Newbies in Investment

[pohtoh]

Hi,

I recently bought a book "Rich by Retirement" for Singaporean by Joshua Giersch and I really love it. It is pretty straightforward and I tried to follow but I have further questions and hope someone can help me to retire early

I am currently 47 and have put aside an emergency fund and is really for investment. After reading his book, I then started to look at my investment linked policy(where I used to think to let the professional handle until reading your book) and was surprised that after 15 years of $366 monthly premium, I can only get $54K if I surrender now. The total premium I paid to date was around $51K.(not so bad and as I still earned $3K) How I wish I read this book earlier : (

Below is what I will have for investment and hope someone can guide me how I should invest

1. $54K(from my ILP product) + 10K cash + 30K (if I cancel another policy plan as I am still asking the insurer on this) cash ready for my investment
2. $20K in CPF ordinary account ready for investment to earn higher return
3. I have $84K in special account where I will leave it there to earn the 4%
4. I intend to invest 2k every month where I would like to use SRS to maximise my tax relief( $1275 using SRS as the max is 15300/yr and $725 using cash)
5. I heard something like robo advisor where it is meant for newbies like me. Should I even use robo advisor where I let it run by itself?

Can guide me the straightforward step by step on how I should start this investment journey as MBKE MIP as recommended no longer exists and with the robo advisor coming on board?

 

[skpuppy]

Hi

I am slightly younger than you. My suggestion

(1) don’t surrender ur insurance as it gives u protection
(2) cpf can use to buy dividend stocks
(3) SRS can also invest in dividend stocks and some funds if you are more adventurous
(4) cash can invest in ETF

 

[Shiny Things]

Hi,

1. $54K(from my ILP product) + 10K cash + 30K (if I cancel another policy plan as I am still asking the insurer on this) cash ready for my investment
2. $20K in CPF ordinary account ready for investment to earn higher return
3. I have $84K in special account where I will leave it there to earn the 4%
4. I intend to invest 2k every month where I would like to use SRS to maximise my tax relief( $1275 using SRS as the max is 15300/yr and $725 using cash)
5. I heard something like robo advisor where it is meant for newbies like me. Should I even use robo advisor where I let it run by itself?

Can guide me the straightforward step by step on how I should start this investment journey as MBKE MIP as recommended no longer exists and with the robo advisor coming on board?

I’ll point you over to the mega thread - mods, could we consolidate this post into that thread?

That all said, though:

1) Yeah, you’re making the right choice to redeem the insurance policy. This is why we’re so opposed to combining insurance and investment, whether that comes from ILPs, whole-life policies, whatever—the returns tend to be terrible, and the fees are stratospheric.

2) Because MBKE have sadly cancelled their monthly investment program, the best broker on the street right now is Interactive Brokers. They now have a Singapore office, and Singaporean residents can buy and sell Singaporean stocks (ES3 and MBH, which I discuss in the book); you couldn’t previously do that through IBKR.

You might as well just use IBKR for everything. The $10/month minimum monthly activity will be a little annoying at first, but when you reach $100k USD account value, they waive the minimum monthly activity charge, and you should be there pretty quickly. Plus, honestly, it’s a lot more convenient to have everything in one brokerage account.

3) I wouldn’t personally bother with roboadvisors. There are a lot of them out there, but their fees are high, and their investment mixes are a bit weird for Singaporean investors.

 

[pohtoh]

Thank you very much for the advice and definitely u can consolidate this thread to the mega thread.

BTW, this book is really good and every Singaporean should read it

 

[Okenba]

Read up well on SRS before you put your money in there to invest. There are limitations on what you can invest in via SRS and CPF as compared to no limitations in cash.

Your SA also isn't maxed out and 4%pa isn't a bad deal at all, but i guess it all depends on your risk appetite.
Also note that SRS can only be withdrawn without penalty when you are 62. The drawdown age for CPF however is 55, depending on how much you have in your CPF, and you get payouts from CPF Life from 65 onwards.

 

[jetblack]

The author replied u btw

Thank you very much for the advice and definitely u can consolidate this thread to the mega thread.

BTW, this book is really good and every Singaporean should read it

 

[pohtoh]

Thank you all for the valuable comments. Now I can use IBKR for ES3, MBH and also IWDA. What about SRS and CPF? How should I deal with this?
SRS - can only open with any of the 3 banks OCBC, DBS & UOB. Then what kind of investment should I choose? any recommendation?
CPF - Reason for not putting in my CPF to SA as I would like to have more than 4% investment. Hopefully can max up to $400K after 15 years. Any recommendation?

 

[Nancy Fancy]

Thank you all for the valuable comments. Now I can use IBKR for ES3, MBH and also IWDA. What about SRS and CPF? How should I deal with this?
SRS - can only open with any of the 3 banks OCBC, DBS & UOB. Then what kind of investment should I choose? any recommendation?

CPF - Reason for not putting in my CPF to SA as I would like to have more than 4% investment. Hopefully can max up to $400K after 15 years. Any recommendation?

my 2 cents.

SRS can be invested in bonds, ETS, insurance endowment plan, SGX stocks, SSB and unit trusts.

 

[Okenba]

Thank you all for the valuable comments. Now I can use IBKR for ES3, MBH and also IWDA. What about SRS and CPF? How should I deal with this?
SRS - can only open with any of the 3 banks OCBC, DBS & UOB. Then what kind of investment should I choose? any recommendation?
CPF - Reason for not putting in my CPF to SA as I would like to have more than 4% investment. Hopefully can max up to $400K after 15 years. Any recommendation?

