Autowealth Robo Advisors – Performance Dec 2020

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In my previous post, I introduced Autowealth to supplement my portfolio. This is newly setup for my child’s account. Hopefully, over the long term this will turn out great as well. To repeat on why I chose Autowealth:

Why Autowealth?

My two reasons for doing so is really just (a) try out one more robo advisor and (b) segregate this fund for any other purpose other than the kid’s investment journey.

My take about the investing journey has been the same since day one. Don’t sweat the small things, the costs of robo are so low. We are talking about a 15-20 year horizon here so heck those low costs. You need to pay them to keep their lights running.

Perhaps Auto Wealth is in a different segment all together but they are the ones I see positively after the other two. After signing up in June I finally got to funding the account in September and October when markets were on the downside. The idea of doing this over the long term is to really to buy in when markets drop.

Markets will go up and each time it drops, just pick some up and let the robots do the work on balancing and re-balancing. As long as fees remains low, the portfolio will grow over time and over a longer period. It should remain in the black based on some back testing.

I would say I wouldn’t rate them as aggressive on the marketing front but at 100 million AUM and in the black since 3 years of inception does bode well for them. Looks like they are one of those companies who keep things lean, mean and transparent for others. Many times, I do not mind paying slightly more for better service or better app/products. I speak for myself though as I do know many who penny pinch and I shall not comment more on this. My philosophy is to never sweat the small stuff – To have bigger dreams, you will have to let go of the small things.

Performance – Dec 2020

Looking at the portfolio, it looks pretty nice again in December. The investment horizon would be estimated to be 15-20 years. This is a portfolio which is set at roughly 40% equities and 60% bonds. The investment vehicles will be through ETFs. It does look like it can withstand long term peaks and troughs. What i really like is that i can switch between the SGD and USD currency performance portfolio as well as the impact on USD SGD forex on performance. Again, as time goes by, I would like to deploy funds out into the market in tranches over time.

+7.65% absolute return (SGD currency) is pretty good in my view and this is as at 18 Jan 2021. The impact of USD on SGD is about -3.43% and by referencing the portfolio in USD, absolute return would be at +10.87%. Wow, okay that’s pretty nice for not doing anything after investing.

 

Disclaimer

This is not a sponsored post. This is purely my own opinion after using their service and/or products. If you like what you are seeing, do remember to check they out and do your diligence. There is no one size fits all investment strategy.

If you like what I am sharing or if it resonates with you, do use my referral codes here at https://lifejourney.blog/contact/ for the services.

The pictures were taken from Auto Wealth website for this article. If you need a referral code, drop me a message and you can indicate my full name during registration. From there, both of us will  get $20 each to supplement the fees.

StashAway – Performance Dec 2020

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Here comes the late performance report in December 2020 for StashAway. I am still on the risk index of below 20%, split all the risk portion for 3 different portfolio let me understand how I want to do this portfolio going forward. I still maintain that having calculated risk per $ makes more sense in my opinion. It doesn’t mean high risk high rewards although it can give you high rewards.

As I have always preached, the important thing is that I am not left on the sidelines. If Mr Market decides to go either way, it would matter that much to me in my opinion. If Mr Market drops, then I will add on more to the portfolios.

Retirement Portfolio A (risk-14%)

The SRS account since deposit is currently at +3.06% as on 18 Jan 2021 (Time-weighted return). I think this is quite okay as I entered the market at a high before it dropped in March 2020. Performance wise, I think it is decent and also this is a super long term portfolio – I would say close to 25 years horizon so I’ll just leave it there to monitor on the progress.

Education Portfolio B (risk-16%)

This portfolio is set out to be on a 15-18 year investment horizon. It is at 7.61% on 18 Jan 2021 and I think that this is pretty good. I have been averaging in whenever there are market dips. The risk index is at 16% and I will adjust from time to time but try not to touch any of those if you don’t quite understand how that works.

Education Portfolio C (risk-20%)

For this portfolio, I look at this at shorter horizon of 12-15 years so I feel that I need to take on some risk to achieve my goals. This SA risk index is currently at 20% and will take on to be one of my riskiest portfolio. Return is at 14.92% at inception but as  I didn’t take a screen shot on 18 Jan, this is on 22 Jan 2021, Not much of it has changed or rather it has dropped slightly but this is just a note to self and measure the monthly performance. Over time, more funds will be added to achieve the targeted invested goals.

