*Official* Shiny Things club

[unhinged_loon]

Hi,

Sorry, I don't really understand about the bit about the price of the ETF being 2 vs 200. Say if I have 20K to invest, wouldn't 10000 shares (if price is $2) vs 100 shares (if price is $200) be better?

Why does the number of shares matter??? The brokerage fee is still charged based on the value of the transaction. The expense ratio of the ETF is still based on the total value of the fund. The total value of the assets is what that matters.

Does buyers of ETF consider whether the mkt is bullish when they buy ETFs? or it doesn't matters??

Please read up on the concept of DCA:
http://www.investopedia.com/terms/d/dollarcostaveraging.asp

 

[kevinkoh1992]

Hi,

Sorry, I don't really understand about the bit about the price of the ETF being 2 vs 200. Say if I have 20K to invest, wouldn't 10000 shares (if price is $2) vs 100 shares (if price is $200) be better?

Does buyers of ETF consider whether the mkt is bullish when they buy ETFs? or it doesn't matters??

If STI went up by 1% from 2000pts to 2020pts, the $2 etf will rise to $2.02, and the $200 etf will rise to $202. In both cases your 20k investment will still grow by the same amount regardless of which etf you bought; you would have an unrealised p/l of $200.

The strategy recommend by ST is not to time the market, but to buy and hold. It is not about the time of the market, but the time in the market.

Sent from Google PIXEL using GAGT

 

[InterestingStuff]

Shiny,
Any knowledge on VIX term structure curve and the forecasting of the 4-5months out ,betting contango to rise in the far out months?thx

 

[w1rbelw1nd]

IMO, medical coverage is a highly personal and discretionary decision. I am from a relatively privileged background, and for my age, family genetics, how I take care of myself, and how I have sufficient wealth/medisave for deductibles and coinsurance, for MYSELF, as charged policies are irrelevant.

The question is, which professionals can we
trust to come to a decision which states that we do not have need for additional coverage?

So after reviewing the data from MOH, you feel that as-charged policies are not all that important as medishield life's coverage and limits are adequate?

 

[Chronology]

Hi everyone,

I've just started working and I have put aside about $635 every month for investing. I would like to purchase STI ETF, ABF Bond Index as well as VWRD.

My question is, with a limited amount of $635, would it still be sensible to DCA every month? Given that there is a minimum commission of $10 per trade with SCB.

Alternatively, what would be the optimal amount to save up to, before performing regular purchases of the ETFs?

Appreciate your inputs.

Thank you!

 

[sendtoryan]

Please read up on the concept of DCA:

thanks bro. my plan is actually to do an upfront lump sum investment of 20k.. followed by a strict monthly $600 contribution every month thereafter. Do you think it is advisable to do the lump sum up front or go for a monthly contribution say of 1k-2K/mth for the next 10- 20 mths before I go to the $600???

 

[Hippocrates]

Hi Shiny Things, I tried to buy your book i kindle store but I wasn't able to do so. Is there a geographical restriction that the book is often available in certain countries?

Thanks!

 

[celeron787]

Can I just check, for SCB when transferring funds into the securities settlement account, which one should i transfer to?

FCY SECURITIES SETTLEMENT ACCOUNT USD
FCY SECURITIES SETTLEMENT ACCOUNT GBP
SECURITIES SETTLEMENT ACCOUNT SGD

Also, for the minimum of $1000 account balance, does it only apply to the esavers account or to every of these settlement accounts?

Thanks in advance!

 

[o00001]

Can I just check, for SCB when transferring funds into the securities settlement account, which one should i transfer to?

FCY SECURITIES SETTLEMENT ACCOUNT USD
FCY SECURITIES SETTLEMENT ACCOUNT GBP
SECURITIES SETTLEMENT ACCOUNT SGD

Also, for the minimum of $1000 account balance, does it only apply to the esavers account or to every of these settlement accounts?

Thanks in advance!

Depends whether the securities you're buying is in gbp or usd. Min is for esavers acct only. Settlement accts no min.

 

[revhappy]

Can I just check, for SCB when transferring funds into the securities settlement account, which one should i transfer to?

FCY SECURITIES SETTLEMENT ACCOUNT USD
FCY SECURITIES SETTLEMENT ACCOUNT GBP
SECURITIES SETTLEMENT ACCOUNT SGD

Also, for the minimum of $1000 account balance, does it only apply to the esavers account or to every of these settlement accounts?

Thanks in advance!

It depends on which currency securities you planning to buy. It also doesn't depend on exchange. For example, on LSE, SGX and HKEX there are USD denominated securities. So USD is the most common currency to buy securities outside of SGD denominated securities.

But do a lot of research before converting your SGD to another currency. You lose atleast 0.5% straight away even before making any profits. Then if you want it back in SGD, you will lose another 0.5% atleast.

I wish there were SGD denominated global ETFs trading on SGX, but nope. Unit trusts are the only way to keep your SGD as is and invest globally and at the same time hedge FX exposure. But apparently their management fees are high and they underperform markets most of the time.

