*Official* Shiny Things club - Part 2

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limster

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OTKWIEv

https://imgur.com/JJ9p8V0

see the stamp duty!! wtf i thought UK LSE ETF no stamp duty!!

that is not the contract note, the contract note is a PDF that you can download. this is not the first time you are buying right?
 

Tiger9119

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i dont think it is indicative....full transaction amount(purchase + all fees) in my trading account balance is definitely deducted liao leh

Someone also mentioned in *Official* Shiny Things thread that it is indicative.
Maybe you should do manual calculation of the trade.
 

limster

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9APoBRa.jpg


Only the contract note is a confirmation. So pls show us your contract note which says stamp duty was charge.
 

numbers

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that is not the contract note, the contract note is a PDF that you can download. this is not the first time you are buying right?

ya not first time buying so big...last time buy small, so didnt really notice the stamp duty. But now buy abit bigger, the stamp duty more than brokerage.

Someone also mentioned in *Official* Shiny Things thread that it is indicative.
Maybe you should do manual calculation of the trade.

trying to find back past eStatement contract note to compare....but they dont store till 1 year online...

I guess the only way is to wait for settlement date and see the final charge
 

Shiny Things

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So, first, this:

Help market is crashing I am panicking

Equity futures markets were pretty exciting when they reopened about an hour ago! The CME's "volatility pauses" kicked in a few times—all that means is that for a ten-second period, nobody is allowed to submit market orders, only limit orders—because stock index futures were selling off so fast.

This felt like a combination of panic selling and an illiquid after-hours market. Stock futures sold off, so market-makers pulled their bids, so futures sold off more, so market-makers pulled their bids more, so... etc etc etc, until eventually enough buyers came back in that the market bounced. It was a smaller version of the flash crash back in 2010, and really I'm a bit annoyed I didn't buy some (I was in a meeting when it all spewed).

Again, your time horizon is not the next few minutes, or even the next few weeks. Your time horizon is the next few decades. Pukes like this shouldn't worry you. They're buying opportunities, not selling opportunities.

Think about this: the 2010 flash crash was 15,000 Dow points ago.

Shiny,

What are your thoughts on IDAP.L?

I don't see the point, really.

Firstly, I don't think "dividend-focused" investments are a particularly good idea, unless you're retired and you desperately need the income.

Secondly, I don't see the point of focusing on APAC. Asia-Pacific stocks aren't especially dividend-heavy, and as a Singaporean investor you've already got plenty of exposure to the APAC region.

Hi Shiny Things!

Stamp Duty for UK/LSE ETFS

I just bought my regular VWRD from LSE and saw the fees from standard chartered!! Brokerage was low as usual. But what surprised me was the stamp duty! wow that stamp duty charged was double my brokerage fee

Anyone encounter the same issue ? last year i remember no stamp duty charged on LSE etfs.

There shouldn't be any stamp duty on LSE ETFs. If you actually get charged this - if it actually gets debited from your account - call Stanchart and find out what the hell is going on.

Hey shiny things, ask you something huh, if will IB close my account if my balance remains zero for many months?

@bbcwatcher

Yeah, probably. They'll try to debit your account for a few months of fees, and eventually close it.
 

numbers

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Thanks shinythings.

Just received the actual contract note. And PHEW!! no stamp duty. !!

Btw what bond ETF do you guys suggest or buy?

I saw a few but not sure which one so I went for AGGG (ishares global aggregate bond etf)
 
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dm1688

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Hey all

neglected my investments for a while now so doing some housekeeping this end of year so as to better plan for 2019.

got a qn about this 110 rule thingy. Does the SSB or CPF count as bonds? Or as cash equivalents? Do i disregard SSB and CPF and only count like the ABF as a true bond?


Advice greatly appreciated thanks!
 

highsulphur

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Hey all

neglected my investments for a while now so doing some housekeeping this end of year so as to better plan for 2019.

got a qn about this 110 rule thingy. Does the SSB or CPF count as bonds? Or as cash equivalents? Do i disregard SSB and CPF and only count like the ABF as a true bond?


Advice greatly appreciated thanks!

I count cpf as my bond component
 

numbers

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i dont count cpf as bond. There is still risk if government can change rule or if non-pap government will do foolish things.

Mostly apply to those still young like me where retirement/withdrawal age is still 30+ years away
 

wannabelazy

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For portfolio size of six figures and up, how necessary is it to have EIMI in addition to IWDA? If EIMI is just 10% of the global portion, it's not really that significant right? Is there a good case for including or excluding it?
 

