I have excess money at the end of the month, should I deposit into these robo-advisory platforms? - Seedly
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Harrish Atm

Asked on 06 May 2020

I have excess money at the end of the month, should I deposit into these robo-advisory platforms?

Taking into consideration that I deposit $100 in these platforms monthly.

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Penny Chong
Penny Chong
Level 5. Genius
Answered on 11 May 2020

StashAway is pretty good and I see that it has great potential for future growth. Make sure you know your risk appetite and understand the consequence of your chosen risk levels or you may be shocked if your value plummets significantly for high risk portfolios.

If not, you may consider high savings bonds or SSBs to fight against inflation. If you are okay with more risks and don't mind the slightly more troublesome process, look into investing in S&P 500 as it has a historical return of 10%.​​​

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Ray Phua
Ray Phua, Wealth Manager at AutoWealth
Level 3. Wonderkid
Answered on 07 May 2020

Hi Harrish,

As per previous replies, it is important to set aside at least 6 months of emergency fund. Thereafter, it will be good to set an investment goal for yourself, i.e. if you would like to save up for a house downpayment or retirement. You can explore AutoWealth planning tool at https://www.autowealth.sg/advisory_module.php This will help you to plan your goal, understand your risk profile, and the recommended portfolio to attain your goal.

The minimum to start a portfolio is SGD3,000. Thereafter, your idea of putting in $100 monthly is a good dollar cost averaging strategy and discipline way of investing. You can set up a standing instruction with your bank to deposit this fund on a monthly basis, making it a very passive and hassle free investment for you.

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Hey Harrish!

Excess is a very subjective term. In general, you should have proxy 6-8 months worth of emergency funds before you consider investing. Also, you might want to consider settling the income protection (insurance) side before embarking on the investments side so you won't need to touch your investments in the event of a medical crisis and you need the cash flow.

Financial planning is an integral part of life. You can reach me at this platform to find out more.

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Heng Kai Le
Heng Kai Le, Mondomover at School Of Life
Level 6. Master
Answered on 13 May 2020

Well,

Well, I set up a StashAway account this year and transfer less than $100 into it from my SLS funds every month. LOL. But I think this small step has: 1) motivated me to transfer my money to SLS so that I can benefit from tax savings, 2) whetted my appetite for investing (which is why I’m at Seedly now.)

Once I grow more comfortable with these platforms, I will pump in more money.

btw if you haven’t heard of Singlife yet, go check out the reviews yet. The returns are non-guaranteed but Singlife is presently dishing out 2.5% interest per year for your first $10k.​​​

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Summer
Summer
Level 5. Genius
Answered on 12 May 2020

I think platforms like StashAway is pretty good.

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Colin Lim
Colin Lim, Financial Services Consultant at Colin Lim
Level 7. Grand Master
Answered on 07 May 2020

Hi,

First if u already factor in setting aside your emergency funds and this $100 is excess money and you want to invest in robo advisors, you can do so.

I will recommend stashaway as your first robo advisor platform.

1) it has user friendly interface.

2) it assess your risk profile.

3) it primarily focus on ETFs(US),

4) it allows you to set goals.

5) it allows you to dollar cost average every month, every week, or daily.

6) passive investing , no need spend time to do your research.

Hope this helps.

you can reach out to me if you would like to understand more on financial planning.

#planwithcolin

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Before your start investing, it will always be helpful to go back to the basics - understand your cashflow.

Here is a Guide:

Understanding Your Personal Cash Flow

Next, ensure that you are properly insured especially in terms of healthcare insurance. While we chase after our financial goals, do not forget the engine of this race - which is you! Thereupon, ensure that you are adequately covered in case of any health changes. Everyone wants to be healthy, but life is unpredictable.

Thereafter, keep what you need in the bank, which is usually about 3 to 6 months your monthly expenses (as explained in the link above on understanding your cash flow). For the money that you can 'afford to lose', this money can be invested. This is simply because investment returns are non-guaranteed.

More Details:

Types of Investment Risk that You should know

On the whole, we need to understand you further before we can give responsible advice on whether you should deposit into these platforms. Spend quality time on your own to establish the basics before deciding what to do.

I share quality content on estate planning and financial planning here.

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YT
YT
Level 9. God of Wisdom
Answered on 06 May 2020

You can invest through these platforms after you are sufficiently covered for insurance and have at least 3-6 months' worth of expenditure as emergency funds. Before investing, you should also know how they invest and how it works. There are still risks involved and you should only invest with money you can afford to lose.

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