1. Don't be blinded by "dividends". Look at overall return. Many dividend strategy focused strategies lose out to Mr Market index.
2. However, if the "dividends" helps in allaying your fears, then perhaps thats the right move, hence best you opt for distributing ETFs such as VWRD, VUSD, etc.
3. Discovering your risk appetite is challenging. It gets harder as you have larger sums.
4. I will start 20/80 AA. 20% VWRD, 80% MBH. Purpose of this fund is to finance your HDB BTO. Reinvest all proceeds asap.
5. Aim to purchase HDB BTO, the best you can get. ie. highest floor, best location etc.
6. the money in SSB should as much as possible be left there, as it will take forever to enjoy that return you get from SSB guaranteed. I would rather treat the SSB amount as your fixed income i.e. part of the 80% allocation to fixed income, and you create a separate emergency fund in pure cash kept separate.
7. I will not dca for a paltry amount of 25k. I'll just 20/80 it. Its just too little to cause any problems especially in a conservative allocation. In fact, statistical evidence say invest all now. Rebalance yearly. Rebalancing involves buying the lagging asset. Again, don't try touch the SSB.
8. Since HDB flat BTO is a very very very important goal. I can't see how you are ever going to be able to exceed the 20/80 AA.
9. Take in other people's opinion before committing. These next four months are fantastic times to start. Lots of volatility aka crashes and fear.
10. Be wary of possible interest rate rises in year 3 or 4. You might wish to shift some to cash especially when close to HDB purchase. The closer it gets, the close you must have your assets in cash like instruments ie SAFE as hell.
11. However, if HDB is a forgone goal. Then, I'm likely to aim 100% equity spread over next 1-2 years.
Hello peeps.
A lurker in the thread for a while but as the conversation gets longer it just confuses the hell out of me more.
I come from an arts background so finances isn't exactly my expertise. And when I say that, I mean 0%. We like to make our pretty stuff but pretty stuff wouldn't feed us so i might as well start somewhere. Was trying to graduate from school and finding a job so by the time i realised, i am hitting 30 next year. Already a late boomer in this.
I have a friend who says he started investing in UTs and it is giving him a 4% dividend return every year which seems real appealing to me but as this thread hardly mentions UT but they sound like the same thing to me?!?!. We are kind of on the same faction as we will like to put our money somewhere and have someone do it for us and not think about it anymore if we have to.
Regarding ETFs, I see A35, ES3 G3B and IWDA while jumping pages here and there in this thread. I understand that ES3 and G3B is pretty much the same thing so I recently started 100/mth into G3B with POSB Invest-saver. TBH i did it so at least my money is somewhere and not being used to spend on useless stuff that i don't want to spend on but i just ended up spending on. How safe are these etf investments exactly, because the stocks that i understand seems to be a super risky thing and I will like to think that i'm a low risk investor.
I recently realised that I have saved up some pile of money(around 25k) in my bank so i will like to get some opinions on where i could just park my money somewhere and let the fairies do their jobs. I also have 15k in ssbs for 2 years now and the returns is around 2.3-2.4% at the end of it but i am inclined in leaving it as my emergency funds. I understand the etf investment seems to be a long term thing but can i get sell them and get the money back if i decide to buy a house when i hit 35?
Oh gawd. SG should teach us financial literacy when we are in sec school instead of literature.OTL
