I am 36 yrs old. I have no debts and have emergency fund for 6 - 12 months and i have insurance to cover medical emergency for me and my family. How would u go about investing 100k? - Seedly
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SK

Asked on 28 Jul 2020

I am 36 yrs old. I have no debts and have emergency fund for 6 - 12 months and i have insurance to cover medical emergency for me and my family. How would u go about investing 100k?

I would like to seek your experienced advice to help me with. Thanks :)

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Augustine
Augustine
Top Contributor

Top Contributor (Aug)

Level 6. Master
Answered on 04 Aug 2020

It would be much clearer if you provided additional information.

However, based on the information you've provided, I'd recommend that you set aside majority of your money into either robo-advisers and ETFs. That would be your base allocation.

Thereafter, if you have the time to read up, I'd suggest that you look into SG REITs as it may be an area that's easier to understand for anyone without prior knowledge. Additionally, REITs provide pretty good income in stable dividends while also having the potential of capital appreciation. I'd also add stay off hospitality reits in the meantime. This remaining portion should be set aside as your tactical allocation where you pick certain stocks you fancy or are more interested in.

Hope it helps!

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Chris Susanto
Chris Susanto, Founder at Re-ThinkWealth.com
Level 5. Genius
Answered on 28 Jul 2020

Increase your investments in your time to learn how to be an intelligent investor.

What does Graham meant by an "intelligent" investor?

Patience, Disciplined, Eager to Learn, Harness our Emotions and Think for Ourselves

He made it clear back in the first edition of the book that It simply means being patient, disciplined, and eager to learn; we must also be able to harness our emotions and think for ourselves. This kind of intelligence, explains Graham, “is a trait more of the character than of the brain.”

Do You Have High IQ? Not Enough.

There is evidence that high IQ and education are not enough to make an investor intelligent. In 1998, Long-Term Capital Management L.P., a hedge fund run by a battalion of mathematicians, computer scientists, and two Nobel Prize-winning economists, lost more than $2 billion in a matter of weeks on a huge bet that the bond market would return to “normal.” But the bond market kept right on becoming more and more abnormal—and LTCM had borrowed so much money that its collapse nearly capsized the global financial system.

Most of the time, people who failed in investing is not because they are stupid. It’s because they have not developed the emotional discipline that successful investing requires.

Graham always says that “while enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster.” History tells us that people who got carried away on internet stocks, on big “growth” stocks let other investors’ judgments determine their own. They ignored Graham warning that “the really dreadful losses” always occur after “the buyer forgot to ask ‘How much?’ ” The investor’s chief problem and even his worst enemy is likely to be himself.

You can get started reading my article on the intelligent investor summary here.

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SK

29 Jul 2020

Thank you Chris. I will start reading to understand better. :)
Frankie Rappaport
Frankie Rappaport

04 Aug 2020

But, over the last 10 years, isn't (almost) all of the positive stock performance based on "all the internet stocks, on big “growth” stocks" ?
Thank You!
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Patricia Law
Patricia Law, Financial Services Consultant at AIA
Level 4. Prodigy
Answered on 05 Aug 2020

Hi SK,

I will split my investment to

  • 20% for unit trust

  • 80% for retirement

It is a good time to invest now due to COVID-19 and fund / stock prices are relatively low. I will personally prefer to keep my investment hassle free and allow organisations to manage it rather then investing it myself.

For unit trust funds you can consider investing in AIA investeasy product where you can choose a variety of AIA managed funds from low to high risk.

For retirement products, you can look at AIA Platinum Retirement Elite or AIA Platinum Wealth Elite (later with death coverage). I do not know you age so it will be harder to advise. These 2 retirement products that allows you to invest while you get payout during your retired years. The projected investment return is around 8%.

For example if you are 49 and you plan to retire in 15 years' time, by investing a single pay of $80k, you will be expecting a monthly payout of $2,236 per month for 10 years (total payout $268,320) or $1,470 per month for 20 years ($352,800) in comparison to the investment of $80k.

This plan allows you to customise the number of payment, top-up if you like (min $1,000 per top-up), target payout period, target retirement age. You can also choose to postpone the payout age to a later age if you prefer.

