Sunday, 13 May 2018

(Post 23/week 20)Investment project:Posb invest saver and why i choose Posb invest saver

6.Posb invest saver

This week, I have started a new posb invest saver for g3b. This may sound stupid but ever since I sold my g3b via my old posb invest saver, I found myself constantly monitoring the market like every 30 min to check whether the STI ETF has dropped so I can buy it in a large lump sum at once. With a new posb invest saver, I have limited myself to checking the price of the STI ETF once per month and it was a lot less stressful for me

As of 9 may, the STI ETF is slowly decreasing(or maybe increasing, who knows?) but not as fast as the rate I am hoping(oh well, nothing is perfect in life like I always say)

7.Choosing a posb invest saver plan

Before I reveal about my journey so far with peer to peer lending(moolahsense and funding societies), here is an explanation/research on how I chose my regular saving plan



The shiny thing thread in hardwarezone forum contains useful advice from shiny thing, a very experienced financial advisor, you can read about it here(Warning: its 700+ pages long and has a part 2!)

Summary:
1.investing $100-$500 per month use posb and Maybank
2.investing $500-$1000 per month use OCBC @3%,min $5 or Maybank @1%,min $5
3.investing $1000-$3332 per month use OCBC @0.3% ,min $5
4.investing $1000-$5000 per month
Use standard chartered,@0.2, min 10

For monthly purchase of A35, there are only two options, standard chartered and posb

1.below 1k,use posb invest saver
2.above 1k,use standard chartered @0.2%,min $10

How to calculate the minimum sum to invest in a broker?(just to let you guys know that I am not plucking the number from the sky)

For e.g standard chartered trading rates is 0.20%, min $10 per transaction

We take:0.20%/100=0.002

$10/0.002=$5000(this is a minimum amount you need to invest to ensure that your transaction is worth it)

Due to me serving in national service with a paltry pay of $800, allocating $100 to Singapore bond index fund and $100 to STI ETF(g3b) is just right manageable hence I choose POSB invest saver. Besides, I am pretty sure everyone owns a Posb account from the first day you were born, hence convenient is also a huge factor here

Next week, I will reveal a little more about my peer to peer lending(moolahsense and funding societies) journey so far, stay tuned!

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