I have $15k savings excluding emergency fund. I’ve been reading different investment articles and I’m still clueless. The only step I took was investing in SSB which is at $8k now. What should I do? - Seedly
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Singapore Saving Bonds (SSB)

Anonymous

Asked on 02 Nov 2018

I have $15k savings excluding emergency fund. I’ve been reading different investment articles and I’m still clueless. The only step I took was investing in SSB which is at $8k now. What should I do?

Any help?

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Unfortunately, investing is very dangerous when done blind. You have to understand them before you get into it, and not follow someone's advice blindly! But at least you have started on SSB, which is a step forward!

Here is Kenneth's advice from a similar question:

"Investing should never be a rash decision. One should get to know his financial health and his investing mindset such as risk preference better. Below are some articles to read up while understanding your personal investing mindset.

Adding on to this, you can look out for investment courses eg Dr Wealth to help you learn more about investing!

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Ernest Yeam Wee Leong
Ernest Yeam Wee Leong
Level 7. Grand Master
Answered on 26 Nov 2019

If you are still clueless about investing, not to worry as many people also started off the same situation as you as well.

The first thing is to settle all the basic essential stuff like insurance, clear debts and emergency funds which you already have.

Then for moving on to the investment, I will use a soccer team as an analogy.

Goalkeeper: Cash

Defenders: Insurance

Midfielders: Low-risk investments (bonds, SSB, fixed deposits)

Strikers: High-risk investments (stocks, ETF)

If you got your goalkeeper, defenders and midfielders already and looking for your strikers, then you will need to learn how to pick the right strikers.

Here at seedly website products, they have a list of "courses" that train you on how to pick your strikers. https://seedly.sg/reviews/investment-courses

See which courses are teaching stuff that is according to your investment style and learn from gurus. Once done you will probably know how to pick your strikers already.

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LK
Lee Kong Heng
Level 4. Prodigy
Answered on 26 Nov 2019

It does take time to have a feel of the ground (markets or products) and understand your own nature when investing. Am still learning myself, from.others too. Keep it up, and ganbatte.

As to your question, putting your money in SSB is a wise or prudent choice. I do park my cash (after emergency funds) and SRS funds in SSBs, letting them earn higher interest while awaiting opportunities.

Assuming you have no pressing debts or immediate financial commitments, consider:

  1. Your reaction to perceived loss or volatility in asset price e.g. Shares.

  2. Your goals for deploying your funds, and when you be needing it potentially.

  3. How well you understand the nature of your investment (e.g. risk, fees, company accounts, etc)

For example, say I can't handle well the drop in share prices that it will drive me nuts and I'm prioritizing my retirement - topping my SA, MA is an option (plus: you get tax relief too).

Or, you have some tolerance to volatility and want to invest in the markets, but don't know how to assess companies - low cost ETFs, Rabo-advisers, RSPs (POEMS, FSMone, DBS, OCBC, Dollardex) via daily cost averaging is an option.

Buying shares or Reits enables you to attend AGMs, ask management questions on their business and plans, or perhaps enjoy the annual buffet spread too.

It can be a potential emotional ride, especially when buying the wrong company. So if you be intending to test the waters, I suggest starting small or within your means (e.g 1 lot or 100 shares) for such privilege, and buying a business that is sustainably profitable over the long term, not something speculative. Please do your own diligence when undertaking this route.

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Paridhi Jhunjhunwala
Paridhi Jhunjhunwala, Associate at Kristal.AI
Level 7. Grand Master
Answered on 26 Nov 2019

Hi!

To start investing on your own can be a little overwhelming. I would suggest learning a little more about it before you plunge in. While doing this, you can use a robo-advisor to avoid keeping the savings idle. The robo-advisor will create an optimal portfolio for you based on your investment objectives and risk appetite. Later, when you also have enough knowledge about it, you can take your own calls along with what the robo suggests.

I work at Kristal.AI, and it's my passion to evaluate various upcoming investment opportunities.

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Gabriel
Gabriel
Level 8. Wizard
Answered on 02 Nov 2018

Agree with Wen Fong! Start off by investing in yourself first - knowledge. Do not invest blindly in something that you do not know much about. Meanwhile, you can put it in a high savings interest account like CIMB FastSaver which gives 1% interest per annum or you can also consider CIMB's Fixed Deposit Christmas promotion which gives you 1.90% interest for 12 months!

Once you've learnt more, you can consider some low-medium risks investments like STI ETF and US ETFs via Robo-advisors

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