Asked on 28 Jul 2020
I would like to seek your experienced advice to help me with. Thanks :)
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!
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.
29 Jul 2020
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.
2 more comments
05 Aug 2020
06 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
Regular Savings Plan - FSMOne, POSB Invest Saver, OCBC Blue Chips Savings Plan, etc
Robo-advisors - StashAway, Syfe, EndowUs, etc
1 more comments
06 Aug 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.
29 Jul 2020
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.
29 Jul 2020
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