stephenpeterson
New member
Assalamu alaikum brothers/sisters,
I am about 40 and I have only saved about 100k in cash. Now wondering what would be the best option:
Please suggest what would be the best strategy.
Thanks
I am about 40 and I have only saved about 100k in cash. Now wondering what would be the best option:
- Amanah doesn't offer custom portfolio unless the initial deposit is 1m. There are income ETF and growth ETF. So if we are choosing growth option (which is more aggressive) at the beginning and want to convert it to more conservative close to the retirement time, then we have to sell all of the growth fund and buy income fund. It looks like we have to pay a lot of taxes. Fund expense ratio is about 1%.
- Sharia portfolio offers custom portfolio. The fund manager does frequent rebalancing. The fund fee is 1.5%. The annual ROI is 9-13% on average after deducting the fund management fee. The benefit is that we can make it aggressive at the beginning and close to the retirement time, make it more conservative. The benefit IMO is that as we are not converting all the holdings of the portfolio at once, so are not paying as much tax when converting from aggressive to conservative. If we choose SPUS instead of custom portfolio, then we fall back to the similar situation as Amanah. The expense ratio is about 0.5% but the ROI is less compared to Amanah I think.
- Azzad invest has offering of similar custom portfolio which is managed by third party fund managers. They follow the guidelines of Azzad invest. The fund management fee is quite high (1.75%). The person told me that last year their mid cap fund had a return of 45%. He told me it is possible to save up to 1.5m at the time of retirement.
- Some brothers in this forum suggested to buy the same individual stocks as holdings in the funds like Amagx, etc. However, in my understanding, the fund managers are constantly rebalancing. So we can know the current position, say, every quarter or something like. But whatever happened in between we will not know to or can follow. To do rebalancing like the fund managers we have to constantly research and analyze themselves. That is like would take a substantial amount of time.
Please suggest what would be the best strategy.
Thanks