I have wrote about the ETF a couple of times. Recently, I came across a video on Facebook by SGX introducing STI ETF (Please watch the video below). Well done, SGX! I personally liked the video. It gives a good introduction and a baseline understanding of STI ETF.
I've long been a proponent of the STI ETF. Please read some of my earlier articles:
I have been asked by a few readers, new to investing, on what should they do or what should they invest in or how do they get started?
If I could go back in time and give myself advise, I would tell my 23-year-old self to start investing in STI ETF and dollar cost average my STI ETF investment.
So to Mark Tan who has asked me what should he do with his S$10,000 savings; I think you should considered investing in the STI ETF.
Invest in STI ETF monthly
Again, my advise to myself would be the following 5-years plan to kick-start my investing journey (who has S$10,000 to begin with):
23-year-old self
Savings: S$10,000
Continue to save: S$250 monthly (not a very big amount and I believe most should be able to save this amount or more)
Continue to save all my bonuses - to build my emergency / war chest fund.
Not to spend extravagantly (I doubt anyone would listen to that advise)
Invest: S$400 monthly on STI ETF
The next 5 years would look something like that:
This is just a hypothetical example. There will be interest earned in the savings account. In addition, STI ETF will be distributing dividends as well. The market value of the STI ETF might be higher than the S$24,000 invested. Or it might be lower. Whichever the case, the point is I will have started my investing journey with S$24,00 invested.
So for those who do not have S$10,000 to start their journey? It doesn't matter. Start with a Regular Savings Plan.
Regular Savings Plan
There are a few Regular Savings Plan options that allows you to invest via a GIRO arrangement on a monthly basis. One is POSB Invest-Saver and the other is OCBC Blue Chip Investment Plan. Please take a closer look at the fees and charges. For those with lesser discipline, this is the best option.
Conclusion
I am not advertising for POSB or OCBC. I have been using the OCBC Blue Chip Investment Plan to invest in the STI ETF for my SRS account. Investing earlier or just starting this journey is my key advise to myself if I could go back in time.
Investors who fall behind hazard losing energy in their organizations, as well as lawful consequences if laws are overlooked or broken. Effective investors remain instructed and adjust to any administrative changes or financial patterns. https://www.investorservicesuae.com/
ReplyDelete