 

Conclusion

So far StashAway has been a great supplement as a robo advisor. I will try to do more regular updates. I’m not sure if I can do that given things have been rather difficult of late and it has been quite busy at work.

2021 should be a test of time for most portfolios. I believe have rebalancing regularly will be the key.

To sign up or try out Stash Away, visit the website and use my referral code at Stash Away Referral

We’ll both get up to $10,000 SGD managed for free for 6 months which is a good deal.

Disclaimer

If you like what I am sharing or if it resonates with you, do use my referral codes for other services at https://lifejourney.blog/contact/

The pictures were taken from the Stash Away website for this article.

Endowus – Performance Dec 2020

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I’ve been late in updating my report so that I can look back in future to see what are the lessons that I’ve learned. December 2020 ended on like probably an even better annualised return. It is extremely satisfying – the way Endowus has been working out well for me thus far. Notably, no timing of the market whatsoever.

December has been interesting with Senate Elections, Market news on Covid Vaccines being implemented or going to be implemented globally. As I have always said, being systematic about investing is quite important. Month on month, diversification has been really important. Slowly but surely, I’m actually feeling that Endowus and my investment goals do align pretty nicely.

SRS Portfolio

Overall, portfolio is up another 2-3% month on month in terms of SGD. As usual, in USD terms, due to no FX impact as the portfolio is USD ETFs, the performance will definitely be better. We are spending Singapore dollars so this is our reference currency. This is the SRS/Cash portfolio which consists of my favourite Dimension Funds in a 40% bonds/60% equity. Overall from May 2020 to 18 Jan 2021, it is a 14.03% increase in absolute terms – Fantastic. I shall reset to complete a new Year performance and an all time performance going into 2021.

CPF Portfolio

For the CPF portfolio, it is nicely coming up another 1-2% this month and looking strong at 11.42% which is very very good.

All through 2020, the funds performed double digits in total estimated to average around 12% in absolute returns. Both portfolio combined ever since investments were made in May 2020. and comparing the previous month. That is estimated to be around 2-3% higher from November going into December

Also, I would be looking at the new Smart Fund DIY portfolio which looks really interesting. I would definitely be looking this up as interest rates are still pretty low and I got some cash lying around.

Like every month, the pros once more:

  • Endowus is the first and only robo-advisor to be approved by the CPF board.
  • 100% trailer fees back to the consumer, not the fund management fee. This is really one of a kind I’ve seen so far.
  • They do have a decent team who makes sense when introducing their platform.
  • I believe all retail investor should try them out because of how they are trying to disrupt investing.

Again, I will shamelessly thank all of you in advance for using my referral code.

Disclaimer

If you decide to sign up with Endowus, do remember to use my referral code: https://endowus.com/invite?code=EDZ8M

If you like what I am sharing or if it resonates with you, do use my referral codes for other services at https://lifejourney.blog/contact/

These pictures were taken off Endowus website for reference.

Being Angry for the things you have no control over. Does it help?

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There are many times when we are angry. Be it for the right or wrong reasons, there will be times where our own limits are being tested. Some people just cannot take it that they are wrong, that’s just more Alpha kind of folks. Some people are just generally angsty all the time. The slightest thing piss them off. However, when you are angry, who is it that is really affected? Are you venting to the person beside you though you are not angry at them? Or are you just shouting to yourself for someone else you are upset about?

The person whom you are shouting and angry about probably don’t even know. So, what is the point in getting angry. I get it, sometimes i need to let off some steam too but not all the time though. The other day, there was an angsty driver who couldn’t get on the main road because there were just too many cars. The other day, I heard someone banging the table downstairs while working from home. Shouting eventually came on and I could hear someone else shouting back.

Deep Thinking

That made me think a little deeper. When you are angry, the person who do not know you are angry at them. Should you really express it? Eventually, the question to ask is that if one can control their emotions. Not me I would say. I am human and I cannot control over worrying, being angry and also overthinking. I’ll say most of us tend to think that we are right but is that really true? Truth be told, that little arrogance sometime annoys me a little. All we need is just to keep our heads down, be humble and learn along the way. There will always be someone or something that is better than you.

