The title of this article may seem odd however the intent was to imply that unless you are a full time stock picker/fund manager you should avoid buying stocks directly and if you must, limit such allocation to not more than 5-10% of your total portfolio. The reasons for making this seemingly outrageous claim follows:
Singaporeans are known for having one of the highest savings rates in the world. Singapore’s savings to GDP percentage is approximately 50% and far out-weighs the US and UK at around 20%. But this is attributed to our CPF savings scheme. With this high savings rate, does it mean that Singaporeans are well prepared for retirement? With the CPF savings used for housing, medical and education, it does not leave much left for retirement. So then how much do you need to save?