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Matt

10 Jan 2020

General Investing

Planning my 3 fund portfolio. What else should I consider?

Hi,

I am planning to start my passive investment journey for retirement.

I have done a lot of research around robo advisors and DIY investing. Currently, I am leaning towards using a robo to invest my SRS and then DIY investing for remaining savings.

For my DIY investing I am planning to go with Irish domiciled etfs:
70% global stocks (IWDA)
10% emerging markets (EIMI)
20% global bonds (AGGU)

Just wanted to see if anyone had alternative suggestions or wisdom to consider before I jump.

Discussion (6)

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Shengshi Chiam, CFA

08 Jan 2020

Personal Finance Lead at Endowus

Hi Matt,

I think your plan sounds great for the cash portion of your portfolio. I would suggest you take a look at our SGD PIMCO funds for your bond exposure for SRS.

The PIMCO funds give you the global bond exposure and slightly higher risk without exposing you to FX risk on the bonds. Even though it is of a higher cost than AGGU, especially after taking into account the fees of our platform, but generally SRS/CPF investment options are limited and more expensive than cash so if you are a ETF/indexing person then our PIMCO funds on SRS makes sense.

Might as well go with a platform with a SGD hedged bond product for your portfolio! Dimensional is great but i think what you can do with equities with cash is comparanle. For the PIMCO funds, our SRS fees are at 0.4% flat, and since it is SGD hedged already, there is no other costs involved, other than a fund total expense of 0.55% I would rather hold more equities in cash then hold more bonds in SRS so rebalancing can be done on an overall wealth level.

Just sharing what I am doing myself!

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For what it's worth, I'll look at vusd, vwrd and eimi for the stocks component. I consider cpf as bonds since it's pretty much guaranteed (bar policy changes) and you* probably have to do it now or at some point (to reduce taxes). I'm with you on SRS and from a neutral point of view, EndowUs is a great shout 😉

Anyhow you are off to a great start ! Just remember to do DCA and portfolio reallocation in May and Nov

Hi Matt,

First of all, congratulations on taking charge to plan for your own retirement and doing r...

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