Siao liao! Feeling like your investment kena arrow? You’re not alone. Many Singaporeans have shared their investment horror stories on Reddit. Let’s learn from their mistakes so you don’t kena the same way.
Makan Kakis’ Key Takeaways (Reddit Insights)
- ILPs are a big no-no: Many Singaporeans regret buying Investment-Linked Policies (ILPs). As one Redditor, Kindly-Jury921, shared, “Buying into an ILP about 5 years ago as i was a total idiot… Never ever touch an ILP”. Lesson learnt, ah?
- Don’t blindly follow YouTubers: A Redditor, curiousasian2000, learnt the hard way that “Never take FA from YouTubers.” They lost money after following a YouTuber’s stock pick. Be careful of online gurus, okay?
- Starting late is a common regret: Many wished they started investing earlier. As xfall2 put it, “Not starting earlier and only starting when almost 40😂”. Don’t wait, start small now can already!
- Chasing hot stocks can burn you: Meme stocks and speculative investments led to losses for some. Sgboy1985 admitted, “Buy meme stocks in year 2020- 2021.” Don’t anyhow chase, must do your homework first.
- High fees can eat into profits: Some users, like jackishere6, highlighted the impact of high transaction costs: “each transaction cost $25”. Every dollar counts, so choose low-cost options!
SG Context: The Latest Updates & What It Means For You
Singaporeans are increasingly looking for ways to grow their money beyond traditional savings. With CPF interest rates and inflation in mind, many are exploring investing. However, the MAS (Monetary Authority of Singapore) has been issuing warnings about the risks of investing in unregulated platforms. Remember, always choose reputable and MAS-regulated investment options.
Real Talk from the Ground: Singaporean Experiences on Reddit
Here’s what real Singaporeans are saying:
Invested in sgx from 2015-2020. Lost 52k sgd
AgainRaining
Had a jump in salary and I kept my spending constant to avoid that lifestyle creep, but didn’t know better and thought the main aim of the game was saving money. Saved a third of my salary and just had it sitting in a pretty low interest account for three years. Could have earned so much more investing it.
notalwayshere
SPAC – in particular… Grab. Probably the worst investment I’ve ever made.
ThrowawayTakeaways
Some also shared successes, like Focux who said, “I was in that period too but up over 100K+ Mainly held only 2 stocks, AJBU & OV8. Covid really pushed them to the top”. But remember, past performance is not indicative of future results!
Chiong Ah! Your Practical Action Plan for Singaporeans
- Avoid ILPs like the plague: Seriously, just don’t. There are better ways to invest.
- Do your own research: Don’t blindly follow anyone, especially online personalities. Understand what you’re investing in.
- Start investing early: Even small amounts can grow over time, thanks to compounding.
- Choose low-cost options: ETFs and index funds can be a good starting point for beginners.
- Be wary of hot tips: If it sounds too good to be true, it probably is. Don’t anyhow jump into meme stocks.
- Consider your risk tolerance: Don’t invest money you can’t afford to lose.
- Seek professional advice if needed: If you’re not sure where to start, consult a financial advisor.
Investing can be intimidating, but with proper research and caution, you can grow your wealth safely. Don’t be kiasu, but be smart! Jiayou, Singapore!
Source: What are the investment mistakes you made so far?