👋 Hey expats, this is Dexter. Welcome to a new edition of Money Abroad, my weekly newsletter where I bring you fresh tips on building wealth while living abroad.

Today in 10 minutes or less, you’ll learn:

• 🇸🇬 How to invest in Singapore as an expat

• 💎 Tips & hacks on stocks, bonds, and real estate

• 🧠 Best (and worst) performing assets in the last 10 years

🇸🇬 How to invest in Singapore as an expat

First post of a two-part series

💫 Recap

Here’s how 75 Singapore expats reported allocating their assets:

• Company equity & real estate holdings were prized by high earners. ~20-100% higher for expats earning >$15k / month vs expats earning less

• Crypto is skewed towards the extremes. ~15-20% of assets for expats earning >$30k and <$10k / month vs <10% of assets for those earning between $10k-$30k / month

• Cash is king for expats earning <$10k / month (30%) vs higher income expats (20%)

• Alternatives had limited adoption (5%) across income levels

⚖️ Principles

I apply these core ideas to my expat investing approach:

• Understand your goals & risk tolerance. Be 100% honest with yourself. (Do you really mean it when you say you can stomach 50% drawdowns?)

• Asset allocation is key. Design your portfolio based on your goals and risk tolerance.

• Invest for the long-term, ie 5-10+ year time horizons.

• Minimize fees. Watch out for hidden commissions and expenses.

• Factor in taxes & compliance costs when you run the numbers.

We’ll cover asset allocation further down the road.

For now, let’s deep dive into how to invest, plus tactical tips & hacks, for each asset class as a Singapore expat:

💎 How to invest, plus tips & tricks, by asset class

📈 Stocks

Stocks are shares of ownership in a publicly-traded company. Let’s include ETFs/index funds.

How to invest

• Invest directly. Interactive Brokers is an online brokerage for expats who plan to move around countries, but want to consolidate to a single brokerage account.

• Invest via Supplemental Retirement Scheme (SRS). Most foreigners are unaware they can save taxes by investing up to $35,700 annually into the government-supported SRS:

  • Benefits include deducting from taxable income, investments compounding tax-free, and 50% withdrawals upon retirement tax-free.

  • To open an account, apply via local banks like DBS, OCBC, or UOB (or choose funds under Endowus or Stashaway).

• Invest via robo advisor (Endowus, Stashaway, Syfe). Good for beginner investors who want to get started easily, save time using automation, and pay low fees (0.2-0.8%). Many expats use robos although with varying results:

Tips & hacks