facebookIs it worth it to do monthly rsp for US ETF on FSMOne? - Seedly

Anonymous

05 May 2020

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General Investing

Is it worth it to do monthly rsp for US ETF on FSMOne?

Discussion (3)

What are your thoughts?

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First and foremost, you should ask yourself the following few questions:

  1. What is your investment strategy

  2. How long are you planning to hold your investment

  3. What risk appetite do you have

  4. What kind of returns are you looking at

Depending on your answers to the questions above, it would affect the ultimate "worth" of your decision for monthly RSP on US ETF.

For a more straightforward answer, assuming you have spare cash left from every month (~$100-$300/month), planning to store that spare cash to somewhere that has better returns (let's say 3-4% as compared to SG FD or SGS bonds), wants to expose yourself to US stocks in a diversified manner (hence the option of ETF) and only plan to use that money in about 3-5 years time (to be able to see the returns after compounding), then I would say it is worth it to do monthly RSP for DCA purposes.

On a side note, if you have decided to do monthly RSP to US-based ETFs, there was one excellent article written by the blog owners here regarding doing monthly RSP on US ETF via Irish-domiciled US ETFs to maximize your returns due to the lesser amount of withholding tax in LSE as opposed to NYSE. You may refer to it here:

https://blog.seedly.sg/how-to-invest-in-ireland...

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