If you are clicking into this article expecting that my best investment involves me buying a stock and then selling it within a single week for a 300% profit, I'm afraid I'll have to disappoint you.
In fact, it's nothing near 300% gain and it's also nothing about me being super accurate about stock picking.
It's just simple investing that anyone could do.
I just simply invest in the S&P 500 index on a monthly basis using SRS funds.
That's it. No magic at all. But it turns out to be the best investment I have ever made.
Besides my portfolio results which I update on my blog on a quarterly basis, I also make use of my SRS funds to invest in the S&P 500 index. If you like to know how, you can refer to this article here.
I have started to do this since October 2022. Every single month, I will put the same amount of money into my SRS funds and use it to invest in the S&P 500 index.
Below are the performance results from the index for this time period. You don't see much of a gain in the earlier months, but things really change towards the end of 2023. During this period, the index returns 40+%.
(Source: Yahoo Finance)
Of course, what I really invested in is the Infinity US 500 Stock Index Fund which can be a little different from the actual index. This was one of the few, if not the only option available to me if I want to use my SRS funds to invest in the index.
By simply dollar cost averaging my SRS funds every month, I am now looking at a return of 23%.
Since I am using my SRS funds, I also enjoyed further tax savings on top of this return.
This is why this is the best investment I have ever made.
With the S&P 500 index back at new highs this week, I thought it is timely that I publish this post now. Sometimes, it honestly doesn't take much to be a successful investor. You simply just need to be disciplined and stay the course.
During early May, I remember everyone was saying the market is going south. Just two weeks later, bullish sentiments returned again. When you have invested long enough, you'll realise that such abrupt change in sentiments happens all the time. Who knows when the sentiments will turn bearish again? Nobody could predict.
But what you could do is to just simply invest, do your dollar cost averaging, and ignore the noise. If you are not a stock picker like me, you just simply invest in the index. Even Warren Buffett thinks the same.
He believes it so much that he's willing to put 90% of his wife's inheritance into one single investment- the S&P 500 index.
Sometimes, successful investing is about watching the paint dry.
It's boring. Just like this article.
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