What other ways to earn regular passive income?

[Firexxgun]

Have full time day job and online shop for gadgets and tech accessories.

But finance noob so if you have tips please share.

 

[shareholder]

Buy shares and be a shareholder. Collect dividends and huat.

 

[chopra]

Put in cpf?

 

[BBCWatcher]

Buy shares and be a shareholder. Collect dividends and huat.

Even before that, take ample advantage of CPF and (usually) SRS to pocket some tax savings. If somebody is handing out free money (the government), it's best to collect it.

Then yes, dollar cost average into a low cost, reasonably well diversified equities fund. ("Diversified" doesn't mean a STI-based fund. Singapore is small, and the rest of the world is big.) Keep dollar cost averaging, faithfully, reliably, and otherwise do nothing.

 

[unhinged_loon]

Have full time day job and online shop for gadgets and tech accessories.

But finance noob so if you have tips please share.

1. Regular savings plan. Put inside STI ETF.
2. Singapore Saving Bonds
3. Singapore Government Securities
4. Fixed deposits

 

[BBCWatcher]

1. Regular savings plan. Put inside STI ETF.

I really disagree with this part, and I'll say it again. A STI-based ETF represents something like 1% of the world's equities, and obviously it's heavily concentrated in one lovely but demographically challenged, tiny country -- the same country holding every other asset on your list. That lack of portfolio diversification bothers me. We could quibble about exactly how much international equity diversification a "typical" Singaporean saver ought to have, but zero is the wrong answer, in my view.

 

[w1rbelw1nd]

I really disagree with this part, and I'll say it again. A STI-based ETF represents something like 1% of the world's equities, and obviously it's heavily concentrated in one lovely but demographically challenged, tiny country -- the same country holding every other asset on your list. That lack of portfolio diversification bothers me. We could quibble about exactly how much international equity diversification a "typical" Singaporean saver ought to have, but zero is the wrong answer, in my view.

Not to mention having zero exposure to IT companies, overexposure to banking and property sector etc.

A 50:50 local-international retirement portfolio is also contentious...

 

[BBCWatcher]

Not to mention having zero exposure to IT companies, overexposure to banking and property sector etc.

Not quite zero IT. Singtel (Z74) is part of the STI, and Singtel has some significant IT business, notably NCS. ST Engineering (S63) is also in the STI, and they're pretty heavy in IT these days.

But I fully agree with your general point. Betting on the STI is not quite as narrow as betting on, say, 30 Slovakian companies, but it's pretty darn close to that. Slovakia's population is almost identical to Singapore's, and (excluding Sint Maarten, a Dutch overseas territory) Slovakia comes right after Singapore alphabetically in the list of the world's countries.

 

[w1rbelw1nd]

Ahhh but comparing singtel, effectively a Telco company with some "IT exposure" to the likes of Facebook, Amazon, google... Offers scant comfort frankly.

Not quite zero IT. Singtel (Z74) is part of the STI, and Singtel has some significant IT business, notably NCS. ST Engineering (S63) is also in the STI, and they're pretty heavy in IT these days.

But I fully agree with your general point. Betting on the STI is not quite as narrow as betting on, say, 30 Slovakian companies, but it's pretty darn close to that. Slovakia's population is almost identical to Singapore's, and (excluding Sint Maarten, a Dutch overseas territory) Slovakia comes right after Singapore alphabetically in the list of the world's countries.

 

[Parka]

Have full time day job and online shop for gadgets and tech accessories.

But finance noob so if you have tips please share.

Are the gadgets and accessories you're selling popular?
If so, create a Youtube channel to review them.
Then push viewers to your website to get the stuff if they want to.
You earn through Youtube adsense (small amount) and earn through selling your products.
Search http://socialblade.com/ to see how much other tech Youtubers are making.

 

[wahkao3]

invest into low risk, high return stocks

 

[babyrobo]

bookmarked

 

[BBCWatcher]

invest into low risk, high return stocks

Yes, and marry a billionaire (who is always faithful, loving, and generous), be the most beautiful person in the world, and always have perfect health.

