How to start investing?

[sleepingcat]

Hi, I have some savings in my bank account that I have saved throught that years and I feel that I should not leave it in my account as there will be inflation. I have some questions...

1. Is there a recommended broker to open my account? I checked online and found that FSMOne has the lowest fees. Any implications in opening an account with them?

2. Because I am more of a person that prefers income gains instead of capital gains... should I start by investing a lump sum into a stock that gives out dividend and then proceed to pump a % of my salary into the stock monthly? But is this method safe? Because the company might stop giving dividends one day right?

3. Any ways to find out how much $ a company will pay out in dividends per share?

 

[BBCWatcher]

1. Is there a recommended broker to open my account? I checked online and found that FSMOne has the lowest fees. Any implications in opening an account with them?

It depends on what you're investing in. FSMOne doesn't offer the lowest total fees for the popular, low cost, global stock index funds, for example. Also, it depends on whether you want to custodize Singapore-based securities with FSMOne or with CDP.

2. Because I am more of a person that prefers income gains instead of capital gains... should I start by investing a lump sum into a stock that gives out dividend and then proceed to pump a % of my salary into the stock monthly?

Well, why do you prefer that? Are you retired and living off passive income? Probably not, so that doesn't actually make any logical sense. Total long-term net returns are what matter. That includes the combined effects of reinvested dividends and capital gains, net of costs.

When a fund or other security distributes dividends, there's a cost involved. You pay that cost one way or another. Are you interested in paying higher costs? Hopefully not.

But is this method safe? Because the company might stop giving dividends one day right?

Dividends are not guaranteed.

3. Any ways to find out how much $ a company will pay out in dividends per share?

If you're looking at individual company stocks -- you probably shouldn't be, but if -- ordinarily you can visit that company's "investor relations" section of their Web site to learn about their past dividend distributions, if any. However, per the point above, past performance is not indicative of future results.

 

[sleepingcat]

It depends on what you're investing in. FSMOne doesn't offer the lowest total fees for the popular, low cost, global stock index funds, for example. Also, it depends on whether you want to custodize Singapore-based securities with FSMOne or with CDP.


Well, why do you prefer that? Are you retired and living off passive income? Probably not, so that doesn't actually make any logical sense. Total long-term net returns are what matter. That includes the combined effects of reinvested dividends and capital gains, net of costs.

When a fund or other security distributes dividends, there's a cost involved. You pay that cost one way or another. Are you interested in paying higher costs? Hopefully not.


Dividends are not guaranteed.


If you're looking at individual company stocks -- you probably shouldn't be

I mean if I hold dividend stocks, I can earn from dividend and then also sell the stock when their share prices increase? (not sure if this is how it works because I never invested in any stocks before...)

Because I see some youtuber saying that they invest in a stock and get annual % returns... do they earn by selling those stocks a few years later and then re-invest the money into that stock?

And, if I shouldn't be looking at individual company stocks, what should I invest in? ETFs?

 

[ranchfarm]

I mean if I hold dividend stocks, I can earn from dividend and then also sell the stock when their share prices increase? (not sure if this is how it works because I never invested in any stocks before...)

Because I see some youtuber saying that they invest in a stock and get annual % returns... do they earn by selling those stocks a few years later and then re-invest the money into that stock?

And, if I shouldn't be looking at individual company stocks, what should I invest in? ETFs?

Hey bro, some videos about dividend investing:
https://www.youtube.com/watch?v=UpXI_Vd51dA
https://www.youtube.com/watch?v=f5j9v9dfinQ

A lot of us started with ETF, mainly by reading Shiny Thing's book "Rich by Retirement". The book has some dummy-proof hand-holding instructions of what exactly to buy and where to buy.

 

[tangent314]

I mean if I hold dividend stocks, I can earn from dividend and then also sell the stock when their share prices increase? (not sure if this is how it works because I never invested in any stocks before...)

On average, stocks that pay dividends don't grow nearly anywhere as much as stocks that don't pay dividends. In fact, on average they fall behind by around the amount of dividends they pay out.

It should be kind of obvious why that is, but it's surprising how many people don't seem to realize it.

 

[sleepingcat]

Because most of the stock prices are lower now... is it a good time to buy?

 

[lim.tina]

need to diversify, your short term, long term, low risk, high risk all that stuff. can start slow with endowment products for your low risk ones (feels like almost no risk?), then go invest in etf this kind lol.

 

[charmaineeee]

need to diversify, your short term, long term, low risk, high risk all that stuff. can start slow with endowment products for your low risk ones (feels like almost no risk?), then go invest in etf this kind lol.

i agree with you

 

[lim.tina]

got new endowment plan launching on policypal soon. they called me last week to say got waitlist. they say 2.1% for 3 years, I think its not bad. 3 years not too long. plus can get some rebates

 

[charmaineeee]

got new endowment plan launching on policypal soon. they called me last week to say got waitlist. they say 2.1% for 3 years, I think its not bad. 3 years not too long. plus can get some rebates

what rebates?

 

[lim.tina]

what rebates?

they got rebates on their app, can use to buy travel insurance. but now also cannot travel lol. i think can redeem stuff on their marketplace like grab also.. i went to see, they got mask and toilet paper to redeem LOL. good for those who are short on toilet paper

 

[charmaineeee]

they got rebates on their app, can use to buy travel insurance. but now also cannot travel lol. i think can redeem stuff on their marketplace like grab also.. i went to see, they got mask and toilet paper to redeem LOL. good for those who are short on toilet paper

wa not bad leh.. you got buy from them any insurance before?

 

[lim.tina]

wa not bad leh.. you got buy from them any insurance before?

ya I bought a 1.8% savings plan from them. actually the new one better lol 2.1%!!! but my 1.8% is flexible withdrawal after 3 months la... the 2.1% is 3 years.

 

[makav31i]

Interesting that both accounts talking about endowment only create an account in Mar and Apr this year...

 

[Wishdom]

need to diversify, your short term, long term, low risk, high risk all that stuff. can start slow with endowment products for your low risk ones (feels like almost no risk?), then go invest in etf this kind lol.

I disagree. It is more accurate to first have 6 months of emergency funds parked in a high yield savings account.

What you invest into next will depend on your risk appetite. Endowment products are quite expensive (*read lower returns*) for that same amount of risk.

Sent from Ilovennp using GAGT

 

[Wishdom]

Interesting that both accounts talking about endowment only create an account in Mar and Apr this year...

Good catch. The 3 years plan is O-K-ISH as a plan but pretty **** in terms of a long term investment strategy.

Sent from Ilovennp using GAGT

 

[lim.tina]

Interesting that both accounts talking about endowment only create an account in Mar and Apr this year...

I also talked about singlife's 2.5% and scb jumpstart before on other threads leh...

 

[lim.tina]

I disagree. It is more accurate to first have 6 months of emergency funds parked in a high yield savings account.

What you invest into next will depend on your risk appetite. Endowment products are quite expensive (*read lower returns*) for that same amount of risk.

Sent from Ilovennp using GAGT

ya of course must have emergency funds! personally I save 12 months first before I move on to anything else. find those endowment with gurantaneed returns. might be lower interest rate but at least guaranteed

 

[makav31i]

ya of course must have emergency funds! personally I save 12 months first before I move on to anything else. find those endowment with gurantaneed returns. might be lower interest rate but at least guaranteed

If you want guaranteed returns, might as well buy SSB...No lock in period, no penalty for redeeming early...

 

[lim.tina]

If you want guaranteed returns, might as well buy SSB...No lock in period, no penalty for redeeming early...

but now ssb rates not high I saw the hack before on ssb though, I think can try that if you're considering ssb