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Possible to earn passive income without investing in stocks?

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  #11 (permalink)  
Old 21-05-2020, 11:45 AM
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Quote:
Originally Posted by sinkingfeeling View Post
As above

Many many friends and relatives who invested in stocks and were burnt badly in 1997 and 2008. So I don't dare

Can't even dream of renting out property

Money never enough, how?
If you're very risk averse, can consider parking your money in CPF or in high quality bonds. Bonds are generally considered as safer than stocks (but not entirely risk free!). Tradeoff is that returns are also correspondingly lower.

If you are OK with moderate risk taking and have a long investment horizon (10years and up), suggest you can explore Dollar Cost Averaging (DCA) into low cost index funds. Simple, fuss-free and doesn't require much effort in monitoring.

At the end of the day, your returns are proportional to the amount of risk you are willing to take.

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  #12 (permalink)  
Old 27-05-2020, 11:33 PM
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Quote:
Originally Posted by Unregistered View Post
If you're very risk averse, can consider parking your money in CPF or in high quality bonds. Bonds are generally considered as safer than stocks (but not entirely risk free!). Tradeoff is that returns are also correspondingly lower.

If you are OK with moderate risk taking and have a long investment horizon (10years and up), suggest you can explore Dollar Cost Averaging (DCA) into low cost index funds. Simple, fuss-free and doesn't require much effort in monitoring.

At the end of the day, your returns are proportional to the amount of risk you are willing to take.

Thanks for your advice I scared scarli buy bond then end up like hyflux

What is long investment horizon?

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  #13 (permalink)  
Old 28-05-2020, 11:15 AM
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Originally Posted by sinkingfeeling View Post
Thanks for your advice I scared scarli buy bond then end up like hyflux

What is long investment horizon?
You can look at the Singapore Savings Bonds issued by SG govt, can apply through Internet banking. Or you can look at buying A35 Bond etf from a broker, which is a basket of bonds issued by govt and govt-linked entities e.g. HDB, LTA etc. Sg govt quite unlikely to uplorry anytime soon, unlike Hyflux. But of cos, low risk = low returns la.

But got to be aware that during this period, bond returns will be quite low cos everyone is pulling out of equities. For eg. SSB returns are at about 1%/yr now. It was at 2+% if you bought it a year ago.

Long investment horizon equals 10years or more.

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Old 25-06-2020, 04:24 PM
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Quote:
Originally Posted by sinkingfeeling View Post
You are very right. The problem is, I really don't understand even simple finance concepts

That's why I'm trying to think of simple ways to earn income that don't require so much thinking

Hence why I said I dare not invest in stocks, I'm very very afraid of making the wrong call. My parents themselves lost 6-figure sum playing stocks in 2008, despite attending many courses and having a stocks adviser
There are many financial products, but the 'least intimidating' way to start off investing in stocks is to buy those listed on the SGX. Of course every investment has risks and you decide how much risk you can stomach. To me this is least intimidating because the process is clear cut and the chances of you being 'cheated' is very low.

1. Take the sgx modules necessary to open a CDP account.
2. Open an account with your chosen brokerage firm (DBS vickers, UOB, etc)
3. Buy your stocks via your brokerage firm app.
4. If you are keeping for long term, the stocks must be delivered to your CDP within 3 days and they are under your name.
5. Profit / Loss depends on when you sell, and the only fees you pay are to your broker, GST and clearing fees to SGX.


This is a good time to think about buying stocks because most of them have lost a 25 to 30% of their pre-covid value. People say the 'safer' blue-chip stocks are majority owned by Temasek, like Singtel. Not saying that just because there is Temasek, your investment is totally safe. If for some reason they decide to bail and sell off, the value will likely plunge. However, if there is one thing I have learnt from observation, bad times dont last forever.

Which leads me to your parents losing a lot and you are afraid of 'playing stocks'. My take on why many people say or have parents who 'lost a lot' is they probably bought expecting prices to go up, but panicked and sold off when the stock prices plunged in times of crises.

A more rational response would be to evaluate whether the company can weather the crisis and grow in future and if you can hold off cashing out for a few years. Using Singtel as an example, chances of it collapsing are very slim and yes there are competitors, but even if its price plunges for the whole of this year and longer, I am confident it would recover. And it did indeed recover from its ~ $3.50 plunge to ~ $2.50 in 2008, although over the next decade.

To be frank though, there is no way you can live off dividends investing in SGX stocks unless you have a lot of money lying around, which from your post seems unlikely.
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  #15 (permalink)  
Old 13-07-2020, 09:19 PM
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Quote:
Originally Posted by joblessUncle36 View Post
There are many financial products, but the 'least intimidating' way to start off investing in stocks is to buy those listed on the SGX. Of course every investment has risks and you decide how much risk you can stomach. To me this is least intimidating because the process is clear cut and the chances of you being 'cheated' is very low.

