Opportunity never sneaks up on those who straddle the fence of indecision. – Napoleon Hill
It is very important to keep things simple, as complicated things is troublesome and soon you will lack the determination to follow through.
Some simple and wise advice from Warren Buffett:
@ You never want to owe money you can’t pay
@ If you have savings, just buy index fund and buy them every month
In Singapore, one index fund that you can consider is the STI ETF.
It is listed in SGX and you can buy them if you have a broker account. STI ETF tracks the performance of the top 30 companies listed on the Singapore Exchange. So basically you are buying the Singapore economy.
By buying a fixed amount every month, whether it goes up or down, it averages out nicely in long run. As long as Singapore economy is growing, the ETF will perform too.
Do not jump in and out of the market and the ETF will perform its magic.
I haven’t pratice this strategy yet.
However, the price of STI ETF now is about $3.32. To me, its a little on the high side and I wouldn’t want to start buying now. I will wait for a price correction to start this plan.
It is important to know different ways to accumulate wealth, remember that earning a pay check every month is not to only way to do so.