Asked 1w ago
Recently surrendered an ILP (invested for 10yrs) and received $92k. Early thirties, single, with no outstanding debts or housing loan and already have small positions in Tesla, Apple, SEA, DBS ($2-3k each). Also already DCA $500 per month in Syfe REIT+ and $500 DCA to Stashaway.
I also had an ILP which I surrendered and I put all of it into growth stocks. If I were in your position, I'll still do the same.
Below is not a recommendation. It's just what I will do. Maybe it could trigger some thoughts for you.
For me, I'm looking for outsized returns i.e. to beat the S&P500 year after year. My key direction is my money has to work harder than me, because I'm not a fantastic income earner (still working on this >_<).
My personal preference is:
1) to go by 3 tranches (e.g. if I intend to allocate $15,000 for Sea Ltd, every tranche is $5,000 lump sum for purchase of shares)
2) to concentrate on 8-10 companies, so that it's easier to keep track their progress every quarter. $92,000 can just do about there.
Do note you don't need to deploy in equal weightage. If you have more conviction in Company A over Company B, you can have a higher percentage allocated in Company A.
• Apple and DBS are relatively safer stocks but because both of them give dividends (somemore 30% withholding tax on Apple dividends) and my investment direction is growth, I will sell the both of them away and deploy the capital to growth companies.
• I also own Tesla which makes up 27% of my entire portfolio. How I increase my position is to first, observe the stock price. I don't know how to read the charts but I watch Tesla very closely.
Sometimes, it can trade sideways for quite a while, or there may be news that could cause the stock price to drop (e.g. Apple news on launching their first EV car in 2024), or the entire market just pullback (sea of red) like last Friday. These are buying opportunities.
I will then buy a few every time like 3-5 shares. Occasionally, I'll put in a larger sum.
• I also own Sea Ltd. It's not my top 3 positions but I plan to increase it.
Here's what I would buy from the US market (in no order of preference) for long-term decades holding:
ARKG (owned) (I really don't want to kill my brain cells trying to understand this entire complicated industry, but there's some good companies like $PACB, $PSNL, $BLFS, that is if you want to go with individual stock picking)
Many wonderful companies out there, so what I pick for myself may not be what you'd like.
Your portfolio would be a reflection of your outlook for the future.
I will do both. I think u r doing great now. Try to lump sum periodically to Tesla, Apple, Sea. I view DBS as dividend stock.
Normally growth are tech, dividend are bank/reits. Sector will rotate during different period. May take advantage of that.
Personally, if you're not close to retirement, go for growth instead. It doesn't have to be particularly aggressive like ARKK, even an S&P 500 ETF would return well.
Considering your situation, you can temporarily increase your DCA amount until the money is all deployed into the market (maybe keeping aside a sum for any sudden crashes/buying opportunities).
To DCA over too long a period ( 12 months), you'd likely lose out to just a lump sum investment. After all, it is quite logical if you think about it using an extreme example. Imagine having 1 mil and putting in only 1k into the market every month. After 2 years, you'd still have 76k on the sidelines. And since markets tend to trend upward, all of the money on the sidelines are missing out on the returns.
So if I had to advise, you can DCA over 4-8 months inorder to ride through the volatility of the current markets.
2 more comments
It really depends on your investment philosophies and your view on the economic cycle.
As young person, I want to maximize capital gain but I am reluctant to stock picking (I dislike being exposed to unsystematic risk) If I want tesla, I will buy etf with tesla component (ARKK / XLY).
It is very hard to be bullish on value since it has been dead in the US last 2 decade. So I prefer growth / momentum (MTUM) and I believe small cap (VBK) and emerging market (IEMG) will be the promising sector.
I analyze the thematic ESG currently like Clean energy (ICLN / QCLN), cannabis (YOLO).