The Right Time to Invest?
Investment is hard work. Crunching data is one thing. Taking action is another. The first thing that I did after I joined the industry is to invest my first tranche. I will continue to invest over the next 1 year to diversify my net worth. So, in a sense, I am my first client.
Why invest now?
I acknowledge that right now, with the escalating war in Ukraine, potential conflict in Taiwan, rising inflation globally, and political headwinds in the US and China, it is a season of fear and uncertainty. And the equity markets are pricing that in since prices are no longer elevated according to Shiller Price Earning ratio (currently at 28.37). However, I am investing for the next 10–30 years and I am pretty certain that the current problems will be fixed eventually. Hence, it makes sense to invest now when fear is high knowing that my aim is for retirement.
How much would I invest?
Personally I prefer to be well diversified in all things so that I do not suffer catastrophic damage even if one or two things collapse. I believe in having my basic insurance needs covered first (liabilities fully covered), having a reasonable amount of cash (12 months of expenses), having sufficient CPF savings set aside (aim to hit FRS by age 55), everything else can be invested.
What should I invest in?
This depends a lot on your skillsets, your availability and your circle of expertise. Personally, I primarily invest in businesses and people. When I do this, I am expected to put in my time, my effort, to grow the various businesses I have invested in. I also invest in globally diversified unit trust funds. In doing this, I put in the time to research the best performing, low-cost unit trust funds, and put my money into the trusty hands of the fund managers. As long as their methodology and vision does not change, I will continue to stay invested. I will also monitor and rebalance when there is a fundamental shift in the market condition.
Should you invest together with me?
If you share my mindset of investment, that it is for the long term, then sure, let’s meet via Zoom or in person at my office in the CBD. Coffee and tea is free-flow. I will be glad to have a new friend join me in my investment journey.
Relevant Links
Why I hired a Fund Manager: https://medium.com/@singaporeanlandlord/why-i-hired-a-fund-manager-a2624df88bae
Update on Fund Managers Q2 2022: https://medium.com/@singaporeanlandlord/update-on-fund-managers-q2-2022-6182d619075d
Mortgage Broker (Mortgage Masters) click here to contact via WhatsApp: https://bit.ly/SGLLmortgage
Singaporean Landlord e-book (details of my property investment journey): https://bit.ly/SGLLbook
If you enjoy my writing, do give me a “clap” and reach out to me if you have any questions. I can be easily contacted via Facebook, send me a DM.