I started using robo advisor to invest small tiny amount of money last month. It is actually $10 per month. I hope to educate everyone that it is possible to start robo investing even using tiny amount of money.
STRATEGY
My strategy to robo investing is such a no-brainer. It is simply dollar cost averaging, every month $10 will be automatically giro-ed and be invested. Everytime there is any “drop” in the market, I add $10 manually via PayNow. Super simple and easy.
I use Smartly because it is just so simple and easy to use. Almost fuss free.
INSIDE MY SMARTLY PORTFOLIO
The portfolio is automatically rebalanced and there is a chance in the portfolio construction. Last month, the holdings were
1. US Total Stock Market ETF,
2. Gold ETF,
3. Emerging Stock Market ETF,
4. Dividend Stocks ETF,
5. International Developed Stocks ETF.
I have no idea why the construction changed. It seems to become more defensive even though my risk score is 10/10 (maximum). In fact, I am not too bothered about it.
FINAL THOUGHTS
It is important not to panic when the stock market drops. It is more interesting to buy more when stocks become cheaper. Because in the long long long run, the stock market will always go up.
The returns from robo investing may not be very high. It simply serves as an alternative for people who are new to investing or for people who are simply too busy to manage their investments.
Disclaimer: www.engboonhow.com is an opinion based website. I am not a financial advisor, and the opinions on this site should not be considered as financial advice. This is not a sponsored post. You can contact me for a referral code to invest via Smartly if you like to.