I am 23 this year and a fresh graduate. Where should I put my money for a beginner who wants to invest? Probably stocks with high dividends? - Seedly
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Asked by Qingling Wu

Asked on 24 Apr 2019

I am 23 this year and a fresh graduate. Where should I put my money for a beginner who wants to invest? Probably stocks with high dividends?

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Hi Qing Ling, congrats on your graduation and into the next phase of life!

Just before you invest, make sure your insurance planning are all done up properly; along with emergency funds.

If you are an absolute beginner, I recommend to invest the money in yourself first, go for courses and build up your skills.

This investment in yourself will be exponential.

Lastly some tips for you as a graduation gift šŸŽ! When creating a portfolio, consider these points

  1. Desired portfolio results
  2. Risk tolerance of yourself
  3. Investment commitment in both the dollar and time!

These 3 tips will help you to decide on what to invest in and will also shape up your portfolio strategy that is tailored to you! Make sure to always review your portfolio regularly too, as your strategy will change as market is volatile!

Feel free to ask if you need more advice!

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John Smiths
John Smiths
Level 3. Wonderkid
Answered on 27 Apr 2019

If you are a fresh graduate without a job, find one that pays you a decent salary income or start a business that is profitable. Both are difficult to do as it is before you even start investing. If you already have a job and are thinking of investing existing savings, as a beginner, start with ETFs. Until you learn enough to do high dividend stock-picking.

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Hi Qingling, if you don't require this money, you could park it in REITS to create an additional stream of passive income from the dividends that the issue, usually about 6-7%.

This website provides very useful resources for REITs -- https://reitdata.com/

However, the downside to REITs is that it usually runs inversely to the interest rate environment. When the economy is doing well, interest rates will rise (both loan and deposit), but given the nature of REITs whereby it is required pay out at least 90% of their taxable income to unitholders, approximately 30-40% of the entire business is funded on borrowed money from banks. Therefore this would affect the share price of the REIT.

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Hi Qingling, before you jump in the investment train. Make sure you have your emergency cash set aside and your insurance planning done up.

Today, there are so many products available for retail investors to choose from.

If you're looking for a passive approach you should look at setting up a globally diversified portfolio that matches your risk profile.

You can do this with online providers like Autowealth, Stashaway, EndowUs, MoneyOwl, just to name a few, or through a Financial Advisor like myself.

It's important to keep costs low but also make sure you're paying for good advice. :)

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