts? - Seedly
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Anonymous

Asked 3d ago

Hi, i’m currently serving national service with about $500-1000 of spare cash. I’m looking for short term investments. any suggestions? I’m also currently investing in etherum. any thoughts?

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Hi anonymous,

So many questions, dude.

Without knowing what you mean by short-term (1 year? 2 years? 5 years?) and looking at the fact that you have $500 to $1,000 (is this all the money that you're ever going to invest? or are you looking at a lump sum kind of option?) and you're investing in Ethereum (a cryptocurrency)...

I'm gonna guess that you're looking at financial instruments which you can grow your money quickly within the next 1 to 2 years? Probably for life after NS? Maybe to fund your studies or as allowance.

Since you're going with short-term, I'm going to leave out stocks and bonds because that's a much longer-term game.

Note: the following suggestions are purely my own opinion, so make sure you do your due diligence before getting into any of them!

1) High-interest savings account

I know. Not the most popular now given the low-interest rates, and the banks cutting them too.

So if I would go for a high interest savings account, I'll choose something that's fuss-free. Meaning I don't need to credit my salary, pay 5,000 bills, and invest 2 arms and a leg just to get a pittance of a bonus interest.

And since you're in NS, you should be below 26 years old. This means you can qualify for the Standard Chartered JumpStart account (1% p.a. on the first $20k).

There's no minimum daily balance to be met too and no fall-below fee. So if you want something fuss-free. This is probably it.

2) Fixed deposits

With $1,000, your best bet would be DBS. It's 1.3% p.a. for 18 months.

3) Short-term endowment plan

You could go with the SingLife Account.

They're offering up to 2.5% p.a. for the first $10k. That's pretty decent given this low-interest rate environment we're in right now. Take note that the returns are non-guaranteed tho, and they are calculated daily but credited monthly (you can login everyday and literally watch your money grow).

The best part is that you can set everything up online so you don't have to go down to the bank or whatever.

Oh, there's also Dash EasyEarn (1.5% p.a. guaranteed + 0.5% p.a. bonus for first year) but the minimum deposit is $2,000. So that's out of the question for you.

Alternatively there's Gigantiq by Etiqa (min $50) which gives you 1% p.a. guaranteed + 1% p.a. bonus for the first year.

If you're interested, we did a comparison between all three.

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Joel Lim

3d ago

Hi Kenneth thanks for the advice! yea i’m looking at 1-2year short term investment for my future studies. I currently have a singlife and standard chartered account and i’m looking for any other sources where i can maximise my earnings which includes investing and getting good returns in 1-2years. i’m not sure whether ethereum is a good place to dump my money in. any thoughts about that?
Kenneth Fong
Kenneth Fong

3d ago

Hi Joel! if you're looking at investing and getting returns in 1 to 2 years. That'll be a little tricky given that you've only got about $1,000 to spare. Even if you were to build a dividend-yielding portfolio using a Regular Shares Saving Plan (https://blog.seedly.sg/which-regular-savings-plan-is-the-cheapest) or buy REITs through an online brokerage... your returns on $1,000 isn't going to be significant. If you're lucky and you choose the right fund or REITs to buy, you're realistically looking at an annual yield of maybe less than 4% (that's like $40, which isn't going to be enough to pay for your studies). If it were me and I had $1,000. I would go to the market with that and invest it for the long-term (I'm talking 20 to 40 years, and it's ALWAYS a good time to start young). Meaning, that's money that I'm not planning to take out within the next 1 to 2 years. I'm gonna grow and continue to add to that so that eventually it becomes my income or retirement portfolio. To cover my studies, I would look at other more plausible solutions. If I'm academically inclined, I'll look at getting a scholarship. Almost all universities provide some sort of scholarship so check out their websites or speak to a student matriculation rep. Alternatively, there are bursaries and grants from schools. OR I'll shop around for a bank loan with a really low interest rate to fund it first, and then make sure I clear it asap upon graduation. ~ With regard to Ethereum and cryptocurrency in general, it's a really REALLY volatile "financial instrument" that technically isn't pegged to anything, unlike say... a company or business where you can look at the financial statements to decide if it makes sense to invest in it. This means that crypto is pretty much dependent on investor sentiment. And that fluctuates wildly. Aside: if you look at the stock market today (especially the US market), it also looks like it's very much driven by investor sentiment, but I digress. Also, because crypto technically isn't regulated, there's an opportunity for huge gains but there's also a possibility for you to lose it all to fraud, fees, or etc. (touchwood). Since you mentioned that you're already invested in Ethereum, I'm guessing that you're probably doing so through a cryptocurrency trading platform. The thing with these platforms is that if you're using one that is not based in Singapore, you're already exposing yourself to foreign exchange risk. If you've travelled overseas, you'll know that the amount of Malaysia ringgit or Korean won you can get for Singapore dollars varies all the time. The same problem will apply to your buying of crypto through these platforms. There's no real way of getting past these platforms unless you resort to mining your own crypto with a mining rig. But that starts anywhere from $4k and up, plus if you factor in your electricity bill to run it 24/7, your $1,000 is simply not going to cut it. Besides forex risk, you also have to deal with platform fees when you trade crypto. I just did a quick search online for platforms that trade Ethereum and it looks like the buy/sell fees hover around 1 to 3%. That's really high if you were to compare it with brokerage fees when you invest in stocks or bonds. So... what's my take on crypto? If you're putting money in it, it has to be money that you're comfortable with losing completely. Because unlike investing in the stock market for example, I can't realistically say what's going to happen to your $1,000 that you put into Ethereum. 1 to 2 years later, I know that the markets are still gonna be there. And if you invested in a large multinational conglomerate like Coca Cola, I'm pretty sure we'll still be served that in a McDonald's 2 years later. But for Ethereum, there's really no guarantee at all. And depending on when you choose to exit (after factoring all the trading and forex fees) you could earn if investor sentiments are high and the trading volume is big enough. Or it could end badly if Ethereum ceases to exist or maybe it depreciates even lower than the amount of money you originally put in.
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Daniel Kok
Daniel Kok
Level 5. Genius
Answered 3d ago

Short term investing like how long? If you are looking into capital gains quickly, go into US market.

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