RSP or Trade Normally?

[smint17]

Hi everyone,

I just applied for a POEMS account and have $500 to dump every month to the SBP that they have. I just want to ask opinions on whether should i just trade normally or go with the SBP plan?

 

[disavowed]

You must ask yourself what your goal is. If you believe in the long term efficiency of the market (efficient market hypothesis) and wish to ride the market regardless of condition, the RSP is suitable. If you believe you are well-suited to time the market and know how to jump in and out of stocks (taking into account transaction costs), then go ahead and trade.

 

[smint17]

You must ask yourself what your goal is. If you believe in the long term efficiency of the market (efficient market hypothesis) and wish to ride the market regardless of condition, the RSP is suitable. If you believe you are well-suited to time the market and know how to jump in and out of stocks (taking into account transaction costs), then go ahead and trade.

My goal is to actually have a diversified portfolio and ride with it for the long term. With the amount of money that I can invest per month, I assume it is advisable to buy only 1 counter per month with POEMS since it charge $6 per counter.

Let's say my time horizon is 10 years, would it be a smart move to just buy for example the STI ETF with RSP for $500/month or would it be better to buy lot by lot and adjust the investment product (bonds, equities, etc) as i see fit for my portfolio?

 

[Perisher]

My goal is to actually have a diversified portfolio and ride with it for the long term. With the amount of money that I can invest per month, I assume it is advisable to buy only 1 counter per month with POEMS since it charge $6 per counter.

Let's say my time horizon is 10 years, would it be a smart move to just buy for example the STI ETF with RSP for $500/month or would it be better to buy lot by lot and adjust the investment product (bonds, equities, etc) as i see fit for my portfolio?

$6 per month is $72/year, using scb to buy STI ETF cost less than a dollar or $12 a year. Just saying.

 

[havetheveryfun]

$6 per month is $72/year, using scb to buy STI ETF cost less than a dollar or $12 a year. Just saying.

100% of ur stocks currently all is under SCB? or u got use other brokerages also ?

 

[disavowed]

100% of ur stocks currently all is under SCB? or u got use other brokerages also ?

Buying with SCB incurs the lowest transaction costs across the board, I think it's a good platform to do a diy RSP

 

[havetheveryfun]

Buying with SCB incurs the lowest transaction costs across the board, I think it's a good platform to do a diy RSP

yep.. because have been feeling that im wasting a lot of time just checking stock prices and reading their news.. feel like going passive for more than 50% of my portfolio..


so thinking of using SCB to buy es3 monthly periodically .. I would use invest saver if they had es3 instead of g3b.. don't really like g3b for some reason

 

[smint17]

$6 per month is $72/year, using scb to buy STI ETF cost less than a dollar or $12 a year. Just saying.

Yeah that's what I figured as well but SCB requires us to have at least 6 trades to qualify for an account with them which i don't currently have under my belt. Also, if i were to trade with them in the future, they will be my custodian instead of having it in my CDP account. And I like the automated dividends reinvesting that POEMS SBP have.