This is a topic which I am interested in and since AI is a hot topic now. I did a prompt on Claude AI and it advised me that I need to consider a few important factors before making specific recommendations:
- at 60, I will be approaching retirement, which typically suggests a more conservative investment approach.
- Before investing, I need to ensure that I have 3-6 months of expenses set aside in liquid savings.
- I can consider the investment options below in Singapore:
- Singapore Savings Bonds (SSBs) as these government-backed bonds offer safety with reasonable returns
- Fixed deposits at Singapore banks as it is more secure but generally lower returns
- CPF accounts if I am still contributing as it offers government-guaranteed returns
- REITs listed on SGX as Singapore have a strong REIT market that can provide dividend income
- Blue-chip Singapore stocks with reliable dividends
- Low-cost index funds tracking Singapore or global markets
- consider spreading my investments across different asset classes
These are all good advice which I agree with mostly. Since I have some spare cash to invest I further prompt Claude AI to give me some advice on which blue-chip stocks I should pick. I told Claude AI that I am looking for both income now and growth for the future. Here are the companies Claude AI suggests:
- DBS Group Holdings (D05.SI): Singapore’s largest bank, known for solid dividends and stability.
- OCBC Bank (O39.SI): Another well-established Singapore bank with a consistent dividend history.
- United Overseas Bank (U11.SI): The third major Singapore bank, also known for reliable dividends.
- Singapore Telecommunications (Z74.SI): While it has faced challenges, Singtel has historically paid dividends and has diverse operations across Asia.
- Singapore Exchange Limited (S68.SI): The operator of Singapore’s securities market tends to provide consistent dividends.
- Keppel Corporation (BN4.SI): Diversified across infrastructure, property, and investments.
- Wilmar International (F34.SI): A leading agribusiness group with global operations.
A balanced approach might include:
- 60-70% in dividend-paying blue chips like those mentioned above
- 20-30% in fixed income investments like Singapore Savings Bonds
- 5-10% in a diversified global ETF for additional growth potential
Out of the 7 Blue-chip stocks that Claude AI suggested, I have already started monitoring them since March 13th. All the 3 local banks in Singapore (DBS, OCBC, and UOB) are my favorite and I am looking for the right price to acquire them.
SingTel and Keppel are the other 2 companies I am interested in as well, and also waiting for the right price to purchase some of their stocks.
I do have a small amount invested in Singapore Savings Bonds. Perhaps I should invest more now.
Blue chip stock selection strategy
This is the strategy suggested by Claude AI. I agree with it:
Look for these qualities in Singapore stocks:
- Consistent dividend history (3+ years)
- Strong balance sheets with manageable debt
- Reasonable payout ratios (40-70%)
- Business models you understand
- Competitive advantages in their sectors
Research Resources
Here are the resources that Claude AI advised me to research. I find them useful and will find times to research on them:
- Company Sources:
- Annual reports and sustainability reports
- Investor relations sections on company websites
- Quarterly financial statements
- Market Information:
- SGX website (www.sgx.com) for announcements and data
- Singapore Business Times (www.businesstimes.com.sg)
- The Straits Times business section
- The Edge Singapore
- Free Analytics Tools:
- SGX StockFacts for fundamental data
- Yahoo Finance for historical charts and basic metrics
- Your brokerage platform’s research tools
Investment Execution Strategy
The execution strategy that Claude AI suggested is interesting and new to me. I have never used this strategy before, mainly I used paper or Excel sheets to monitor and track, and only do it occasionally.
I have lost money invested wrongly in some companies, without doing proper research and purely following others to invest. It is time for me to be prudent do my research and listen to the right people and good resources.
Perhaps that is the reason my investment is not giving me a great return. I should adopt what Claude AI suggested from now:
- Entry Approach:
- Consider buying in 3-4 tranches over 6-12 months for a better average price
- Start with stronger companies during market dips
- Watch quarterly results before making decisions
- Position Sizing:
- Avoid putting more than 10-15% in any single company
- Start with larger, more stable companies (e.g., banks) before moving to others
- Practical Monitoring System:
- Create a simple spreadsheet to track dividends, yields, and total returns
- Set calendar reminders for results announcements of your holdings
- Review portfolio performance quarterly against your income and growth goals
Final Thought
As I approach my retirement age, I need to be prudent in my investment strategy. Invest at the right price, be patient, and wait for the right time to enter the market.
Based on the past, the stock market has low and high cycles. I believe there will be another dip coming in the next few years. I am only 60 years old, presuming that I live till 85 years old. I still have 25 more years to invest. That is enough for me to pick up the right skill and continue to earn awesome income.
Good luck to me and be patient. Always eager to learn new skills and be ready for the right time.
Cheer to all who happen to read my post here.