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Frankie Rappaport
Frankie Rappaport

05 Aug 2020

Quick analysis, (at least) around 70% of all AIA Singapore company mutual funds underperformed their own stated benchmarks since inception (as of current pdf fact sheets on AIA website, half of the 'outperformers' are roughly 1 year old so analysis not valid for these probably). . AIA Acorns of Asia Fund underperformed own benchmark since inception AIA Emerging Markets Balanced Fund underperformed own benchmark since inception AIA Emerging Markets Equity Fund underperformed own benchmark since inception AIA European Equity Fund underperformed own benchmark since inception AIA Global Balanced Fund underperformed own benchmark since inception AIA Global Bond Fund underperformed own benchmark since inception AIA Global Equity Fund underperformed own benchmark since inception AIA Global Property Returns Fund underperformed own benchmark since inception AIA Global Resources Fund underperformed own benchmark since inception AIA Global Technology Fund underperformed own benchmark since inception AIA Greater China Balanced Fund underperformed own benchmark since inception AIA Greater China Equity Fund underperformed own benchmark since inception AIA Growth Fund underperformed own benchmark since inception AIA India Balanced Fund underperformed own benchmark since inception AIA Japan Balanced Fund underperformed own benchmark since inception AIA Japan Equity Fund underperformed own benchmark since inception AIA Multi Select 30 underperformed own benchmark since inception AIA Multi Select 50 underperformed own benchmark since inception AIA Multi Select 70 underperformed own benchmark since inception AIA Portfolio 100 underperformed own benchmark since inception AIA Portfolio 30 underperformed own benchmark since inception AIA Portfolio 50 underperformed own benchmark since inception AIA Portfolio 70 underperformed own benchmark since inception AIA S$ Money Market Fund underperformed own benchmark since inception AIA US Equity Fund underperformed own benchmark since inception AIA India Equity Fund outperformed own benchmark since inception AIA India Opportunities Fund outperformed own benchmark since inception AIA International Health Care Fund outperformed own benchmark since inception AIA Regional Equity Fund outperformed own benchmark since inception AIA Regional Fixed Income Fund outperformed own benchmark since inception AIA Elite Adventurous Fund (USD)* outperformed own benchmark since inception (however short period since 07/01/2019) AIA Elite Adventurous Fund* outperformed own benchmark since inception (however short period since 07/01/2019) AIA Elite Balanced Fund (USD)* outperformed own benchmark since inception (however short period since 07/01/2019) AIA Elite Balanced Fund* outperformed own benchmark since inception (however short period since 07/01/2019) AIA Elite Conservative Fund (USD)* outperformed own benchmark since inception (however short period since 07/01/2019) AIA Elite Conservative Fund* outperformed own benchmark since inception (however short period since 07/01/2019)
SK

06 Aug 2020

This is so helpful 👍
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Zi Shuen
Zi Shuen, Economics at NTU
Level 6. Master
Answered on 04 Aug 2020

If you have investment and stock picking knowledge, then analyze the stocks you like and buy about 10 - 20 of them and hold for long term.

if you do not know how to pick individual stocks, then go for either (or both) of the options below

  1. Regular Savings Plan - FSMOne, POSB Invest Saver, OCBC Blue Chips Savings Plan, etc

  2. Robo-advisors - StashAway, Syfe, EndowUs, etc

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SK

06 Aug 2020

I have invested in both syfe and stashaway as a start.:) will invest on fsmone once i know how to and what to and i am learning so much through this platform and from all of you :) thanks
Zi Shuen
Zi Shuen

07 Aug 2020

Pleasure, always feel free to ask if you need clarification :)
Thank You!
Can you clarify
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Shengshi Chiam, CFA
Shengshi Chiam, CFA, Personal Finance Lead at Endowus
Level 7. Grand Master
Answered on 28 Jul 2020

You should share your investment horizon - is it for retirement or for a short term housing deposit? Makes a lot of difference.

Investing in a globally diversified portfolio, using a stocks and equities mix at risk level that I am comfortable with.

And also, do it in a low cost manner.

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SK

29 Jul 2020

Which brokerage you prefer to do it low cost manner ?:)
Thank You!
Can you clarify
I wonder if
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Hi Anon

Thank you for this question. A client has given me this similar “problem” (it’s a good problem) last week. Let me share with you what I proposed

I’ll place the lump sum into bond funds or fixed income funds (stable n low risk), after that, I’ll do a regular investment into specific funds, that assist him to grow his money

The reason why I placed the lump sum into stable funds, is so that the returns is higher than the bank interest. If you are really risk adverse, can just consider fixed deposits or an endowment or retirement plan. All these work similar, and can help you get that extra boost towards your retirement.

Hope this helps!

Do let me know should you want to clarify anything further.

Cheers!

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SK

29 Jul 2020

Thank You!
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post