BBCWatcher

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i dont count cpf as bond.
Well, what do you count it as then?

There is still risk if government can change rule....
Yes, the government could start taxing your stocks tomorrow, which is much more likely (in any rational analysis) than the government taxing CPF assets. But they'd still be stocks, and you wouldn't stop counting them.

This isn't complicated. All assets count, so count them. You can add footnotes or asterisks if you wish, but count them.
 
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BBCWatcher

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For portfolio size of six figures and up, how necessary is it to have EIMI in addition to IWDA? If EIMI is just 10% of the global portion, it's not really that significant right? Is there a good case for including or excluding it?
It's not too important.

If you're concerned about the additional expenses involved in adding a ticker to your portfolio, no problem, skip it. Or pick VWRD which effectively blends IWDA+EIMI, albeit with some minor disadvantages compared to IWDA.
 

numbers

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Well, what do you count it as then?


Yes, the government could start taxing your stocks tomorrow, which is much more likely (in any rational analysis) than the government taxing CPF assets. But they'd still be stocks, and you wouldn't stop counting them.

This isn't complicated. All assets count, so count them. You can add footnotes or asterisks if you wish, but count them.

Can count as property downpayment

yea they can tax stocks but at the end of the day u can choose to liquidate and withdraw whether at loss or profit. But CPF withdrawal, u have no control. Let's say the government taxes dividend and capital gains, then we do what is done for ETF, look for the preferential tax treatment or lowest cost route. We can sort of control or optimize this.

But CPF? u cant do much until it goes into your bank account or when u receive the notification allowing for withdrawal. Sure, u might use it for investment but even liquidating cpf investment goes back inside.
 

BBCWatcher

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Can count as property downpayment
That's not an asset class for purposes of making portfolio allocation decisions.

yea they can tax stocks but at the end of the day u can choose to liquidate and withdraw whether at loss or profit.
Or not. The government has lots of power to change whatever rules it wishes. The government could levy a 90% tax on "short-term" stock capital gains, for example. (Would that give you pause?) Practically anything is possible, and most things have happened somewhere in the world at some point.

But CPF withdrawal, u have no control.
In fact, you do, and under current rules. You're free to terminate your status of/with Singapore, leave Singapore (and the immediate region), and withdraw every single dime of your CPF assets. If you wish. Yes, some citizens and permanent residents really do this. I don't think it's a great idea, but people do it anyway.

....But back up here, because you're making something very simple way too complicated. You're digging deep into footnotes and asterisks, and that's just not necessary when deciding on your investment portfolio allocations. Just tally up all your assets, assign those assets to a couple asset classes ("stocks and stock-likes" and "bonds and bond-likes" work), decide on a desired split (e.g. 80%-20%) that makes sense for your investing time horizon, and then see whether and how that desired allocation can be put into effect in the best way(s) possible. But just count it all. If it's a long-term bond-like paying 4% interest with a minimum holding period, OK, so what? It's still a bond-like, so count it in that bucket.
 
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kram62

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Part of the SSB is part of my emergency fund. Do you still count it when calculating the equity vs bond ratio or is it supposed to be excluded from the calculation?
 

BBCWatcher

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Do you still count it when calculating the equity vs bond ratio or is it supposed to be excluded from the calculation?
It's an asset, so you include it.

Portfolio allocations should be decided on a total asset basis. If nothing else, it's simpler that way. Emergency reserve fund decisions are separate decisions. It's perfectly fine, even better than fine, for specific assets to satisfy two or more financial goals.
 

yteamm

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Hi Shiny, BBCW, and all,

I've just finished reading the past 200+ pages in this thread and Shiny's book earlier this week, and I'm extremely new to investing. I'll like to thank both of you for the insightful recommendations and replies to all sorts of questions. I'm a Singaporean (29yrs old, no dependents), currently working in Japan as I graduated early this year (am also a tax resident of Japan, it's been about 10 months since I moved here). I'm considering myself an international nomad as I have no inclination where I would settle down/retire 30 years later.

Current plan is to follow the steps you have laid out in Shiny's book, insurance, emergency fund, then invest rest into IWDA through IB but am still confused on details regarding tax.

