Asked by Anonymous

How can I improve my investments portfolio? I'm 25 with 4k take home pay?

Hello, I currently just started investing STI ETFs (Nikko AM & Schroder USD) through RSP ($200/month/ETF) with my bank. Is it wise to have additional robo advisors for $500/month or should I just put same amount to SSB? Thank you very much.

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    • Luke Ho
      Luke Ho, Money Maverick at Money Maverick
      160 Answers, 265 Upvotes
      Answered on 28 Oct 2018

      Set an objective to your investments. Most people who invest in liquid assets fall into trap of investing for the sake of making money. With no purpose, you'll compromise on the making money portion extremely quickly during market volatility.

      Being young, I'd actually urge you to go even more aggressive than robos. Push for funds and ETFs that make double digits annualized with long time horizons of 15 - 20 years. If you're not someone who has thought it very much through, the usual two objectives I suggest to my clients are their mid 40s and their retirement (or if they want to retire early, its one big objective).

      You can contact me if you'd like to consider investing in such funds, as I do well with them.

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    • Christopher How
      Christopher How
      11 Answers, 41 Upvotes
      Answered on 28 Oct 2018

      Good question.

      What you need to ask yourself is what is your objective.

      If you just have surplus savings and want to put the money in somewhere with a lower risk than STI ETF, then it makes sense to put the money in SSB.

      If your goal is to increase the coverage of your investments to go beyond just Singapore alone, robo advisors are one of the easiest way to diversify your investments across the globe without a large capital.

      So, what are you going to do? 😁

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    Chen Zhirong
    Chen Zhirong
    12 Answers, 27 Upvotes
    28 Oct 2018

    I would stick with STI ETF for the first 2-3 years until you feel confident enough to invest in local stocks and then global ETFs.

    You can go with robo advisors but I feel that that will simply stunt your growth in learning how to invest globally. However if you feel you don't want to learn/will learn later, then you can do so in order to gain exposure.

    No point putting in SSB at this age! Would rather top-up in CPF instead as returns in SSB are too low for someone this young.

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