How should I start investing at 18yo with $10K? - Seedly
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Asked on 20 Oct 2019

How should I start investing at 18yo with $10K?

I am 18 years old. Currently, there is $10K in my bank acc (saved up myself from a part-time job). I will like to start investing in either STI ETFs, Bonds ETFs or REITs as I have low to medium risk appetite. Aiming for at least 3-5% dividend.

I am considering getting a custodian account.

Are STI ETFs, Bonds ETFs or REITS good choices for a new investor like me? Or should I save up more money first and invest later?


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Asheesh Chanda
Asheesh Chanda, Founder at Kristal.AI
Level 6. Master
Updated on 30 Oct 2019

REITs and ETFs are the best way to get started. You may want to keep a smaller part in short term bond ETFs (Bond ETF UCITS preferably for tax reasons) which you can plough into the stock market in case of weakness in Equities. Do check out Kristal.AI wherein you can buy a few Kristals for 10K (and upto 50K) completely free of any advisory fee (except ETF fee which ETF providers take) You can then even set up a SIP on an ETF like SPY or VTI or VWO.

You can also run the Algorithm to check what that suggests for your profile. Do reach out to our advisors or support team if you need help.

Learn more from us here:

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👍 10
Siddhant Raizada
Siddhant Raizada

22 Oct 2019

This is so helpful 👍
Alvin Teo
Alvin Teo
Level 6. Master
Answered on 20 Oct 2019

A few rules you can consider: time in the market more important than timing the market.

Get invested first better, $10k more than enough to start.

And as fees matter in a custodian account, where you pay by trades made, do not need to diversify at once, have a plan of how you want to breakdown your portfolio first and you can build it bit by bit.

If you want a 30% Reits, 70% Equity ETF you can start with the REITs first then slowly add in the equity ETF.

Noticed I left out bonds?

Since you are so young and if you’re going to join the workforce, you should have CPF contribution. That can serve as the bonds in your portfolio for the next 10 years. This keeps things simple and reduces the need to study bonds and equity all at once.

Of course, you are a beginner so maybe take $100-$200 to get some good books on investments (purple coloured books do not count!)

1 comment

👍 6

21 Oct 2019

What are some book you would recommend?

I'd skip the STI and at max invest 10% in property as an asset class.

It would be more beneficial for you to invest in a dividend paying, globally diversified portfolio that matches your risk profile.

A moderately Conservative portfolio would be about 40% in Equities, 45% Fixed Income, 10% Property, 5% Commodity (Gold). That's how I'd structure the portfolio.

But if I may, if this is all the money in your bank account, you may want to keep some aside as an emergency fund. Usually 6 months of income would be sufficient. Only invest anything in excess of this.


👍 5
Level 5. Genius
Updated on 22 Oct 2019

Hi Anonymous, firstly, congrats in making the decision to start investing at an early age! With time, you can allow your money to compound more. This is on top of the experience you gain over the years, making you a better investor over time.

If I were you, I would invest in STI ETF for a start. As of 21 Oct 2019, the SPDR STI ETF had a distribution yield of around 3.8% (ref:, which is within the range you are looking for.

ETFs allow investors to invest in a low-risk manner. In terms of risk profile, shares and REITs have higher risk. Once you have gained some experience in the stock market, you can consider venturing into stocks and REITs. Hope this helps!


👍 2
Cheung Jian Hui
Cheung Jian Hui, Financial Planner at Great Eastern Life
Level 4. Prodigy
Answered on 20 Oct 2019

Hi Anon,

Generally speaking ETFs are good choices for new investors as they are passive and do not require you to spend alot of attention on it. You might consider roboadvisors as well

At your age, having a 10K capital is very impressive and you can start investing asap as you are young and time is on your side. Investing early means you can make full use the effects of compounding interest.


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