AMA The Fifth Person
Asked by Anonymous
Asked on 19 Feb 2019
There are plenty of safe ways to invest your money and have it grow. You can go for REITs, other ETFs and bonds, but before you do that, I'd suggest you read up as much to understand what a Robo-advisor really does. Robo-advisory platforms assess your current financial position and recommend a portfolio strategy after reviewing your risk profile. These bionic advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as Robo-advisors have lower management fees. And the best part is that they give you the most unbiased advice.
You can read here for a better understanding.
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I hope this helps you make the right decision.
If your risk appetite is more conservative, consider the use of ssb or high yielding savings accounts like what Nicholas has mentioned. Alternative would be a fixed deposit. There are some promotions ongoing now for close to 2%.
If you are more adventurous, consider buying into some s-reits, especially those who have good sponsors or those with consistent pay outs. Yield can be from 5% onwards. Downside is that there may be price fluctuations so you may realise a capital loss at the time you need to exit your position.
The best option by a large margin would probably be p2p lending sites like SeedIn or CoAssets.
I'm actually really surprised no one brought it up, since 100% capital preservation is not necessary.
SeedIn currently has zero defaults over the last 6 years and depending on the bond that you choose on a first come first serve basis, you can yield 5 - 17% net of fees.
The bonds are flexible and can last anywhere between 6 months to two years, again entirely based on your choice and preference.
You can nudge me if you'd like a referral code for 'priority' queue.
When it comes to investing, a long holding period of stocks is required. If you need to utilise the money in the next 1 to 2 years then Singapore Saving Bonds may be a better option.
Put into SSBs or high interest savings account that would be the best for your situation.