First foray into investments with $3000

[kuanknightz]

Currently a NSF with 18 months to go, have $3000 to start off on investments. Please advise me on what to do with it, don't want it to lose value in a bank account.

Been looking at S-REITs for the relatively high yields for dividends and potential capital gains.

 

[killer]

Currently a NSF with 18 months to go, have $3000 to start off on investments. Please advise me on what to do with it, don't want it to lose value in a bank account.

Been looking at S-REITs for the relatively high yields for dividends and potential capital gains.

do note that you need to be at least 21 to open a cdp account in singapore.

if you have been following the market, you would notice that current valuation is not that cheap, and quality dividend stocks and reits have yield compressed quite abit. buy them now if you are mentally prepared to suffer some temporary losses to your capital

 

[terence89]

Hi kuanknightz, I have sent you an pm for your reference. Thank you

Currently a NSF with 18 months to go, have $3000 to start off on investments. Please advise me on what to do with it, don't want it to lose value in a bank account.

Been looking at S-REITs for the relatively high yields for dividends and potential capital gains.

 

[jgyy1990]

nsf possible to do freelance job?

 

[kuanknightz]

do note that you need to be at least 21 to open a cdp account in singapore.

if you have been following the market, you would notice that current valuation is not that cheap, and quality dividend stocks and reits have yield compressed quite abit. buy them now if you are mentally prepared to suffer some temporary losses to your capital

yes i am approaching 21 soon. quality reits have been trading above NAV so therefore i am not too sure on how to best make use of the $3000.

 

[Epps_Sg]

yes i am approaching 21 soon. quality reits have been trading above NAV so therefore i am not too sure on how to best make use of the $3000.

When stock valuation is not cheap, buy into quality bond fund or hold cash and wait first, meanwhile learn more about ht einstruments you plannign to invest in. There will always be opportunity in market for those who are prepared.

 

[kuanknightz]

Is DBS Vickers a good platform for online trading? Besides REITs, are they any higher risk, low cost trading options?

 

[Newbiepro]

yes i am approaching 21 soon. quality reits have been trading above NAV so therefore i am not too sure on how to best make use of the $3000.

Hi, Noob here!

May i know what is NAV? And what do u actually look at to know whats the NAV?

 

[Asure7]

With such small amount of $, I would advise you to keep it in the bank and keep it as "emergency funds". You never know when you need it + its "risk-free". You may lose out to inflation, but the absolute amount will always be there.

Buying stocks may seem attractive with high yield dividends.
However, what is 5% dividends for $3000? $150 per year.
There is potential capital gain, but do not forget there is also potential capital LOSS.
Is the risk worth it for $150 a year?
You'll have to decide for yourself.

 

[sanzhu]

thank you kuan

you are god send

im gg to sell all my penny stock holdings today

you are my indicator

 

[Sinkie]

do note that you need to be at least 21 to open a cdp account in singapore.

if you have been following the market, you would notice that current valuation is not that cheap, and quality dividend stocks and reits have yield compressed quite abit. buy them now if you are mentally prepared to suffer some temporary losses to your capital

Above 18 can open Liao lah

 

[Sinkie]

With such small amount of $, I would advise you to keep it in the bank and keep it as "emergency funds". You never know when you need it + its "risk-free". You may lose out to inflation, but the absolute amount will always be there.

Buying stocks may seem attractive with high yield dividends.
However, what is 5% dividends for $3000? $150 per year.
There is potential capital gain, but do not forget there is also potential capital LOSS.
Is the risk worth it for $150 a year?
You'll have to decide for yourself.

To add on

1. Can try to do small investment in shares

http://deluxeforums.hardwarezone.co...account-singapore-updated-2012-a-3628498.html

or

http://deluxeforums.hardwarezone.co...ading-town-no-minimum-commission-3265890.html


2. Can try shares dividend investment

read up more in dividend warrior blog
Dividend Warrior

or even his thread
http://deluxeforums.hardwarezone.com.sg/eat-drink-man-woman-16/paging-dividends-warrior-4161384.html

3. Can try shares investment with odd lot market

http://deluxeforums.hardwarezone.com.sg/75206767-post190.html

But is under your name.
Up to you de
You want pay or dun pay got.diffeeent things...

Actually those with very small limit or capital but yet still want diversification, can consider investing in the unit share market one lah

What's unit shares?

