I am 27 and have $120,000 cash in different bank accounts - DBS Multiplier, SC Jumpstart etc. I've no investment knowledge and no time to acquire investment knowledge. What should I do to start investing? - Seedly
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Anonymous

Asked on 08 Jun 2020

I am 27 and have $120,000 cash in different bank accounts - DBS Multiplier, SC Jumpstart etc. I've no investment knowledge and no time to acquire investment knowledge. What should I do to start investing?

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Hi anon,

If you really have no time to even acquire knowledge, then you have to make time to at least plan what you want to achieve from your investments. The planning process is important prior to starting to invest; without a plan (or at least a skeleton of one), you are planning to fail

Start by setting a goal:

  • What do you want to achieve?

  • Save for Retirement? Payment for Mortgage? Children’s Education?

  • Determine your investment timeframe

  • How much do you need for that goal?

Next, assesss your financial situation

  • What is your net worth and cash flow?

  • List out all resources and expenses that you have

  • Find out your budget

Then, plan to execute

  • Make sure you have emergency savings

  • Make sure you are adequately insured

  • Know how much to set aside

  • Know what rate of return you need

  • Know how much risk you can take

Understand the asset classes you can invest in, their pros and their cons

  • Equities (Stocks/Shares)

  • Exchange Traded Funds (ETFs)

  • Retail Bonds

  • Corporate Bonds

  • Unit Trusts

  • Savings Plan/Annuity

  • Structured Deposits

  • Contract for Differences (CFDs)

  • Properties

  • Commodities

  • Derivatives

Lastly, decide which asset class you would like to obtain that fits you and your profile, and you will be ready to start. At the very least, even if you have no time to really read up, have some basic idea of what I mentioned above. You should at a minimum have some kind of direction and target to aim for. After that, you may want to consider engaging someone to manage your investments, as it sounds like you will likely not have enough time to monitor them on your own.

Still, at least make time to map your big picture out. Don't go in blind.

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Hey there!

Great job on accumulating that sum at your age.

For starters, dollar cost averaging into an ETF is a good way to start through an online broker RSP. There are various RSPs available online eg. FSMone etc. You can even try a roboadvisor whereby you opt for a portfolio based on your risk appetite etc.

Reason being stock picking requires time to learn about the quantitative and qualitative analysis of the business and industry. So passive investing is a good way to start to make your money work while you read up more investing to learn the ropes.

The other alternative will be to get a 100% investment-related ILP with a trusted agent. There is an allocation of ILP funds that you can buy into. Do make sure you are working with someone who will always update you on your portfolio and you know the fund performance.

Financial planning is an integral part of life. You can reach me here to find out more.

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Wilson Nid A Break
Wilson Nid A Break
Level 9. God of Wisdom
Answered on 08 Jun 2020

LMAO, if you cant even spare a few hours a week to read up on your financial stuff before investing, then you had no one to blame but yourself when losses start to accrued

Go to libbyapp.com and login via your NLB account, and go borrow as many personal finance / value investing books. Borrow books that are written from a practictioner perspective. Can start with beginer friendly:

The Five Rules for Successful Stock Investing by Pat Dorsey

The Ultimate Dividend Playbook: Income, Insight, and Independence for Today's Investor, Josh Peters

If books are not your cup of tea, there are a couple good US financial youtubers to follow

Graham Stephan: https://www.youtube.com/channel/UCV6KDgJskWaEckne5aPA0aQ

PPCIAN: https://www.youtube.com/channel/UCXtrYuGksGkkyls50lPWvYQ

(less)

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Adriel Thin
Adriel Thin
Level 4. Prodigy
Answered on 12 Jun 2020

"You fail to plan, you plan to fail". Personal finance is well, personal. And if the richest people on Earth can find time to read and learn and plan, then perhaps you can too, no matter how little.

Think this community is able to guide and give some suggestions, but ultimately you are responsible for your own decisions, so really, the best thing you can invest in is in yourself now.

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Jay Hou
Jay Hou
Level 4. Prodigy
Answered on 12 Jun 2020

Just use a robo-advisors like stashawy, a no-brainer, safe and reputable!!!!

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Royalchem
Royalchem
Level 5. Genius
Answered on 09 Jun 2020

Open a broker account, they will set up cdp for you

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https://www.amazon.com/Little-Book-Common-Sense-Investing-ebook/dp/B075Z6HSCJ

Spend some time reading this. You should be able to finish this in one seating in about 1-2 hours.

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Firstly, you need to establish whether you possess the knowledge, skills, experience, and time to manage your own investment portfolio.

If so, you can look into bonds, ETFs, stocks, shares, robo-advisor, derivatives, forex. In fact, the options are limitless.

On the other hand, some insurance companies partner with global investment firms like Mercer, and BlackRock to create an optimised portfolio for their clients to invest their money. Additionally, your agent should be capable enough to give you responsible advice on your asset management over time. This reduces the need for you to spend considerable time to manage the investment on your own.

These days, investment-linked policies (ILP) that are used for investment have only basic death coverage, which is probably equal to the premium that you have paid. Therefore, you ain't paying much for insurance charges. However, this depends on the plan that we are referring to. Therefore, speak with your agent for the most accurate information.

Having mentioned that, you should still have a basic understanding on the financial instrument that you are investing into (be it on your own or through an insurance company). This ensures that you are comfortable putting your money to grow for the long run.

I share quality content on estate planning and financial planning here.

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