Investing the same?

Similarly, your investment style differs. Emotions run wild in those events and each time you think that markets are coming off, you actually risk missing a chance to recover more than what you should have if you would have chose to do nothing.

The thing about personal finance is that whether one has just starting building your finances, middle stage of building your fund or at a late stage of taking on your retirement funds. Young, old, poor or rich in all categories – There is really no one size fits all and regardless if you are famous or not. There will be emotions involved in all situation.

Recently, I also fell ill and because of that I had to take some matters off my hand. At the same time, markets doesn’t care if you are ill or well and that kind of struck a chord that I need to do less of trading and more of passive investing. Looking back at some of the portfolios for 2020. All 4 robo-advisors returned double digits which is by far the best I have seen. Of course, trading returns have been the best returns for me but those are super high risks.

Robotic in Nature

The idea in letting someone trustworthy to manage your funds are hard to come by. Banks are driven by profits and their pockets matter more than what money you have. Even if they did, they would have another agenda. Nonetheless, the idea – You get it! Only services make revenues.

Convincing Strategy

I’ve been convinced by the way Endowus and StashAway have been working for me as a portfolio:

  • Fee wise it is always all inclusive.
  • ETFs or Fund investing has always been the way to invest regularly. They track index and replace those companies who underperform along the way.
  • In particular, Endowus provides that 100% trailer fee rebates. It is the best one I’ve seen so far to not take a dime that is not transparent to the consumer. On a side note, your funds are in your own name (invest and managed via UOB Kay Hian but through your own channel) If anything happens to Endowus, your money is safe in that sense.
  • Such portfolios are not timing the market and look further into the long term. You need to be disciplined in that manner.
  • I mean especially for Endowus, they charge you a small fee which keeps them running. They invest into some fund types which are institutional in nature. Layman, it means as a normal consumer – you probably could not access these funds.
    • Usually but not always, the so called “hidden fees” are reduced due to economies of scale (Institutional class – Imagine Sovereign wealth funds)
    • Special corporate classes which have a minimum to invest. By using Endowus, collectively as retail investors normal retailer investors can put their money in at a fraction of the cost.

Agree to Disagree

Some points I kind of read and agree but disagree:

  • Yes, I read and heard that you can mimic trades and portfolios but my question is that if you have the economies of scale. How big are your trades?
  • Forex Exchanges rates especially in USD. Can you really accept using another channel to make the exchange or accept the market rate in your brokerage?
  • Replacing and re-balancing your portfolio. I think time matters more to me than doing these stuff which is time consuming. There are people who love doing this and do not mind doing so. So, leave it to those who does the best in their jobs.

This image was taken off Seedly and taken as a reference. Frankly, minimal investment amount should be the last thing on your mind. Fees, rebates and what is the company trying to achieve should be the top priority.

Disclaimer

If you like what I am sharing or if it resonates with you, do use my referral codes for other services at https://lifejourney.blog/contact/

a. Use my Endowus referral link and both you and I will get $20 credit to our account: Endowus Robo-Advisor to sign up now.

b. Use my Stash Away referral code and both of us are entitled to a 6-month management fee waiver, for up to $10,000 SGD of assets invested. Visit Stash Away Referral here to sign up now.

Autoweath – Performance Nov 2020

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Investing especially in spot market is a tough business. Most people cannot accept fluctuations in their portfolio. Autowealth is yet another solution for me. Just that this time around, this is for my kid to start out her investment journey when she can. Teaching financial literacy is something I would recommend to anyone.

Summary on my review on Autowealth:

(a) try out different more robo advisors to understand more about them and how they invest and

(b) segregate this fund for any other purpose other than the kid’s investment journey.

My take about the investing journey has been the same since day one. Don’t sweat the small things, the costs of robo are so low. We are talking about a 15-20 year horizon here so heck those low costs. You need to pay them to keep their lights running. For companies like Endowus and StashAway, these guys have the experience and passion and these translate into actions. I am satisfied on how they are prudent and still maintain the low fees.

In my previous performance to compare the performance, I discussed about the historical S&P 500 chart for the last 50 and 100 years. Markets will go up and each time it drops, just pick some up and let the robots do the work on balancing and re-balancing. As long as fees remains low, the portfolio will grow over time and over a longer period. It should remain in the black based on some backtesting.

