I usually get emails from readers telling me that they want to spend money on shares after having learn my weblog, however are too afraid to start out as a result of they don’t know when is an effective time to enter the markets, what shares to choose, or are uncertain if their capital is sufficient to get began with
My reply has at all times been that for those who’re a newbie beginning out in your investing journey, then Common Shares Financial savings (RSS) Plans would possibly simply be a very good place to start out.
It’s no secret that saving and investing constantly is without doubt one of the best methods to construct long-term wealth. Nevertheless, some folks battle with looking for an appropriate timing to speculate, whereas others get caught up with their day by day lives or a busy season at work and fail to maintain up with their investments.
If that sounds such as you, then automating your investments is the best way to go.
This will simply be achieved by way of a Common Financial savings Plan (RSP), which lets you make investments a set sum of cash each month into your most popular investments. The quantity is robotically deducted out of your checking account and invested in your chosen asset – comparable to exchange-traded funds (ETFs), shares, or unit trusts – and employs a dollar-cost averaging technique, the place you make investments recurrently no matter market circumstances.
Right here’s an instance of how a lot you possibly can have made for those who had given up your weekly espresso to speculate US$5 as an alternative, each week for the final 3 years, into the QQQ. Your complete returns? A 37.40% achieve, and a more healthy, much less caffeinated physique.

Advantages of a Common Financial savings Plan (RSP)
If you’re new to investing or would not have a big sum to speculate upfront, and want to make investments steadily to develop your cash over time, then a RSP could also be the perfect funding instrument for you.
- With low month-to-month contributions ranging from as little as S$10, an RSP offers an accessible and simple means so that you can begin constructing your funding portfolio.
- By automating the investing course of, it not solely saves you time, but in addition reduces the necessity so that you can have in depth market information earlier than you dip your toes into the world of investing.
What’s extra, by automating your investments, you take away the emotional aspect of decision-making and pressure your self to remain invested even when the market is unstable.
By investing at common intervals, a RSP will even enable you purchase fewer shares when inventory costs are excessive, vs. extra shares when inventory costs are decrease. This can assist to decrease your common price in the long term, and make it simpler so that you can keep invested for the long-term.
If that is your first time, right here’s how one can arrange and automate your investments for your self.
A Step-by-Step Information to Setting Up an RSP on Your Brokerage
Earlier than you begin, it is best to ask your self these questions:
- How a lot cash do I’ve to speculate every month?
- What do I wish to spend money on?
- How usually do I wish to make investments?
As an illustration, you possibly can determine to speculate $500 in an index fund that tracks the S&P 500 each month. Or, for those who’re optimistic about the way forward for expertise, it’s possible you’ll wish to make investments $300 in QQQ each month, which tracks the 100 most modern corporations listed on the tech-heavy NASDAQ inventory market. Perhaps you are feeling that McDonald’s will at all times be a resilient inventory to personal, then you possibly can arrange a recurring funding of $50 each month in direction of it.

Step 1: Resolve in your brokerage and the way a lot to speculate.
By now, most brokerages in Singapore have already began providing a Common Financial savings Plan. A number of the conventional brokerages could name it by a special identify i.e. Common Shares Financial savings (RSS) plans, however they primarily confer with the identical factor.
Every brokerage platform comes with totally different funding choices, charges and the quantity wanted to arrange an RSP. As an illustration, if you wish to spend money on a neighborhood ETF monitoring the REITS index, the minimal you will want to speculate ranges from $50 to $100 relying in your selection of dealer.
In the event you’re seeking to make investments from as little as S$10 a month, then take a look at moomoo’s RSP for US shares, ETFs or funds right here!

Step 2: Resolve on what to spend money on.
When you’ve chosen a brokerage, it’s time to choose your funding choices for the RSP. Most brokerages supply a wide range of ETFs, unit trusts, or blue-chip shares so that you can select from.
In Singapore, widespread choices embrace:
- Straits Occasions Index (STI) ETF: A low-cost ETF that tracks the highest 30 corporations listed on the Singapore Change (SGX).
- REITs (Actual Property Funding Trusts): These provide you with publicity to the property market with out having to purchase actual property instantly.
- International ETFs: Some brokerages could supply entry to international markets, permitting you to spend money on US or worldwide ETFs.
When deciding on your investments, think about components like your danger tolerance, funding horizon, and monetary targets. In the event you’re simply beginning, diversified ETFs or low-risk unit trusts are a simple strategy to unfold your danger.

For instance, investing $300 per 30 daysat an 8% annual return might develop to over $100,000 in about 17 years. The hot button is to remain dedicated and let your investments compound over time.
In the event you’re utilizing the moomoo app, you should use their RSP Calculator to run a easy backtest to verify what returns you’ll have gotten for those who had set it up throughout a specified timeframe.

Uncertain of whether or not to spend money on an ETF monitoring the S&P500 or the NASDAQ-100? Apparently, the returns for each funds over the previous 1 yr wouldn't have differed by a lot!
In the event you want to arrange a RSP in your favorite shares, you can even achieve this. As an illustration, right here’s what you possibly can have gotten for those who had invested in Meta vs. Broadcom at recurrently month-to-month intervals for the previous yr:

Step 3: Arrange automated transfers.
The final step is to hyperlink your brokerage account to your checking account and arrange automated transfers. That means, you received’t have to recollect to make month-to-month transfers manually, which can prevent quite a lot of time and hassle.
Step 4: Evaluate your RSP recurrently.
Lastly, don’t neglect to evaluation your RSP recurrently, comparable to each 6 – 12 months. That’s as a result of market circumstances or your monetary targets and life circumstances could change, so be certain that your RSP continues to align together with your long-term aims.
In case your earnings grows, you can even select to both modify your month-to-month funding quantity, or arrange one other RSP to speculate into one thing else.
When you’ve arrange your RSP, your investments will robotically occur each month even for those who get busy and neglect to simple. That’s the fantastic thing about automating it!
TLDR: Automate your investments at the moment by establishing an RSP to take the feelings out of investing.
Moomoo means that you can automate and construct your portfolio over time with day by day, weekly, bi-weekly, or month-to-month recurring investments, ranging from as little as S$10.

You should utilize moomoo to develop your wealth over time by dollar-cost averaging within the US market. Get pleasure from automated financial institution transfers and foreign money alternate to effortlessly make investments a portion of your month-to-month wage for long-term returns!
Sponsored Message
Get began with investing recurrently in US shares at the moment with moomoo.
And in case you are new to moomoo, you possibly can take a look at their new customers rewards right here. Moomoo SG presents 0 fee buying and selling for US shares and 1 yr 0 fee for SG shares.
Click on right here to assert your welcome rewards right here!


Disclosure: This text was written in partnership with moomoo. All opinions are that of my very own.
*Marketing campaign promotional T&Cs apply. All views expressed on this article are the impartial opinions of the creator.Neither Moomoo Singapore or its associates shall be responsible for the content material of the data supplied. This commercial has not been reviewed by the Financial Authority of Singapore.