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First time investor, what to do with 100k usd

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Old 05-12-2019, 03:39 AM   #1
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First time investor, what to do with 100k usd

Hi all,

28y/o here and first time investor who has just opened an IB account and with 100k usd savings to invest (specifically to hit the commission free threshold of IB account).
I have read Shiny Thing's book and I am contemplating between IWDA World ETF as mention in his book vs SNP 500 ETF. I understand the 110 rule but at the moment I would like to fully invest fully into stocks first before I start investing in bond funds as well (let me know if this is a terrible idea)

In any case, can anyone recommend if I should invest the entire 100k at one go asap (even with the risk of recession being mentioned everywhere in 2020), or should I DCA, and if so, how much and what should the frequency be?

Also, should I go with IWDA World or SNP 500?

Really really appreciate any help because this has been on my mind for awhile now. 100k is not a small sum for a first time investor so I would like to choose wisely.

Thank you!
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Old 05-12-2019, 07:23 AM   #2
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Index of threads of people asking what to do with their money

https://forums.hardwarezone.com.sg/m...y-5626345.html
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Old 05-12-2019, 07:58 AM   #3
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Depends on what you want.
If you want to invest in the US, S&P.
If you want to invest in developed markets, IWDA.
If you want to invest in the whole world (usually developed + emerging markets), VWRA or the like.

IWDA tracks the MSCI World index. However, the MSCI world index ONLY tracks developed markets. Don't mistake it for tracking the whole world.
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Old 05-12-2019, 08:09 AM   #4
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Split across global ETF, such as IWDA (developed market) and EIMI (developing market), roughly 80:20 spread or whichever you like. This would cover you for the 'global' aspect.

Both are accumulating (no dividend), which is a good thing since it'll be taxed rather heavily. Both IWDA and EIMI are Ireland domiciled etfs listed on London Stock Exchange.

Last edited by andymarsh; 05-12-2019 at 08:12 AM..
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Old 05-12-2019, 08:40 AM   #5
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Split across global ETF, such as IWDA (developed market) and EIMI (developing market), roughly 80:20 spread or whichever you like. This would cover you for the 'global' aspect.

Both are accumulating (no dividend), which is a good thing since it'll be taxed rather heavily. Both IWDA and EIMI are Ireland domiciled etfs listed on London Stock Exchange.
You can simplify with just VWRA
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Old 05-12-2019, 10:13 AM   #6
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We are at a very long bull run since 2009. Anytime a bear could happen and your investment be wiped. If you can stomach great losses, you can lump sum in, then DCA with new funds. If not better DCA.
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Old 05-12-2019, 01:42 PM   #7
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Similar profile.

My cash are fully equities as I use my 3 years endowment plan, annuity and CPFSA as bond portion. Currently over weighted on "bond".

DCA lump sum into IWDA. Not interested in emerging as of now.

Will bring down my bond portion once my endowment ends.
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Old 05-12-2019, 03:24 PM   #8
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Donate 99.999k to charity.
Use remaining $1 to buy quick pick.
See if you can reap good karma and get back $8 million.
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Old 05-12-2019, 03:31 PM   #9
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Donate 99.999k to charity.
Use remaining $1 to buy quick pick.
See if you can reap good karma and get back $8 million.
$99,999 to BZUN. $1 to charity.
You're welcome.
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Old 05-12-2019, 05:52 PM   #10
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Buy Singapore property. Tiagong all those old guys always say Singapore properties will always go up.
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Old 05-12-2019, 06:44 PM   #11
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Congrats on your accumulation of 100k usd at this age

I would split the amt over 5 mths and buy into iwda.
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Old 07-12-2019, 11:45 AM   #12
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Thank you all for the advice! I read all of them and appreciate your responses. Still trying to decide between IWDA and SNP500..

Also, do I need to be careful of anything (regulations whatsoever) if I am going to fund transfer the relatively large amount of 100k to IB? I have tried with 1sgd to their local SC bank and it worked easily.

We are at a very long bull run since 2009. Anytime a bear could happen and your investment be wiped. If you can stomach great losses, you can lump sum in, then DCA with new funds. If not better DCA.
I can 100% stomach the losses since I am in it for the long run. But I am more worried that I am buying at the end of the very long bull run which means it's extremely not worth to buy now.
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Old 07-12-2019, 11:54 AM   #13
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Besides focusing just purely on your investments.

Have you asked yourself whether you could live without income? It’s quite a feat for someone of your age to amass $100k USD so you must have done something well. Don’t let any events run you off another path.
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Old 07-12-2019, 12:54 PM   #14
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I can 100% stomach the losses since I am in it for the long run. But I am more worried that I am buying at the end of the very long bull run which means it's extremely not worth to buy now.
I guess you mean you can 100% stomach the losses financially? However, if you are worrying, that means you cannot stomach the losses psychologically.

If that is the case,better to split your funds into 3 or 4 chunks and slowly ease in over 6 months.

The psychological component is important to avoid panic selling. Being able to sleep well at night is more important than being mathematically optimal

Last edited by tesarise; 07-12-2019 at 12:58 PM..
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Old 07-12-2019, 02:31 PM   #15
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Besides focusing just purely on your investments.

Have you asked yourself whether you could live without income? Itís quite a feat for someone of your age to amass $100k USD so you must have done something well. Donít let any events run you off another path.
Do you mind elaborating? What I did was save aggressively over the past few years of working and I have a full time job atm too.

I guess you mean you can 100% stomach the losses financially? However, if you are worrying, that means you cannot stomach the losses psychologically.

If that is the case,better to split your funds into 3 or 4 chunks and slowly ease in over 6 months.

The psychological component is important to avoid panic selling. Being able to sleep well at night is more important than being mathematically optimal
Thanks for your input maybe you might have misunderstood what i meant. I am only worried that I will not get a better pay off in the long run aka the long future, if I were to buy at the end of a bull run and share prices drop the next day. I am not worried about the losses now at all and 100% be able to sleep well haha. That's why with that said, I wonder if I should wait (with no certainty of the prices falling), invest 1 lump sum now, or DCA in. If that makes sense!
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