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Anonymous

05 Mar 2020

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General Investing

What is a foolproof investment strategy for the next 20 to 30 years?

Given that the current markets are reaching the lowest in a series of years, I have saved up a warchest of around $50k ready to deploy in the markets now, looking to gain returns over the longer run. Anyone can advise on a strategy to adopt?

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Ernest Yeam Wee Leong

05 Mar 2020

Content Creator at www.youtube.com/c/JustBeingErnest

There isnt foolproof investments, things will change along the way.

Just have to learn how to respond better with times.

There are products like below with its own pro and cons

Bonds

Equities

Property
I make videos about interesting stuff at youtube here​​​

If you don't intend to touch it, the safest investment is your CPF Special Account top up, if you have not reached the ceiling. Besides getting a risk free 4% interest per year, you can enjoy some tax rebate too.

However, it will be locked down until 55 (if there is excess of Full Retirement Sum) or 65 to commence the drawdown.

The market(s) don't have reached the lowest in a series of years I would suggest

instead of holding back a bigger lump sum (war chest) over years my choice would be to the contrary periodically invest smaller sums. If equity wanted: passive indexing ETFs the natural choice.​​​

Rais M

27 Feb 2020

Accountant at SME

The only foolproof investment i could think of is the Singapore Savings Bonds. The capital is protected by our Singapore Government.

Generally, there are no foolproof investment strategy. Just a higher or lower risk investment strategy. You need to fully understand what you would like to achieve first, before you can determine a suitable strategy.

In the current market situation, some people felt that it is a good opportunity for value investing because the share price of some companies might have fall due to general market conditions (fear, COVID-19) and not due to business not performing. This is in fact a good chance to purchase those business.

Some people like to have monthly income from the stock market and they focus on building a divdend portfolio. With such bad market conditions, REITs might fall and it could be a good chance to buy more REITs to earn a recurring dividend income.

Or if you like things very simple and safe. Consider buying the index or a regular basis or buy the Singapore Savings Bonds. They pay dividends (index) and interest (SSB).

And remember! 20 to 30 years is a long investment horizon. You will definitely experience lots of up and downs. Stay steadfast and focus on what you want to achieve and not panic when the market goes down again.

For DIY investing, you can consider going into index funds - build a well-diversified portfolio usin...

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