Performance

Looking at the portfolio again in November, it still looks pretty nice ahead of the 15-20 years horizon. This is a portfolio which is set at roughly 40% equities and 60% bonds. The investment vehicles will be through ETFs. It does look like it can withstand long term peaks and troughs. What i really like is that i can switch between the SGD and USD currency performance portfolio as well as the impact on USD SGD forex on performance. I wouldn’t say this does as well as the portfolios but to be fair, markets were already slightly upwards and I would like to deploy funds out into the market in tranches over time.

As compared to October 2020, +5.66% absolute is decent in my view (that is +2.66% comparing to October) and this is as at 11 Dec 2020. If markets drop, the rule is to fund the account more. Do note that all of these will have USD exposure. Time versus DIY – it is really about what is important. I usually will want to see the ultimate end goal whenever I start anything.

 

For this month, I also tried to look at the impact of FX and without the weakening USD, performance in USD is actually 8.56% year to date. That is on course to double digits returns once more.

The impact of the USD FX exchange is actually affecting the performance by -3.1%. These FX risks are part and parcel of investing unless I just intend to invest into the Singapore Markets. However, it is just too boring to do so.

Disclaimer

This is not a sponsored post. This is purely my own opinion after using their service and/or products. If you like what you are seeing, do remember to check they out and do your diligence. There is no one size fits all investment strategy.

If you like what I am sharing or if it resonates with you, do use my referral codes here at https://lifejourney.blog/contact/ for the services.

The pictures were taken from Auto Wealth website for this article. If you need a referral code, drop me a message and you can indicate my full name during registration. From there, both of us will  get $20 each to supplement the fees.

StashAway – Performance Nov 2020

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Here comes another Robo-advisor experience from my end. To re-iterate the risk level, I am still at the risk index to below 20% as I felt that there isn’t a need to go all out Risk On going into November. I still think that having calculated risk per $ makes more sense in my opinion as news and information goes on a random rampage.

As I have always preached, the important thing is that I am not left on the sidelines. If Mr Market decides to go either way, it would matter that much to me in my opinion.

Retirement Portfolio A (risk-14%)

The SRS account since deposit is currently at +2.07% as on 11 Dec 2020. Pretty stagnant I would say but I’m not too worried about this long term portfolio. Performance wise, I went into this knowing it was pretty high end of Jan 2020.

 

Education Portfolio B (risk-16%)

This is something I set on a 15-18 year horizon. It is at 5.78% on 11 Dec 2020 and I think that is okay going at around 6-7%p.a. that I assume going into the end of 2020. I have been averaging in whenever there are market dips. The risk index is at 16% and I will adjust from time to time but try not to touch any of those if you don’t quite understand how that works.

 

Education Portfolio C (risk-20%)

This portfolio has a shorter horizon of 12-15 years so I feel that I need to take on some risk to achieve my goals. This SA risk index is currently at 20% and will take on to be one of my riskiest portfolio. Return is at 10.14% at inception which I find it fantastic to reach double digits. More funds will be added over time to achieve my targeted invested goals.

 

Conclusion

So far StashAway has not failed me in a sense that it fits in to my investing style and logic. I wish to put more into the accounts but I can’t bring myself to invest when prices are going higher. However, this is a pretty good supplement in my opinion.

I shall re-look into how I present the performance. Perhaps a more systematic approach so that it is more of a reference instead of just a monthly update.

a. Month on Month

b. Quarter on Quarter

c. Year on Year

To sign up or try out Stash Away, visit the website and use my referral code at Stash Away Referral

We’ll both get up to $10,000 SGD managed for free for 6 months which is a good deal.

Disclaimer

If you like what I am sharing or if it resonates with you, do use my referral codes for other services at https://lifejourney.blog/contact/

The pictures were taken from the Stash Away website for this article.

Endowus – Performance Nov 2020

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It is the time of the month again. I must say I have been really satisfied with the way it Endowus has been working out well for me thus far.

November has been a quiet month. The portfolio makes diversification much more important. As I have always said, being systematic about investing is quite important. Month on month and it still fulfills what I am seeing so far. This is going to be one of my core robo-advisors that I would like to be on for the long term.

