Investing for Baby Domo
After a short hiatus, I am back to blogging.
I was too busy pursuing my computer gaming previously after the Chinese New Year. After doing a calculation of the red packets from her first month birthday and red packet, I realized that there is quite a substantial amount of money and so I began to go through what are some of the options that are available..
Ahh, the sweet nectar of temptation.
It is always such a hot topic within Singaporeans. One main point of such discussions is that the minimum sum have been steadily increasing throughout the year. That I personally agree to a large extent.
Although the promise of a 4% return (special account) is very tempting, the drawback of not having the liquidity and the risk of allowing Baby Domo to grow complacent is very true. As such, I will not be considering this option.
An Exchange Traded Funds (ETFs) is a security that is tradable that seeks to copy a stock index, commodity, bonds, or a basket of assets.
For this option, I will look at IWDA+ EIMI which will seeks to copy the world’s small and big cap companies. This will most likely provide much better return than CPF’s 4% while providing the liquidity that I will like.
But since this is my first purchase, I will like to pick something which can provide a higher risk return.
I would definitely consider this to be the most risky option out of all but with the time horizon, i believe this has a chance to outperform the ETF.
I have gone with a choice of a blue chip – DBS , despite going in at high price, I believe that time in the market will definitely beat timing the market.
Another interesting option really, but there is no point to using SSB (Singapore Saving Bond) as a long term vehicle as there are better options out there. The only reason why I would consider using SBS will be just to park my money for a certain known period. In this case, I would not consider as my time horizon is very long.
Just no, it will be tedious to use the amount in a hurdle account and my wife will prefer if the accounts are much clearer, which I too agree.
Maybe when she is older, I will be glad to educate her on the merits of the hurdle account but till then, I will not be using them for Baby Domo.
This was a definitely a short post but I am trying a new plugin (elementor) which helped to create this post layout. Unfortunately, It actually resulted in additional work as my draft was not saved many times.Moving on, I will try to use more of this plugin to create my post as I think the layout is quite interesting.