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Bing Yong

Asked on 21 Jun 2020

I have 100k cash now. What should I do?

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.

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Cedric Jamie Soh
Cedric Jamie Soh, Director at Seniorcare.com.sg
Level 9. God of Wisdom
Answered on 21 Jun 2020

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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Jason Cheong
Jason Cheong

04 Jul 2020

Hi Cedric, I like your idea of DCA-style purchase from IB on IWDA too. However, I'd like to seek your kind opinion on whether there any measures one can take should the market turn and suddenly drop 30% downhill again due to COVID resurgence or concerns of market downturn?
Frankie Rappaport
Frankie Rappaport

04 Jul 2020

When you see it as a longterm investment there is no problem with a temporary drop
F
financialdignity
Level 2. Rookie
Answered on 03 Jul 2020

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

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Zi Shuen
Zi Shuen
Level 5. Genius
Answered on 26 Jun 2020

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:

  1. 20% in StashAway 12% risk

  2. 20% in StashAway 30% risk

  3. 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

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SG Invest St-neve
SG Invest St-neve
Level 3. Wonderkid
Updated on 24 Jun 2020

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.

Otherwise, I have read on investors who made good decisions on investing in Singapore Stock Dividends. This is one you can go read up. This investor here has also done well in his investments.

All I can advise is to read and research before you begin your journey.

Have fun investing. ​​​

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SG Invest St-neve
SG Invest St-neve

25 Jun 2020

Hi Frankie. It is really great you gave suggestions. You are right to say the portfolio is tech heavy. The portfolio evolved quite a bit over 12 years. There were some stocks i bought and sold with over 200% profit that are no longer in this portfolio, which i detailed here (https://sginvest.st-neve.com/2020/06/3-us-stocks-that-power-boosted-my.html) The 3 Stocks that boosted the portfolio were Wendys, Las Vegas Sands and Bank of America. They were definitely a weird bag of categories. So over the 12 years the portfolio changes and I though S&P 500 Index is more likely to be a reference point to gauge the portfolio performance. But it's great to mention that I should check other index to do a comparison. Maybe NASDAQ does better than the portfolio over the same 12 years. Thanks for the input. Much appreciated.
Frankie Rappaport
Frankie Rappaport

25 Jun 2020

Hi, SIS, when you have a portfolio of ca. 12 stocks and even changing by buying/selling different other stocks it will finally be difficult anyway what could be an appropriate benchmark, these can only be guesses. I have to say that I for my part am completely (over?)invested in technology ETFs, because I think there is the biggest potential for the future. So principally I feel you did the right choice, only with tech ETFs instead of single stocks your portfolio would be more diversified and less risky. Also, though I cannot recommend it I also invest into single stocks, also mostly technology ones. Since you were so kind to mention details, I also give here my personal favorites, though it is not a recommendation to others to buy. ETFs: VGT QQQ SOXX SKYY FDN FBT XBI IHI Single Stocks: Danaher, Thermo Fisher, Keysight Technologies, Zebra Technologies, Intel, Oracle, Akamai, Investor AB, Fastighets Balder, Roche, Givaudan, ASML Mutual Fund: TIN Ny Teknik
Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jul)

Level 9. God of Wisdom
Answered on 21 Jun 2020

I cannot tell you what to do, only

what surely to avoid:

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

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.

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Ng Wei En
Ng Wei En, Analyst at Mastercard
Level 6. Master
Updated on 21 Jun 2020

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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