Joking aside, everybody wants low risk and high returns. Unfortunately, risk and returns are positively correlated. Virtually nobody can enjoy both, at least not over the medium or long term. So you do the best you can, depending on what you're trying to achieve.

 

[Shiny Things]

But I fully agree with your general point. Betting on the STI is not quite as narrow as betting on, say, 30 Slovakian companies, but it's pretty darn close to that. Slovakia's population is almost identical to Singapore's, and (excluding Sint Maarten, a Dutch overseas territory) Slovakia comes right after Singapore alphabetically in the list of the world's countries.

This is a great stat. Mind if I borrow it for the second edition of the book?

 

[limster]

I really disagree with this part, and I'll say it again. A STI-based ETF represents something like 1% of the world's equities, and obviously it's heavily concentrated in one lovely but demographically challenged, tiny country -- the same country holding every other asset on your list. That lack of portfolio diversification bothers me. We could quibble about exactly how much international equity diversification a "typical" Singaporean saver ought to have, but zero is the wrong answer, in my view.

When I look at local investment bloggers, I think every one of them only invests in STI stocks. Even ASSI, I don't recall seeing him reveal any foreign stocks or ETFs.

 

[Darkzi0n]

I really disagree with this part, and I'll say it again. A STI-based ETF represents something like 1% of the world's equities, and obviously it's heavily concentrated in one lovely but demographically challenged, tiny country -- the same country holding every other asset on your list. That lack of portfolio diversification bothers me. We could quibble about exactly how much international equity diversification a "typical" Singaporean saver ought to have, but zero is the wrong answer, in my view.

what do u consider international exposure? if i buy stocks on sgx it means i have zero international exposure?

 

[w1rbelw1nd]

Why do you put it this way? Just because many successful/popular "thought leaders" don't invest in foreign listed stocks, means they are right?

When I look at local investment bloggers, I think every one of them only invests in STI stocks. Even ASSI, I don't recall seeing him reveal any foreign stocks or ETFs.

 

[w1rbelw1nd]

Just sharing my views, yes, many STI companies have international revenue, but is this overseas revenue even close to reflective of what the global economy requires?

With little FMCG, pharmaceuticals, IT exposure in STI, is STI a truly diversified etf?

Should we really be that concerned about FX risk, when macroeconomics concepts state otherwise? Or for that matter, is that risk really not commensurated with the grossly superior diversification a global index can offer?

what do u consider international exposure? if i buy stocks on sgx it means i have zero international exposure?

 

[limster]

Why do you put it this way? Just because many successful/popular "thought leaders" don't invest in foreign listed stocks, means they are right?

True, just because so many "thought leaders" / bloggers have 100% Singapore portfolios doesn't mean that is the right strategy.

My target is for my cash portfolio to be split 50/50 foreign/SG. CPFIS and SRS because of restrictions are mainly SG shares.

I wonder how to explain the extreme home country bias in local investment bloggers? Surely they have some investment knowledge (hope they are not throwing smoke in their blogs) so they have heard of the word "diversification". But they have made a conscious decision to avoid foreign stocks.

 

[Maeda_Toshiie]

When I look at local investment bloggers, I think every one of them only invests in STI stocks. Even ASSI, I don't recall seeing him reveal any foreign stocks or ETFs.

AK doesn't invest in foreign listed stocks (his own words). He does invest in stocks with overseas exposures.

True, just because so many "thought leaders" / bloggers have 100% Singapore portfolios doesn't mean that is the right strategy.

My target is for my cash portfolio to be split 50/50 foreign/SG. CPFIS and SRS because of restrictions are mainly SG shares.

I wonder how to explain the extreme home country bias in local investment bloggers? Surely they have some investment knowledge (hope they are not throwing smoke in their blogs) so they have heard of the word "diversification". But they have made a conscious decision to avoid foreign stocks.

Very simple: buy what you understand best. On top of that, focus fire on the stocks that you understand best. They don't take the shotgun approach.