Asked on 01 Jul 2020
Hi, I am a 18Yo student looking to invest around $7000 (one time) in IWDA(world ETF).
After doing research and maths, I found out that standard chartered trading acc is the cheapest for the long term(5-10y+) as they do not charge custodian fees.
BUT the problem is that SCB minimum age is 21 which means I'm not eligible.
Should I just put $7000 in vanguard world ETF using FSMone and then move to IDWA with SCB when I'm 21?
There are people who start out without a financial planner but they are usually able to fork out much time to conduct their own research and study And many people may not be able to do that. Think of it as a collaboration: Getting a financial planner will be able to help you embark on your investment journey while you learn the ropes of investing too.
Financial planning is an integral part of life. You can reach me here to find out more.
08 Jul 2020
Alex Chua, Sophomore (Engineering System Design) at SUTD
Answered on 01 Jul 2020
Some of the brokers have Youth Investor program ( such as DBS, FSM, etc). You can check their requirements.
As most people would recommend, DCA. I am just going to say otherwise because we have the time in the market.
You have to agree that the world is very volatile now. Do your research about the world current climate. My call is the world index will drop soon. Why? Do your own diligence. Be skeptical to what others said
Recalculate the amount you are willing to put aside for at least a decade or longer. Do a put and ignore
Note the cost of etf.
Challenge: You may want to split your capital into half = put 2 etfs. One is the world. Second is a more targeted etf. It can be a country index or a market index (e.g tech...)
Whatever choice u choose, be prepared to lose your money
03 Jul 2020
Hi. Though a one time investment in IWDA is preferred in an rising market. I do not recommend this strategy due to uncertainty in the market. I would suggest the practice of Dollar Cost Averaging on Interactive Brokers. If I am not wrong, the minimum account maintenance fee is waived for teenagers like us. It would have been US$10 every month if you are 26 years old.
Do consider the above instead of all in.