Please excuse my newbie questions,
1) If I did my homework correctly, I'm considered a non-permanent resident of Japan. Therefore non-japan source of income are non-taxable. But I'm confused when I start diving into the details what is considered taxable. As IWDA reinvests dividends, are these dividends considered non-japan source of income if I buy IWDA them through IB using Jap local bank account? Meaning to say the Japanese government will know when I transfer Yen to USD through Japan local bank account, thus I believe the bank will report to the Jap Gov due to tax compliance. Or am I overthinking and over complicating all of it or maybe I'm just confused on the terms used for understanding tax?

2) If the answer to the previous question is yes and I will be taxed (20.315%) on dividends. Would it make more sense for me to remit Yen to Singapore local bank via TransferWise, then transfer to IB to buy IWDA, all the while eating up FX charges. I believe total FX charges would be still significant less than 20% tax. But is this considered tax avoidance?

3) Even if I don't plan to retire in Singapore, would it still be wise to invest in ETFs in Singapore, maybe 10-20% of my portfolio as a backup plan? As it's still the only country where I can fall back upon.

4) I'll like to understand more about the state nearing (7 years?) to retirement, since stocks are not currency, does it make sense to still think about returning back to SG to enjoy retirement as personal investments are non-taxable? Or am I overthinking about ramifications which are 20+ years later down the road?

5) I'm on the fence on this on self-contribution to CPF (naturally my Jap company doesn't contribute to CPF), I'll like to hear your take on this. Reading through many of BBCW replies, where if you have no idea where you'll retire, it kinda make sense to take on globalised investments such as IWDA 80% and CORP 20% of my portfolio?

Looking forward to your opinions or advice!

Let me know if this isn't the correct thread to ask for clarifications regarding tax.
 

Maeda_Toshiie

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Hi Shiny, BBCW, and all,

I've just finished reading the past 200+ pages in this thread and Shiny's book earlier this week, and I'm extremely new to investing. I'll like to thank both of you for the insightful recommendations and replies to all sorts of questions. I'm a Singaporean (29yrs old, no dependents), currently working in Japan as I graduated early this year (am also a tax resident of Japan, it's been about 10 months since I moved here). I'm considering myself an international nomad as I have no inclination where I would settle down/retire 30 years later.

Current plan is to follow the steps you have laid out in Shiny's book, insurance, emergency fund, then invest rest into IWDA through IB but am still confused on details regarding tax.

Please excuse my newbie questions,
1) If I did my homework correctly, I'm considered a non-permanent resident of Japan. Therefore non-japan source of income are non-taxable. But I'm confused when I start diving into the details what is considered taxable. As IWDA reinvests dividends, are these dividends considered non-japan source of income if I buy IWDA them through IB using Jap local bank account? Meaning to say the Japanese government will know when I transfer Yen to USD through Japan local bank account, thus I believe the bank will report to the Jap Gov due to tax compliance. Or am I overthinking and over complicating all of it or maybe I'm just confused on the terms used for understanding tax?

JP huh? Tokyo? Can I crash at your place if I fly there for concerts? Just kidding.

Note that IDWA does have JP holdings, so I suspect it will complicate matters. I think you have to check with local experts on taxes to clarify.

2) If the answer to the previous question is yes and I will be taxed (20.315%) on dividends. Would it make more sense for me to remit Yen to Singapore local bank via TransferWise, then transfer to IB to buy IWDA, all the while eating up FX charges. I believe total FX charges would be still significant less than 20% tax. But is this considered tax avoidance?

Probably yes. Don't screw around with such things. Check with local tax experts (check with 国税庁?).

3) Even if I don't plan to retire in Singapore, would it still be wise to invest in ETFs in Singapore, maybe 10-20% of my portfolio as a backup plan? As it's still the only country where I can fall back upon.

4) I'll like to understand more about the state nearing (7 years?) to retirement, since stocks are not currency, does it make sense to still think about returning back to SG to enjoy retirement as personal investments are non-taxable? Or am I overthinking about ramifications which are 20+ years later down the road?

5) I'm on the fence on this on self-contribution to CPF (naturally my Jap company doesn't contribute to CPF), I'll like to hear your take on this. Reading through many of BBCW replies, where if you have no idea where you'll retire, it kinda make sense to take on globalised investments such as IWDA 80% and CORP 20% of my portfolio?

Looking forward to your opinions or advice!

Let me know if this isn't the correct thread to ask for clarifications regarding tax.


How long do you expect to stay in Japan? In Japan, you will be pension contributions. Meanwhile, you are not contributing (unless you do money transfers and make voluntary contributions).

IMO, don't put money into SG ETFs. Do a shift in your portfolio only when you actually move back to SG.
 
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