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mgmuse 21-12-2014 12:52 PM

Investment advice for 200k
 
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Shiny Things 21-12-2014 01:23 PM

Quote:

Originally Posted by mgmuse (Post 90783903)
Hi guys,

Simply put, I have 200k cash that has been rotting in my posbkids account for awhile now - what are the best options available to me, given that I do not need liquidity, prefer dividend payouts, and am NOT very risk adverse?

Just to be sure - you're not risk averse, so you're comfortable with taking some risk? And you don't need liquidity - I'm assuming you mean you won't need the cash for five years or more - so you can handle taking some drawdowns?

In your case, you can invest it into a reasonably aggressive mix of ETFs. And if you've got a high tolerance for risk, then you can skew it international, rather than staying onshore.

Here (edit: changed some to take into account platopus's high-div-yield suggestions)
* 30% STI ETF (yields 2.6% plus capital growth)
* 20% VUSD (the UK-listed SPY equivalent) (yields 1.6% plus capital growth)
* 20% VHYD (the UK-listed Vanguard high-div ETF) (yields 3.65% plus capital growth)
* 20% QL2 (the SG-listed Asia Credit Bond ETF, yields 4.75%)
* 10% QL3 (the SG-listed Asia High Yield Bond ETF, yields about 7%)

Normally someone who labels themselves as "risk-tolerant" would want to skew toward stocks rather than bonds, but because you mentioned you wanted yield I've nudged you that way; and I've replaced the money I'd usually allocate to A35 with the higher-yielding QL2 and QL3. Be warned that these are higher risk as well, and they're not appropriate for smaller investors.

I figure your total yield is going to be something like 3.5%, which is pretty good in a zero-interest-rate world, and you should get plenty of capital growth from the stock ETFs as well.

As for which broker - you'll definitely want to use Interactive Brokers for the two UK-listed ones. For the SG-listed ones, you'll probably have to use Stanchart, because IB doesn't let you buy Singaporean stocks if your address is in Singapore. (If you've got an overseas mailing address you can use, you can sign up to IBKR with that, and that'll let you trade Singaporean stocks as well at IBKR's rock-bottom brokerage rates.)

platopus 21-12-2014 01:36 PM

Maybe he can consider

Vhyd instead of vwrd. vanguard all world dividend etf. Basket of 1060 stocks

Also, he can consider udvd, which is the spdr US dividend aristocrats. Basket of 80 us stocks who pay higher dividend over time

Both are listed on the London stock exchange

. Full disclosure, I own vhyd n vwrd. I also don't deny that the S n P 500 has been giving great returns since the crisis, if u believe in US continue dominance do go ahead. Jack bogle has said that US companies are actually international companies and owning us stocks sorta gives you international diversification

Shiny Things 21-12-2014 01:54 PM

Quote:

Originally Posted by platopus (Post 90784565)
Maybe he can consider

Vhyd instead of vwrd. vanguard all world dividend etf. Basket of 1060 stocks

Also, he can consider udvd, which is the spdr US dividend aristocrats. Basket of 80 us stocks who pay higher dividend over time

Both are listed on the London stock exchange

Yep, those are both good ideas too. (Actually they're even better than my suggestions. I'll edit my post.)

(Update: Kept VUSD, because UDVD only yields an extra 0.15% or so - not much of an aristocracy - but changed VWRD to VHYD.)

Carnesir 21-12-2014 02:23 PM

50K OCBC 360 account. (3% risk free and very liquid, pls make an effort to know t&c of getting all 3%. they are very achievable)
20k Gold
30k Bond or money market funds
100k Equities (30% Reits, 70% divdend paying blue chip, STI etc)

platopus 21-12-2014 02:44 PM

Oh yes, the ocbc360 50k is a very good one (for now). At the end $1500 for a year is very safe play.

Sidetrack with some more 'risky' ideas, DONT follow blindly.
Dividend warrior portfolio is around 200k, we with dividends of 1k+a mth. u can reference it but don't copy blindly because entry price and understanding the company and exit points make all the difference in the world.

Do go and do your due diligence and research before as attempting anything.

The ocbc 360 is okay, at least capital guaranteed so go ahead with that

jgyy1990 21-12-2014 02:45 PM

Ts really saved a lot over the years

platopus 21-12-2014 05:10 PM

yup, especially since your money is slowly saved over the years.
PLEASE do your own research and due diligence before plonking the money in.

Money is sometimes mere figures on a computer screens (when you are investing)
But it is also months and years of work and effort which u put in for it.

What history tells us about investing in dividend income stocks

https://www.vanguard.co.uk/uk/portal/investments/etf

https://www.vanguard.co.uk/uk/portal...ent-principles

wahkao3 21-12-2014 07:10 PM

invest in low risk, high return opportunities, such as stocks that have good chance of moving up and with limited downside

Gaara1989 21-12-2014 09:42 PM

Quote:

Originally Posted by wahkao3 (Post 90790482)
invest in low risk, high return opportunities, such as stocks that have good chance of moving up and with limited downside

Let me join in to troll.

Hmm u can invest in 0 risk stock that gives high return. Must choose those that r low risk high return. Not high risk low return. :)

civicguy 21-12-2014 10:02 PM

Why UK vanguard and not USA ?

zhane 21-12-2014 10:46 PM

is it cheaper to buy ETF on my own, or cheaper to leave it to POSB/OCBC/POEMS plan to buy for me?

platopus 21-12-2014 11:21 PM

Cheaper to buy on your own through stanchart online broker.

E.g. sti etf g3b. $3.30

Scb commission = 0.2% , 1 lot = $330 + $0.66 (Commission)

Posb invest saver = 1%, commission = $3.30

Over one year the difference is $30

This is for small amounts, bigger amounts is a different math.

zhane 21-12-2014 11:37 PM

Quote:

Originally Posted by platopus (Post 90796039)
Cheaper to buy on your own through stanchart online broker.

E.g. sti etf g3b. $3.30

Scb commission = 0.2% , 1 lot = $330 + $0.66 (Commission)

Posb invest saver = 1%, commission = $3.30

Over one year the difference is $30

This is for small amounts, bigger amounts is a different math.

woo.. then buying through poems also more ex than invest saver?
since poems comm is 0.28%

platopus 21-12-2014 11:43 PM

Got minimum commission for poems right. Poems sharebuilder if I rmb is $6 monthly, so if u buy more than $600 is cheaper than posb Liao lor.

I am talking about RSP plans though


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