The lesson I learned here is.
(1) STI ETF grow too slowly. We need to buy something that give us more capital return. This is my six years experience of RSP on STI ETF.
(2) RSP is a wonderful tool. I encourage everybody to consider having a RSP as part of your investment portfolio. I did not realized that I can save $40K without thinking so much. Just every month treating it like paying insurance. When I was thinking about my older kid Uni, I bought a investment related life insurance. After 20 years (ending this year) I am getting back exactly the premium I paid for. No profit. Zero ROI. I want to show my middle finger here. The only advantage was the insured sum during this period. When it was time for save for my younger one (my son) I decided instead that I would RSP. At least I know what I am buying. All this while I am in total control of my RSP. I can decide to sell or keep.
(3) What I did not share is that in 6 years I have received $4K dividend. It is not a lot but it is more than the insurance policy I bought for my older kid. Spore Stock is a dividend market. If we choose a good stock with good dividend it is not a bad situation to DCA / RSP. STI ETF is definitely not a good choice. A better choice would be to directly buy the banks. Anyway STI is dominated by banks. Might as well buy the banks directly. In the last ten years I have periodically accumulated 100 shares (at a time) of OCBC. I am a small investor. In Feb I sold off 2,400 shares at $11. My cost was $9. Including the dividends/scrip my ROI was much better than STI ETF. If I did not sell I only made a small loss today ($8 today versus my cost of $9). Much lesser than my STI ETF. Buying the bank require DIY which I sometime can forget to buy. Buying a RSP is much easier. But if you are disciplined enough you can always buy 100 shares once every 3 months. I absolutely adore the scrips that OCBC gives me. I loves scrips over cash.
Conclusion - I am not good at picking stock. I just keep to a few blue chip shares to put the bulk of my money. I am not going to kill myself when I lose 38% of my portfolio. I know it will come back eventually. When doing DCA / RSP we must understand there are ups and down. Even when it it time that my son goes to Uni and the investment is still negative. I don't have to sell all the STI ETF in one block. I only need to sell enough to pay for the school fees.
(1) STI ETF grow too slowly. We need to buy something that give us more capital return. This is my six years experience of RSP on STI ETF.
(2) RSP is a wonderful tool. I encourage everybody to consider having a RSP as part of your investment portfolio. I did not realized that I can save $40K without thinking so much. Just every month treating it like paying insurance. When I was thinking about my older kid Uni, I bought a investment related life insurance. After 20 years (ending this year) I am getting back exactly the premium I paid for. No profit. Zero ROI. I want to show my middle finger here. The only advantage was the insured sum during this period. When it was time for save for my younger one (my son) I decided instead that I would RSP. At least I know what I am buying. All this while I am in total control of my RSP. I can decide to sell or keep.
(3) What I did not share is that in 6 years I have received $4K dividend. It is not a lot but it is more than the insurance policy I bought for my older kid. Spore Stock is a dividend market. If we choose a good stock with good dividend it is not a bad situation to DCA / RSP. STI ETF is definitely not a good choice. A better choice would be to directly buy the banks. Anyway STI is dominated by banks. Might as well buy the banks directly. In the last ten years I have periodically accumulated 100 shares (at a time) of OCBC. I am a small investor. In Feb I sold off 2,400 shares at $11. My cost was $9. Including the dividends/scrip my ROI was much better than STI ETF. If I did not sell I only made a small loss today ($8 today versus my cost of $9). Much lesser than my STI ETF. Buying the bank require DIY which I sometime can forget to buy. Buying a RSP is much easier. But if you are disciplined enough you can always buy 100 shares once every 3 months. I absolutely adore the scrips that OCBC gives me. I loves scrips over cash.
Conclusion - I am not good at picking stock. I just keep to a few blue chip shares to put the bulk of my money. I am not going to kill myself when I lose 38% of my portfolio. I know it will come back eventually. When doing DCA / RSP we must understand there are ups and down. Even when it it time that my son goes to Uni and the investment is still negative. I don't have to sell all the STI ETF in one block. I only need to sell enough to pay for the school fees.
