Asked 4w ago
Hi everyone, I am a risk averse person and I intend to grow my wealth for the long haul. My current allocation is;
1) DBS - $24k
2) Singtel Dash - $20k
3) Syfe (Equity + Reits) - $5k
Should I allocate more cash to Syfe?
No debts and not intending to start family in next few years.
Thank you all!
If given to me, i will change to 100% equity for syfe since im gonna grow for the long term and markets generally go up as well so no issues for short term volatility. Leave all your allocations as it is, dca consistently into syfe. But as your robo value grows, so does the fees. Therefore best to go for low cost index etfs since you're risk averse but who knows, your appetite might change with time.
Hello! If you're planning to invest for the long-term, I'll put more money to the Syfe investments. If I were you, I'd invest more in Syfe's REIT portfolio. FIrstly, it is a relatively less risky than their Equity100. You get decent dividends and with time, you can build your own passive income stream with it.
Right now, I feel equities are a little over-valued. But Singapore REITs still have room to run, especially with Phase 3.
My two cents :)
Personally I would go with the following attack plan:
Have my emergency funds prepped first.
Max out tax reliefs if you're on a higher tax bracket
Start saving some money for future spending (property, bullets for stocks investment). Work your calculations backward from your goal.
DIY dollar cost average S&P500. Avoid platforms with high fees at all costs.
Stock pick growth stocks with good potential / fundamentals
Looking back, we would tell our 25 year old self (8 years ago) to invest 100% into growth stocks / US market.
That's because between 25 - 30 years old, we are actively working and we have active income, and because of that, our monthly income is consistent and hence we should have invested in high growth stocks.
Of course, everyone's situation is different, but if you have no debts and not intending to start a family in next few years, growth stocks is probably a good long term investment. :)
My recommendation is to find yourself a trusty financial planner, figure out your savings ratio, liquidity ratio and total investible ratio and see how you can optimise your cashflow management.
From a bird eye view, can see that your liquidity ratio is extremely high, more than the typical 3-6 months worth of monthly expenses.
Take that amount and the rest should be invested for long term and not sitting idle, because inflation will eat away your purchasing power before you know it. Since you are still young, maximise your capital accumulation and allocate more for long term investing.
Let me know if you need more help!
In my opinion, you should think about how much you want for your emergency funds, if 20k is not enough you could set aside more into Singlife or other higher interest policy account on top of your DASH.
As for your SYFE, once you have your emergency funds set up you can allocate more each month to DCA since you already have enough saved.
You should also learn how to DIY into individual stocks to complement your SYFE. But I would suggest you to continue to DCA into SYFE until you are confident in picking your own stocks.
Great that you are thinking at such an early age. While it is good to see what others are doing and to be open to what they advise you, please also firstly consider your own tendencies and outlook. I.e. what is your risk tolerance and what theory of investing do you find conviction in.
The markets will be moving in ways that are unpredictable. Hence when you understand your risk tolerance, you expose yourself to acceptable and predictible uncertainty. When you have intellectual understanding of an investing theory which you deploy, your head and heart is alligned. Only with these will you sail through the rough waters of investing with a steady heart.
The answers here are valid, but it is always key to put things in your context so do not forget that!
Knowing others is intelligence;
knowing yourself is true wisdom. - Lao Tzu
I am on the same boat as you in term of age.
But for my case, i have been investing 35%-40% of my net worth into full equities :
aia pro achiever (china region+medical related)
stashaway : global 36% index
I forsee that I need to hold more cash though I wouldn't need it now for :
If i do invest 75% of it and one day i need money, it's dangerous i guess.
I'm in the same boat and age range as you and I think it's great that you started to think about investing your money rather then letting it sit in the. bank
i would suggest
5%-10% bank account for daily spending and bills
10-15% in high savings plans like singlife or singtel dash
The rest invested. Since we are still young , we should take this advantage and look at the longer horizon. Currently I am DCAing(aka putting money on a monthly basis):
20% Reits (w/o bonds)
ofcourse if you are less risk adverse, make you can look into buying Bonds ETF? E.g via DBS invest saver option
Are your Syfe investments the equity100 and REIT+ portfolios?
If it's yes, then about 10% of your net worth is invested in equity. For a risk-averse person, I would recommend a portfolio of:
Equity - 20%
Fixed income - 50%
Cocommodities - 20%
Cash - 10%
This can be done either with a robo-advisor (suggest Endowus), or even DIY if you're able.
At the age of 26, however, I might suggest taking on a bit more risk to try and achieve higher gains. This is because you have time on your side to ride out market volatility over a long period of time. However, this is only IF you do not have other commitments coming up for which you might need to draw down capital in the near future. So a proper review of your tolerable risk may be required.
At your age, I'd also recommend reviewing your insurance and ensuring sufficient emergency funds to build your safety net.
For a risk adverse people. My recommendation is going for the diversified option which means roboadvisors.
I would recommend continue to DCA into syfe which has the lower cost fees. Overtime, it will not really eat up your profit significantly. U can also consider putting into their cash+ account as "saving" or parking money.
You may schedule a free consultation call with Syfe to seek advice:
Disclaimer: PolicyWoke is a 2nd-hand endowment policies broker
In short - yes, you should increase the syfe allocation or do DIY investing. I am 26 yo too, my investable asset to net worth ratio is 75% (yours is basically 10%, only the syfe). I assume your singtel dash is an emergency fund, so you got around $20k+ to allocate.