Saturday, June 5, 2021

Why Endowus

In my earlier post, I mentioned that one should leverage on your strengths and minimize your weaknesses. My main strength is spending below my means so that I will have some funds to invest every month. My weaknesses are seeking the thrill in stock-picking and trading frequently in the hope of generating quick gains. The adrenalin of some early wins will make one believe that he or she has the Midas touch and the skills to trade (where the success should have been attributed to luck), and sure enough eventually one would return the profits and more back to the market.

A huge amount of research has shown that almost none of us can time the market consistently and beat the market returns. Sure, in a bull market when the trend is rising, some of us may be able to compound our gains by leveraging and thus beat the market. I have done it before. But can one do so consistently? When the tide turns (and it can turn quickly), the traders can be quickly found out. 

After one such sobering experience last year, I decided to leave the investing to the experts. By transferring my available funds to the robo-advisor, Endowus and dca-ing whatever funds I have every month from my savings, I basically minimised the probability of me speculating in the stock market and inevitably getting burnt again. Sure, I could DIY but I reasoned that it would be better just leaving it to the experts for the time being and I would rather spend my time in other pursuits in life.

Why Endowus? I did consider other options but eventually pumped for Endowus for the following reasons, among others:

1) Easy to understand investing methodology and ability to create own satellite portfolios to supplement core portfolios

2) Access into Dimensional Funds in the Advised portfolios with decent track records 

3) Funds are SGD-denominated so no foreign exchange fees

4) Single platform for CPF, SRS and Cash investment for ease of tracking and convenience 

With the burden of investing out of my mind, I just need to worry about what I can control which is the amount I can invest every month. I would ensure that I keep to my side of the bargain. The rest I would just leave it to the markets to work its compounding magic over time and it should do the trick. 

Thanks for reading,

Jay





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