I've found FSMone a good place to go to search for funds and etfs that can be bought through CPF or SRS.
Do keep an eye on the expense ratio, especially for CPF investments as you are foregoing a guaranteed 2.5% if you choose to invest it.

Robos also provide an option, particularly for SRS of which Stashaway, Endowus, and Moneyowl provide options.
For CPF, Endowus is the only robo that has that option right now for CPF-OA.

 

[pohtoh]

Thank you for the valuable comments. Will look into various options

 

[focus1974]

TS,

U r 47yrs old already and you believe you can invest by reading a book?

For your case, I would say you do nothing to anything... except..

The $10k you have in cash, start a Interactive Broker Account and then you try your hands in trading or investing that $10k.

Give yourself 6 montths and see whether you think you are doing good to want to liquidate your other assets/investments to manage yourself.

 

[chrisloh65]

Using Shing Things' strategy as described in his book with that kind of low returns, anybody would need to take 30 years or more before he can earn enough to retire, so TS going to work and DCA until 77 years old or more?

TS,

U r 47yrs old already and you believe you can invest by reading a book?

For your case, I would say you do nothing to anything... except..

The $10k you have in cash, start a Interactive Broker Account and then you try your hands in trading or investing that $10k.

Give yourself 6 montths and see whether you think you are doing good to want to liquidate your other assets/investments to manage yourself.

 

[lordofthering]

TS,

U r 47yrs old already and you believe you can invest by reading a book?

For your case, I would say you do nothing to anything... except..

The $10k you have in cash, start a Interactive Broker Account and then you try your hands in trading or investing that $10k.

Give yourself 6 montths and see whether you think you are doing good to want to liquidate your other assets/investments to manage yourself.

lol this is bad advice.

 

[lordofthering]

I am professional with finance/trading. do not want to divulge too much about myself.

My point is normal people never make it trading. if you want to invest, just buy some stocks/etf. if you buy enough stocks(>30) it will just behave as if it is an etf. that is the best for you if you want to invest.

 

[apriliasiao]

TS,

U r 47yrs old already and you believe you can invest by reading a book?

For your case, I would say you do nothing to anything... except..

The $10k you have in cash, start a Interactive Broker Account and then you try your hands in trading or investing that $10k.

Give yourself 6 montths and see whether you think you are doing good to want to liquidate your other assets/investments to manage yourself.

what a fuk up suggestion.

 

[lordofthering]

Here really got siao lang. zzzzz. DYODD.

if I can dunk in basketball, can I put in my CV?
https://forums.hardwarezone.com.sg/...unk-basketball-can-i-put-my-cv-6407432-2.html

jialat man. My ITE lecturer go up newspaper
https://forums.hardwarezone.com.sg/...y-ite-lecturer-go-up-newspaper-6401437-2.html

sian. now my relatives all know i got go IMH before
https://forums.hardwarezone.com.sg/...ves-all-know-i-got-go-imh-before-6394426.html

dunno why you so triggered go search my post. this is money mind and i serious here. in edmw, it troll mode and if you think my post in money mind is troll, please ask mod to infract me

 

[reddevil0728]

dunno why you so triggered go search my post. this is money mind and i serious here. in edmw, it troll mode and if you think my post in money mind is troll, please ask mod to infract me

you are?

I am professional with finance/trading. do not want to divulge too much about myself.

My point is normal people never make it trading. if you want to invest, just buy some stocks/etf. if you buy enough stocks(>30) it will just behave as if it is an etf. that is the best for you if you want to invest.

https://forums.hardwarezone.com.sg/...put-all-build-dividend-portfolio-6401804.html

https://forums.hardwarezone.com.sg/...e-perpetual-bond-pay-you-45-65-a-6305495.html

https://forums.hardwarezone.com.sg/...erence-between-buying-sti-s-p500-6272303.html

https://forums.hardwarezone.com.sg/money-mind-210/400-000-cash-fd-how-get-best-fd-rate-6206943.html

 

[Okenba]

TS,

U r 47yrs old already and you believe you can invest by reading a book?

For your case, I would say you do nothing to anything... except..

The $10k you have in cash, start a Interactive Broker Account and then you try your hands in trading or investing that $10k.

Give yourself 6 montths and see whether you think you are doing good to want to liquidate your other assets/investments to manage yourself.

OP,

I don't think OP should trade, but I do think he needs to be very aware that the long term investing we are talking about is over a course of 10, 15, 20 years. So don't go in expecting any quick returns.

At 47, you will also need to prepare for 55, and what happens to your CPFLife.

The danger is that OP puts in his cash/cpf into investing, and the market is down when you want/need to cash out. (Eg. at 55 when he needs to fund CPFlife. Or if he gets retrenched. Or wife gets retrenched. Or kids need money for uni. etc)

OP needs to have a plan for that.

(ps. OP, unless you are single and extremely conservative in your expenditure, I am not sure how early you can actually retire...)

I do agree that it would be good for OP to open a trading account and plonk in 5k or 10k and just watch the market while he reads up more about investing. This will show you your stomach for volatility and might help you set a AA that is suitable for you.

 

[hwmook]

I am professional with finance/trading. do not want to divulge too much about myself.

My point is normal people never make it trading. if you want to invest, just buy some stocks/etf. if you buy enough stocks(>30) it will just behave as if it is an etf. that is the best for you if you want to invest.

Professional in finance/trading? Bank teller or salesman? You are not even investment savvy and you expect us to take you seriously. Kthkbye.

 

[lordofthering]

Professional in finance/trading? Bank teller or salesman? You are not even investment savvy and you expect us to take you seriously. Kthkbye.

yes, i am a bank teller. sorry about that.