Asked 2w ago
Hi I'm totally newbie on investment, but been reading alot of articles but dont know which is the right one. My objectives is very straightforward just like those insurance plan concept (put money into something monthly and let it grow). Too many terminology and information (ETF/Unit trust/Stock/Reits etc.) that makes it a little confusing technically.
There are many options for you.
Simply put, you can allocate a sum of money every month or put in one lump sum. So for starters, you might want to evaluate how much are you comfortable setting side. For people who just started out investing, allocating a sum of money every month is great because.. not everyone has a lump sum and its less scary too.
The next will be a platform. You can try and allocate a sum through a Regular Savings Plan. The platforms are plenty. You can either opt for a roboadvisor (you just put in based on your risk appetite but have little say in your portfolio), or track an ETF. There are plenty of platforms for you to track an ETF but personally, I use FSMOne. There are many ETFs for you to choose from eg. US ETFs like Vanguard S&P500 etc.
If all these still feel confusing.. you can opt to work with a trusted Financial Advisor and get an Investment Plan. Investment plans have a bunch of funds that you can invest in. Make sure you find out the funds performance and your Advisor has a way of reporting to you your investment performance. Feel free to reach out if you want to explore your options.
Oh and finally, make sure you have at least 6-8 months of emergency funds to tide you through a crisis and you've sorted out your insurance coverage so you wont have to liquidate your investments during a health crisis.
All the best!
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My tip to you is what I tell most of my friends who knows of the need to invest but don't have the time and knowledge for it: Invest into a robo advisor through DCA monthly (eg $200) while you slowly build up your investment knowledge and personal finance skills. It is an essential life long skill that will keep on getting better as you slowly gain experience of the stock market. You will slowly realise it is actually a very simple thing to do as the whole point is to find undervalued assets, buy them and hold them until retirement CONSISTENTLY. Always stay invested no matter what and don't see it as a chore. Make your hard earned money work even harder for you while you sleep. So read a book like 'One up on Wall Street by Peter Lynch' and at the same time invest into a roboadvisor like Stash or Syfe.
Stay woke and stay invested, good luck!
I used robos now. Used to monthly contribute with a bank-insurance partnership plan, but never again. If u hav time to study the market, charts, valuations, volitility etc, go for individual stocks.
If not, just believe in the market and humanity as a whole and buy a slice of everything. Which is what I am doing thru robos.
Based on your objectives, you want to skip the technicalities of investing. In that case, go with a roboadvisor that can risk profile you or go with ETF. US Index ETF investing is one of the easiest way to get invested. In the long run, Index ETF increased in value due to growing population, which means growing consumption. With growing consumption, company earns more and shares generally appreciate over time.
Hello, imo i feel that it really depends on how you want to invest.
If you want more control over your investments then go into individual stocks, however, do remember that there are fees associated with it (eg commission fees which will eat quite alot of your profits).
If you don't really care about controling what you invest, just go for roboadivsors like stashaway (Once used it but went over to individual stocks coz i wanna experience hahaha), but just remember to check about the fees associated with them (They are quite transparent in their pricings)
Anyways, from what you stated in your question (Put money into something monthly), Stashaway seems like the better choice for you instead of individual stocks.
(Less fees-Higher gain, more diverse- less reliance on one stock's performance, less work to understand each company and you dont have to pray hard that the stock rise in value after you buy HAHAH)
Oh yea, SA's customer service is actually quite good, they release articles/video on market outlooks, tells investors to stick to their investing plans during time of uncertainty and advocate DCA (basically investing on a regular basis regardless of price)
Dr Wealth recently wrote an article "A DIY Stock Investor is a Fund Manager, an Analyst, a Trader and an Administrator Rolled into One"
It's an overview of what you would do if you want to go into stocks. It's like a second job.
If you don't feel like getting your feet wet into stocks, then Stashaway may be a better choice.
ETFs that tracks a broad market index will suit you. Just put it inside and let it grow.
Can consider roboadvisors - don't need to pick + beginner-friendly. I also recommend reading "The Little Book of Common Sense Investing" by John Bogle.
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