Getting into investing

My colleagues at work are always finding the best savings account to put their money in.

Of course, some might say that should not be the case as you should work more to increase your income and not to worry over such minute matters like interest rates on your savings especially when you are a fresh grad.


Read more on why your shouldn't be worrying so much on bank interest but on increasing your income: The Single Mistake Everyone Makes In Their 20s Trying To Build Wealth

One of my colleagues who know that I do invest my money was asking me whether she should start the regular saving plan (RSP) under POSB invest saver for her to hit a higher interest rate for her DBS multiplier account.

Read more: DBS Multiplier changes and what might be my next action

I think it is a rather good initiative to start investing through a RSP because it is automated and allows you to invest with a lower commission.

But what I told my colleague was that eventually, what you are buying is stocks and it will be fluctuating in price an so your capital is not guaranteed at the end when you want to cash out.

I think this is really important to know because most people invest thinking that they will be able to earn money or even huge amount over a short period of time but in reality, it takes time and doesn't necessary mean that your capital will grow.


Definitely, I know once my colleague starts the RSP, she will observe the prices daily as she is the type to keep up with her money.

Of course, when I first started investing, I was also obsessed with checking the prices frequently but after awhile, you realise that you can leave your investments alone without having to check them everyday.

Getting into investing can be good as it is how you make you money work for more money. And especially with how easily accessible investing tools are nowadays, starting young can allow your money and for you to take on more risk.

Read more:  January 2020 Portfolio, Purchase and Dividends Updates
 
January 2020 has passed and time really flies. With CNY almost over, it is time to be on focus with my work, haha Jan was like a dream with New Year then CNY, work seemed secondary as celebrations were in place. 

January 2020 Portfolio, Purchase and Dividends Updates

January passed in a blink of an eye, this month's dividends were not bad and I also made a purchase besides my RSP with FSMone.

One mistake I made for my RSP with FSMone is that I forgot to convert my SGD to USD so no purchase was made for Vanguard Total World Stock ETF (VT) and only 39 units of SPDR STI ETF was made. 




I will remember to convert my SGD to USD before the purchase date so that it will be purchased. 

Portfolio: 

Overall my portfolio value has dropped over the past few days. However, I am not too concerned about it yet as the deop is not too extreme and with my RSP with FSMone, I can purchase more units of ES3. 

I bought 1700 units of Far East Orchard (O10) at a price of $1.17 each in early Jan. I like the dividend yield on this stock and although it is not a REIT, the dividend payout has been consistent. 

With a dividend yield of 5%, it can help contribute to my portfolio.  It has a price to book of 0.4 and P/E of 17.




The price of O10 also rarely fluctuates as Far East Organization holds about 61% of the shares. Due to the coronavirus outbreak, it has since dropped to $1.14.

Dividends: 

January is a pretty good month with Nikko AM STI ETF paying out $58.66 and Singtel paying $34 so I received about $92.66 this month. 

I really like that my dividends are increasing and hope to pump more into my portfolio so that they can continue to increase. Nikko AM STI ETF is one of my biggest holdings as I previously bought it using the DBS POSB invest-saver. 

I have since terminated it but am holding onto the units as I switch to FSMone to buy SPDR STI ETF instead. 

Read more: Switching from POSB Invest Saver to FSMone ETF RSP