We hear a lot of this all the time. Our parents, our friends, our colleagues and everyone. There isn’t any in my opinion. Some may beg to differ but there really isn’t any the way the see it. There is an actual science to this because it really depends on what kind of person you are. No one will manage your money better than yourself. There are three dimensions to this how I see it.

Your Life Cycle

Life-Cycle – Depending on which part of the cycle one is in, you will change the way you invest and how you want to invest. Different stages in life provides you with different perspective and capability to do certain aspects of financial tweaks. Some get a head start while other don’t but that is not the end goal. It is your objective that is key – No one should just carbon copy a portfolio or process. This is customised and should be based on your own circumstances.

How much you have – This is really a sticky question because the real fact is that no one knows. I am of the mind that your own networth and liquidity is for your own to know and manage. Unless you own the millions that you can’t manage because time is what you need, this would apply to at least 90% of the folks out that. How much can you afford to save or take out that does not affect you paying off your bills on time depends on your financial situation. I remember when I first started out, the salary I have is for my own takings. The very first thing I did was to spend almost all of it. It isn’t smart but we all learn.

Paying yourself first

Paying yourself first is essential in building a bigger pool. The first $1k, $10k, $25k $50k, $100k will be exponentially easier with every milestone. However if you don’t start, then the milestone will not be met. Regular saving plans/investment does help in this process. Using the envelop technique is also recommended for guys who are really starting out.

Time – This is a large and essential part of everything else.

First, you need to find time and give time to learn and experience. No one grew up knowing everything, all of these lies with exposure and experience. Some gets it faster than the rest while others manages this slower. Like an exercise buddy, the journey is long but if you persist and encourage one another, it will ride for a long time.

No excuses – Is Netflix and the next PlayStation more important every other day? Educating and understanding finance takes time and effort. Even if you hate it, try it in a smaller scale model and gradually increase it over time. I can certainly say that over a time period, it will become second nature.

Second, You do not have a warchest overnight. You need to build it. No one knows when is the next drop, what is the next promising industry to go into. No one knows who is the next unicorn or donkey but through time, you will eventually find out about your own strength and sense of investing.

My four points on a good time to invest

These four points in my opinion sets the basis of what is a good time to invest. TLDR:

a. Anytime is a good time to invest as long as you have a plan and you know what you are doing

b.Do not invest more than what you require to pay your bills.

c. Start early, start young, the later you start – the tougher it is. It is never too late but the results will be less than one would expect.

d. Learn as much as you can so that you are well-equipped. Today, there are too many tools around to learn and see.

I also do understand that by saying “When is a good time to invest?” It will attract criticism as to “timing of investment”

Timing the Market?

I would also want to address this issue of timing. It does no one any good if you time the market. No one has the crystal ball.

a. Start by splitting your warchest into different portions. Be disciplined and when market drops, buy some then don’t expect these to turn unto profits overnight.

b. Keep an eye on what you are investing especially if you are buying into a company. Investing into index funds leave you to a more passive investor. We shall not talk about Core and Tactical management of investing this round.

c. Regular investing also helps. Find mutual funds or portfolios who have in-lined principles to what you belief and stick by it.

d. Remember to always review. Things change and so do us as humans during different life cycle.

Small Note

P.s. As you can see, my beliefs is as such that all things work in an ecosystem (Before it gets disrupted). Smaller efforts gives greater confidence and these translate into positive energy, mindset and clear mind. Then, this brings you to another aspect. When this Eco-system is in place, many of the things we have discussed earlier will be a second nature and you would know how to react accordingly.

My Take on Robo-Advisor

Personally I like to use some form of Robo, systematic investing such as Endowus. It also cancels out my liking of timing my Buy-in timing.

• Most importantly, the cash related funds uses a big institution related fund manage such as Dimension Fund which is not readily accessible to retail investor.
• They have shown that they return the rebates they receive from the fund houses instead of absorbing it to pay fees to Banks/Financial Institutions as recurring revenues
• All funds invested are held on behalf by UOB Kay Hian and held in my own name so funds are safe I say.
• My only grip is really about the buy time which I have no control over. By the time the markets drop, I’m not sure when my funds are invested but on the bright side, it means it is consistent and disciplined trading.
• Relatively lower management fees which means more compounding interests for all. That is good news.
• I also like that they only debit the management fees at the end of the quarter instead of taking money at the start. Tells a lot about how they want to be different. Say no to upfront fees.
• The first Robo-advisor to be able to invest using CPFIS. I think they were also the first to be able to use SRS to do so as well. That makes one more level up as CPFIS only approves certain funds that you can invest in. This makes it flexible to invest using Cash, SRS and CPFIS.
• If you use my referral code to sign up and invest minimum S$10k, we both get $20 each which can be used to offset the management fees to keep their lights running: https://endowus.com/invite?code=EDZ8M

Disclaimer

Money is not everything – They say (Who? I don’t know). Without Money, there are lot of things we cannot do. With proper money management, these will slowly go away and your mind’s will be clearer. With a clear mind, things unravel. An end is always where new things start. Be positive and do not be bound by just money.

This is also not a sponsored posts. I used it and I like what I am seeing.

If you like what I am sharing or if it resonates with you, do use my referral codes for other services at https://atomic-temporary-178675883.wpcomstaging.com/contact/

The pictures were taken from a few websites for this article.