 

[unhinged_loon]

thanks bro. my plan is actually to do an upfront lump sum investment of 20k.. followed by a strict monthly $600 contribution every month thereafter. Do you think it is advisable to do the lump sum up front or go for a monthly contribution say of 1k-2K/mth for the next 10- 20 mths before I go to the $600???

It depends on what you are comfortable with. If you feel that the STI is not going to continue climbing over the 1-2 years, you can spread it out.

If you feel that the STI is going to continue climbing to greater heights over the 1-2 years, then dump everything in right now.

No one has a crystal ball to prognostigate the macro economic factors, geopolitical risks, and central bank policies, and how all these will influencethe stock markets over the next 1-2 years.

 

[Chronology]

Hi everyone,

I've just started working and I have put aside about $635 every month for investing. I would like to purchase STI ETF, ABF Bond Index as well as VWRD.

My question is, with a limited amount of $635, would it still be sensible to DCA every month? Given that there is a minimum commission of $10 per trade with SCB.

Alternatively, what would be the optimal amount to save up to, before performing regular purchases of the ETFs?

Appreciate your inputs.

Thank you!

Anyone care to share your inputs..?

Thanks!

 

[unhinged_loon]

You have two options:

1. Buy every 2 or 3 months.

2. Use RSPs for STI ETF and ABF.

 

[Presto80]

1) It's applied to each individual order - so yes, in your example, $20.

2) If it's around $1k each month, Stanchart is pretty cost-effective really. POSB Invest-Saver charges 1%; there are other options that are cheaper, but they tend to get you on hidden fees as well.

Shiny, thanks for the clarification.

I was thinking of adding A35 which is highly recommended in my portfolio as part of the 1K plus investment per month.

Can I say that I will have to alternate ES3 and A35 e.g Jan All ES3 Feb All A35 so that the charges incurred will not be so high.
Is this better strategy or buying both each month(make up to 1k plus of trade) and incurring 20?

thank you

 

[kennethtbh]

Shiny, thanks for the clarification.

I was thinking of adding A35 which is highly recommended in my portfolio as part of the 1K plus investment per month.

Can I say that I will have to alternate ES3 and A35 e.g Jan All ES3 Feb All A35 so that the charges incurred will not be so high.
Is this better strategy or buying both each month(make up to 1k plus of trade) and incurring 20?

thank you

alternating and buying the one u have less of each mth is usually better as u incur less cost.

 

[Lucky_Farmer]

Originally Posted by Chronology:
Hi everyone,

I've just started working and I have put aside about $635 every month for investing. I would like to purchase STI ETF, ABF Bond Index as well as VWRD.

My question is, with a limited amount of $635, would it still be sensible to DCA every month? Given that there is a minimum commission of $10 per trade with SCB.

Alternatively, what would be the optimal amount to save up to, before performing regular purchases of the ETFs?

Appreciate your inputs.

Thank you!

I would use posb invest saver for STI and ABF Bonds every month (invest saver fees are 1% for STI and 0.5% for ABF bonds - no minimum). I think you should wait for a few months before putting the monies into VRWD - If you were to invest 300sgd into VRWD every month, you will have to pay at least 10sgd fee per month because of the minimum fee cap - this means 3.33% fee per purchase - too expensive. I would save until the investmenet amount is over 1000 before investing to keep the fee below 1%.

 

[tcchuin]

Any comments on one of the newer robo-advisor, https://www.autowealth.sg/index.php ?

 

[Lucky_Farmer]

Hi ST,

Two quick questions:

Do you use any inflation ratio in calculating your retirement amount? If I were to retire tomorrow, I would like to have at least usd 1M in my account so I am currently investing for this goal. However, usd 1M in thirty years may not be worth as much as usd 1M in 2017. I therefore wondered how much more I should add to the 1M figure to ensure my retirement amount will not be short in 30 years.

Secondly, grateful if you could share how you track your investment. Since brokers have different fee policies, I might have to split my investment into three parts with three brokers (IBR, SCB and POSB) to keep the fees as low as possible. I then realise it is going to be a pain to track all three to know when to rebalance, sell or buy more, etc.

Thanks

 

[Chronology]

I would use posb invest saver for STI and ABF Bonds every month (invest saver fees are 1% for STI and 0.5% for ABF bonds - no minimum). I think you should wait for a few months before putting the monies into VRWD - If you were to invest 300sgd into VRWD every month, you will have to pay at least 10sgd fee per month because of the minimum fee cap - this means 3.33% fee per purchase - too expensive. I would save until the investmenet amount is over 1000 before investing to keep the fee below 1%.

Thank you for your advice!

May I ask, when you mention "keep the fee below 1%", would you be referring to 1% pertaining to a single ETF or a culmination of all three ETFs?

For example, if I were to invest $1200 in total, assuming I execute a total of 3 trades which would mean $30 in fees/2.5% in expense for these three trades. Would that be below 1%? (2.5% divided by 3)

 

[limster]

Any comments on one of the newer robo-advisor, https://www.autowealth.sg/index.php ?

it is unlikely that the SG market is large enough for multiple robo-advisors, in which case one or more will close after a few years due to lack of business.