Normally a lot is considered as 1000 share so for shares like starhub, u need minimum $4000+ but why not invest in unit share market? U do not need to buy 1000 shares minimum but can choose to buy like 2 shares? 500 shares or even 250 shares?

You still get the dividend too

If you can't match his portfolio, then buy fractional of it through the odd lot market even though price might differ and sometime can get bargin selling to desperate buyer lol

4. Can try poems share builder program

http://deluxeforums.hardwarezone.com.sg/68093454-post58.html

WHAT IS SHARE BUILDERS PLAN?

- There are charges for dividend recieved.
- Shares (in unit shares) are bought on every 18th of the month in regardless whether dji drop -400 or dji rise 400 the previous night at their prefered timing in regardless when sti is at +50 or -50
- only 19 shares available
- shares are deposited in poems custodian account (please call and ask)

POEMS ODD LOT Market

so my views is as long your monthly investment is not more than $3500, you are better off investing in odd lot market yourself since (3500 x 0.28% = $10), at least you get to choose your own price and learn on your way + no dividend charges just that you need to be very discipline to invest every month
- shares goes into cdp

http://deluxeforums.hardwarezone.com.sg/68094358-post61.html

Ohh, so you're saying I should just get a normal trading account and buy odd lots every month or whenever i like? I think the amount of money i will be able to spare per month would be around 300-500..

is your choice..

if your amt is 300-500 and unless you are only targetting 1 share out of the 21 shares provided, then is advisable to go oddlot market to buy

because for every month of one time share purchase of $300 (up to $3500), your commission is still $10 in the unit share market (300 x 0.28% = $10 commission, (assuming you dont buy $10 each time but $300 at one go),

then might as well you do it yourself, at least you get to choose other shares such as reits or even counters like singpost or certain sector like commodities or even any one of the jardines and experience the feeling of buying and making your own decision.

5. Can try permanent portfolio strategy

http://deluxeforums.hardwarezone.co...e-return-low-volatility-strategy-3896024.html


But dont really recommend unit trust or any form of structure despot or endowment or ilp which locked up funds for extended period

learn and acquire the art of investing yourself, so that it becomes a valuable skills even after you retire

Remember, when we do investment , it is always homework, opportunities and timing. It is not you want to start defensive investment, you can do it now or tomorrow and then see your investment grow everyday. That's applies to fixed deposit only.

Be patient and take your time to learn n read up about investment

 

[buxinxie]

Explore other forums. You will find much better views.

 

[kuanknightz]

Explore other forums. You will find much better views.

hi, any local forums to recommend? thanks

 

[staedtler_07]

hi, any local forums to recommend? thanks

Definitely do not go to CNA Forums

 

[emily24]

Currently a NSF with 18 months to go, have $3000 to start off on investments. Please advise me on what to do with it, don't want it to lose value in a bank account.

Been looking at S-REITs for the relatively high yields for dividends and potential capital gains.

maybe you can start small, like ILPs. at least there are still some life protection in it. or put a single premium into savings plans? anyhow it would still be better than putting it in the bank with 0.125% interest rate. haha

 

[Sinkie]

maybe you can start small, like ILPs. at least there are still some life protection in it. or put a single premium into savings plans? anyhow it would still be better than putting it in the bank with 0.125% interest rate. haha

ILP? Are you sure? You are better off buying a term plan and saving rest of your money in a fixed deposit or in CIMB saving account to enjoy 0.8% interest

 

[Middle-C]

Bookmark for self. Haha. I'm turning 21 in 9months -,- but good read. By that time I shld have 5k purely for investments

 

[emily24]

ILP? Are you sure? You are better off buying a term plan and saving rest of your money in a fixed deposit or in CIMB saving account to enjoy 0.8% interest

If you are uncomfortable with ilp then yeah you shld buy a term plan then save the rest. But definitely not in banks lah. 0.8% also considered kind of low. Should put in savings plan where they can give projected 3% interest rate.

 

[Sinkie]

If you are uncomfortable with ilp then yeah you shld buy a term plan then save the rest. But definitely not in banks lah. 0.8% also considered kind of low. Should put in savings plan where they can give projected 3% interest rate.

yeah, but if next day i need emergency fund? then how? sell ilp and immediately take back the amount? and if lets say in the future, i decided to liqiduate my ilp because i need cash, then my insurance coverage how liao? buy a new insurance plan with a higher premium?

just my concerns when i deciding whether to buy ilp or not