SRS Portfolio

Overall, portfolio is up 4-5% month on month in terms of SGD. In USD terms, due to no FX impact as the portfolio is USD ETFs, the performance will definitely be better. We are spending Singapore dollars so this is our reference currency. This is the SRS/Cash portfolio which consists of my favourite Dimension Funds in a 40% bonds/60% equity. Overall from May 2020 to 11 Dec 2020, it is a 11.30% increase in absolute terms.

 

CPF Portfolio

For the CPF portfolio, it does not come with the Dimension Funds due to the restrictive nature in what you can invest in but I think this is excellent performance compared with the 2.5% in CPF.

Month comparison from Oct to 11 Dec 2020, that is 9.32% in absolute returns ever since investments were made in May 2020. and comparing the previous month, that is estimated to be around 3% higher.

This is very good in my own opinion that I have not been doing anything to this portfolio.

Recently they came up with a SmartFund DIY portfolio which looks really interesting. I would definitely be looking this up when there is a market pullback like i mentioned last month.

A quick review once more:

  • Endowus is the first and only robo-advisor to be approved by the CPF board to use your CPF OA excess funds to invest.
  • 100% trailer fees back to the consumer, not the fund management fee.
  • Content and education still remains relevant at least in my opinion.
  • At least they are one of the robo I trust that wants to help retail investors.

Thank you for using my referral code.

Disclaimer

If you decide to sign up with Endowus, do remember to use my referral code: https://endowus.com/invite?code=EDZ8M

If you like what I am sharing or if it resonates with you, do use my referral codes for other services at https://lifejourney.blog/contact/

These pictures were taken off Endowus website for reference.

Stash Away (Sep & Oct 2020)

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I’ve not been diligent in posting my performance that i invest into Stash Away. It has been positive so far (the experience) and I’ll say it is on par with what Endowus is providing. In my own words, I’ll say that they complement each other and offer different perspective. I do trust and believe their views on certain aspects of investing and hence, SA shall be the second robo advisor that I will build a long term goal with over time.

I have since adjusted the risk index to below 20% as I felt that there isn’t a need to go all out Risk On. Having calculated risk per $ makes more sense in my opinion as news and information goes on a random rampage. Most importantly, I am invested – So if Mr Market decides to go up that is fine too. If Mr Market decides to go down, then it will be time to put more funds in. After all, it is a long game.

Retirement Portfolio A (risk-14%)

The SRS account since deposit is currently at +2.46% as on 5 Nov 2020. It’s one of those that I went in February 2020 before the crash came in March 2020. Nonetheless, I believe in the long term strategy that S&P 500 or index generally rises over the longer term so I have a super long horizon on this. I haven’t decide if I should fund more SRS monies into SA or Endowus. We shall see how things turn out.

Education Portfolio B (risk-16%)

This is something I set on a 15-18 year horizon. It is at +5.06% as at 5 Nov 2020 and I think that is a good return in my view. I have been averaging in whenever there are market dips. The risk index is at 16% and I will adjust from time to time as I do believer that by doing so, you sell some assets while buying into a new asset class based on the risk you set so in a certain sense, I can take profit while increasing or reducing my risk. Try not to touch any of those if you don’t quite understand how that works. There is some level of punting involved.

Education Portfolio C (risk-20%)

This portfolio has a shorter horizon of 12-15 years so I feel that I need to take on some risk to achieve my goals. This SA risk index is currently at 20% and will take on to be one of my riskiest portfolio. More funds will be added over time to achieve my targeted invested goals.

Conclusion

So far StashAway has not failed me in a sense that it fits in to my investing style and logic. I wish to put more into the accounts but I cant bring myself to invest when prices are going higher and higher. Instead, when things come down I find it easier to put money in.

To sign up or try out Stash Away, visit the website and use my referral code at Stash Away Referral

We’ll both get up to $10,000 SGD managed for free for 6 months which is a good deal.

Disclaimer

If you like what I am sharing or if it resonates with you, do use my referral codes for other services at https://lifejourney.blog/contact/

The pictures were taken from the Stash Away website for this article.

