Posted on 20 Apr 2020
Have 20k in jumpstart account and planning to use a portion for investment. Have heard of robo advisors and average dollar cost strategy. Any advice or platforms to start off with. Many thanks!
Hey Tx! Looks like many others have replied you on your question here now :)
I would also share my two cents.
I think that you are in a very good position to start. I would like you to think about the following considerations first before jumping in:
Do you have at least 6 months of rainy day funds (especially now the job market may suddenly turn for the worrse, you need to be prepared)
Do you need that $20k to use in the coming 3 to 5 years at least? (eg wedding, home rennovation, downpayment etc)
Do you have the risk appetite to stomach the volatility in the recession coming soon? (potential drawdown paper losses of 20% or more)
If you are ok with the above then you can consider starting with a robo-advisor or picking out your own stocks.
I would personally recommend robo-advisors as they are much easier to navigate and get started with as well.
Food for thought :)
1 more comments
06 Aug 2020
Just for info., during March market sell-off, my pure REITs/Trust portfolio had a paper loss of 40%. Currently, I'm on paper loss of 8%. If you're keen on Singapore REITs, you can consider Sfye REIT+ for a start. But if I were you, I will go for robo-advisors that have products with global exposure AND those that invest under your name (i.e. no co-mingling). Those that fulfill these two criteria are Autowealth, Endowus & MoneyOwl.
I would say a solid NO to investments until you save up a small sum of money (ie. $5,000 to $10,000) first for purely investment. Take an assumption that this sum of money invested can be lost in bad times, so do make the mental preparations for this to happen.
Then open up your options to other alternatives as well, beyond REITs.
Can probably try out Robo-advisors or stick to cheaper priced dividend stocks and hold them for a longer timeframe of 18 to 24 months.
Since active stock/REIT picking is not successfully possible I'd recommend to invest into one of the...
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