How to setup fsmone to automate your finances
Investment Personal Finance

Guide: How to setup FSMOne to automate your investments

Recently I’ve written a blog post on how to automate your finances. In that post, one of the main ways I automate my finances is through FSMOne. Its unique proposition is in its low-cost RSP product at only $1 a month. In this guide, I’ll go through the ways to setup FSMOne to automate your investments so that you can set it and forget it! If you’re looking for more information on FSMOne as a brokerage, you can check out my review of it.

Why RSP

First, let me explain what is RSP and why you should use it. RSP is an abbreviation for Regular Savings Plan. It is a service provided by brokerages or banks to allow you to buy a set amount of stocks regularly, usually monthly. They tend to be low cost and is done automatically.

I love RSPs because it takes away the emotional aspect of investing. I do not have to worry when to enter the stock market as my stocks are purchased for me at fixed dates every month. Since I know that I’m going long for stocks, I don’t want the short term fluctuations of my stock holdings to affect my life.

By using RSP, I’m also partaking in Dollar Cost Averaging (DCA), a tried and tested investing strategy that involves purchasing stocks over a period of time to average out the volatility of the stock.

Why FSMOne

The main reason is the cost and the sheer amount of ETF options available on the platform.

Guide to setup FSMOne. The fee structure for RSP is all around $1.
Source: FSMOne.com. Very affordable RSP prices

They have a total of 49 different ETFs across multiple different markets! Some of the ones I really like are ES3 (STI) and IVV (S&P 500). If you’re looking to RSP into US ETFs, I recommend that you first understand if the fees are worth it for you.

How to set up

Now that you’re convinced, let’s get started with setting up your FSMOne RSP system.

Step 1: Set up FSMOne account

Visit the FSMOne’s sign up page. The whole process is very straight forward and you can use your MyInfo to set up everything. It took me less than 5 minutes to set it up.

Source: FSMOne.com. Make sure you sign up a Personal Account.

Step 2: Set up a Recurring Cash Deposit

Go to CASH SOLUTIONS > Apply Recurring Top-Up Plan

Source: FSMOne.com

Fill up the form. For the account, select the currency denomination that you want to buy the ETF with. If you’re buying into ES3, then SGD is fine. If you’re buying S&P 500 ETF, then you should put USD. Your deposited money will be automatically converted on the day of debit.

Once you’re done, print out the DDA Form, fill it up and snail mail it to FSMOne! This will take about 1-2 weeks for them and your bank to process the GIRO. You’ll receive an email confirmation once its set up.

Step 3: Choose your ETF

To navigate to the RSP page, go to MY ACCOUNT > Regular Savings Plan.

Guide FSMOne RSP setup. Click on the Regular Savings Plan tab.
Source: FSMOne.com

Select Apply RSP under the ETF section.

In FSMOne's logged in page. Click on Apply RSP under ETF section.
Source: FSMOne.com

From here, simply select the ETF that you want to purchase and click Add RSP.

Guide: All the ETF options available on FSMOne's page. Easy way to setup your automated finance system!

Select the amount that you want to be purchased monthly and that’s it! Your stock will be purchased on the 8th of every month automatically.

Note that the first GIRO debit of your cash account might not coincide with the ETF purchase so you’ll need to first manually top up cash into the account for the first month.

Conclusion

That’s it! It’s really so simple. FSMOne was really a game-changer in the RSP world with its wide variety of options and cheap rates. In recent years, banks such as DBS has also offered cheap RSP services but their options pales in comparison.

I hope that this guide is helpful to those of you starting out your finance automation journey and trying to setup FSMOne RSP system. I’ll be sharing more in-depth automation tricks so keep a lookout for those! Or you can simply subscribe to be an MDS insider to get the latest updates on all my posts.

Leave a Reply

Your email address will not be published. Required fields are marked *