I finally decided to start investing and not leave it in the bank for years. Do you all have any advice on what I should invest in? I am willing to leave it untouched for 3 years? - Seedly
Seedly logo
Seedly logo
Ā 

Investments

Savings

Anonymous

Asked on 14 Apr 2019

I finally decided to start investing and not leave it in the bank for years. Do you all have any advice on what I should invest in? I am willing to leave it untouched for 3 years?

0 comments

7 answers

Answer Now

Answers (7)

Sort By

Most Upvote

  • Most Upvote
  • Most Recent
Fatty Finance
Fatty Finance
Level 4. Prodigy
Updated on 09 Feb 2020

Singapore Savings Bond or continue keeping it in the bank. Look for other high interest savings accounts (dbs multiplier, ocbc 360 or uob one etc etc) that can guarantee your principal.

I agree with all the others, 3 years is pretty short time period for investing. Given the volatile start of year 2020, there is no guarantee you will gain anything more by investing than just leaving it in the bank for 3 years. In fact, it is possible to lose more.

Which brings us to another key factor: how much can you afford to lose? This will determine which kind of assets you should invest in - stocks or bonds or a mixture of both.

0 comments

šŸ‘ 1
Brandan Chen
Brandan Chen, Financial Planner at Manulife Singapore
Level 7. Grand Master
Answered on 16 Apr 2019

3 years is really a short time to leave the money untouched.

Instead of what you should invest in for these 3 years, the more important question would be what is the purpose of this money. Are you using the money for wedding, renovation, holiday, or for retirement eventually?

If the objective of this money is for something that is definitely happening in 3 years time, perhaps you would like to invest into instruments that are liquid and less volatile. An Example would be SSBs or a high interest bank account, or Fixed income funds. In fact, STI or SGX stocks would not be a good suggestion at all because no one can predict the price points 3 years down the road, and unlike what was mentioned, STI or SGX is relatively volatile compared to the instruments which I suggested above. What if a market crash were to happen when you need the money?

However, if your purpose is for retirement, perhaps you should start reading up some Seedly Articles on Investments and ETFs and get yourself started by setting up a brokerage account. You may consider S&P500 and QQQ or IWDA ETFs. Once you start having a deeper understanding about equities and fixed income and REITS, you may consider building your own portfolio of individual holdings of stock, bonds or REIT.

0 comments

šŸ‘ 1
Sebastian Seb Bachmann
Sebastian Seb Bachmann
Level 2. Rookie
Answered on 07 Feb 2020

Agreed with all of the previous answers. If youre less experienced, i'd either choose a robot or just put it in a widely diversified ETF (MCSI global). Additionally, look in to what you can save and add on top monthly to your 30k.

You should use the time reading up and take up on paper trading to know your way around. Go to the libary and start reading - What a boring option, but it does save you money on buing books tho.

If you really insist in investing actively, only do so with 30% of your money (Depending on your age) and go for some value stock. I just discovered that IBKR is able to also setup portfolios you can just throw money add once you finished building it up.

Main thing, Save, read and practice.

0 comments

šŸ‘ 0
Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport
Top Contributor

Top Contributor (Feb)

Level 8. Wizard
Answered on 07 Feb 2020

You should leave it untouched at least 5-10 years if you consider stocks/ETFs

my thinking:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy

0 comments

šŸ‘ 0
SW
Shaun Wq Lim
Level 6. Master
Answered on 18 Apr 2019

Without additional information about your current age and financial situation/risk profile/investment amount now, it would be quite difficult to advise you.

Do you have an emergency fund built up already?

Have you done a financial assessment?

Are these funds meant for something important after 3 years?

What sort of risk are you willing to take or prepared to lose this amount?

If this amount is not in any high interest savings account, you might want to open one and shift the amount there as a first step.

0 comments

šŸ‘ 0
Zann Chua
Zann Chua
Level 6. Master
Answered on 15 Apr 2019

Hello!

If you are looking at investing something that has relatively low risks, investing in the Singapore Savings Bonds (SSB) would be a good idea as it is backed by the government and is one of the safer investments around.

Another way would be to invest in ETFs such as through Regular Savings Plan offered by banks such as DBS. By opting for this savings plan, you will essentially be investing in STI ETFs.

Besides using regular savings plan to invest in ETFs, roboadvisors would be another way that you can invest your money in. Investing in ETFs through either roboadvisors or Regular Savings Plan usually have higher risks as compared to investing in the SSB.

It is important to read about the invesments first before deciding to invest in it! The seedly blog has many useful articles about investments that you can check out to help you out with your invesment journey :)

hope this helps and all the best in your invesment journey!

0 comments

šŸ‘ 0
Michael Lee
Michael Lee
Level 3. Wonderkid
Answered on 15 Apr 2019

Start locally with sgx as the volatility isn't big. Diversity your portfolio by buying a few stocks instead of lumping into 1.. you can put some into ssb/robo for mid-long term gains.

0 comments

šŸ‘ 1