Maximising your investment dollars

Not only risk management makes a difference..

  1.  Learning about min. Commission (Standard Chartered)

    • Min Charge of $10 or 0.2% (You will pay whichever is higher)
      • Eg. If you buy $1,000 worth of stocks – $2 (0.2%) is lower than $ 10 so you will have to pay $10
      • If you buy $6,000 worth of stocks – $12 (0.2%) is higher than $10 so you will have to pay $12
    • Finding the equilibrium will expedite your journey to F.I
      • When you purchase $5,000 worth of stocks in a single transaction you are maximising your min commission and this is vital, especially when you’re starting small (Like me).
      • Eg. If you purchase $1,000 worth of stock once a month (cost = $120) compare to purchase $5,000 worth of stock once every 5 month (cost = $20)
      • The difference between the two is $100 and if you multiply that by 10 times that is a $1,000 dollar opportunity cost
  2. Timing of dividend payout (Nikko Am STI ETF)

    • Dividend payout is during Jan and July (Bi-annually)
      • Eg. You’ve schedule to purchase $5,000 unit worth of stock  in June, you will receive a dividend of $58.136 [1,690 units x 0.0344] within the next month.
      • Imagine a larger number, if you would to purchase 200,000 units ($590k), you will receive a dividend of $6,880 within the next month.
      • Image a well sorted out world, where have found the best company to invest as it is undervalued, financially stable and have high dividend pay out. You will be getting additional money at a faster rate (purchasing ability) to be prepare for the next best investment.

 

In a “maximising” nut shell, the opportunity cost and timing can be challenged by the price of a stock. So make sure the “low” price that you are paying for does offset or  is greater than than the opportunity cost.

“Every dollar makes a difference but only you can let that happen”

+1 Knowledge point

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3 thoughts on “Maximising your investment dollars

  1. Pingback: KSH Holdings Limited – What really matters in a Stock – FinancialVeracity

  2. Pingback: Chemical Industries (Far East) – What really matters in a stock |

  3. Pingback: FCL Treasury – What really matters in a Bond |

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