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Old 17-05-2018, 11:14 PM   #1
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Seeking advice..

Hi all, here's a short introduction about myself - age 21, single, no dependents.

Has the following:
- Gross annual income of about $33,000
- $40,000 liquid cash in DBS Savings account (int 0.05% p.a.) and SC ESaver account (int up to 1.10% p.a.)
- Holistic insurance coverage from Prudential and AVIVA
- No outstanding loans

I have read Shiny's ebook and I intend to do the following in the foreseeable future:
- Open DBS Multiplier Account
- Open POSB Invest Saver Account, $500 monthly - $400 in ES3 and $100 in A35
- Apply for DBS Credit Card, either DBS Live Fresh or POSB Everyday
- Apply for CDP account and set aside $20k in SSB

I would say that my risk appetite would be medium-high. My question is, if you were in my shoes, will you do the same thing? Or will you do something different?
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Old 17-05-2018, 11:20 PM   #2
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first i would review whether im over/under insuring. what is holistic insurance coverage?

personally, i would also learn to do my own investment instead of just doing DCA.

also open a brokerage account which will help u set up CDP at the same time. since u r going for dbs multiplier, suggest u go for dbs vickers.

and i assume u r a dip holder since u started working at the age of 21? do also consider if u wan to set aside some fund to get urself a deg or go for some professional conversion course. the fastest way to build up wealth is by increasing ur income
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Old 18-05-2018, 12:01 AM   #3
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Can share how you accumulate 40k at such a young age. Just started working not too long ago right ?
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Old 18-05-2018, 01:04 AM   #4
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Can share how you accumulate 40k at such a young age. Just started working not too long ago right ?
most ppl, even those from lower-middle income families, can save up to 20-30k by the time they are 20... it is all from the angbao $, edusave, parents helping to save, edusave bursaries/scholarships, part time work during holidays etc since young over 20 years. as it is over 20 years, it is not surprising to have that amount, it is only 2k per year. some ppl also become officers during NS or get posted to more dangerous vocations where they get more pay allowance while having to stay in (free lodging/free food so basically save up all the money earned during NS).

should ask instead how he manage to earn 33k per annum at a young age, that is around ~2.6k a month.
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Old 18-05-2018, 07:34 AM   #5
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I keep hearing people talked about investing in A35 but don't understand the reason for it.

A35 gives a measly 2% dividend on average and grow a total <10% since Dec 2007?
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Old 18-05-2018, 10:57 AM   #6
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I keep hearing people talked about investing in A35 but don't understand the reason for it. A35 gives a measly 2% dividend on average and grow a total <10% since Dec 2007?
What has an ordinary bank account yielded over the same period?

A35 might be a reasonable way to facilitate certain CPF "hacks," so there's at least that.
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Old 18-05-2018, 11:35 AM   #7
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What has an ordinary bank account yielded over the same period?

A35 might be a reasonable way to facilitate certain CPF "hacks," so there's at least that.
Note in the early days some dividends offered by A35 is even below 1%...

Some would suggest those bank accounts with special bonus interests but I am thinking more along the lines of buying SGS Bonds directly which offer >2% annual interest and have no risk of losing any part of capital. The downside is locking in the money for 10 years.

I am not about to discourage anyone to invest on A35 but personally don't see the logic of it, even though I still held on to 5-6K of this ETF
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Old 18-05-2018, 11:47 AM   #8
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Thank you all for your replies.

first i would review whether im over/under insuring. what is holistic insurance coverage?

personally, i would also learn to do my own investment instead of just doing DCA.

also open a brokerage account which will help u set up CDP at the same time. since u r going for dbs multiplier, suggest u go for dbs vickers.

and i assume u r a dip holder since u started working at the age of 21? do also consider if u wan to set aside some fund to get urself a deg or go for some professional conversion course. the fastest way to build up wealth is by increasing ur income
Thanks, gave me something to think about. I chose to open up a POSB IS account instead of DBSV to invest as I will not have time to study & monitor the markets on a daily basis. As someone who is going into investment for the first time, would prefer to DCA using POSB IS first without having to time the market.

Can share how you accumulate 40k at such a young age. Just started working not too long ago right ?
most ppl, even those from lower-middle income families, can save up to 20-30k by the time they are 20... it is all from the angbao $, edusave, parents helping to save, edusave bursaries/scholarships, part time work during holidays etc since young over 20 years. as it is over 20 years, it is not surprising to have that amount, it is only 2k per year. some ppl also become officers during NS or get posted to more dangerous vocations where they get more pay allowance while having to stay in (free lodging/free food so basically save up all the money earned during NS).

should ask instead how he manage to earn 33k per annum at a young age, that is around ~2.6k a month.
I am a scholarship holder and working in the civil sector. Started saving up since secondary school days. Will not elaborate more due to personal reasons.

