Which is better - buying for dividend payout or buying for gain

[abbby]

More for retirement funds, it works out well likely would like to double it..
Risk appetite is 6/10 (prefer not too risky)

[malcontent]

Less risk means less return, so doubling it would take longer. However “not too risky” might mean index funds instead of individual stocks. An index already reduces risk significantly due to vastly improved diversification. Retirement normally means longer holding period (decades?), which means you can afford to take more risk, provided you can ride out a multi-year downturn without panicking. Keep in mind that for retirement funds, not everything needs to be available on the day you retire, you will need a mix of short and long-term holdings to cover early and later years of retirement (a lot of people overlook this aspect).

My other assumption is that you’ve got other retirement funds… at least CPF which provides a lot of safety and should give you the comfort to step out on the risk spectrum with this $45k.

If you are confident that you’ll retire in Singapore and are currently paying taxes, have you considered funding your SRS? You wouldn’t be able to put the whole $45k at once, but you may want to max it out if the tax savings are worthwhile.

With all of that said, I honestly believe that a fund like ISAC is best recommendation for this $45k. It’s highly diversified with thousands of stocks from around the world (just about any major global company you can think of), has a very low 0.2% management fee.

If you don’t feel comfortable to trade ETFs on the London exchange, you could look at Amundi funds which are among the lowest cost available locally and generally cheapest to buy through POEMS. I understand that Amundi is also available for SRS.

[Strong Eagle]

To add to malcontent's advice... what is your age, and the total investment time you have before you need to begin drawing down your funds for retirement?

If you are talking about 15 or 20 years out, then you can afford to invest in higher growth, higher risk stocks because, a) over that time period you are able to ride out the ups and downs of the market, and b) if you invest in a real dog, you still have plenty of time to recoup your loss. But if retirement is much closer, then it pays to research mutual funds and ETF's that have done a better job of weathering downturns. Example: I keep some investment money in CD's... a ladder of CD's actually. They are boring and don't pay as much as riskier investments but they are government protected and their value won't change in a downturn.

The absolute worst situation that retirees face is having to sell investments in a downturn because they are not generating the required minimum $$$$ to support you in retirement... a forced sale to pay the bills. This you want to avoid. So depending upon your age and time horizon, you might want to consider a mix of income producing investments and growth investments... typically more in the growth are when you're a long way out, gradually moving to more income investments as you age and need the money. In the end, what you want to avoid is a forced sale when the market is down because you need the money to live.

[malcontent]

Totally agree with SE. What he described is known as “sequence of return risk” a widely discussed topic in financial planning circles - there is plenty of material on the web.

However, there are a lot of portfolio fundamentals that really ought to be in place before getting to that. So my recommendation would be to focus on the overall portfolio construction, then questions like “where do I put this extra $45k” become irrelevant - it just gets added in, per the allocation rules.

[smoulder]

Amundi is definitely a great option to consider. Especially because you can buy almost like fractional shares vs having to buy whole shares which would generally be the case for someone buying CSPX or ISAC.

[tiktok]

For growth: TQQQ (~1100% 10 year return)
For dividend: YMAG (~100% annual yield)

[Strong Eagle]

For growth: TQQQ (~1100% 10 year return)
For dividend: YMAG (~100% annual yield)

YMAG is a high risk options fund. One of its "magnificent 7" is tesla. You don't get those kind of numbers for return without high risk.

TQQQ is also a high risk ETF, only it has been a dog. I can't find anything that supports your claim of 1100%, more like 3.5 per year over 10 years.

I can't imagine using either of these as a long term investment vehicle. If you've got funds to spare, they might be a high risk, speculative investment... not much more.

[tiktok]

TQQQ 10 year return is 29%: https://finance.yahoo.com/quote/TQQQ/performance/

Yes it's risky, but no pain no gain.

[abbby]

TQQQ 10 year return is 29%: https://finance.yahoo.com/quote/TQQQ/performance/

Yes it's risky, but no pain no gain.

Wow high returns..

[abbby]

Btw, do you guys use the candlestick method/MACD method to buy/sell?

[malcontent]

Btw, do you guys use the candlestick method/MACD method to buy/sell?

I am finance trained and learned both technical and fundamental analysis. What you described is part of technical analysis. It’s a bit like reading tea leaves to make a prediction. The overwhelming majority of financial professionals who are experts in these methods cannot beat the market. Warren Buffet is an exception, and he uses fundamental analysis. So, if you think you are the next Warren Buffet, maybe you want to try fundamental analysis? Technical analysis is certainly the less respected of the two. Again, if you read the little book of common sense investing, all will become clear… and you will kick yourself for not taking the easy path and beating most other investors.

[theashiera]

It really depends on your investment goals and risk appetite. If you’re looking for steady income and lower volatility, dividend-paying stocks can be a solid choice—especially for retirees or conservative investors. On the other hand, if you're aiming for long-term capital appreciation and can handle some risk, growth stocks might offer higher returns over time. Personally, I like to maintain a mix of both to balance income and growth. Diversification goes a long way!