Grab Invest (Robo)

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During the earlier part of 2020, Grab announced an acquisition of a wealth start-up, Bento. The have since re-branded them to be GrabInvest. It looks like they have ambitious plans to expand into South East Asia with Singapore as its base. We have seen quite a number of new services and products that Grab has been rolling out. That is the benefits of having strong backers as well as a branding that aims to disrupt some industry. I’m not too sure how big they can become but they have been throwing marketing dollars for some time to build their brand. You can read more about the acquisition here at Bento As GrabInvest.

Invest, Save and Grab

It sounds like Grab is going to bring out the brand in their app once more. They probably want to integrate this into the Super App that we often hear about. The tag line is pretty effective I say.

Almost No Barrier to Entry

It takes only a small amount to start investing. I don’t think Syfe and StashAway has a minimum amount to start investing but this set them apart from the usual investing through micro-investing. I’m not too sure about the effectiveness though.

Saving Money

Each time you use the app to do certain actions, you get to choose an amount that will be used to invest automatically. Good habit though.

Spend

There is no lock-up for your funds so you can transfer your money back to the wallet anytime. Talk about flexibility.

Underlying Investments

Okay, looking at how things are. This is similar to the other robo-advisors as to their cash solutions. The underlying funds would be Fullerton Fund and UOB asset management. My guess is the usual short duration bonds or assets as close to cash funds. Due to the nature of the expected returns projected at 1.8% p.a., it is most likely the case.

Fees are simple at 0.45% p.a. Similar or higher than other solutions. If you ask me, I’ll go for Singlife account where you can deposit up to S$10k at 2.5% p.a. and it is SDIC protected. Micro-investing versus Singlife – Singlife wins hands down but integration wise and branding, Grab edges forward a little more.

Read about my previous post on Singlife here at Where to Park Your Funds? Singlife

For excess funds of more than S$10k, get into Dash and Earn. The first year will be at 2% p.a. capped at $20k. Then go for Tiq Gigantiq at 2%p.a. (For the first year) capped at S$10k. On the options available, I’ll give grab a miss unless I have too much spare cash in their wallet that I can’t take it out.

Conclusion

It seems like it is a hype for now. Other for convenience, I can’t find much differentiation from the rest of the many options available in the market except for convenience. It doesn’t help that Grab is trying to take over the world by trying to integrate everything. I don’t support a monopoly so that is a minus. However, I do think that there are other services which will show up on the app in the near future. Coupled with the fact that digital banking license will be announced in Q4 2020 or in 2021 should there be any delay. As a consumer, we should be happy about competition.

I do see more pros than cons though, given their history of data breaches and bad marketing. Also, I don’t see that they are MAS licensed or approved nor are they working with any financial institutions other than the mentioned fund houses or asset managers. On top of that, monies are held in custody of Grab. Reading their Terms and Conditions, it seemed like they got their own ass covered as compared to the consumer so I’m not too sure about that.

I still don’t see it on my Grab App even after updating the app so I’m wondering how buggy their app can be over time.

Disclaimer

This is not a sponsored post and purely my own opinion that I am writing about in my thoughts. If you like what you are seeing, do remember to check they out and do your diligence. Don’t be too fixated with what is the best.

If you like what I am sharing or if it resonates with you, do use my referral codes for other services and products here at https://lifejourney.blog/contact/ for the services.

Images seen in this article were take off the relevant websites for illustration purposes only.

What Will I Invest with S$10,000

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I realised that such posts actually attract more viewership as compared to technical breakdowns. I get it that most people want a quick and fast way to read content and download views. The first 3 seconds of every post will most likely decide if the reader would like to continue reading, be skeptical or just scoff at it. In my earlier posts, I talked about having an emergency fund. It takes time to build such things so don’t forget, the little things count.

In this article, I’m going to discuss more about what to invest and why especially for folks who just got out of school. When I graduated, I remember vividly that it seemed to be pretty hard to save money. A few years on, I realised what constituted the bulk of my spending and why I could not save more. These life experiences cannot be bought so I would say the money spend networking and forging friendships are my human capital.