I keep hearing people talked about investing in A35 but don't understand the reason for it.

A35 gives a measly 2% dividend on average and grow a total <10% since Dec 2007?
Similar to what BBCWatcher posted above, I am considering to put in a little amount into A35 every month in hopes to get back more than what the bank would give me in terms of interest per annum.
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Old 18-05-2018, 12:06 PM   #9
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Note in the early days some dividends offered by A35 is even below 1%...

Some would suggest those bank accounts with special bonus interests but I am thinking more along the lines of buying SGS Bonds directly which offer >2% annual interest and have no risk of losing any part of capital. The downside is locking in the money for 10 years.

I am not about to discourage anyone to invest on A35 but personally don't see the logic of it, even though I still held on to 5-6K of this ETF
ABF invest in essentially SG govvies, which is almost the same as SSB, except for the coupon schedule being different and reaction to interest rates. The ABF isn't more risky than SSB in terms of credit, so there is no risk premium. SSB is a relatively recent product, so prior to SSB, you either buy ABF or SGS to get exposure to SG govvies.

For those with a sufficiently large bond component, it's either ABF or SGS, unless we want to buy riskier corp bonds (which is harder for non AIs).

Hi all, here's a short introduction about myself - age 21, single, no dependents.

Has the following:
- Gross annual income of about $33,000
- $40,000 liquid cash in DBS Savings account (int 0.05% p.a.) and SC ESaver account (int up to 1.10% p.a.)
- Holistic insurance coverage from Prudential and AVIVA
- No outstanding loans

I have read Shiny's ebook and I intend to do the following in the foreseeable future:
- Open DBS Multiplier Account
- Open POSB Invest Saver Account, $500 monthly - $400 in ES3 and $100 in A35
- Apply for DBS Credit Card, either DBS Live Fresh or POSB Everyday
- Apply for CDP account and set aside $20k in SSB

I would say that my risk appetite would be medium-high. My question is, if you were in my shoes, will you do the same thing? Or will you do something different?
Ack, even CIMB's Fastsaver is better than that DBS account. I know, I have one myself, and I don't keep anything more than a few thousand in it.

If you have the appetite for stocks, you should diversify and add a world stock ETF instead of just concentrating on the SG market only.
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Old 18-05-2018, 12:24 PM   #10
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I am not about to discourage anyone to invest on A35 but personally don't see the logic of it, even though I still held on to 5-6K of this ETF
I don't think A35 has many use cases for most people, but I can imagine a few.

Similar to what BBCWatcher posted above, I am considering to put in a little amount into A35 every month in hopes to get back more than what the bank would give me in terms of interest per annum.
In that scenario, and in several others, you and your spouse/partner (if applicable) should be maxing out your SSBs first before even considering A35. Moreover, even if you have maxed out your SSBs already, it's probably smarter to invest directly in SGSes at initial auction, at least on the shorter maturity side (say, ~7 years and below). The 5 year bond comes up for auction within a few days as I write this, as a matter of fact.

For those with a sufficiently large bond component, it's either ABF or SGS, unless we want to buy riskier corp bonds (which is harder for non AIs).
Blackrock offers some good, low cost, investment grade, global, corporate bond funds domiciled in Ireland and London traded, and available through Interactive Brokers and other brokers. That'd probably be the best, appropriately conservative bond addition to a Singaporean retiree's CPF, SSB, and SGS base of bond and bond-like assets. There's some exchange rate risk to the extent this hypothetical retiree is skewed toward spending in Singapore dollars specifically, but that's why CPF, SSBes, and SGSes would be in the portfolio, too.

Please note that any citizen or PR who has met both the Basic Healthcare Sum and Full Retirement Sum can voluntarily stuff up to $37,740 per year into CPF (via an "all three" top up, preferably in January), earn an interest rate >2.5% (blended OA and SA rate), and withdraw that cash, partially or fully, at any time (if he/she is age 55 or older). That's one heck of a deal, so be sure to take advantage of that if you're in such a position.

Last edited by BBCWatcher; 18-05-2018 at 12:31 PM..
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Old 18-05-2018, 07:17 PM   #11
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Thank you all for your replies.

Thanks, gave me something to think about. I chose to open up a POSB IS account instead of DBSV to invest as I will not have time to study & monitor the markets on a daily basis. As someone who is going into investment for the first time, would prefer to DCA using POSB IS first without having to time the market.
still, no harm opening a DBSV first. it is free and helps u open CDP at the same time. next time when u r ready to invest, the account would alr be there waiting for u.

and unless u r a trader, u dont need to monitor the mkt everyday. for me, i onli read intensively before making a purchase. once i have done my homework, i jus leave my stock alone. most days, i dun even look at the stock market.
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