Regular Shares Savings Plans (RSS)
Asked on 05 Oct 2019
Have saved enough warchest funds, and am thinking of investing $250/mth to Stashaway & $200/mth to DBS invest saver.
But I'm not sure if it’s too little/much etc, and is this the right timing to enter?
Also, fees wise, is it recommended to invest here because the initial fee will be Low but as AUM increases it can grow to a hefty sum per month
It's always worth putting 20-25% of your salary into mid-long term investments to build a portfolio - with discipline. There is typically no right time to enter but you can always increase your size of investment on certain days when you feel markets are oversold for e.g where they were in last Dec 2018.
As per the fee, you can also evaluate Kristal.AI as we have a free account for the first $50,000 worth of ETF investments. We charge only on amounts above 50K.
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Hi, as a general guideline, you will want to allocate at least 20% of your salary into investments. More if you can afford it, although you must remember not to overcommit. So take a look at your salary and see if you are in this range of 20%.
If you are going in monthly, then you should not be concerned about timing. This is because you will be doing DCA, and hence it is more important to spend time in the market rather than timing the market. You will need to have a horizon of at least 5 years or more to really see results. You will also need to consider your costs of investing, and how they impact you. I can recommend that you take a look at UTs also as there are no sales charges if you RSP on POEMS, so your full amount is invested.
If you do not have a lot of financial commitments, 50% - 60% is very much doable assuming that you are keeping a close watch on your expenses. Recommend listing down all your expenses on a spreadsheet if you want to take it to this level. Of course, the above 50%-60% is assuming that you are earning a decent monthly salary. I would say around 2.8k take home for me.
Else, at the bare minimum, I would say 20% is alright.
If you are interested to minimise your cost and fees, I would recommend DIY investing, i.e. picking your own investment fund rather than going through StashAway. Generally speaking, I would stay away from unit trusts. Some argue that there is no sales charge. But most forget that most UT are actively managed funds and they are more expensive to invest in than passive products. Look into ETFs.
Note the same asset securities can be packaged into either UTs or ETFs. It is just a legal structure, each with its own nuances and unique attributes.
Last but not least, forget about timing the market. Even the experts have a hard time doing it right. Time in market is more important. Buy and hold your funds for at least 10-20 years. At least for me, I am holding it till retirement and slowly cashing it out.
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