Going back in Time

Going back to 5 years ago, there wasn’t many choices to invest extra funds into. It was the standard brokerages, fund houses or at most bank/custodian brokerages. There wasn’t a lot of tools to invest in and let’s be honest, the retail bankers can’t be too bothered with a S$10,000 fund. It just isn’t worth their time. So, like many others who preaches, I shall say it again – If you do not care about your own money, no one will. I remember I used to buy funds via FundSupermart, trading some Forex with CMC Markets/Saxo Capital and used Standard Chartered Brokerages to buy US/SGD equities. Nothing fancy that you can really do though.

Moving forward 2020

With the current options we have available, traditional investments seems really cool. (At least it is for me) I really like the options out there for me to pick and choose. You can Insurance Tech, Robo Advisors, Cryptocurrency, Real Estate Block-chains, ETFs, Leveraged Equities/Indexes and many more. With the upcoming digital bank in Singapore, I think that this is going to be great for consumers. The key problem now is to get more people interested in their own personal finances.

What to do with S$10k?

We are going to take away the cash solutions for this since this is on the assumption that cash funds are kept away in a safe place. With the new funds, this is money that you can afford to lose. I used to know something who likes to take a punt, he would leverage and buy options on the same counter without considering the risk. Well, he wanted to win big but eventually his portfolio became pathetic and he lost his job while these options expired and markets dropped. The objective of sharing this story is to always abide by your investment discipline.

I am reminded of the rules:

  • No one has the crystal ball and you will never know when the markets decide to be green or red.
  • A small amount of leverage is fine but not when it is concentrated into one counter. Remember to diversify but not over diversify.
  • Always use option to your advantage, not to speculate.
  • When you lose to the market, blame no one but yourself because no one forced you to invest. You can keep cash and seek cash solutions but if your cash deflate, that’s on you and no one else.

With a S$10k portfolio, I would split it up into a few tranches.

Robo Advisors

  1. Robo Advisors are a great tool if you do not know what to buy or when to buy. The whole idea is to buy when markets go up or down. The entry level for robo investing is so low that anyone can invest. Let’s also be real, all platforms have a cost upkeep so fees are unavoidable. For this I would Assign at least S$6k (~60% – 70%) into such funds and this forms the Core part of the long term portfolio
    1. The first option can be Endowus (USD ETFs) which i discussed before here at Endowus
    2. The second option can be Stash Away (USD ETFs) which i discussed before here at Stash Away
    3. The third option can be Syfe (For SGD related equities or the Global Equity Portfolio) which i discussed before here at Syfe

Now, you must not forget to top up your investment on a monthly basis. Treat that as a form of savings. The earlier you save, the faster your will reach your retirement goals.

From the robo advisor portfolio construction, you can choose a partial bond|equity balanced fund. This is where your bond exposure comes in. Do not waste your time with SGS or SSB during this period because they returns are not great.

Cryptocurrency

2. They say that trend is your friend. The trend now with all the hype is about Cryptocurrency. I can’t help but would add a small amount to the portfolio. They are supposed to act different as compared to fiat currencies. For this I would assign at least S$1k (~10%-15%) and i consider these as alternative asset class.

    1. The first option is to buy Bitcoins. They are by far the largest Cap in the Crypto World.
    2. The second option is to get a foot in to Crypto.com. I previously discussed about this as well here at Crypto.com App/

Funds

3. Personally, I like income or dividend equities or funds. If you are more risk adverse i would suggest to put some money into the PIMCO income funds. They are just the best in class for bonds. Depending on what you like, the average dividends is roughly around 3-4% p.a. For this, I would assign at least S$2.5k (~25%-35%) and these are supposed to be a stable source of dividend funds.

Trading

4. Finally, what fun is there if you leave everything in the Core Portfolio. The balance 15% of funds (~S$1.5k) can be use to buy in specific equity counters in the SGX. (for e.g. bank stocks or reits whenever there is a market pullback) If you really wish to fully invest these monies, just put them back into the Robos or ETFs.

What other options would you do or suggest to do? Feel free to comment. The whole idea of writing is to really share about opinions and you never know when an idea strikes you.

Disclaimer

This is not a sponsored post. This is purely my own opinion after using their service and/or products. If you like what you are seeing, do remember to check they out and do your diligence. There is no one size fits all investment strategy.

If you like what I am sharing or if it resonates with you, do use my referral codes here at https://lifejourney.blog/contact/ for the services.

Images seen in this article were take off the relevant websites for illustration purposes only.