What To Invest In Singapore
This topic of what to invest in Singapore is nothing new. Yet, a lot of people might have been attracted into high yield investments and subsequently lost their hard earned money. Perhaps it is a desire that Singaporeans who live in one of the the world’s most expensive cities to invest in Singapore but without thinking of the downside or do their due diligence first.
So what to invest in Singapore? Here are some common types of investments available in Singapore.
- Stock Trading
- Forex Trading
- Option Trading
- Value Investing
- Gold/Silver Investment
- Property Investment
- Alternative Investment
- Personal Time Investment or Time Trading
- Personal Development in financial education.
For those who just newly joined the work forces for a few years and have managed to accumulate some investment capitals, make the first investment decision carefully and incrementally. As long as you follow Warren Buffett’s rules : “Do not lose money “, you will be fine. Avoid risky investments such as Contract For Difference (CFD), forex trading and option trading unless you are educated to do so. This is because you need to control your emotion well and not to over-leverage. The odds are against you and you will never be able to beat the market. Though you can try hard to be the 5 out of 100 people who succeeded in winning the trading game, but what’s the point here? My advise is to go for value investing singapore.
For commodity trading such as Gold and Silver, it will be a good defensive instrument especially when the market is crashing. Apart from that, it cannot generate passive income for you. If you end up chasing for such commodity e.g. US$1,921 per ounce for Gold peak price in 2011, then it will take a long time for you to see any paper profits as the current Gold price is failing from this peak price to US$1200 level per ounce and possibly breaking the support level of US$1,000.
If you have come across opportunities of alternative investments, you can have an open mind to understand how such alternative investments work. Do your due diligence check and plan for your exit strategy.
What is personal time investment or time trading? It is just my term to describe that many Singaporeans are still investing majority of their personal time in doing work for their employers. This is nothing wrong actually. In fact, to put it crudely, this is a trading of time for money. On the contrary, there is also a growing numbers of new riches who make it by achieving success in their businesses and very often in real estate investments. They will know how to grow their money harder and consistently.
Instead of personal time investment, i would rather go for more personal development in terms of gaining financial education. I participated in the Property Riches Program which was conducted by Wendy Kwek many years back. Till today, there is no regret of doing so. For me, my belief is still in Property Investment Singapore and property related investments such as REITS and some property stocks. Why? Properties are assets and they will never lose values to zero overnight. Some portions of the investment portfolio can be allocated to REITs and property stocks which generate good dividend yields. But we must be also careful not to invest in properties which are either having negative cashflow right from the start or enter the property market at the wrong time. As long as these two factors are considered, property investment in the land scarce Singapore will generally never go wrong. Property investment still gives me the best returns so far as compared to other forms of investments. My first property investment gave me a decent net profit of over S$350 psf. That’s not a bad start for me afterall.