Asked on 21 Jun 2020
Currently, in university year 1 (3 more years to go), currently working on a small side hustle(few 100 per month), emergency money of 6 months in a savings account, Insurance money set aside, tuition fees settled. I have 100k cash. Any advice on where to put my 100k? I thinking about StashAway roboadvisor 50% in 12% risk index and 50% an income portfolio. Is this a good move or is there any ideas you guys can let me consider.
If its me, I will just outright open an Interactive Broker, buy IWDA.
I will buy IWDA maybe $10,000 per mth
or maybe $1000 or $2000 per week. instead .
Google IWDA ETF forum to read about it. its one of the world's best diversified ETF with low taxation (tax eats into your cost)
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You should invest in yourself, find the best life partner you can get and everything else will work out from there. Investing will not make you rich, getting a good job and a solid life partner will be the best investment you can ever make
Hey Bing Ying, having 100k in University year 1 is a really good start. Congratulations on that.
I think your portfolio is a bit too conservative, since you're young and you have a sizeable capital, you should focus on growing your capital aggressively.
Stashaway is a good place to start, but 50% in 12% risk index and 50% in income portfolio is way too conservative.
If I were you, this is what I'd do:
20% in StashAway 12% risk
20% in StashAway 30% risk
60% to buy growth stocks. Of course, this is provided you have sufficient knowledge to pick stocks. If you don't, no worries about it at all, you can just buy some ETFs such as S&P500 (VOO, SPY, IVV, etc), MSCI Information Tech (FTEC), Invesco China Technology (CQQQ), Vanguard FTSE Emerging Markets ETF (VWO), Vanguard S&P 500 ETF (VOO), Vanguard Total China Index ETF (3169) and more.
Saxo Capital or Interactive Broker are recommended brokers to get started.
Alternatively, you can explore Regular Savings Plan (RSP) through POSB invest saver, FSMOne, POEMS, etc
Bing Yong you are in a very privilleged position and much to many people's envy.
StashAway, roboadvisor, these are all current hot trends and in 10 years time, they will be obsolete.
I'm not sure if reading books is up your alley (I hate reading books, that's for sure). But if reading is not your things, I would still encourage you to read at least these 3 books to help you prepare your mindset and develop your critical thinking.
To accumulate SGD 150K, you are a smart thinker and definitely should research and identify what you hope to achieve. What I can share with you is my portfolio if you decide Stock Investment is something you want to be aggressively pursuing while you are young.
All I can advise is to read and research before you begin your journey.
Have fun investing.
2 more comments
25 Jun 2020
25 Jun 2020
I cannot tell you what to do, only
what surely to avoid:
to do a mix of different strategies (income, growth) seems a good idea. however it is easy to manage everything alone, so no robo needed, as it only produces performance-biting fees.
You mentioned about setting aside money for insurance,tuition fees and emergency funds. You are well ahead of many others in both your financial planning and financial standing, especially among your peers.
As for how to allocate 100k cash into investing, your proposed strategy would mean 100k AUM under StashAway which will put you in the tier of 0.6% management fees. This means you will be paying StashAway $600 for 100k of funds being managed every year. If you are looking to deploy this amount in a lumpsum, you may be better off buying directly into a range of ETFs from stock brokerages on your own.
But of course, the management fees you pay to StashAway is for them to rebalance the portfolio on your behalf to ensure your returns are maximised. You get what you pay for in some sense.
For many who plan to invest say 10k or less, roboadvisors are a good propisition because they pay less management fees than trading fees if they were to buy ETFs on their own. In your situation, you may wish to be open to the idea of buying ETFs directly. Given your stage in life(I assume you are a freshie in uni) and that you have planned for quite a number of things like insurance and tuition fees, I would feel that you are in a position to take on greater risk. For roboadvisory or StashAway specifically, you can still look at 50% income portfolio and 50% general investing but for the general investing portfolio, can suggest you go for 26% and above risk index.
The above is based on the assumption that your circumstances are based solely on the info you provided. Either way, you are off to a great start!
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