1. Take the sgx modules necessary to open a CDP account.
2. Open an account with your chosen brokerage firm (DBS vickers, UOB, etc)
3. Buy your stocks via your brokerage firm app.
4. If you are keeping for long term, the stocks must be delivered to your CDP within 3 days and they are under your name.
5. Profit / Loss depends on when you sell, and the only fees you pay are to your broker, GST and clearing fees to SGX.


This is a good time to think about buying stocks because most of them have lost a 25 to 30% of their pre-covid value. People say the 'safer' blue-chip stocks are majority owned by Temasek, like Singtel. Not saying that just because there is Temasek, your investment is totally safe. If for some reason they decide to bail and sell off, the value will likely plunge. However, if there is one thing I have learnt from observation, bad times dont last forever.

Which leads me to your parents losing a lot and you are afraid of 'playing stocks'. My take on why many people say or have parents who 'lost a lot' is they probably bought expecting prices to go up, but panicked and sold off when the stock prices plunged in times of crises.

A more rational response would be to evaluate whether the company can weather the crisis and grow in future and if you can hold off cashing out for a few years. Using Singtel as an example, chances of it collapsing are very slim and yes there are competitors, but even if its price plunges for the whole of this year and longer, I am confident it would recover. And it did indeed recover from its ~ $3.50 plunge to ~ $2.50 in 2008, although over the next decade.

To be frank though, there is no way you can live off dividends investing in SGX stocks unless you have a lot of money lying around, which from your post seems unlikely.
Got to take modules before can open a CDP account?!

Very difficult to study for or not?

My maths CMI one
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  #16 (permalink)  
Old 13-07-2020, 09:21 PM
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Bloody hell, I hate link builders like you, especially when you guys write WOT

Go find a proper job
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Old 13-07-2020, 09:22 PM
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Quote:
Originally Posted by rgp View Post
if you are open to the idea buying a property an be a safe mid to long term savings plan as well as for capital appreciation, please contact me. will be glad to share as i did with these people who bought
You another one, don't know how to read is it?

I said money not enough, how to buy property?


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  #18 (permalink)  
Old 08-10-2020, 11:55 AM
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Originally Posted by sinkingfeeling View Post
I have been jodless for nearly 1 year, I got no marnee

Even buy clothes got to think 3x

$500 minimum for the ssb ish too much to swallow for me

Never heard of Stashaway, will look at it, thanks for sic
My blunt advice is forget about passive income. Go spend 100% effort on getting a job, and a job you can do well in.

Passive income is for people who have leftover savings from income, and want to know how to grow that savings. The limiting factor for you is job income, not how to invest.
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Old 04-01-2021, 01:29 PM
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what we are looking for is financial freedom. which means passive income is greater than active income. Currently, my passive income is greater than my full time job. I have found the tool to create this passive income for myself and those who are closest to me. Those who are interested in generating your own passive income, drop me a message and i will share more. Cheers!
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Old 18-03-2021, 05:38 PM
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Have u considered an alternative as to investing in wine as an asset which is still a relatively new concept, well at least in Singapore, hence it is seldom discussed.
Good news is that many major financial advisors are recommending fine wines as investments to their clients.
Even companies like Morgan Stanley are encouraging investors to diversify with wine, reason being it is a stable asset, regardless of the geopolitical, cultural, and economic challenges that equity market investors are likely to face.
When we speak of investments, what comes to your mind first?
Stocks bonds equity.
Alternative investments? Antiques, watches, vintage cars, paintings, which I can safely say caters to the well-heeled individuals.

Introducing fine wine, quite simply plays on a different field to these types of investments, with a relatively low-entry cost.
While stocks can rise and fall for any reason, including a simple Tweet by a prominent politician, the value of fine wine is determined by plain old supply and demand.
Demand for fine wine around the globe is rising, especially as more developing countries develop a taste for luxury products.
The fact that wine has been a popular product for millennia is a testament to its stability in uncertain economic conditions.
I could go on and on about the advantages but a quick google search will do the deed if you are keen.

Fine wine investment has virtually zero correlation with the stock market, making it stable even during times of economic uncertainty. During the recession of 2007/8 the S&P 500 plunged 38.5%. In contrast, the Liv-ex 1000, the market-leading index for fine wine, dipped by just 0.6%. The same pattern emerged in March 2020 when the S&P 500 fell by 25% while the Liv-ex 1000 slipped barely 4%.
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