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Hey everyone,
One of the most common questions I get is: "Where do I even start?" And here's the thing, the answer actually changes based on how much capital you're working with.
Someone with $1,000 has different priorities than someone with $100,000. At lower amounts, you need simplicity and automation. At higher amounts, you can start adding strategic diversification.
This week, I'm doing a deeper dive and breaking down exactly how I would allocate three different portfolio sizes, whether you're just getting started or you've built up significant capital.
What Will Your Retirement Look Like?
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🎯 Quick Takeaway
Your starting capital determines your strategy. With $1,000, keep it dead simple. With $10,000, build a core-satellite portfolio. With $100,000, you can get strategic. But at every level, low costs and broad diversification should anchor your approach.
The $1,000 Portfolio: Keep It Simple
At this level, you don't have much to work with and that's okay. Your goal is to automate your investing and build good habits.
My approach: Put everything into one ETF.
Why just one? Because with $1,000 SGD, you shouldn't be converting currencies or complicating things. Keep it in Singapore dollars and make it accessible.
What I'd buy:
Straits Times Index (STI) ETF - Either:
SPDR STI ETF (Ticker: ES3) - Around $4.50/share
Amundi STI ETF (Ticker: G3B) - Around $4.57/share
The beauty of Singapore-listed ETFs? You can buy just one share at a time (unlike individual Singapore stocks where you need to buy 100 shares minimum).
How I'd deploy it:
Option 1: Invest the full $1,000 in one go
Option 2: Dollar-cost average (DCA) $200-250/month over 4-5 months, buying on the same day each month
Platforms: Interactive Brokers SG, Moomoo, CMC Invest, Longbridge, or Tiger. Any low-cost broker with Singapore exchange access works.
The $10,000 Portfolio: Build Your Core
Now we're talking. At this level, you can start constructing a core-satellite portfolio—roughly 70-80% in a core global allocation, with 20-30% in satellite positions.
The Core: 70% ($7,000) - Global Equity ETF
What I'd buy:
Vanguard FTSE All-World UCITS ETF (Ticker: VWRA)
Listed in London
Accumulating share class (dividends reinvested automatically)
Expense ratio: 0.22% per annum
Exposure: ~64% US, plus Japan, UK, Germany, and other major markets
Why UCITS over US-listed ETFs?
This is critical: Do not buy US-listed ETFs as a Singapore-based investor.
Here's why:
US-listed ETFs charge 30% dividend withholding tax
UCITS ETFs (domiciled in Ireland) charge only 15% withholding tax
Many UCITS ETFs are Accumulating (Acc) in nature, meaning dividends are automatically reinvested into the ETF in a tax-efficient manner
You expose yourself to potential US Estate Tax (40% on anything above US$60,000 worth) if you hold US-domiciled ETFs or individual securities
Satellite Position 1: 20% ($2,000) - Singapore Exposure
What I'd buy:
STI ETF (SPDR ES3 or Amundi G3B)
Why add Singapore when it's less than 1% of global market cap? Because:
It's our home market
Strong currency and reliable cash-generating companies that pay dividends
Denominated in SGD (no currency conversion needed)
Satellite Position 2: 10% ($1,000) - Fixed Income
What I'd buy:
ABF Singapore Bond Index Fund (Ticker: A35)
Low-cost access to Singapore government and quasi-government bonds
Adds stability to the portfolio
How to access these:
Singapore-listed ETFs: Any low-cost broker
London-listed UCITS ETFs: Interactive Brokers or FSMOne
The $100,000 Portfolio: Get Strategic
With $100,000, you can maintain your core while getting more interesting with satellite positions.
The Core: 70% ($70,000) - Global Equity ETF
What I'd buy:
Vanguard FTSE All-World UCITS ETF (VWRA), or
iShares MSCI ACWI UCITS ETF (ISAC)
Either works for broad global exposure.
Satellite Position 1: 10% ($10,000) - Singapore
What I'd buy:
STI ETF (Amundi G3B or SPDR ES3)
Satellite Position 2: 10% ($10,000) - Asian REITs
What I'd buy:
Amundi FTSE EPRA/NAREIT Asia ex-Japan REIT ETF (Ticker: CFA)
Broader Asian real estate exposure
Adds a different flavor to your portfolio
Listed on Singapore Exchange
Satellite Position 3: 5% ($5,000) - Growth Play
What I'd buy:
Lion-OCBC Hang Seng Tech Index ETF (Ticker: HST)
Exposure to China tech giants
Higher growth potential, higher risk
Listed on Singapore Exchange
Satellite Position 4: 5% ($5,000) - Defensive Hedge
To balance out the China tech risk, add something defensive.
What I'd buy:
iShares Physical Gold ETC (Ticker: IGLN)
Listed in London
Expense ratio: 0.12% per annum
Much cheaper than SPDR Gold Shares (GLD) at 0.40%
The One Thing That Stays Constant
Notice what doesn't change across the $10k and $100k portfolios?
The core.
Whether you have $10,000 or $100,000, the foundation is always broad, low-cost global equity exposure. That's your engine for long-term wealth building.
The satellites just add flavor, diversification, and allow you to express specific views but they should never overshadow the core.
Important Notes
These portfolios assume:
You have 20-30+ years until retirement
You're comfortable with equity-heavy allocation
Your CPF serves as your de facto bond allocation (a common approach for Singaporean investors)
If you're closer to retirement or more risk-averse, you'd want to increase your bond allocation accordingly.
🚀 Want the Full Roadmap?
This is just a snapshot. In Investing Made Simple, I walk you through:
✅ How to build a portfolio tailored to your specific situation
✅ Platform selection and step-by-step execution
✅ UCITS vs US-listed ETFs—the complete tax breakdown
✅ Rebalancing strategies and portfolio maintenance
✅ How to adapt your allocation as you build wealth
Stop second-guessing your investment decisions. Build a portfolio you can stick with for decades.
Questions about your portfolio allocation? Hit reply—I read every email.
— Tim